Impacts of avalanche effects of price-optimized electric vehicle charging - Does demand response make it worse?

Electric vehicles (EVs) are expected to provide substantial potential for demand response (DR) and, thus, the integration of renewable electricity sources in the future energy system. However, DR can also have noticeable negative consequences, so-called avalanche effects. We systematically assess under which circumstances avalanche effects occur and what impact they have on the electricity system and cost savings for EV owners. Our results show that DR can provoke unwanted avalanche effects, which are particularly strong beyond 2030, when the leverage of EV charging will have increased to a significant level. It is possible to avoid avalanche effects by using a dynamically updated DR signal. If this is used, our findings confirm that shifting charging load from peaks to hours of low or negative residual load reduces the peak and variance of residual load and facilitates the integration of renewables.