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Is “smart charging” policy for electric vehicles worthwhile?

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  • 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
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    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.
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    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).
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