Integrating Bidirectionally Chargeable Electric Vehicles into the Electricity Markets

Timo Kern, Patrick Dossow and Serafin von Roon
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Timo Kern: Forschungsgesellschaft für Energiewirtschaft mbH (FfE), 80995 Munich, Germany
Patrick Dossow: Forschungsgesellschaft für Energiewirtschaft mbH (FfE), 80995 Munich, Germany
Serafin von Roon: Forschungsgesellschaft für Energiewirtschaft mbH (FfE), 80995 Munich, Germany

Energies, 2020, vol. 13, issue 21, 1-30

Abstract: Replacing traditional internal combustion engine vehicles with electric vehicles (EVs) proves to be challenging for the transport sector, particularly due to the higher initial investment. As EVs could be more profitable by participating in the electricity markets, the aim of this paper is to investigate revenue potentials when marketing bidirectionally chargeable electric vehicles in the spot market. To simulate a realistic marketing behavior of electric vehicles, a mixed integer linear, rolling horizon optimization model is formulated considering real trading times in the day-ahead and intraday market. Results suggest that revenue potentials are strongly dependent on the EV pool, the user behavior and the regulatory framework. Modeled potential revenues of EVs of current average size marketed with 2019 German day-ahead prices are found to be at around 200 €/EV/a, which is comparable to other findings in literature, and go up to 500 €/EV/a for consecutive trading in German day-ahead and intraday markets. For future EVs with larger batteries and higher efficiencies, potential revenues for current market prices can reach up to 1300 €/EV/a. This study finds that revenues differ widely for different European countries and future perspectives. The identified revenues give EV owners a clear incentive to participate in vehicle-to-grid use cases, thereby increasing much needed flexibility for the energy system of the future.

Keywords: V2G; bidirectionally chargeable electric vehicles; smart charging; unmanaged charging; spot markets; day-ahead market; intraday auction; continuous intraday trading; mixed integer linear optimization; revenues potentials of EVs (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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