Possible impact of electric cars on electricity spot prices

Abstract

This paper presents a Belgian example applying the grid-connected cars as a means for storing electricity, which could eventually result in lowering the spot price and its volatility on the electricity market. The energy is assumed to be bought on the Belgian power exchange, and the Belpex Market Resilience analysis is used to determine to what extent additional electricity demand or supply affects the spot market price. Two different arbitrage strategies for the electric cars are adopted in this context, namely that of a central planner, aiming for societal welfare maximization through reduction of average electricity prices. And that of profit-maximizing car-owners.