Strategic network expansion planning with electric vehicle smart charging concepts as investment options

Abstract

The electrification of transport seems inevitable as part of global decarbonization efforts, but power system integration of electric vehicles faces numerous challenges, including a disproportionately high demand peak necessitating expensive infrastructure investments. Moreover, long-term developments in the power sector are characterized by great uncertainty, which increases the risk of making incorrect investment decisions leading to stranded assets. A cost-effective system integration of electrified transport would therefore not be possible without the implementation of smart charging concepts in combination with strategic network expansion planning that considers the impact of uncertainties. This paper proposes investment and operation models of Grid-to-Vehicle (G2V), Vehicle-to-Grid (V2G), and Vehicle-to-Building (V2B) for the large-scale and long-term network expansion planning problem under multi-dimensional uncertainty. Additionally, it presents a multi-stage stochastic planning framework that can identify optimal investment strategies such that the expected system cost is minimized and the risk of stranded investments is reduced. The models are demonstrated on the IEEE 24-bus test system and applied in a case study of the power system of Great Britain. The results highlight G2V, V2G and V2B as effective non-network alternatives to conventional reinforcement that could generate substantial economic savings and act as hedging instruments against uncertainty. For the case of Great Britain, the Option Values of G2V, V2G, and V2B could amount to £1.2bn, £10.8bn, and £10.1bn, respectively, over a 40-year horizon. Although the quantified values are system-specific, the paper presents key observations on the role of smart charging concepts as investment options that can be generalized for any low-carbon power system.