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On the drivers of peak electricity demand: What is the role played by battery electric cars?

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  • Neves, Sónia Almeida
  • Marques, António Cardoso
  • Fuinhas, José Alberto

Abstract

The analysis of the drivers of both peak electricity demand and renewable electricity generation constitutes the main objective of this paper. Data from 2010 to 2016 for a panel of 20 European Union countries were used. Two models were estimated using both Panel-Corrected Standard Errors and Driscoll-Kraay estimators with fixed effects. These estimators were robust in the presence of cross-section dependence, first-order serial correlation and heteroscedasticity. The main results suggest that renewable electricity generation and the penetration of battery electric vehicles into the automotive market are helping to decrease peak electricity demand. At the same time, it was confirmed that employment in this industry sector is increasing peak electricity demand. The existence of peak periods was shown to be the main barrier to the integration of renewables into electricity systems. It seems that policies focused on Demand Side Management have been effective in integrating renewables in contrast to their lack of success in reducing peak electricity demand.

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  • Neves, Sónia Almeida & Marques, António Cardoso & Fuinhas, José Alberto, 2018. "On the drivers of peak electricity demand: What is the role played by battery electric cars?," Energy, Elsevier, vol. 159(C), pages 905-915.
    • Handle: RePEc:eee:energy:v:159:y:2018:i:c:p:905-915
    DOI: 10.1016/j.energy.2018.06.209
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    3. Md Masud Rana & Mohamed Atef & Md Rasel Sarkar & Moslem Uddin & GM Shafiullah, 2022. "A Review on Peak Load Shaving in Microgrid—Potential Benefits, Challenges, and Future Trend," Energies, MDPI, vol. 15(6), pages 1-17, March.
    4. Uddin, Moslem & Romlie, M.F. & Abdullah, M.F. & Tan, ChiaKwang & Shafiullah, GM & Bakar, A.H.A., 2020. "A novel peak shaving algorithm for islanded microgrid using battery energy storage system," Energy, Elsevier, vol. 196(C).
    5. Paul Schott & Johannes Sedlmeir & Nina Strobel & Thomas Weber & Gilbert Fridgen & Eberhard Abele, 2019. "A Generic Data Model for Describing Flexibility in Power Markets," Energies, MDPI, vol. 12(10), pages 1-29, May.
    6. Ingrid Munné-Collado & Fabio Maria Aprà & Pol Olivella-Rosell & Roberto Villafáfila-Robles, 2019. "The Potential Role of Flexibility During Peak Hours on Greenhouse Gas Emissions: A Life Cycle Assessment of Five Targeted National Electricity Grid Mixes," Energies, MDPI, vol. 12(23), pages 1-22, November.
    7. Qin, Yong & Xu, Zeshui & Wang, Xinxin & Škare, Marinko, 2023. "The effects of financial institutions on the green energy transition: A cross-sectional panel study," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 524-542.
    8. Li, Yufan & Teng, Weichen & Tsai, Limin & Lin, Tom M.Y., 2022. "Does English proficiency support the economic development of non-English-speaking countries? The case of Asia," International Journal of Educational Development, Elsevier, vol. 92(C).
    9. Sanjari, M.J. & Karami, H., 2020. "Optimal control strategy of battery-integrated energy system considering load demand uncertainty," Energy, Elsevier, vol. 210(C).

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