Enhancing Public Charging Network CPOs' Business Models Through Vehicle-to-Grid Integration in the Netherlands

Master thesis (2023)

Authors

A.K. Patro Electrical Engineering, Mathematics and Computer Science

Contributors

J.A. Annema Transport and Logistics - TPM (supervisor 1)
M.L. van der Koogh Energy and Industry (supervisor 2)
Z. Lukszo Energy and Industry (coach)
Faculty
Electrical Engineering, Mathematics and Computer Science
Copyright: © 2023 Ankit Patro
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Published Date

17-10-2023

Language

English

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Faculty

Electrical Engineering, Mathematics and Computer Science

Abstract

This thesis explores the transformation of the global transportation and energy sectors through the adoption of electric vehicles (EVs). EVs have emerged as a crucial solution to reduce greenhouse gas emissions and promote sustainable energy sources. The associated charging infrastructure poses challenges and opportunities for Charge Point Operators (CPOs).

Among the various charging solutions, Vehicle-to-Grid (V2G) technology offers significant potential for CPOs. However, prior research has not comprehensively addressed the financial implications, operational costs, and revenue streams specific to CPOs, particularly within the energy market.

The primary objective is to investigate public charging network business models through V2G integration in the Netherlands from a CPO perspective. The central research question is whether CPOs in the Netherlands can enhance their business model through V2G in the EPEX DAM market. The primary focus is on assessing the financial impact of V2G on CPO operations, considering factors such as electricity procurement costs, user behavior, and location-specific dynamics.

The methodology combines empirical analysis, simulation modeling, and data-driven insights. It commences with a literature review on EV charging, V2G technology, and CPO business models. Stakeholder consultations provide real-world insights into business dynamics and cost structures.

An Excel-based simulation model replicates various V2G charging scenarios using data from the European Power Exchange (EPEX) Spot Day-Ahead Market (DAM). A base case charging scenario, involving both V2G and regular charging, is developed, and the results are used to assess CPO profitability in the Public Charging Network business case.

An extended Cost-Benefit Excel model evaluates the profitability of the CPO's business model after integrating the reduced variable cost of procured electricity through V2G within the evolving EPEX DAM landscape. It considers factors such as battery degradation, customer compensation, charging behavior, and market dynamics.

The simulation models reveal pivotal findings. V2G integration strategically implemented has the potential to boost CPO profitability by significantly reducing electricity procurement costs. User compensation schemes, charging patterns, usage rates, and location-specific demand dynamics significantly influence earnings. Sensitivity analysis underscores the importance of usage rates, cost reduction for procured electricity, and network expansion in driving profitability.

In conclusion, this thesis uncovers the potential of V2G technology to enhance EV charging infrastructure while contributing to grid stability and renewable energy integration. The findings provide strategic guidance for CPOs to focus on densely populated cities to maximize revenue and profits. The insights extend beyond CPOs and are relevant to stakeholders within the EV charging ecosystem.