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An electricity generation expansion model with ICEV and PEV investments

R. Castañón, F.A. Campos, S. Doménech, J. Villar

Environmental policies could accelerate the replacement of Internal Combustion Engine Vehicles (ICEV) by Plug-in-Electric Vehicles (PEV) in many countries. However, in countries where these policies are still not implemented (for example those with no significant PEV subsidies like Spain), technical and economic criteria can also be relevant to assess the future PEV penetration. This work develops a new long-term expansion model that computes the share of PEV and ICEV based on economic criteria, including the impact of PEV on the electricity price and generation mix. The model minimizes the power and transport system costs (investment, operation and maintenance costs, etc.) considering electricity and private transportation needs. Results provide insight on the combined evolution of the renewable generation and of the PEV and ICEV future fleets in Spain, considering environmental constraints such as those imposed by the European Commission.

Keywords: ICE and PEV, investment decisions, European decarbonization, unit commitment, dynamic optimization.

Publicado: junio 2018.

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