Modeling the deployment of plug-in hybrid and electric vehicles and their effects on the Australian National Electricity Market

Liam Wagner and Luke Reedman ()

No 6, Energy Economics and Management Group Working Papers from School of Economics, University of Queensland, Australia

Abstract: The development of hybrid and fully electric vehicles could deliver significant reductions of emissions from the Australian transportation sector by shifting its major energy source from internal combustion to electricity. This shift towards the the use of electricity shifts the point source emissions to one which has a lower emissions intensity. Changes in load behaviour as a result of the consumer uptake of these vehicles will have significant consequences for network and central planners for the future of Australia’s electricity supply industry. This paper investigates the effects on the security of supply of energy during these previously unseen demand patterns, while also examining changes to spot market prices and changes in emissions rates. The simulation results indicate that wholesale prices during the off-peak period will increase slowly over time with controlled charging. While uncontrolled charging increases the incidence of extreme price events and a considerable number of hours with un-served energy within the network. This increase in spot prices may have consequences for regulated retail electricity tariffs. We also discuss the implementation of possible changes to the retail tariff structure to accommodate the charging of these vehicles.

Keywords: Electricity Markets; Hybrid Vehicle; Transportation Economics. (search for similar items in EconPapers)
JEL-codes: L91 Q40 Q47 R40 (search for similar items in EconPapers)
Date: 2010-12
New Economics Papers: this item is included in nep-cmp, nep-ene and nep-env
References: View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published in 2010 IEEE Conference on Published in Innovative Technologies for an Efficient and Reliable Electricity Supply (CITRES), pp.165-170

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