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Electric vehicles in imperfect electricity markets: The case of Germany


  • Wolf-Peter, Schill


We use a game-theoretic model to analyze the impacts of a hypothetical fleet of plug-in electric vehicles on the imperfectly competitive German electricity market. Electric vehicles bring both additional demand and additional storage capacity to the market. We determine the effects on prices, welfare, and electricity generation for various cases with different players in charge of vehicle operations. Vehicle loading increases generator profits, but decreases consumer surplus in the power market. If excess vehicle batteries can be used for storage, welfare results are reversed: generating firms suffer from the price-smoothing effect of additional storage, whereas power consumers benefit despite increasing overall demand. Strategic players tend to under-utilize the storage capacity of the vehicle fleet, which may have negative welfare implications. In contrast, we find a market power-mitigating effect of electric vehicle recharging on oligopolistic generators. Overall, electric vehicles are unlikely to be a relevant source of market power in Germany in the foreseeable future.

Suggested Citation

  • Wolf-Peter, Schill, 2011. "Electric vehicles in imperfect electricity markets: The case of Germany," Energy Policy, Elsevier, vol. 39(10), pages 6178-6189, October.
  • Handle: RePEc:eee:enepol:v:39:y:2011:i:10:p:6178-6189

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    References listed on IDEAS

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    Cited by:

    1. Schroeder, Andreas & Traber, Thure, 2012. "The economics of fast charging infrastructure for electric vehicles," Energy Policy, Elsevier, vol. 43(C), pages 136-144.
    2. Schill, Wolf-Peter & Gerbaulet, Clemens, 2015. "Power System Impacts of Electric Vehicles in Germany: Charging with Coal or Renewables," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 185-196.
    3. Loisel, Rodica & Pasaoglu, Guzay & Thiel, Christian, 2014. "Large-scale deployment of electric vehicles in Germany by 2030: An analysis of grid-to-vehicle and vehicle-to-grid concepts," Energy Policy, Elsevier, vol. 65(C), pages 432-443.
    4. Zulkarnain & Pekka Leviäkangas & Tuomo Kinnunen & Pekka Kess, 2014. "The Electric Vehicles Ecosystem Model: Construct, Analysis and Identification of Key Challenges," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 12(3 (Fall)), pages 253-277.
    5. repec:eee:rensus:v:77:y:2017:i:c:p:970-983 is not listed on IDEAS
    6. repec:eee:appene:v:203:y:2017:i:c:p:608-622 is not listed on IDEAS
    7. Hota, Ashish Ranjan & Juvvanapudi, Mahesh & Bajpai, Prabodh, 2014. "Issues and solution approaches in PHEV integration to smart grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 217-229.


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