The integration issues can be managed but the costs of
integration can be high.
The uptake of EVs in New Zealand is less certain. There are
good benefits from a carbon emission reduction perspective
as EVs can be supplied with electricity from largely
renewable sources. However, should large numbers of EVs be
introduced in New Zealand, high integration costs could be
the result as investments in generation, transmission, and
distribution need to be brought forward, if EV owners
recharge when they want rather than when there is spare
capacity in the system.
This chapter will show how getting the right price signals for
charging EVs and the use of dynamic demand control (DDC)
can considerably reduce the integration costs of both
large-scale wind generation and a high uptake of EVs in New
Zealand. Their use also provides the opportunity to reduce the
magnitude of the perennial problem of large frequency
fluctuations on island power systems. While the latter issue
may be specific to New Zealand and some other islanded
systems, the remainder of the findings should be applicable
for most other markets, where wind and EVs are seen as key
parts of a future, low-carbon energy system.
This chapter is organized into four sections. The section
“Wind Generation and Electric Vehicles in New Zealand”
starts by providing a brief overview of the New Zealand
power system, its electricity market, and integration issues for
wind generation and EVs in New Zealand. The section “The
Opportunity at Hand” outlines the opportunity to reduce
power system operating costs through the use of price and
reliability signals. The section “Integration Costs of Wind and
Electric Vehicles in New Zealand” describes the results of a
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