Missing Money for EVs: Economics Impacts of TSO Market Designs

19 Pages Posted: 17 Nov 2014

See all articles by Paul Codani

Paul Codani

Supélec

Marc Petit

Supélec

Yannick Perez

Université Paris XI Sud; Supélec

Date Written: November 16, 2014

Abstract

Using electric vehicles (EV) as TSO reserve providing units has been demonstrated as being both a feasible and a profitable solution. However, the surveys leading to these conclusions are always conducted either without considering the TSO market rules, or using the local TSO existing ones. We find that TSO rules potentially have a great impact on the expected revenues, and are likely to change within the next few years. Thus, this paper aims at assessing the impacts of the implemented TSO rules on the ability for EVs to provide TSO reserves and on their expected remuneration by doing so. First, we draw a list of the most important TSO rules for this use case. Then, we develop a simulation model in order to evaluate the expected revenues for the EVs. Finally, we compute these expected revenues considering various combinations of TSO rules. By doing so, we identify a missing money issue for EVs due to the use of non-optimal rules towards ancillary services remuneration. Considering the French case, according to our simulation results, this missing money per EV and per year ranges from 193€ to 593e€.

Keywords: Electric Vehicles; TSO reserves; Vehicle-to-grid; Economics; Regulation

JEL Classification: K23, L52, L62, L94

Suggested Citation

Codani, Paul and Petit, Marc and Perez, Yannick, Missing Money for EVs: Economics Impacts of TSO Market Designs (November 16, 2014). Available at SSRN: https://ssrn.com/abstract=2525290 or http://dx.doi.org/10.2139/ssrn.2525290

Paul Codani

Supélec ( email )

3 rue Joliot Curie
Gif sur Yvette, 91192
France

Marc Petit

Supélec ( email )

3 rue Joliot Curie
Gif sur Yvette, 91192
France

Yannick Perez (Contact Author)

Université Paris XI Sud ( email )

15, rue Georges Clemenceau
Orsay cedex, 91405
France

Supélec ( email )

3 rue Joliot Curie
Gif sur Yvette, 91192
France

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