Estimating the Impact of Electric Vehicle Demand Response Programs in a Grid with Varying Levels of Renewable Energy Sources: Time-of-Use Tariff versus Smart Charging

Wooyoung Jeon, Sangmin Cho and Seungmoon Lee
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Wooyoung Jeon: Department of Economics, Chonnam National University, Gwangju 61186, Korea
Sangmin Cho: Korea Energy Economics Institute, Ulsan 44543, Korea
Seungmoon Lee: Korea Energy Economics Institute, Ulsan 44543, Korea

Energies, 2020, vol. 13, issue 17, 1-22

Abstract: An increase in variable renewable energy sources and soaring electricity demand at peak hours undermines the efficiency and reliability of the power supply. Conventional supply-side solutions, such as additional gas turbine plants and energy storage systems, can help mitigate these problems; however, they are not cost-effective. This study highlights the potential value of electric vehicle demand response programs by analyzing three separate scenarios: electric vehicle charging based on a time-of-use tariff, smart charging controlled by an aggregator through virtual power plant networks, and smart control with vehicle-to-grid capability. The three programs are analyzed based on the stochastic form of a power system optimization model under two hypothetical power system environments in Jeju Island, Korea: one with a low share of variable renewable energy in 2019 and the other with a high share in 2030. The results show that the cost saving realized by the electric vehicle demand response program is higher in 2030 and a smart control with vehicle-to-grid capability provides the largest cost saving. When the costs of implementing an electric vehicle demand response are considered, the difference in cost saving between the scenarios is reduced; however, the benefits are still large enough to attract customers to participate.

Keywords: electric vehicle; demand response; variable renewable sources; time-of-use; smart charging; virtual power plant (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 (13)

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