Electric Vehicle Storage Management in Operating Reserve Auctions

Abstract

Carsharing operators, which rent out electric vehicles for minutes or hours, lose money on idle vehicles. We develop a model that allows carsharing operators to offer the storage of these vehicles on operating reserve markets (market for quickly rampable back-up power sources that replace for instance failing power plants). We consider it a dispatch and pricing problem with the tradeoff between the payoffs of offering vehicles for rental and selling their storage. This is a problem of stochastic nature taking into account that people can rent electric vehicles at any time. To evaluate our model we tracked the location and status of 350 electric vehicles from the carsharing company Car2Go and simulated the dispatch in the Dutch market. This market needs to be redesigned for optimal use of storage. We make recommendations for the market redesign and show that carsharing operators can make substantial additional profits in operating reserve markets.