Does demand response make it worse? Impacts of avalanche effects of price-optimized vehicle charging on the electricity system

Electric vehicles (EVs) are expected to possess a substantial potential for demand response (DR) and thus integration of renewable electricity sources in the future. Yet, DR can also have noticeable negative consequences, called avalanche effect. We systematically assess, under which circumstances avalanche effects occur and what impact they have on the electricity system and on 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 has increased to a significant level. Avoiding avalanche effects is possible, if a dynamically updated DR signal is used. If this is the case, our findings confirm that shifting charging load from peaks to hours of low or negative residual load reduces peak residual load and variance of residual load and facilitates integration of renewables.