IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v13y2020i17p4365-d403403.html
   My bibliography  Save this article

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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Wooyoung Jeon & Sangmin Cho & Seungmoon Lee, 2020. "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," Energies, MDPI, vol. 13(17), pages 1-22, August.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:17:p:4365-:d:403403
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/13/17/4365/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/13/17/4365/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ueckerdt, Falko & Brecha, Robert & Luderer, Gunnar, 2015. "Analyzing major challenges of wind and solar variability in power systems," Renewable Energy, Elsevier, vol. 81(C), pages 1-10.
    2. Wooyoung Jeon & Alberto Lamadrid & Jung Mo & Timothy Mount, 2015. "Using deferrable demand in a smart grid to reduce the cost of electricity for customers," Journal of Regulatory Economics, Springer, vol. 47(3), pages 239-272, June.
    3. Jeon, Wooyoung & Mo, Jung Youn, 2018. "The true economic value of supply-side energy storage in the smart grid environment – The case of Korea," Energy Policy, Elsevier, vol. 121(C), pages 101-111.
    4. Tawfiq M. Aljohani & Ahmed F. Ebrahim & Osama Mohammed, 2020. "Hybrid Microgrid Energy Management and Control Based on Metaheuristic-Driven Vector-Decoupled Algorithm Considering Intermittent Renewable Sources and Electric Vehicles Charging Lot," Energies, MDPI, vol. 13(13), pages 1-19, July.
    5. Ensslen, Axel & Ringler, Philipp & Dörr, Lasse & Jochem, Patrick & Zimmermann, Florian & Fichtner, Wolf, 2018. "Incentivizing smart charging: Modeling charging tariffs for electric vehicles in German and French electricity markets," MPRA Paper 91543, University Library of Munich, Germany, revised 17 Feb 2018.
    6. Zhang, Lei & Li, Yaoyu, 2017. "Regime-switching based vehicle-to-building operation against electricity price spikes," Energy Economics, Elsevier, vol. 66(C), pages 1-8.
    7. Jean-Michel Clairand & Carlos Álvarez-Bel & Javier Rodríguez-García & Guillermo Escrivá-Escrivá, 2020. "Impact of Electric Vehicle Charging Strategy on the Long-Term Planning of an Isolated Microgrid," Energies, MDPI, vol. 13(13), pages 1-18, July.
    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. Ioannis Karakitsios & Dimitrios Lagos & Aris Dimeas & Nikos Hatziargyriou, 2023. "How Can EVs Support High RES Penetration in Islands," Energies, MDPI, vol. 16(1), pages 1-17, January.
    2. Michał Jasiński & Tomasz Sikorski & Dominika Kaczorowska & Jacek Rezmer & Vishnu Suresh & Zbigniew Leonowicz & Paweł Kostyła & Jarosław Szymańda & Przemysław Janik & Jacek Bieńkowski & Przemysław Prus, 2021. "A Case Study on Data Mining Application in a Virtual Power Plant: Cluster Analysis of Power Quality Measurements," Energies, MDPI, vol. 14(4), pages 1-14, February.
    3. Mohseni, Soheil & Brent, Alan C. & Kelly, Scott & Browne, Will N., 2022. "Demand response-integrated investment and operational planning of renewable and sustainable energy systems considering forecast uncertainties: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    4. Lee, Juyong & Cho, Youngsang, 2022. "Determinants of reserve margin volatility: A new approach toward managing energy supply and demand," Energy, Elsevier, vol. 252(C).
    5. Neska, Ewa & Kowalska-Pyzalska, Anna, 2022. "Conceptual design of energy market topologies for communities and their practical applications in EU: A comparison of three case studies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    6. Chila Kaewpraek & Liaqat Ali & Md. Arefin Rahman & Mohammad Shakeri & M. S. Chowdhury & M. S. Jamal & Md. Shahin Mia & Jagadeesh Pasupuleti & Le Khac Dong & Kuaanan Techato, 2021. "The Effect of Plants on the Energy Output of Green Roof Photovoltaic Systems in Tropical Climates," Sustainability, MDPI, vol. 13(8), pages 1-10, April.
    7. Michal Jasiński & Tomasz Sikorski & Dominika Kaczorowska & Jacek Rezmer & Vishnu Suresh & Zbigniew Leonowicz & Paweł Kostyla & Jarosław Szymańda & Przemysław Janik, 2020. "A Case Study on Power Quality in a Virtual Power Plant: Long Term Assessment and Global Index Application," Energies, MDPI, vol. 13(24), pages 1-20, December.
    8. Dominika Kaczorowska & Jacek Rezmer & Michal Jasinski & Tomasz Sikorski & Vishnu Suresh & Zbigniew Leonowicz & Pawel Kostyla & Jaroslaw Szymanda & Przemyslaw Janik, 2020. "A Case Study on Battery Energy Storage System in a Virtual Power Plant: Defining Charging and Discharging Characteristics," Energies, MDPI, vol. 13(24), pages 1-22, December.
    9. Nnaemeka Vincent Emodi & Scott Dwyer & Kriti Nagrath & John Alabi, 2022. "Electromobility in Australia: Tariff Design Structure and Consumer Preferences for Mobile Distributed Energy Storage," Sustainability, MDPI, vol. 14(11), pages 1-18, May.
    10. Wooyoung Jeon & Jungyoun Mo, 2023. "Estimating the Operating Reserve Demand Curve for Efficient Adoption of Renewable Sources in Korea," Energies, MDPI, vol. 16(3), pages 1-12, February.

    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. Wooyoung Jeon & Chul-Yong Lee, 2019. "Estimating the Cost of Solar Generation Uncertainty and the Impact of Collocated Energy Storage: The Case of Korea," Sustainability, MDPI, vol. 11(5), pages 1-18, March.
    2. Kruyt, Bert & Lehning, Michael & Kahl, Annelen, 2017. "Potential contributions of wind power to a stable and highly renewable Swiss power supply," Applied Energy, Elsevier, vol. 192(C), pages 1-11.
    3. Andreas Gerster, 2016. "Negative price spikes at power markets: the role of energy policy," Journal of Regulatory Economics, Springer, vol. 50(3), pages 271-289, December.
    4. Stinner, Sebastian & Schlösser, Tim & Huchtemann, Kristian & Müller, Dirk & Monti, Antonello, 2017. "Primary energy evaluation of heat pumps considering dynamic boundary conditions in the energy system," Energy, Elsevier, vol. 138(C), pages 60-78.
    5. Alexis Tantet & Philippe Drobinski, 2021. "A Minimal System Cost Minimization Model for Variable Renewable Energy Integration: Application to France and Comparison to Mean-Variance Analysis," Energies, MDPI, vol. 14(16), pages 1-38, August.
    6. Busiswe Skosana & Mukwanga W. Siti & Nsilulu T. Mbungu & Sonu Kumar & Willy Mulumba, 2023. "An Evaluation of Potential Strategies in Renewable Energy Systems and Their Importance for South Africa—A Review," Energies, MDPI, vol. 16(22), pages 1-27, November.
    7. Niina Helistö & Juha Kiviluoma & Hannele Holttinen & Jose Daniel Lara & Bri‐Mathias Hodge, 2019. "Including operational aspects in the planning of power systems with large amounts of variable generation: A review of modeling approaches," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 8(5), September.
    8. Viktor Slednev & Patrick Jochem & Wolf Fichtner, 2022. "Impacts of electric vehicles on the European high and extra high voltage power grid," Journal of Industrial Ecology, Yale University, vol. 26(3), pages 824-837, June.
    9. Younes Zahraoui & Ibrahim Alhamrouni & Saad Mekhilef & M. Reyasudin Basir Khan & Mehdi Seyedmahmoudian & Alex Stojcevski & Ben Horan, 2021. "Energy Management System in Microgrids: A Comprehensive Review," Sustainability, MDPI, vol. 13(19), pages 1-33, September.
    10. Andrychowicz, Mateusz & Olek, Blazej & Przybylski, Jakub, 2017. "Review of the methods for evaluation of renewable energy sources penetration and ramping used in the Scenario Outlook and Adequacy Forecast 2015. Case study for Poland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 703-714.
    11. Mena, R. & Escobar, R. & Lorca, Á. & Negrete-Pincetic, M. & Olivares, D., 2019. "The impact of concentrated solar power in electric power systems: A Chilean case study," Applied Energy, Elsevier, vol. 235(C), pages 258-283.
    12. Cao, Sunliang, 2019. "The impact of electric vehicles and mobile boundary expansions on the realization of zero-emission office buildings," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    13. Mararakanye, Ndamulelo & Bekker, Bernard, 2019. "Renewable energy integration impacts within the context of generator type, penetration level and grid characteristics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 108(C), pages 441-451.
    14. Matti Koivisto & Kaushik Das & Feng Guo & Poul Sørensen & Edgar Nuño & Nicolaos Cutululis & Petr Maule, 2019. "Using time series simulation tools for assessing the effects of variable renewable energy generation on power and energy systems," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 8(3), May.
    15. Harrison-Atlas, Dylan & Murphy, Caitlin & Schleifer, Anna & Grue, Nicholas, 2022. "Temporal complementarity and value of wind-PV hybrid systems across the United States," Renewable Energy, Elsevier, vol. 201(P1), pages 111-123.
    16. Baptiste François & Benoit Hingray & Marco Borga & Davide Zoccatelli & Casey Brown & Jean-Dominique Creutin, 2018. "Impact of Climate Change on Combined Solar and Run-of-River Power in Northern Italy," Energies, MDPI, vol. 11(2), pages 1-22, January.
    17. Philip Tafarte & Marcus Eichhorn & Daniela Thrän, 2019. "Capacity Expansion Pathways for a Wind and Solar Based Power Supply and the Impact of Advanced Technology—A Case Study for Germany," Energies, MDPI, vol. 12(2), pages 1-23, January.
    18. Coninx, Kristof & Deconinck, Geert & Holvoet, Tom, 2018. "Who gets my flex? An evolutionary game theory analysis of flexibility market dynamics," Applied Energy, Elsevier, vol. 218(C), pages 104-113.
    19. Coker, Phil J. & Bloomfield, Hannah C. & Drew, Daniel R. & Brayshaw, David J., 2020. "Interannual weather variability and the challenges for Great Britain’s electricity market design," Renewable Energy, Elsevier, vol. 150(C), pages 509-522.
    20. Jafari, Mehdi & Korpås, Magnus & Botterud, Audun, 2020. "Power system decarbonization: Impacts of energy storage duration and interannual renewables variability," Renewable Energy, Elsevier, vol. 156(C), pages 1171-1185.

    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:gam:jeners:v:13:y:2020:i:17:p:4365-:d:403403. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.