Analysis method and utilization mechanism of the overall value of EV charging

Electric Vehicle (EV) can save energy while reducing emissions and has thus attracted the attention of both academics and industry. The cost and benefit of charging are one of the key issues in relation to EV development that has been researched extensively. But many studies are carried out from a viewpoint of some local entities rather than a global system, focus on specific types or aspects of EV charging, or use mixed models that can only be computed by computer simulation and lack physical transparency. This paper illuminated that it is necessary to consider the value of EV charging on a system scale. In order to achieve this, it presents an analytical model for analyzing the overall value of EVs, an analysis model to evaluate the reduction of pollutions relevant to photovoltaic power, and a model to transfer the intrinsic savings of wind power to the off-peak charging loads. It is estimated that EV charging has a significant positive value, providing the basis for enhanced EV subsidies. Accordingly, a utilization mechanism apt to optimize globally is proposed, upon which sustainable business models can be formed by providing adequate support, including the implementation of a peak valley tariff, charging subsidies and one-time battery subsidies. This utilization mechanism, by taking full advantage of the operation system of power utilities to provide basic support and service, may provide new approaches to the development of EVs. The method proposed here is of important value for the systematic considerations about EV development and maybe can help broaden the possibility of EV development. (C) 2014 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-SA license (http://creativecommons.org/licenses/by-nc-sa/3.0/).