Simulation analysis of flexible concession period contracts in electric vehicle charging infrastructure public-private-partnership (EVCI-PPP) projects based on time-of-use (TOU) charging price strategy

Abstract It is critical to provide coordinated charging facilities along with the rapid growth of Electric vehicles (EVs). Public-Private-Partnerships (PPP) have been used to build and operate electric vehicle charging infrastructure (EVCI). However, stakeholders such as operators, users and governments have not obtained satisfactory benefits using fixed concession period PPP contracts. To promote revenue and encourage the participation of the private sector, this paper simulates the use of flexible concession periods for EVCI-PPP projects using an integrated System Dynamics (SD) model. The model involves a peak-valley time-of-use tariff (TOU) price strategy, while a price reduction strategy is designed to redistribute revenues between users and operators. Three scenarios are defined to optimize the flexible concession period: i) a unitary charging price reduction strategy, ii) an variable charging price reduction strategy, and iii) a government incentive strategy. The results indicate that a valley load period rebate price strategy can increase charging station revenue to a certain extent. Furthermore, redistributing operating revenue between operators and users could improve the efficiency of EVCI-PPP projects by obtaining a shorter payback period and reducing government subsidies. Our results have important policy implications.