Abstract

The energy transition based on variable renewable energy sources raises concerns on satisfying the electricity demand at all hours of a year, which is amplified by the ongoing energy system electrification. Balancing variable electricity supply and inelastic demand requires additional sources of flexibility in the system: flexible electricity generation, energy storage, grids, flexible demand, and overall sector coupling. Electrification of transport increases the electricity demand; however, it offers the opportunity to use additional low-cost flexibility from electric vehicles batteries. The LUT Energy System Transition Model was modified to model the smart charging and vehicle-to-grid functionality of electric vehicles in integrated energy systems. The results show that, in countries with a large fleet of electric vehicles, smart charging and vehicle-to-grid allow for a substantial reduction of energy storage requirements, reducing the electricity and heat storage capacity by 35% and 25%, respectively and leading to 4% lower system cost. Flexible operation of electrolysers required for e-fuels synthesis have a similar effect and, in combination with smart charging and vehicle-to-grid, can lead to 8% lower system cost. The impact of vehicle-to-grid naturally depends on assigned operational cost; however, it contributes to system cost reduction even at high costs of 50 or 100 €/MWh.

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