Modeling the deployment of plug-in hybrid and electric vehicles and their effects on the Australian National Electricity Market

Abstract

The development of hybrid and fully electric vehicles could deliver significant reductions of emissions from the Australian transportation sector by shifting its major energy source from internal combustion to electricity. This shift towards the the use of electricity shifts the point source emissions to one which has a lower emissions intensity. Changes in load behaviour as a result of the consumer uptake of these vehicles will have significant consequences for network and central planners for the future of Australia's electricity supply industry. This paper investigates the effects on the security of supply of energy during these previously unseen demand patterns, while also examining changes to spot market prices and changes in emissions rates. The simulation results indicate that wholesale prices during the off-peak period will increase slowly over time with controlled charging. While uncontrolled charging increases the incidence of extreme price events and a considerable number of hours with un-served energy within the network. This increase in spot prices will require further review by policy makers of regulated retail electricity tariffs. We also discuss the implementation of possible changes to the retail tariff structure to accommodate the charging of these vehicles.