Smart Charging and V2G: How electric cars can help with the energy transition High prices despite renewable energies Demand management Vehicle to Grid (V2G) storage in efuels
Perhaps you have already asked yourself from your electricity bills: if electricity from photovoltaics and wind power is as cheap as always described, why is electricity so expensive in Germany, in Denmark and in all regions that have a lot of wind power and photovoltaics in the electricity mix ? We will therefore start with this set of issues before discussing the contribution that electric cars could make to mitigation.
The cheap generation electricity price, with which photovoltaics and wind power are cited, is determined from the total operating costs of the system. It is therefore just one factor among many that ultimately determine the 24/7 electricity price that you have to pay later. For these generation costs, the entire operating costs of the system over its lifetime are allocated to the expected generated kilowatt hours of electricity over the same lifetime in order to know what a kilowatt hour costs approximately.
However, costs are not a price, they just shouldn’t be permanently higher than this. Prices arise in markets, through supply and demand. Depending on the weather, photovoltaics and wind power are happy to offer together up to large surpluses and nothing at all when the weather is bad for power generation. This lowers their own prices, for example in the afternoon when all photovoltaic systems feed in but only little electricity is consumed, and at the same time increases the prices for failure power. This is why photovoltaics and wind power are subsidized on the electricity market: Their production price is set to zero so that they are at the top of the “merit order”.
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