Integrated long-term energy planning with vehicle-to-grid for decarbonization of the Chilean energy system

In this paper we implement a long-term multi-sectoral energy planning model to evaluate the role of electric mobility and Vehicle-to-Grid (V2G) and its potential synergy with renewable development for the decarbonization of the Chilean energy system, a country with a high renewable potential. The contributions of this paper are both methodological and policy-oriented. On the one hand we extend the energy ETEM-Chile planning model to incorporate the V2G dimension and distribution upgrading costs, usually not considered in such models. On the other hand, our results deliver interesting policy insights. They show that distribution costs are important to consider as otherwise it can lead to an over-electrified system with under-estimated system costs of about 6%. The incorporation of V2G technology results in significant system cost benefits from the use of V2G both for demand management and as system reserve. Under stringent climate objectives, we observe (i) a synergy between V2G and solar photovoltaics, with storage of intermittent production in vehicle batteries relying mainly on public charging stations, and (ii) a disappearance of green-hydrogen-based power plants in the electricity mix. • The study explores EVs’ impact on Chile’s energy transition pathways. • Distribution upgrading costs are included in the long-term energy planning model. • V2G and PV show synergy via storage use in electric vehicle batteries. • Distribution costs strongly influence EV adoption in future scenarios.