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Financial Shortfall for Electric Vehicles: economic impacts of Transmission System Operators market designs

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  • Paul Codani

    (GeePs - Laboratoire Génie électrique et électronique de Paris - UP11 - Université Paris-Sud - Paris 11 - UPMC - Université Pierre et Marie Curie - Paris 6 - CentraleSupélec - CNRS - Centre National de la Recherche Scientifique)

  • Yannick Perez

    (UP11 - Université Paris-Sud - Paris 11, LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

  • Marc Petit

    (GeePs - Laboratoire Génie électrique et électronique de Paris - UP11 - Université Paris-Sud - Paris 11 - UPMC - Université Pierre et Marie Curie - Paris 6 - CentraleSupélec - CNRS - Centre National de la Recherche Scientifique)

Abstract

Using electric vehicles as transmission system operator reserve providing units has been demonstrated as being both a feasible and a profitable solution. However, the surveys leading to these conclusions are always conducted either without considering the transmission system operator market rules, or using the existing ones from the local system operator. Nevertheless, such rules have potentially a great impact on the electric vehicles' expected revenues, and they are likely to change within the next few years. This paper aims to assess how these rules impact the ability for electric vehicles to provide power reserves and on their expected remuneration for doing so. First, a list of the most important market rules for this use case is drawn up. Then, a simulation model is developed in order to evaluate the expected revenues for the electric vehicles. Finally, these expected revenues are computed considering various combinations of rules. A loss of revenue for electric vehicles is identified, due to the use of non-optimal rules governing grid services remuneration. Considering the French case, according to the simulation results, this financial shortfall per vehicle and per year ranges from 193e to 593e. Market design recommendations for reserve markets are deduced from these results.

Suggested Citation

  • Paul Codani & Yannick Perez & Marc Petit, 2016. "Financial Shortfall for Electric Vehicles: economic impacts of Transmission System Operators market designs," Post-Print hal-01346860, HAL.
    • Handle: RePEc:hal:journl:hal-01346860
    DOI: 10.1016/j.energy.2016.07.070
    Note: View the original document on HAL open archive server: https://centralesupelec.hal.science/hal-01346860
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    References listed on IDEAS

    as
    1. Rious, Vincent & Glachant, Jean-Michel & Perez, Yannick & Dessante, Philippe, 2008. "The diversity of design of TSOs," Energy Policy, Elsevier, vol. 36(9), pages 3323-3332, September.
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    3. Paul Codani & Pierre-Louis Le Portz & Pierre Claverie & Marc Petit & Yannick Perez, 2016. "Coupling local renewable energy production with electric vehicle charging: a survey of the French case," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 16(1), pages 55-69.
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    Cited by:

    1. Freitas Gomes, Icaro Silvestre & Perez, Yannick & Suomalainen, Emilia, 2020. "Coupling small batteries and PV generation: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 126(C).
    2. Thompson, Andrew W. & Perez, Yannick, 2020. "Vehicle-to-Everything (V2X) energy services, value streams, and regulatory policy implications," Energy Policy, Elsevier, vol. 137(C).
    3. Alabi, Oluwafisayo & Turner, Karen & Katris, Antonios & Calvillo, Christian, 2022. "Can network spending to support the shift to electric vehicles deliver wider economy gains? The role of domestic supply chain, price, and real wage effects," Energy Economics, Elsevier, vol. 110(C).
    4. Andrew W Thompson & Yannick Perez, 2019. "Vehicle-to-Anything (V2X) Energy Services, Value Streams, and Regulatory Policy Implications," Working Papers hal-02265826, HAL.
    5. Hoarau, Quentin & Perez, Yannick, 2019. "Network tariff design with prosumers and electromobility: Who wins, who loses?," Energy Economics, Elsevier, vol. 83(C), pages 26-39.
    6. Yannick Perez & Wale Arowolo, 2021. "Economics of Electric Mobility: Utilities and Electric mobility," Working Papers hal-03522048, HAL.
    7. Du, Jiuyu & Meng, Xiangfeng & Li, Jianqiu & Wu, Xiaogang & Song, Ziyou & Ouyang, Minggao, 2018. "Insights into the characteristics of technologies and industrialization for plug-in electric cars in China," Energy, Elsevier, vol. 164(C), pages 910-924.

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