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Deadline differentiated pricing in practice: marketing EV charging in car parks

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Computer Science - Research and Development

Abstract

Electric vehicle charging is considered as a prime case of load flexibility in future smart grids. We examine a scenario where electric vehicles are charged in a car park with local photovoltaic (PV) generation. In this setting, temporal charging flexibility can be leveraged to increase utilization of local generation. To incentivize flexible loads we apply a deadline differentiated pricing scheme. Prices are set by the car park operator in a profit-maximizing manner in settings with varying PV capacity and costs of conventional generation. This allows us to assess the value of flexibility passed on to customers in form of discounts. Furthermore, we determine the minimum flexibility level qualifying for this discount. By and large, absolute price levels and flexibility discounts are mainly driven by the cost of conventional generation. On the other hand, the minimum flexibility requirements are affected by both the costs of conventional generation as well as the local PV capacity: higher costs of conventional generation as well as larger PV capacities will decrease this threshold.

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Notes

  1. Bitar and Low note, that deadline differentiated pricing “would naturally complement the proliferation of electric vehicles in the US transportation fleet.”

  2. Consequently, \(p_0\) denotes the energy price without flexibility, \(p_1\) for a flexibility of 15 min, and \(p_n\) for a flexibility of \(n\times 15\) min.

  3. This is done for reasons of practical applicability as well as to limit computational complexity leading to a more limited price menu.

  4. The function is defined for \(0\le x \le q_1\).

  5. For ease of exposition, we replace \(d_{c,\bar{f_c}}\) and \(\delta _{c,\bar{f_c}}\) by \(d_c\) and \(\delta _c\) from now on.

  6. See www.goingelectric.de/stromtankstellen/ for a comprehensive listing of fast charging stations.

  7. From MOP data we use the file “W”. Data description and codeplans are available at http://mobilitaetspanel.ifv.kit.edu/english/92.php.

  8. The general structure of the obtained results is not affected by this concrete choice.

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Authors and Affiliations

  1. Department of Economics and Business Engineering, Karlsruhe Institute of Technology, Karlsruhe, Germany

    Florian Salah

  2. Department of Business Management, University of Würzburg, Würzburg, Germany

    Christoph M. Flath

Authors
  1. Florian Salah
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  2. Christoph M. Flath
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Corresponding author

Correspondence to Florian Salah.

Additional information

3rd D-A-CH conference on Energy Informatics 2014-Zurich, Switzerland.

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Salah, F., Flath, C.M. Deadline differentiated pricing in practice: marketing EV charging in car parks. Comput Sci Res Dev 31, 33–40 (2016). https://doi.org/10.1007/s00450-014-0293-5

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  • DOI: https://doi.org/10.1007/s00450-014-0293-5

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