Tariff design for efficient vehicle to grid integration

Decarbonization is imperative. To this end, Swiss and European electricity systems are transitioning towards a high share of variable renewable energy sources. Simultaneously, electrification is one of the key strategies for decarbonizing the transport sector. Electric vehicle charging could exacerbate peak load events resulting in higher electricity prices and the need for more generation capacity. Well designed tariffs can incentivize electric vehicle owners to shift charging to off-peak periods or feed electricity back to the system during peak demand.
This project focuses on tariffs for the efficient integration of electric vehicles into the power system and investigates the interaction with other sources of flexibility on the household level such as batteries or hybrid solar battery systems while using a spatially and temporally highly resolved model of the Swiss electricity sector. The study comprises four key steps:

1. Identifying various household tariff designs, including day-night tariffs, direct load control tariffs, time-of-use capacity tariffs, and fully dynamic tariffs for energy and grid componentsthat could support efficient integration of electric vehicles into the power system.
2. Developing an integrated dispatch and capacity expansion model based on the Nexus-e framework to represent different household electricity tariffs while optimizing the overall Swiss power system by hard linking and improving two existing models.
3. Investigating how different regulations and tariff designs impact EV charging behavior, the interrelationship between EV charging and the adoption and operation of rooftop PV and hybrid solar-battery systems, and the wider system impacts including on other flexibility sources such as utility-scale batteries and hydro power in Switzerland.
4. Testing the robustness of different tariff designs under various scenarios, including potential development pathways of the European power system and different climatic conditions.

This comprehensive approach aims to provide actionable insights into creating an efficient, flexible, and sustainable power system capable of supporting the widespread adoption of EVs and renewable energy sources. It will also guide future debates on potential regulation of household tariff design by providing quantitative insights into the consumer-level and system-level benefits of relevant tariff structures.

Partner

• AMAG

Roadmap

10.2024 - 09.2026 (24 months)