IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v322y2022ics0306261922007875.html
   My bibliography  Save this article

A techno-economic analysis of distributed energy resources versus wholesale electricity purchases for fueling decarbonized heavy duty vehicles

Author

Listed:
  • Pham, An T.
  • Lovdal, Larson
  • Zhang, Tianyi
  • Craig, Michael T.

Abstract

Electric and hydrogen vehicles can help decarbonize heavy duty vehicles (HDV). Few studies examine how to meet energy requirements of decarbonized HDVs, and all assume electricity will come from centralized systems. However, decarbonized HDVs could significantly increase energy demands in areas with limited transmission access, potentially favoring deployment of distributed energy resources (DERs). In this paper, we develop an optimization-based techno-economic model that minimizes costs of meeting HDV energy demands by optimizing investments in and operations of DERs, investments in transmission interconnections, and wholesale electricity purchases. We apply it to a modeled U.S. dataset of electric HDV charging demands to quantify the deployment and value potential of three DERs — solar, batteries, and nuclear small modular reactors (SMRs) in the year 2040. For fleets of 100% electric HDVs to 60% electric and 40% hydrogen HDVs, DERs are deployed at 78% to 95% of all charging stations and meet between 24% to 30% of total HDV energy demand. Investments in DERs reduce annual costs by $647 million to $1.9 billion across all stations, while individual stations can save $20 million to over $100 million annually. SMRs make up over 99% of total deployed DER capacity, indicating significant potential for SMR deployment in this emerging market. Widespread DER deployment is robust to capital cost uncertainty in SMRs and transmission lines, wholesale electricity prices, and other factors.

Suggested Citation

  • Pham, An T. & Lovdal, Larson & Zhang, Tianyi & Craig, Michael T., 2022. "A techno-economic analysis of distributed energy resources versus wholesale electricity purchases for fueling decarbonized heavy duty vehicles," Applied Energy, Elsevier, vol. 322(C).
    • Handle: RePEc:eee:appene:v:322:y:2022:i:c:s0306261922007875
    DOI: 10.1016/j.apenergy.2022.119460
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261922007875
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2022.119460?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Vajjhala, Shalini P. & Fischbeck, Paul S., 2007. "Quantifying siting difficulty: A case study of US transmission line siting," Energy Policy, Elsevier, vol. 35(1), pages 650-671, January.
    2. Black, Geoffrey A. & Aydogan, Fatih & Koerner, Cassandra L., 2019. "Economic viability of light water small modular nuclear reactors: General methodology and vendor data," Renewable and Sustainable Energy Reviews, Elsevier, vol. 103(C), pages 248-258.
    3. Vegel, Benjamin & Quinn, Jason C., 2017. "Economic evaluation of small modular nuclear reactors and the complications of regulatory fee structures," Energy Policy, Elsevier, vol. 104(C), pages 395-403.
    4. McMillan, Colin A. & Ruth, Mark, 2019. "Using facility-level emissions data to estimate the technical potential of alternative thermal sources to meet industrial heat demand," Applied Energy, Elsevier, vol. 239(C), pages 1077-1090.
    5. Nestor A. Sepulveda & Jesse D. Jenkins & Aurora Edington & Dharik S. Mallapragada & Richard K. Lester, 2021. "The design space for long-duration energy storage in decarbonized power systems," Nature Energy, Nature, vol. 6(5), pages 506-516, May.
    6. Jacopo Buongiorno & Ben Carmichael & Bradley Dunkin & John Parsons & Dirk Smit, 2021. "Can Nuclear Batteries Be Economically Competitive in Large Markets?," Energies, MDPI, vol. 14(14), pages 1-20, July.
    7. Sobrino, Fernando Hernández & Monroy, Carlos Rodríguez & Pérez, José Luís Hernández, 2010. "Critical analysis on hydrogen as an alternative to fossil fuels and biofuels for vehicles in Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(2), pages 772-780, February.
    8. Bromley-Dulfano, Isaac & Florez, Julian & Craig, Michael T., 2021. "Reliability benefits of wide-area renewable energy planning across the Western United States," Renewable Energy, Elsevier, vol. 179(C), pages 1487-1499.
    9. Fayaz, H. & Saidur, R. & Razali, N. & Anuar, F.S. & Saleman, A.R. & Islam, M.R., 2012. "An overview of hydrogen as a vehicle fuel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 5511-5528.
    10. repec:cdl:itsdav:qt7qv6q35r is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gu, Bo & Li, Fangxing & Mao, Chengxiong & Wang, Dan & Fan, Hua & Liu, Bin & Li, Wenhao, 2025. "A Bilevel robust coordination model for community integrated energy system with access to HFCEVs and EVs," Applied Energy, Elsevier, vol. 390(C).
    2. Diego Mendoza Osorio & Javier Rosero Garcia, 2023. "Convex Stochastic Approaches for the Optimal Allocation of Distributed Energy Resources in AC Distribution Networks with Measurements Fitted to a Continuous Probability Distribution Function," Energies, MDPI, vol. 16(14), pages 1-27, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Asuega, Anthony & Limb, Braden J. & Quinn, Jason C., 2023. "Techno-economic analysis of advanced small modular nuclear reactors," Applied Energy, Elsevier, vol. 334(C).
    2. Mignacca, B. & Locatelli, G., 2020. "Economics and finance of Small Modular Reactors: A systematic review and research agenda," Renewable and Sustainable Energy Reviews, Elsevier, vol. 118(C).
    3. Carlo L. Vinoya & Aristotle T. Ubando & Alvin B. Culaba & Wei-Hsin Chen, 2023. "State-of-the-Art Review of Small Modular Reactors," Energies, MDPI, vol. 16(7), pages 1-30, April.
    4. Singh, Sonal & Jain, Shikha & PS, Venkateswaran & Tiwari, Avanish K. & Nouni, Mansa R. & Pandey, Jitendra K. & Goel, Sanket, 2015. "Hydrogen: A sustainable fuel for future of the transport sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 623-633.
    5. Enzo Galloni & Davide Lanni & Gustavo Fontana & Gabriele D’Antuono & Simone Stabile, 2022. "Performance Estimation of a Downsized SI Engine Running with Hydrogen," Energies, MDPI, vol. 15(13), pages 1-12, June.
    6. Burton, N.A. & Padilla, R.V. & Rose, A. & Habibullah, H., 2021. "Increasing the efficiency of hydrogen production from solar powered water electrolysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    7. Jing-Li Fan & Zezheng Li & Xi Huang & Kai Li & Xian Zhang & Xi Lu & Jianzhong Wu & Klaus Hubacek & Bo Shen, 2023. "A net-zero emissions strategy for China’s power sector using carbon-capture utilization and storage," Nature Communications, Nature, vol. 14(1), pages 1-16, December.
    8. Dixon, Christopher & Reynolds, Steve & Rodley, David, 2016. "Micro/small wind turbine power control for electrolysis applications," Renewable Energy, Elsevier, vol. 87(P1), pages 182-192.
    9. Davis, Dominic & Brear, Michael J., 2024. "Impact of short-term wind forecast accuracy on the performance of decarbonising wholesale electricity markets," Energy Economics, Elsevier, vol. 130(C).
    10. Cosgrove, Paul & Roulstone, Tony & Zachary, Stan, 2023. "Intermittency and periodicity in net-zero renewable energy systems with storage," Renewable Energy, Elsevier, vol. 212(C), pages 299-307.
    11. Risthaus, Kai & Linder, Marc & Schmidt, Matthias, 2022. "Experimental investigation of a novel mechanically fluidized bed reactor for thermochemical energy storage with calcium hydroxide/calcium oxide," Applied Energy, Elsevier, vol. 315(C).
    12. Stewart, W.R. & Velez-Lopez, E. & Wiser, R. & Shirvan, K., 2021. "Economic solution for low carbon process heat: A horizontal, compact high temperature gas reactor," Applied Energy, Elsevier, vol. 304(C).
    13. Serrano, J. & Jiménez-Espadafor, F.J. & López, A., 2019. "Analysis of the effect of the hydrogen as main fuel on the performance of a modified compression ignition engine with water injection," Energy, Elsevier, vol. 173(C), pages 911-925.
    14. Bartnik, Ryszard & Hnydiuk-Stefan, Anna, 2025. "Evaluation of energy and economic efficiency in upgrading coal-fired power plants: Integrating HTGR reactors and turboexpanders for supercritical steam parameters," Energy, Elsevier, vol. 318(C).
    15. Mueller, Christoph Emanuel, 2020. "Why do residents participate in high-voltage transmission line planning procedures? Findings from two power grid expansion regions in Germany," Energy Policy, Elsevier, vol. 145(C).
    16. Galvin, Ray, 2018. "‘Them and us’: Regional-national power-plays in the German energy transformation: A case study in Lower Franconia," Energy Policy, Elsevier, vol. 113(C), pages 269-277.
    17. Su, Li-Wang & Li, Xiang-Rong & Sun, Zuo-Yu, 2013. "Flow chart of methanol in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 541-550.
    18. Dan Tong & David J. Farnham & Lei Duan & Qiang Zhang & Nathan S. Lewis & Ken Caldeira & Steven J. Davis, 2021. "Geophysical constraints on the reliability of solar and wind power worldwide," Nature Communications, Nature, vol. 12(1), pages 1-12, December.
    19. Jayadev, Gopika & Leibowicz, Benjamin D. & Kutanoglu, Erhan, 2020. "U.S. electricity infrastructure of the future: Generation and transmission pathways through 2050," Applied Energy, Elsevier, vol. 260(C).
    20. Mai, Trieu & Lopez, Anthony & Mowers, Matthew & Lantz, Eric, 2021. "Interactions of wind energy project siting, wind resource potential, and the evolution of the U.S. power system," Energy, Elsevier, vol. 223(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:322:y:2022:i:c:s0306261922007875. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.