Assumptions and description of scenarios Sample Clauses

Assumptions and description of scenarios. For our analysis we consider three different cases for the evolution of EV purchase costs and infrastructure capital costs. The purchasing costs of EVs draw from literature and consider a central, an optimistic and a pessimistic trajectory, using assumptions from literature. We define a set of 9 scenarios corresponding to the possible combinations of cost assumptions (see the scenario names and definitions in Table 9). The assumed costs are presented in Table 10 and Table 11. The rest of the assumptions are common and include the following:  The price of electricity, which is the variable cost of a charging station and affects the fuel cost of EVs draws from the Reference scenario 2016 quantified with the PRIMES model (Capros et al., 2016) and ranges from 0.163 euros/kWh in 2021 to 0.175 euros/kWh in 2030. The remuneration of the capital cost of the charging points is calculated endogenously in the model based on the levelized cost of infrastructure. The charging price is assumed to be capped at 0.32 euros/kWh to prevent overcharging of EV users.  The share of demand that is self-supplied by means of home charging is assumed to range from around 75% in the start of the 2021-2030 decade to around 70% in 2030, drawing from the study of Xxxxxxx et al., 2019.  The maximum annual subsidy per charging station is assumed to be 4,000 euros. Recall that, in our modelling, the actual annual subsidy is endogenously derived each year to ensure a certain level of profitability for private investors.  The annual budget for public infrastructure investment is assumed to be 15 million euros. Public infrastructure investments are made whenever DSO model deploys. In this case, the amount of investments depends on the infrastructure coverage required to achieve the desired level of EV penetration, following a central planning approach.  The IRR decision threshold for private investors to engage in the recharging infrastructure development is assumed to be 5%. We carry out sensitivity analysis on this assumption.  All the techno economic assumptions on the competing vehicle technologies, apart from the purchase cost of EVs, are common among the scenarios. These assumptions include vehicle mileage, fuel consumption, maintenance and insurance costs and vehicle economic lifetime. For the competing fuel technologies two representative vehicles are assumed: a medium sized gasoline car and a medium sized EV.  Lastly, for public infrastructure we consider L3 DC fast rechargin...