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

Se Hoon Baik, Young Gyu Jin and Yong Tae Yoon
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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

Energies, 2018, vol. 11, issue 9, 1-15

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.

Keywords: electric vehicle; charging station; charging station operator; profit maximization (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: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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