IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v41y2012icp259-268.html
   My bibliography  Save this article

Is “smart charging” policy for electric vehicles worthwhile?

Author

Listed:
  • Lyon, Thomas P.
  • Michelin, Mark
  • Jongejan, Arie
  • Leahy, Thomas

Abstract

Plug-in electric vehicles (PEVs) offer the potential for both reducing reliance on oil and reducing greenhouse gas emissions. However, they may also increase the demand for electricity during peak periods, thereby requiring the construction of new generating units and increasing total costs to electricity consumers. We evaluate the economic costs and benefits of policies that shift charging demand from daytime to off-peak nighttime hours, using data for two different independent system operators and considering a number of sensitivity analyses. We find that the total savings from demand-shifting run into the billions of dollars, though as a percentage of total electricity costs they are quite small. The value of smart charging policy varies significantly across electric grids. Time-of-use pricing is worthwhile under all of the cases we study, but the economic benefits of optimal charging of electric vehicles do not appear to justify investing in the smart grid infrastructure required to implement real-time pricing.

Suggested Citation

  • Lyon, Thomas P. & Michelin, Mark & Jongejan, Arie & Leahy, Thomas, 2012. "Is “smart charging” policy for electric vehicles worthwhile?," Energy Policy, Elsevier, vol. 41(C), pages 259-268.
    • Handle: RePEc:eee:enepol:v:41:y:2012:i:c:p:259-268
    DOI: 10.1016/j.enpol.2011.10.045
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421511008299
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2011.10.045?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Frijns, Bart & Lehnert, Thorsten & Zwinkels, Remco C.J., 2010. "Behavioral heterogeneity in the option market," Journal of Economic Dynamics and Control, Elsevier, vol. 34(11), pages 2273-2287, November.
    2. Paul L. Joskow, 2006. "Markets for Power in the United States: An Interim Assessment," The Energy Journal, , vol. 27(1), pages 1-36, January.
    3. ., 2010. "Reforms of the Labour Market and Industrial Relations," Chapters, in: The Korean Economy in Transition, chapter 11, Edward Elgar Publishing.
    4. Mit, 2010. "Lemons, Market Shutdowns and Learning," 2010 Meeting Papers 1098, Society for Economic Dynamics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yong, Jia Ying & Ramachandaramurthy, Vigna K. & Tan, Kang Miao & Mithulananthan, N., 2015. "A review on the state-of-the-art technologies of electric vehicle, its impacts and prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 365-385.
    2. Richardson, David B., 2013. "Electric vehicles and the electric grid: A review of modeling approaches, Impacts, and renewable energy integration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 247-254.
    3. Ji, Zhenya & Huang, Xueliang, 2018. "Plug-in electric vehicle charging infrastructure deployment of China towards 2020: Policies, methodologies, and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 710-727.
    4. Fetene, Gebeyehu M. & Hirte, Georg & Kaplan, Sigal & Prato, Carlo G. & Tscharaktschiew, Stefan, 2016. "The economics of workplace charging," Transportation Research Part B: Methodological, Elsevier, vol. 88(C), pages 93-118.
    5. Keller, Victor & English, Jeffrey & Fernandez, Julian & Wade, Cameron & Fowler, McKenzie & Scholtysik, Sven & Palmer-Wilson, Kevin & Donald, James & Robertson, Bryson & Wild, Peter & Crawford, Curran , 2019. "Electrification of road transportation with utility controlled charging: A case study for British Columbia with a 93% renewable electricity target," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    6. Morsy Nour & José Pablo Chaves-Ávila & Gaber Magdy & Álvaro Sánchez-Miralles, 2020. "Review of Positive and Negative Impacts of Electric Vehicles Charging on Electric Power Systems," Energies, MDPI, vol. 13(18), pages 1-34, September.
    7. Kaschub, Thomas & Jochem, Patrick & Fichtner, Wolf, 2016. "Solar energy storage in German households: profitability, load changes and flexibility," Energy Policy, Elsevier, vol. 98(C), pages 520-532.
    8. J. Javid, Roxana & Nejat, Ali & Hayhoe, Katharine, 2014. "Selection of CO2 mitigation strategies for road transportation in the United States using a multi-criteria approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 960-972.
    9. Armstrong, M. & El Hajj Moussa, C. & Adnot, J. & Galli, A. & Riviere, P., 2013. "Optimal recharging strategy for battery-switch stations for electric vehicles in France," Energy Policy, Elsevier, vol. 60(C), pages 569-582.
    10. Bellekom, Sandra & Benders, René & Pelgröm, Steef & Moll, Henk, 2012. "Electric cars and wind energy: Two problems, one solution? A study to combine wind energy and electric cars in 2020 in The Netherlands," Energy, Elsevier, vol. 45(1), pages 859-866.
    11. Langbroek, Joram H.M. & Franklin, Joel P. & Susilo, Yusak O., 2017. "When do you charge your electric vehicle? A stated adaptation approach," Energy Policy, Elsevier, vol. 108(C), pages 565-573.
    12. Darby, Sarah J. & McKenna, Eoghan, 2012. "Social implications of residential demand response in cool temperate climates," Energy Policy, Elsevier, vol. 49(C), pages 759-769.
    13. Pol Olivella-Rosell & Roberto Villafafila-Robles & Andreas Sumper & Joan Bergas-Jané, 2015. "Probabilistic Agent-Based Model of Electric Vehicle Charging Demand to Analyse the Impact on Distribution Networks," Energies, MDPI, vol. 8(5), pages 1-28, May.
    14. Bonges, Henry A. & Lusk, Anne C., 2016. "Addressing electric vehicle (EV) sales and range anxiety through parking layout, policy and regulation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 83(C), pages 63-73.
    15. Hu, Junjie & Morais, Hugo & Sousa, Tiago & Lind, Morten, 2016. "Electric vehicle fleet management in smart grids: A review of services, optimization and control aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 1207-1226.
    16. Niels Leemput & Frederik Geth & Juan Van Roy & Pol Olivella-Rosell & Johan Driesen & Andreas Sumper, 2015. "MV and LV Residential Grid Impact of Combined Slow and Fast Charging of Electric Vehicles," Energies, MDPI, vol. 8(3), pages 1-24, March.
    17. Crozier, Constance & Apostolopoulou, Dimitra & McCulloch, Malcolm, 2018. "Mitigating the impact of personal vehicle electrification: A power generation perspective," Energy Policy, Elsevier, vol. 118(C), pages 474-481.
    18. Szinai, Julia K. & Sheppard, Colin J.R. & Abhyankar, Nikit & Gopal, Anand R., 2020. "Reduced grid operating costs and renewable energy curtailment with electric vehicle charge management," Energy Policy, Elsevier, vol. 136(C).
    19. Wei Gu & Haojun Yu & Wei Liu & Junpeng Zhu & Xiaohui Xu, 2013. "Demand Response and Economic Dispatch of Power Systems Considering Large-Scale Plug-in Hybrid Electric Vehicles/Electric Vehicles (PHEVs/EVs): A Review," Energies, MDPI, vol. 6(9), pages 1-24, August.
    20. Yumiko Iwafune & Kazuhiko Ogimoto & Hitoshi Azuma, 2019. "Integration of Electric Vehicles into the Electric Power System Based on Results of Road Traffic Census," Energies, MDPI, vol. 12(10), pages 1-21, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Polito, Vito & Wickens, Michael, 2015. "Sovereign credit ratings in the European Union: A model-based fiscal analysis," European Economic Review, Elsevier, vol. 78(C), pages 220-247.
    2. Anber Abraheem Shlash Mohammad, 2017. "The Impact of Brand Experiences, Brand Equity and Corporate Branding on Brand Loyalty: Evidence from Jordan," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(3), pages 58-69, July.
    3. Ragoobar, Tricia & Whalley, Jason & Harle, David, 2011. "Public and private intervention for next-generation access deployment: Possibilities for three European countries," Telecommunications Policy, Elsevier, vol. 35(9), pages 827-841.
    4. Moore, J. & Woo, C.K. & Horii, B. & Price, S. & Olson, A., 2010. "Estimating the option value of a non-firm electricity tariff," Energy, Elsevier, vol. 35(4), pages 1609-1614.
    5. Peter Cramton & Steven Stoft, 2006. "The Convergence of Market Designs for Adequate Generating Capacity," Papers of Peter Cramton 06mdfra, University of Maryland, Department of Economics - Peter Cramton, revised 2006.
    6. Lawrence Christiano & Daisuke Ikeda, 2011. "Government Policy, Credit Markets and Economic Activity," NBER Working Papers 17142, National Bureau of Economic Research, Inc.
    7. Makarewicz, Tomasz, 2021. "Traders, forecasters and financial instability: A model of individual learning of anchor-and-adjustment heuristics," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 626-673.
    8. Liu, Chunping & Minford, Patrick, 2014. "Comparing behavioural and rational expectations for the US post-war economy," Economic Modelling, Elsevier, vol. 43(C), pages 407-415.
    9. Paul L. Borrill & Leigh Tesfatsion, 2011. "Agent-based Modeling: The Right Mathematics for the Social Sciences?," Chapters, in: John B. Davis & D. Wade Hands (ed.), The Elgar Companion to Recent Economic Methodology, chapter 11, Edward Elgar Publishing.
    10. Richard O’Neill & Emily Fisher & Benjamin Hobbs & Ross Baldick, 2008. "Towards a complete real-time electricity market design," Journal of Regulatory Economics, Springer, vol. 34(3), pages 220-250, December.
    11. Hajime Tomura, 2010. "Liquidity Transformation and Bank Capital Requirements," Staff Working Papers 10-22, Bank of Canada.
    12. Kaller, Alexander & Bielen, Samantha & Marneffe, Wim, 2018. "The impact of regulatory quality and corruption on residential electricity prices in the context of electricity market reforms," Energy Policy, Elsevier, vol. 123(C), pages 514-524.
    13. repec:ers:journl:v:xv:y:2012:i:sie:p:157-194 is not listed on IDEAS
    14. Maya Eden, 2019. "International Liquidity Rents," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 31, pages 147-159, January.
    15. Bart Frijns & Aaron Gilbert & Alireza Tourani-Rad, 2011. "Heterogeneity and sentiment in the stock market," International Journal of Behavioural Accounting and Finance, Inderscience Enterprises Ltd, vol. 2(2), pages 140-151.
    16. C. Robert Clark & Andrew Leach, 2007. "The Potential for Electricity Market Restructuring in Quebec," Canadian Public Policy, University of Toronto Press, vol. 33(1), pages 1-20, March.
    17. ap Gwilym, Rhys, 2009. "The Monetary Policy Implications of Behavioral Asset Bubbles," Cardiff Economics Working Papers E2009/18, Cardiff University, Cardiff Business School, Economics Section.
    18. Somani, Abhishek, 2012. "Financial risk management and market performance in restructured electric power markets: Theoretical and agent-based test bed studies," ISU General Staff Papers 201201010800003479, Iowa State University, Department of Economics.
    19. Isabel Soares & Paula Sarmento, 2012. "Unbundling in the Telecommunications and the Electricity Sectors: How Far should it Go?," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 157-194.
    20. Saki Kawakubo & Kiyoshi Izumi & Shinobu Yoshimura, 2014. "Analysis Of An Option Market Dynamics Based On A Heterogeneous Agent Model," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 21(2), pages 105-128, April.
    21. Michael G. Pollitt and Karim L. Anaya, 2016. "Can current electricity markets cope with high shares of renewables? A comparison of approaches in Germany, the UK and the State of New York," The Energy Journal, International Association for Energy Economics, vol. 0(Bollino-M).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:41:y:2012:i:c:p:259-268. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.