A business model for use of backed-down renewable energy for electric vehicle charging

Afsal Najeeb () and Mohammed Shahid Abdulla ()
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Afsal Najeeb: Indian Institute of Management Kozhikode
Mohammed Shahid Abdulla: Indian Institute of Management Kozhikode

No 384, Working papers from Indian Institute of Management Kozhikode

Abstract: Backed down power in Renewable Energy (RE) production plants refers to the power that has been declined by the evacuating agency. In effect, this power is wasted as the power producer does not earn any revenue. It leads to sub optimal capacity utilisation, affecting the financial viability of the RE generation plant. We propose a novel business model for effective utilisation of backed-down power that maximises benefits for all stakeholders. The backed-down power is proposed to be stored in commercially available Vanadium Redox Flow Batteries at plant site and transmitted for powering multiple electric vehicle charging stations located at demand centres. Analysis of the Return on Investment shows that with policy support like Viability Gap Funding and preferential Open Access rates, the model would allow delivery of green power which is currently wasted at a competitive rate of around ? 6 per unit. The model would create an alternate channel of revenue for the RE project developer, improving financial viability. Distribution Companies would be released from the pressure of legal action against them or from punitive measures for unscheduled curtailment. Instead, they stand to earn a portion of the revenue as Open Access charges. The model has untapped business potential as a green enterprise in the sunrise sector of electric mobility.

Keywords: Renewable Energy (RE); RE generation; Business model; Electric vehicle (search for similar items in EconPapers)
Pages: 3 pages
Date: 2020-06
New Economics Papers: this item is included in nep-ene
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