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OR Forum---Modeling the Impacts of Electricity Tariffs on Plug-In Hybrid Electric Vehicle Charging, Costs, and Emissions

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  • Ramteen Sioshansi

    (Department of Integrated Systems Engineering, The Ohio State University, Columbus, Ohio 43210)

Abstract

Plug-in hybrid electric vehicles (PHEVs) have been touted as a transportation technology with lower fuel costs and emissions impacts than other vehicle types. Most analyses of PHEVs assume that the power system operator can either directly or indirectly control PHEV charging to coordinate it with power system operations. This paper examines the incentives of individual drivers making charging decisions with different electricity tariffs, and it compares the cost and emissions impacts of these charging patterns to the ideal case of charging controlled by the system operator. Our results show that real-time pricing performs worst among all of the tariffs we consider, because linear prices are inherently limited in signaling efficient use of resources in a system with nonconvexities. We also show that controlling overnight PHEV charging is significantly more important than limiting midday vehicle charging.

Suggested Citation

  • Ramteen Sioshansi, 2012. "OR Forum---Modeling the Impacts of Electricity Tariffs on Plug-In Hybrid Electric Vehicle Charging, Costs, and Emissions," Operations Research, INFORMS, vol. 60(3), pages 506-516, June.
    • Handle: RePEc:inm:oropre:v:60:y:2012:i:3:p:506-516
    DOI: 10.1287/opre.1120.1038
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    References listed on IDEAS

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    1. Ramteen Sioshansi & Paul Denholm, 2010. "The Value of Plug-In Hybrid Electric Vehicles as Grid Resources," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-24.
    2. O'Neill, Richard P. & Sotkiewicz, Paul M. & Hobbs, Benjamin F. & Rothkopf, Michael H. & Stewart, William R., 2005. "Efficient market-clearing prices in markets with nonconvexities," European Journal of Operational Research, Elsevier, vol. 164(1), pages 269-285, July.
    3. Lizhi Wang & Anhua Lin & Yihsu Chen, 2010. "Potential impact of recharging plug‐in hybrid electric vehicles on locational marginal prices," Naval Research Logistics (NRL), John Wiley & Sons, vol. 57(8), pages 686-700, December.
    4. Sioshansi, Ramteen & Oren, Shmuel & O'Neill, Richard, 2010. "Three-part auctions versus self-commitment in day-ahead electricity markets," Utilities Policy, Elsevier, vol. 18(4), pages 165-173, December.
    5. Sioshansi, Ramteen & Fagiani, Riccardo & Marano, Vincenzo, 2010. "Cost and emissions impacts of plug-in hybrid vehicles on the Ohio power system," Energy Policy, Elsevier, vol. 38(11), pages 6703-6712, November.
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