The impacts of electric vehicle growth on wholesale electricity prices in wisconsin

Abstract

This work explores the impact of the rapid growth of plug-in electric vehicles on wholesale electricity pricing. Understanding electric vehicle impacts on the grid is important for the mid-and long-range planning of transmission owners, distribution utilities, and regional system operators. Current research in electric vehicles considers technology adoption projections and the infrastructure needed to support electric vehicle growth. This work considers how projected electric vehicle growth in the State of Wisconsin would impact the transmission congestion and wholesale electricity pricing in the year 2030. We find minimal impacts on electricity prices (<2%) even under rapid growth assumptions, in which EVs comprise 5% of all vehicles in 2030. The increases seen in hourly locational marginal prices (LMPs) due to projected electric vehicle growth are, on average, less than those seen in annual changes of historic electricity prices in Wisconsin. We do find moderate, relative increases in congestion prices (+16-32%), which could provide an opportunity to align electric vehicle charging schedules with times of low transmission congestion.