Integration of electric vehicles in time-flexible charging processes through contracting models

Abstract

The increasing popularity of electric vehicles (EVs) is leading to major challenges for utilities. The existing low-voltage grid will not be able to support the growing number of simultaneously charging vehicles and would therefore have to be expanded at high cost. In addition, these high charging phases lead to extreme demand peaks, which the utilities must meet by purchasing energy on the electricity spot market at expensive quarter-hourly rates. Through flexible charging processes controlled by the utilities, these costs could be significantly reduced. Similarly, grid utilization can be equalized by shifting the charging phases while parking to more beneficial electricity price periods. Nevertheless, it is guaranteed that there will be no comfort restrictions for the EV owner. To make this possible, EV owners have to enable the utilities to include their vehicles in the flexible charging process. In this paper, we present a contracting model for EVs, in which costumers do not buy the vehicle but lease it from the local utility instead. Reduced leasing rates incentivize end costumers to integrate their EV into the charging process optimization of the utility. Our findings show that this contracting model leads to significant cost savings for all parties involved.