IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v11y2018i9p2301-d167064.html
   My bibliography  Save this article

Determining Equipment Capacity of Electric Vehicle Charging Station Operator for Profit Maximization

Author

Listed:
  • Se Hoon Baik

    (Department of Electrical and Computer Engineering, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 08826, Korea)

  • Young Gyu Jin

    (Department of Electrical Engineering, Jeju National University, 102 Jejudaehak-ro, Jeju-si 63243, Korea)

  • Yong Tae Yoon

    (Department of Electrical and Computer Engineering, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 08826, Korea)

Abstract

Related to global efforts to reduce greenhouse gases, numerous electric vehicles (EVs) are expected to be integrated to the power grid. However, the introduction of EVs, particularly in Korea, is still marginal due to the lack of EV charging infrastructure, even though various supportive policies exist. To address this shortage of EV charging stations, the EV charging business needs to be profitable. As with any business, the profitability of the EV charging business is significantly affected by the initial capital investment related to EV chargers and auxiliary equipment such as power conditioning system (PCS), battery energy storage system (BESS), and on-site photovoltaic (PV) generation system. Thus, we propose a formulation to determine the number of EV chargers and the capacity of auxiliary equipment with the objective of a charging station operator (CSO) maximizing profit under regulatory, economic, and physical constraints. The effectiveness of the proposed method is verified with simulations considering various EV charging patterns. The study results will help improve the EV charging infrastructure by encouraging individuals and companies to participate in EV charging business.

Suggested Citation

  • Se Hoon Baik & Young Gyu Jin & Yong Tae Yoon, 2018. "Determining Equipment Capacity of Electric Vehicle Charging Station Operator for Profit Maximization," Energies, MDPI, vol. 11(9), pages 1-15, September.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:9:p:2301-:d:167064
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/11/9/2301/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/11/9/2301/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Madina, Carlos & Zamora, Inmaculada & Zabala, Eduardo, 2016. "Methodology for assessing electric vehicle charging infrastructure business models," Energy Policy, Elsevier, vol. 89(C), pages 284-293.
    2. 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.
    3. Chandra Mouli, G.R. & Bauer, P. & Zeman, M., 2016. "System design for a solar powered electric vehicle charging station for workplaces," Applied Energy, Elsevier, vol. 168(C), pages 434-443.
    4. Luo, Lizi & Gu, Wei & Zhou, Suyang & Huang, He & Gao, Song & Han, Jun & Wu, Zhi & Dou, Xiaobo, 2018. "Optimal planning of electric vehicle charging stations comprising multi-types of charging facilities," Applied Energy, Elsevier, vol. 226(C), pages 1087-1099.
    5. Liu, Jian, 2012. "Electric vehicle charging infrastructure assignment and power grid impacts assessment in Beijing," Energy Policy, Elsevier, vol. 51(C), pages 544-557.
    6. Khalilpour, Rajab & Vassallo, Anthony, 2016. "Planning and operation scheduling of PV-battery systems: A novel methodology," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 194-208.
    7. San Román, Tomás Gómez & Momber, Ilan & Abbad, Michel Rivier & Sánchez Miralles, Álvaro, 2011. "Regulatory framework and business models for charging plug-in electric vehicles: Infrastructure, agents, and commercial relationships," Energy Policy, Elsevier, vol. 39(10), pages 6360-6375, October.
    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. Chao-Tsung Ma, 2019. "System Planning of Grid-Connected Electric Vehicle Charging Stations and Key Technologies: A Review," Energies, MDPI, vol. 12(21), pages 1-22, November.
    2. Qiongjie Dai & Jicheng Liu & Qiushuang Wei, 2019. "Optimal Photovoltaic/Battery Energy Storage/Electric Vehicle Charging Station Design Based on Multi-Agent Particle Swarm Optimization Algorithm," Sustainability, MDPI, vol. 11(7), pages 1-21, April.
    3. LaMonaca, Sarah & Ryan, Lisa, 2022. "The state of play in electric vehicle charging services – A review of infrastructure provision, players, and policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    4. Ana Pavlićević & Saša Mujović, 2022. "Impact of Reactive Power from Public Electric Vehicle Stations on Transformer Aging and Active Energy Losses," Energies, MDPI, vol. 15(19), pages 1-24, September.
    5. Andu Dukpa & Boguslaw Butrylo, 2022. "MILP-Based Profit Maximization of Electric Vehicle Charging Station Based on Solar and EV Arrival Forecasts," Energies, MDPI, vol. 15(15), pages 1-14, August.
    6. Hyung Tae Kim & Young Gyu Jin & Yong Tae Yoon, 2019. "An Economic Analysis of Load Leveling with Battery Energy Storage Systems (BESS) in an Electricity Market Environment: The Korean Case," Energies, MDPI, vol. 12(9), pages 1-16, April.
    7. Dong, Xiao-Jian & Shen, Jia-Ni & Liu, Cheng-Wu & Ma, Zi-Feng & He, Yi-Jun, 2024. "Simultaneous capacity configuration and scheduling optimization of an integrated electrical vehicle charging station with photovoltaic and battery energy storage system," Energy, Elsevier, vol. 289(C).
    8. Rabl, Regina & Reuter-Oppermann, Melanie & Jochem, Patrick E.P., 2024. "Charging infrastructure for electric vehicles in New Zealand," Transport Policy, Elsevier, vol. 148(C), pages 124-144.

    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. 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.
    2. Kazemi, Mohammad Amin & Sedighizadeh, Mostafa & Mirzaei, Mohammad Javad & Homaee, Omid, 2016. "Optimal siting and sizing of distribution system operator owned EV parking lots," Applied Energy, Elsevier, vol. 179(C), pages 1176-1184.
    3. Ma, Shao-Chao & Fan, Ying, 2020. "A deployment model of EV charging piles and its impact on EV promotion," Energy Policy, Elsevier, vol. 146(C).
    4. Metais, M.O. & Jouini, O. & Perez, Y. & Berrada, J. & Suomalainen, E., 2022. "Too much or not enough? Planning electric vehicle charging infrastructure: A review of modeling options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    5. Neaimeh, Myriam & Salisbury, Shawn D. & Hill, Graeme A. & Blythe, Philip T. & Scoffield, Don R. & Francfort, James E., 2017. "Analysing the usage and evidencing the importance of fast chargers for the adoption of battery electric vehicles," Energy Policy, Elsevier, vol. 108(C), pages 474-486.
    6. Julia Vopava & Christian Koczwara & Anna Traupmann & Thomas Kienberger, 2019. "Investigating the Impact of E-Mobility on the Electrical Power Grid Using a Simplified Grid Modelling Approach," Energies, MDPI, vol. 13(1), pages 1-23, December.
    7. Kim, Hyunjung & Kim, Dae-Wook & Kim, Man-Keun, 2022. "Economics of charging infrastructure for electric vehicles in Korea," Energy Policy, Elsevier, vol. 164(C).
    8. Zhou, Guangyou & Zhu, Zhiwei & Luo, Sumei, 2022. "Location optimization of electric vehicle charging stations: Based on cost model and genetic algorithm," Energy, Elsevier, vol. 247(C).
    9. Anamarija Falkoni & Antun Pfeifer & Goran Krajačić, 2020. "Vehicle-to-Grid in Standard and Fast Electric Vehicle Charging: Comparison of Renewable Energy Source Utilization and Charging Costs," Energies, MDPI, vol. 13(6), pages 1-22, March.
    10. Nian, Victor & Hari, M.P. & Yuan, Jun, 2019. "A new business model for encouraging the adoption of electric vehicles in the absence of policy support," Applied Energy, Elsevier, vol. 235(C), pages 1106-1117.
    11. Muratori, Matteo & Elgqvist, Emma & Cutler, Dylan & Eichman, Joshua & Salisbury, Shawn & Fuller, Zachary & Smart, John, 2019. "Technology solutions to mitigate electricity cost for electric vehicle DC fast charging," Applied Energy, Elsevier, vol. 242(C), pages 415-423.
    12. Lin, Haiyang & Bian, Caiyun & Wang, Yu & Li, Hailong & Sun, Qie & Wallin, Fredrik, 2022. "Optimal planning of intra-city public charging stations," Energy, Elsevier, vol. 238(PC).
    13. Goldschmidt, Rüdiger & Richter, Andreas & Pfeil, Raphael, 2019. "Active stakeholder involvement and organisational tasks as factors for an effective communication and governance strategy in the promotion of e-taxis. Results from a field research lab," Energy Policy, Elsevier, vol. 135(C).
    14. Guo, Sen & Zhao, Huiru, 2015. "Optimal site selection of electric vehicle charging station by using fuzzy TOPSIS based on sustainability perspective," Applied Energy, Elsevier, vol. 158(C), pages 390-402.
    15. Zhang, Li & Shaffer, Brendan & Brown, Tim & Scott Samuelsen, G., 2015. "The optimization of DC fast charging deployment in California," Applied Energy, Elsevier, vol. 157(C), pages 111-122.
    16. Jon Williamsson, 2022. "EV Charging on Ferries and in Terminals—A Business Model Perspective," Energies, MDPI, vol. 15(18), pages 1-14, September.
    17. Jefferson Morán & Esteban Inga, 2022. "Characterization of Load Centers for Electric Vehicles Based on Simulation of Urban Vehicular Traffic Using Geo-Referenced Environments," Sustainability, MDPI, vol. 14(6), pages 1-20, March.
    18. Erdogan, Nuh & Pamucar, Dragan & Kucuksari, Sadik & Deveci, Muhammet, 2021. "An integrated multi-objective optimization and multi-criteria decision-making model for optimal planning of workplace charging stations," Applied Energy, Elsevier, vol. 304(C).
    19. Cilio, Luca & Babacan, Oytun, 2021. "Allocation optimisation of rapid charging stations in large urban areas to support fully electric taxi fleets," Applied Energy, Elsevier, vol. 295(C).
    20. Micari, Salvatore & Polimeni, Antonio & Napoli, Giuseppe & Andaloro, Laura & Antonucci, Vincenzo, 2017. "Electric vehicle charging infrastructure planning in a road network," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 98-108.

    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:gam:jeners:v:11:y:2018:i:9:p:2301-:d:167064. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.