Fleetpower: Creating Virtual Power Plants in Sustainable Smart Electricity Markets

48 Pages Posted: 1 Nov 2017

See all articles by Micha Kahlen

Micha Kahlen

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Wolfgang Ketter

University of Cologne - Institute of Energy Economics; Erasmus University Rotterdam (EUR) - Department of Technology and Operations Management; Erasmus Research Institute of Management (ERIM)

Alok Gupta

University of Minnesota - Twin Cities - Carlson School of Management

Date Written: October 31, 2017

Abstract

Electric vehicles have the potential to be used as virtual power plants to provide reliable back-up power. This generates additional profits for car sharing rental firms, who rent vehicles by the minute. We show this by developing a discrete event simulation platform based on real-time locational information (GPS) of 1,100 electric cars from Daimlers car sharing service Car2Go in San Diego, Amsterdam, and Stuttgart. We design trading prices (bids and asks) for participating in the respective operating reserve markets, markets for back-up power guaranteeing replacement when a power source fails, to sell the storage from idle electric vehicles. These trading prices are calibrated and tested with operating reserve market data. We investigate the influence of the charging infrastructure density, battery technology, and rental demand for vehicles on the payoff for the carsharing operator. We show that virtual power plants create sustainable revenue streams for electric vehicle car sharing companies without compromising their rental business.

Keywords: Fleet Power, Car Sharing, Virtual Power Plants, Sustainability, Smart Electricity Markets

Suggested Citation

Kahlen, Micha and Ketter, Wolfgang and Gupta, Alok, Fleetpower: Creating Virtual Power Plants in Sustainable Smart Electricity Markets (October 31, 2017). Available at SSRN: https://ssrn.com/abstract=3062433 or http://dx.doi.org/10.2139/ssrn.3062433

Micha Kahlen (Contact Author)

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Wolfgang Ketter

University of Cologne - Institute of Energy Economics ( email )

Alte Wagenfabrik
Vogelsanger Strasse 321a
Cologne, 50827
Germany

HOME PAGE: http://ewi.uni-koeln.de/en/

Erasmus University Rotterdam (EUR) - Department of Technology and Operations Management ( email )

RSM Erasmus University
PO Box 1738
3000 DR Rotterdam
Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

HOME PAGE: http://www.rsm.nl/energy

Alok Gupta

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

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