Electric cars as part of electricity distribution – who pays, who benefits?

Abstract

The nature of transport and energy use is radically changing along with the upward trend of electric vehicles (EVs). This poses a challenge for the existing electricity distribution infrastructure. Key questions are: what efforts are required to guarantee that the network infrastructure has sufficient capability to deliver energy and power to the customers, and how does this development affect the network value and distribution fees? In this study, this challenge is approached from the economic perspective of an electricity distribution company. In this study, a generic model to analyse the network effects of EVs is presented. One significant result is that depending on the EV charging methods, the power demand (peak load) may increase dramatically or remain almost at the present level. Correspondingly, the required network reinforcements and distribution fees can be tens of percents lower than today or they can be higher, depending on how much intelligence is integrated into the charging process.