How does electric vehicle adoption impact power demand?

How does electric vehicle adoption impact power demand?

Electric vehicles are being touted as the solution to fossil fuel alternatives, with battery-powered cars viewed as a greener alternative to diesel and petrol. While they are more sustainable, they are not without energy needs - the relationship between EV adoption and power demand is a close one. 

The widespread rollout of EVs will have an impact on energy infrastructure, grid stability, and broader renewable energy integration. We take a look at how EV adoption affects power demand and how infrastructure must evolve to ensure a stable, sustainable energy future.

The link between EV adoption and rising electricity demand

As more EVs get added to the grid, the influx of vehicles will require more electricity to charge up the batteries. While they represent a more sustainable option than fossil-fuel cars, unfortunately, EV charging adds significant load to power grids. With many charging vehicles at peak times, for example, straight after the work commute- demand challenges can occur during evening charging times. However, overall growth in EV ownership is forecasted to drive long-term demand for EVS in general. 

Impact of EV charging on grid stability

Extra strain on the grid could occur with large numbers of electric vehicles connecting up to the network, and with a legacy grid currently supporting EV charging, the risks of blackouts or grid overload without upgrades is much higher. This is where smart charging and demand response systems step in. Smart charging involves automating the charging of vehicles during lower periods of demand, for example, during nighttime. Demand response involves consumers choosing to charge EVs during incentivised, cheaper rates of energy, such as nighttime. Once again, this is called time-of-use pricing, which can be used to manage load on the grid. 

EV adoption as a driver for renewable energy integration

For renewable energy to be adopted on a wide scale, it needs a commercial application to onboard consumers - electric vehicles could hold the key to this. 

How can EVs support solar and wind expansion?

With more vehicles requiring renewable energy, the demand for renewable energy will be higher. This would force the rollout of new renewable projects, such as wind or solar farms, to keep up with demand. For new renewable producers, financial instruments such as solar or wind PPAs - a fixed-term contract for power usage set at a certain price - could provide the drip-funding for projects to be financed, with renewable utilities or consumers footing the bill over a fixed period. This would allow new renewable projects to service the influx of EVs joining the market. 

Vehicle-to-grid (V2G) technology as distributed storage

Electric vehicles require a huge battery to power them and often spend many hours being charged to full capacity. The benefit of EV charging times is that in the case of residential EVs, they often are charged up during the nighttime on driveways, which is considered off-peak hours. This is beneficial to the grid because demand for EV power could be reduced predominantly during these times, freeing up demand for other applications used by the grid. The consumer would also purchase unused power entering batteries at this time at a cheaper rate - the energy stored in the batteries could then be sold back to the grid during peak demand times at a higher rate, creating revenue for the EV users selling it.

Synergies between clean transportation and clean power

The simple act of investing in EVs helps to move the clean power industry forward, both in commercial and residential applications. Fleets of vehicles that might otherwise be purchased in fossil fuel alternatives are replaced with greener alternatives, and funds usually reserved for fossil fuel-powered cars are diverted into investment in the residential EV sector. Owning an EV also holds the potential for rolling out smaller, decentralised grids such as small home-solar setups, which involves residential customers installing small arrays to generate power for EVs on a more personal basis. 

Challenges in EV charging infrastructure

While EVS have been around for some time in the market, one of the stumbling blocks to widespread adoption is the lack of reliable infrastructure to make long-distance or frequent travel a reality - few drivers want to risk setting out on a long journey in an EV only to run out of power part-way and fail to find a charger to top up power and continue the journey.

Several different types of charging options exist for EVs currently. Regular charging facilities allow EVs to be charged up over a longer period, for example from four to 12 hours, and require forward planning. These are often installed outside workplaces or residential locations. For power on demand, for example, in service stations or supermarkets, when a journey has already begun, fast-charging options are also available. These allow a vehicle to be charged in as little as 20 minutes. Some car manufacturers offer branded chargers reserved for their own cars, such as Tesla, which are only available via subscription services. This means chargers are usually more readily available in a pinch. The rural vs. urban charging access debate is also important, while for urban areas, slower charging access may be acceptable as many cars are only doing shot journeys so don’t need to charge their batteries to full each time to continue their journeys, more rural locations have fewer charging ports, so need a faster way to charge up batteries fully.

The cost and investment required for nationwide rollout are high, particularly in the case of installing fast-charging facilities. Regardless, the need for widespread fast-charging stations is paramount to the rollout of EV adoption globally, removing the barrier of poor charging facilities. 

EVs raise demand but can strengthen the system: with smart charging, V2G, and expanded renewables and fast-charging, grids stay reliable while costs fall.