Post Category → Policy

Presentation: Watt price equity?

IMHO, the energy system has 2 goals:
• Efficiency – minimizing total economic & ecological costs
• Equity – human wellbeing, individually and collectively

The (Nobel prize earning) Tinbergen rule stipulates that each of these goals requires its own policy instrument. Relying on 1 market price – to efficiently manage EV charging without inequitable punishing parents for cooking at 6pm – flies in the face of this.

So, what can be done? Late last year I had the privilege to speak my mind about this problem and potential solutions (spoiler: separating energy demand into an essential and a flexible component – which could just be EVs to start with) as part of a Victorian Council of Social Service event and in a presentation to the Australian Energy Market Commission (AEMC) economic research team.

The first preso was recorded

Slides and here

202411-Sturmberg-Energy_equityDownload

And context of the VCOSS project is https://vcoss.org.au/projects/2024/01/energy-health-nexus/

Flat fees for flexible EVs

This study builds upon the recently published Unplugged is inflexible report to explore one avenue by which EV drivers could be incentivised to: 

  1. plug their EVs in for extended durations, and  
  1. permit their vehicles to be charged flexibly.  

While there are many avenues by which this could be done, we here explore the potential for EV drivers to be offered very simple, flat retail offers based solely on how often they plug in their EVs and how much energy their EV consumes. This approach entirely removes considerations of when in the day vehicles are plugged in, which lightens the mental burden on drivers and may contribute to greater acceptance of managed charging. 

This concept is motivated by the belief that creating price-certainty, and ideally cost-certainty, is a core way in which electricity retailers create value for their customers. This EV charging arrangement engages customers (EV drivers) is a quid pro quo where retailers contribute their expertise and diversity of customers to manage pricing risk, and EV drivers contribute the flexibility of their charging demand. 

Our modelling shows that doubling the amount of time EVs are plugged in for reduces the cost of charging by half. To be clear, this requires nothing of EV drivers other than having their EV connected to a charger for longer periods, which enables more flexibly charging behaviour. 

To quantify the risk for retailers we conduct a statistical analysis in terms of the cost of EV charging per day or per kWh. This suggests that offering a fixed price per day may go beyond retailers’ risk appetite, making a fixed price per kWh the more attractive option. This is likely also fairer for customers as it charges for the precise amount of energy used. 

The addition of vehicle-to-grid increases the benefits of longer plug-in times by facilitating market arbitrage. Vehicles that are driven less than 40km per day and are plugged in to chargers for more than 8 hours a day (with vehicle-to-grid) can, on average, be charged at zero or negative cost. 

While outside of the scope of this study, we note that this same tariff concept (and simulation model) could be applied matching flexible EV charging with the generation of a collection of wind or solar farms. This would provide another way for a retailer to manage/fix their price exposure while simultaneously creating value for customers by charging vehicles with zero emissions power. 

Full report below

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Unplugged is inflexible – How drivers’ plug in behaviour determines the flexibility of electric vehicle (dis)charging

In a neat little project for the ACT Government I analyse the (IMO oft overlooked) critical step of when EV drivers plug in their vehicles. If they’re not plugged in for substantially longer than required for charging then EVs are not the fabulously flexible load that they could be.

202406-Unplugged-is-inflexibleDownload

Participation and sensemaking in electric vehicle field trials: A study of fleet vehicle-to-grid in Australia

We have just published a new article from the REVS V2G trial about how participants in a field trial – in this case, the fleet, sustainability and asset managers – make sense of and influence technologies when a group comes along wanting to deploy and test them.

We found unexpected effects which revealed insights about what configuration of V2G might be acceptable to fleet end users. If energy market participants want V2G to solve their problems (and make them profit), they need to do the flexibility work.

Abstract

Vehicle-to-grid is a niche technology that has the potential to benefit electricity markets and support more renewable energy in the grid. However, interest from prospective users in adopting V2G is not well understood, particularly in the context of fleet vehicles. Technology-oriented field trials can contribute to the development of niche technologies. Trials usually focus on making engineered systems work, institutional embedding and testing business models. However, through the participation of users they also provide the opportunity to explore processes of problem definition and the formation of social, ethical and cultural meanings. This article presents findings from the Realising Electric Vehicle-to-grid Services project, an Australian trial of vehicle-to-grid in a government-owned light passenger car fleet, aiming to explore co-productive processes as essential aspects of participatory technology development. Our data comprises interviews with organisational actors responsible for facilitating and mediating the trial, as well as others in similar organisational roles. Adopting ecologies of participation as a framework, it reveals the productive effects of these actors in mediating the local embedding of vehicle-to-grid. These findings challenge the framing of vehicle-to-grid as being a question of consumer acceptance and suggest that, for this promising technology to contribute to a more sustainable future, the electricity sector must accept more risk.

Full article: https://lnkd.in/eukchts2

A provocation – Who will drive Vehicle-to-Grid?

A “provocation” is my new favorite form of publication!

This article in Utility Magazine was a real pleasure to write and condenses many recent discussions.

Our main takeaway is this: “Our experience to date suggests that V2G may stand to be of greatest attraction “for the grid” and that there is much to be done “by the grid” to accelerate this innovation becoming a seamless part of the electric vehicle experience.”

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Overwhelming interest in EVs for remote communities

In response to the incredible media interest in our recent paper on electric vehicles in remote Australia – with the second most media stories that the journal Australian Geographer has ever generated in it’s 94 year history – the publishers have lifted the paywall to make the full article available for free until the end of Oct.

So if want to look behind the headline, now’s your chance https://lnkd.in/dvF7FKxi

Exploring the feasibility of electric vehicle travel for remote communities in Australia

New paper out today showing that current EVs would be able to service the vast majority (93%+) of residents of remote communities in northern Australia (under simplified assumptions).

My take aways:

  • We cannot leave these communities out of our clean transport plans (as we did with clean electricity) – they are not in the “too hard basket”
  • If EVs can service trips in remote communities their ranges are likewise sufficient for regional communities – who too have received less support for electrification
  • Charging infrastructure – especially in regional and remote service towns – is now the missing piece of the puzzle

The media’s takes:

  • The Guardian “Regional residents at risk of being ‘last people in the world’ driving petrol cars due to misconception electric vehicle batteries lack range” (a stretch perhaps)
  • Cosmos Magazine “Electrification shouldn’t ignore remote communities.” (nailed it!)

Article is here and abstract and link to free to access pre-print are below

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FACTS – a Framework for an Australian Clean Transport Strategy

I was part of a team of 18 independent experts (academics) who developed a comprehensive framework for decarbonising the Australian transport sector in a manner consistent with international best practice (eg shifting trips to public and active transport) and climate science to keep warming within 1.5d.

Below are some takeout snapshots. The full report is available at transportfacts.org and a summary was published in The Conversation.

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