Impact of Transport Electrification Demand and Charging Schedules on Electricity Markets and Nuclear Generators
As the U.S. pursues deep decarbonization targets, electric vehicles (EVs) are likely to become a major driver of demand growth and a major determinant of daily demand patterns. This study analyzes a possible future ERCOT-like electricity grid, and examines the impact of different types of EV charging schedules on grid and market outcomes. This analysis demonstrates the significant impact of EV charging patterns on capacity expansion simulations. Even without EVs, the overall daily demand profile in a market can have significant impacts on prices and grid stability in that system, especially if non-dispatchable renewable generators (e.g. wind and solar) make up a significant fraction of the generation mix. EV demand will not necessarily follow this preexisting demand profile, so its daily trends may significantly change what generation portfolio would optimally serve the system. Furthermore, the effects of EV demand can alter the profitability of different types of units, by altering the frequency of market events like extreme-demand hours or zero-price hours. These effects are explored in this study. The EV demand levels were derived from MARKAL simulations of the West-South-Central North American Electric Reliability Corporation (NERC) region for the year 2050, using a carbon tax of $100/ton. The baseline MARKAL simulation forecasted that 23% of the region’s annual electricity demand in 2050 would be attributable to EVs, and broke out demand projections for EV and non-EV end-use in that year. To model lower EV penetration into the system, an additional case was explored which assumed that EVs only achieved 75% of the demand level projected by MARKAL.