IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v43y2012icp136-144.html
   My bibliography  Save this article

The economics of fast charging infrastructure for electric vehicles

Author

Listed:
  • Schroeder, Andreas
  • Traber, Thure

Abstract

By 2011 little is known about the economic rationale of public fast chargers for electric vehicles (EV). This paper aims at providing an insight into the business case of this technology in a case study for Germany. The estimated Return on Investment (ROI) of a public fast charging station constitutes the main contribution. Potential users and organization structures are investigated as well as different tariff types. According to the estimations, the current market outlook seems too uncertain for triggering a large-scale roll-out of fast charging infrastructure. Approximations suggest that investment is hardly profitable at low EV adoption rates, unless investment cost can be severely lowered. Besides competition with alternative charging solutions, the general EV adoption rate is detected as being a main risk factor for investment in public charging infrastructure.

Suggested Citation

  • Schroeder, Andreas & Traber, Thure, 2012. "The economics of fast charging infrastructure for electric vehicles," Energy Policy, Elsevier, vol. 43(C), pages 136-144.
    • Handle: RePEc:eee:enepol:v:43:y:2012:i:c:p:136-144
    DOI: 10.1016/j.enpol.2011.12.041
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421511010470
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2011.12.041?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. Brown, Stephen & Pyke, David & Steenhof, Paul, 2010. "Electric vehicles: The role and importance of standards in an emerging market," Energy Policy, Elsevier, vol. 38(7), pages 3797-3806, July.
    2. Schill, Wolf-Peter, 2011. "Electric Vehicles in Imperfect Electricity Markets: The case of Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 39(10), pages 6178-6189.
    3. Skerlos, Steven J. & Winebrake, James J., 2010. "Targeting plug-in hybrid electric vehicle policies to increase social benefits," Energy Policy, Elsevier, vol. 38(2), pages 705-708, February.
    4. Traber, Thure & Kemfert, Claudia, 2011. "Gone with the wind? -- Electricity market prices and incentives to invest in thermal power plants under increasing wind energy supply," Energy Economics, Elsevier, vol. 33(2), pages 249-256, March.
    5. Wolf-Peter Schill & Claudia Kemfert, 2011. "Modeling Strategic Electricity Storage: The Case of Pumped Hydro Storage in Germany," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 59-88.
    6. Weiller, Claire, 2011. "Plug-in hybrid electric vehicle impacts on hourly electricity demand in the United States," Energy Policy, Elsevier, vol. 39(6), pages 3766-3778, June.
    7. Weigt, Hannes & Hirschhausen, Christian von, 2008. "Price formation and market power in the German wholesale electricity market in 2006," Energy Policy, Elsevier, vol. 36(11), pages 4227-4234, November.
    8. Ahman, Max, 2006. "Government policy and the development of electric vehicles in Japan," Energy Policy, Elsevier, vol. 34(4), pages 433-443, March.
    Full references (including those not matched with items on IDEAS)

    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. repec:hrs:journl::y:2012:v:4:i:3:p:105-125 is not listed on IDEAS
    2. Thao Pham, 2016. "Energiewende and competition in Germany: Diagnosing market power in wholesale electricity market," Post-Print hal-02568253, HAL.
    3. Schill, Wolf-Peter, 2011. "Electric Vehicles in Imperfect Electricity Markets: The case of Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 39(10), pages 6178-6189.
    4. Jordi Perdiguero & Juan Luis Jiménez, 2012. "“Policy options for the promotion of electric vehicles: a review”," IREA Working Papers 201208, University of Barcelona, Research Institute of Applied Economics, revised Mar 2012.
    5. Wolf-Peter Schill & Claudia Kemfert, 2011. "Modeling Strategic Electricity Storage: The Case of Pumped Hydro Storage in Germany," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 59-88.
    6. Wesseh, Presley K. & Benjamin, Nelson I. & Lin, Boqiang, 2022. "The coordination of pumped hydro storage, electric vehicles, and climate policy in imperfect electricity markets: Insights from China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 160(C).
    7. Schill, Wolf-Peter & Gerbaulet, Clemens, 2015. "Power System Impacts of Electric Vehicles in Germany: Charging with Coal or Renewables," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 156, pages 185-196.
    8. Hitaj, Claudia & Löschel, Andreas, 2019. "The impact of a feed-in tariff on wind power development in Germany," Resource and Energy Economics, Elsevier, vol. 57(C), pages 18-35.
    9. Sun, Huaping & Geng, Yong & Hu, Lingxiang & Shi, Longyu & Xu, Tong, 2018. "Measuring China's new energy vehicle patents: A social network analysis approach," Energy, Elsevier, vol. 153(C), pages 685-693.
    10. Papachristos, George, 2017. "Diversity in technology competition: The link between platforms and sociotechnical transitions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 291-306.
    11. Mulder, Machiel & Scholtens, Bert, 2013. "The impact of renewable energy on electricity prices in the Netherlands," Renewable Energy, Elsevier, vol. 57(C), pages 94-100.
    12. Rao, Zhonghao & Wang, Shuangfeng, 2011. "A review of power battery thermal energy management," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4554-4571.
    13. Andreas Schröder & Friedrich Kunz & Jan Meiss & Roman Mendelevitch & Christian von Hirschhausen, 2013. "Current and Prospective Costs of Electricity Generation until 2050," Data Documentation 68, DIW Berlin, German Institute for Economic Research.
    14. Shubham Gupta & Raghav Khanna & Pranay Kohli & Sarthak Agnihotri & Umang Soni & M. Asjad, 2023. "Risk evaluation of electric vehicle charging infrastructure using Fuzzy AHP – a case study in India," Operations Management Research, Springer, vol. 16(1), pages 245-258, March.
    15. repec:dui:wpaper:1318 is not listed on IDEAS
    16. Sadeghi-Barzani, Payam & Rajabi-Ghahnavieh, Abbas & Kazemi-Karegar, Hosein, 2014. "Optimal fast charging station placing and sizing," Applied Energy, Elsevier, vol. 125(C), pages 289-299.
    17. Susanne Koschker & Dominik Möst, 2016. "Perfect competition vs. strategic behaviour models to derive electricity prices and the influence of renewables on market power," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 38(3), pages 661-686, July.
    18. Schröder, Andreas, 2012. "An Electricity Market Model with Generation Capacity Investment under Uncertainty," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62068, Verein für Socialpolitik / German Economic Association.
    19. Masiero, Gilmar & Ogasavara, Mario Henrique & Jussani, Ailton Conde & Risso, Marcelo Luiz, 2017. "The global value chain of electric vehicles: A review of the Japanese, South Korean and Brazilian cases," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 290-296.
    20. Loisel, Rodica & Pasaoglu, Guzay & Thiel, Christian, 2014. "Large-scale deployment of electric vehicles in Germany by 2030: An analysis of grid-to-vehicle and vehicle-to-grid concepts," Energy Policy, Elsevier, vol. 65(C), pages 432-443.
    21. Chin Hui Hao & Presley K. Wesseh & David Iheke Okorie & Hermas Abudu, 2023. "Implications of Growing Wind and Solar Penetration in Retail Electricity Markets with Gradual Demand Response," Energies, MDPI, vol. 16(23), pages 1-15, December.
    22. Thomaßen, Georg & Redl, Christian & Bruckner, Thomas, 2022. "Will the energy-only market collapse? On market dynamics in low-carbon electricity systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 164(C).

    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:43:y:2012:i:c:p:136-144. 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.