Impact of Dynamic Tariffs for Smart EV Charging on LV Distribution Network Operation

Abstract: With a growing share of electric vehicles (EVs) in our distribution grids, the need for smart charging becomes indispensable to minimise grid reinforcement. To circumvent the associated capacity limitations, this paper evaluates the effectiveness of different levels of network constraints and different dynamic tariffs, including a dynamic network tariff. A detailed optimisation model is first developed for public charging electric vehicles in a representative Dutch low voltage (LV) distribution network, susceptible to congestion and voltage problems by 2050 without smart charging of EVs. Later, a detailed reflection is made to assess the influence of the modelled features on the distribution system operator (DSO), charge point operator (CPO) costs, and the EVs' final state-of-charge (SOC) for both mono- (V1G) and bi-directional (V2G) charging. Results show that the dynamic network tariff outperforms other flat tariffs by increasing valley-filling. Consequently, compared to regular day-ahead pricing, a {significant} reduction in the frequency of congestion in the lines is achieved. In addition, V2G ensures the joint optimum for different stakeholders causing adequate EV user satisfaction, decreased CPO costs compared to conventional charging and fewer violations of grid constraints for the DSOs.