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Regulatory Framework and Business Models Integrating EVs in Power Systems

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Electric Vehicle Integration into Modern Power Networks

Part of the book series: Power Electronics and Power Systems ((PEPS))

Abstract

This document has been written for a broad scientific audience. As the title states, its purpose is to provide a tutorial overview to integrating plug-in electric vehicles in power systems. The text is based on conclusive insights from the European project titled Mobile Resources in Grids of Electricity (MERGE). Via the regulatory framework governing the electric power sector and the business models employed within, this chapter guides the reader through the most apparent issues of electric vehicle (EV) integration. It is expected that government schemes for energy efficiency in transportation will pave the way for new EV technologies to progressively penetrate automotive industry sales. However, integrating EVs in electric power systems poses new challenges concerning the regulation of the energy sector for system favorable charging scenarios. Hence, this book chapter provides an introduction to the structure of liberalized electric power industries and proposes a conceptual regulatory framework for charging EVs in different scenarios, such as home charging, public charging on streets and dedicated charging stations. Two new entities including their main functions in facilitating charging services in disjunctive settings, the charging point manager and the EV aggregator, are introduced. Finally, policy recommendations to facilitate a massive integration of EVs are given.

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Notes

  1. 1.

    A more precise denomination of the class of vehicles that is discussed in this chapter would be plug-in electric vehicles (PEV), as there exist many other vehicles with electric propulsion that have no interface with—and hence no impact on—the electric power system. EV and PEV are synonyms in this text.

  2. 2.

    An introduction to standardization issues and definitions concerning the electrical as well as information communication interfaces between energy management systems and vehicles is given in [21]. Therein, interface requirements are given as a function of the technical capabilities of the connection called: passive, dynamic, and vehicle-to-grid.

  3. 3.

    The term non-regulated is actually misleading as all agents are governed by some piece of regulation or document legislation. There are merely some agents, to which a stricter set of rules applies.

  4. 4.

    Sometimes these agents are also referred to as retailers.

  5. 5.

    Incentive regulation schemes are, effectively, also cost based approaches to remunerating network activities.

  6. 6.

    This is not true for the regulatory frameworks in most of the electric power systems in the United States of America, where distribution and supply activities are carried out by the same agent, the traditional vertically integrated utility.

  7. 7.

    Later on, it will be clarified that EV owners might not always be considered as final customers.

  8. 8.

    It should be noted that, in the near term home charging scenarios, the function of the supplier/retailer can be assumed by the retailer which already contracts the final customer for domestic residential electricity sale. Please compare Sect. 8.4 on Home Charging.

  9. 9.

    The final customer could be either EV User or the CPM as reseller to the EV User.

  10. 10.

    Smart metering in this context refers to the ability of the measurement device to discriminate between different time periods (resolution may vary from two periods per day, up to 15-min intervals) and potentially even communicate this data close to real-time to the user and to the DSO.

  11. 11.

    Sometimes referred to as energy box.

  12. 12.

    Also referred to as regulation up.

  13. 13.

    This claim is backed up by the EV interface studies of [21] and it avoids negative effects of depleting EV batteries in cases where the charge is highly valued by the customer.

  14. 14.

    In capital market theory these functions mainly include transforming lot sizes, i.e., trading volumes and quantities of goods, risk transformation, i.e., hedging against undesirable events, and term transformation, i.e., monthly payments for domestic customers.

  15. 15.

    This document or any other document produced within the MERGE project does not represent the opinion of the European Commission. Neither the European Commission, nor any person acting on behalf of the Commission, is responsible for the use that might be made of the information arising from the MERGE project.

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Acknowledgments

The work described in this book chapter has been partially developed during the MERGE project supported by the European Commission’s Seventh Framework Programme for Research and Technological Development under contract No: 241399.Footnote 15 Ilan Momber is a candidate of the Erasmus Mundus Joint Doctorate on Sustainable Energy Technologies and Strategies (SETS) funded by the European Commission’s Directorate-General for Education & Culture.

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Momber, I., Gómez, T., Rivier, M. (2013). Regulatory Framework and Business Models Integrating EVs in Power Systems. In: Garcia-Valle, R., Peças Lopes, J. (eds) Electric Vehicle Integration into Modern Power Networks. Power Electronics and Power Systems. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-0134-6_8

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  • DOI: https://doi.org/10.1007/978-1-4614-0134-6_8

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