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Effects of electric vehicles on the spot market price

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  • Hanemann, Philipp
  • Bruckner, Thomas

Abstract

In this paper we investigate the impact of different electric vehicle charging strategies on spot market power prices for the case of Germany. We also provide a detailed analysis of uncertainties resulting from vehicle-to-grid (V2G), the most flexible charging option. Since the integration of renewable energy sources requires flexibility, we compare V2G with two competing systemic flexibility options provided by highly flexible power plants and resulting from EU high voltage grid expansion, respectively. In all cases we find that V2G has by far the most significant impact on prices, mainly smoothing them, while reducing, for example, the surplus electricity from renewable energy sources. V2G also has the strongest influence on prices compared to the systemic flexibility options of more flexible power plants or network expansion. In addition, we show that it is important to take the structural difference between working days and weekends into account. Especially on weekend days, which are usually characterized by low power demand, V2G raises power prices the most. Finally, the price effects are accompanied by a saturation effect, which is already noticeable in the German case at two million vehicles.

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  • Hanemann, Philipp & Bruckner, Thomas, 2018. "Effects of electric vehicles on the spot market price," Energy, Elsevier, vol. 162(C), pages 255-266.
    • Handle: RePEc:eee:energy:v:162:y:2018:i:c:p:255-266
    DOI: 10.1016/j.energy.2018.07.180
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    2. Englberger, Stefan & Abo Gamra, Kareem & Tepe, Benedikt & Schreiber, Michael & Jossen, Andreas & Hesse, Holger, 2021. "Electric vehicle multi-use: Optimizing multiple value streams using mobile storage systems in a vehicle-to-grid context," Applied Energy, Elsevier, vol. 304(C).
    3. Gunkel, Philipp Andreas & Bergaentzlé, Claire & Græsted Jensen, Ida & Scheller, Fabian, 2020. "From passive to active: Flexibility from electric vehicles in the context of transmission system development," Applied Energy, Elsevier, vol. 277(C).
    4. Gao, Xiang & Chan, Ka Wing & Xia, Shiwei & Zhou, Bin & Lu, Xi & Xu, Da, 2019. "Risk-constrained offering strategy for a hybrid power plant consisting of wind power producer and electric vehicle aggregator," Energy, Elsevier, vol. 177(C), pages 183-191.
    5. Kühnbach, Matthias & Bekk, Anke & Weidlich, Anke, 2022. "Towards improved prosumer participation: Electricity trading in local markets," Energy, Elsevier, vol. 239(PE).
    6. Philipp Andreas Gunkel & Claire Bergaentzl'e & Ida Gr{ae}sted Jensen & Fabian Scheller, 2020. "From passive to active: Flexibility from electric vehicles in the context of transmission system development," Papers 2011.05830, arXiv.org.
    7. 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).
    8. Wu, Wei & Lin, Boqiang, 2021. "Benefits of electric vehicles integrating into power grid," Energy, Elsevier, vol. 224(C).
    9. Kucevic, Daniel & Englberger, Stefan & Sharma, Anurag & Trivedi, Anupam & Tepe, Benedikt & Schachler, Birgit & Hesse, Holger & Srinivasan, Dipti & Jossen, Andreas, 2021. "Reducing grid peak load through the coordinated control of battery energy storage systems located at electric vehicle charging parks," Applied Energy, Elsevier, vol. 295(C).
    10. Davidov, Sreten & Pantoš, Miloš, 2019. "Optimization model for charging infrastructure planning with electric power system reliability check," Energy, Elsevier, vol. 166(C), pages 886-894.
    11. Schwab, Julia & Sölch, Christian & Zöttl, Gregor, 2022. "Electric Vehicle Cost in 2035: The impact of market penetration and charging strategies," Energy Economics, Elsevier, vol. 114(C).

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