The large scale roll out of plug-in electric vehicles (PEVs) will be hindered unless investors stimulate demand, lower the cost of public charging infrastructure and manage the impact on the grid, according to a report published by market analyst, Accenture.
The research published in the report, ‘Changing the game: Plug-in electric vehicle pilots‘, analysed a range of electric vehicle trials around the world including in the UK and Japan, and focused on pure electric vehicles (EVs) that depend entirely on charging from the electric grid. The report identified three key challenges:
- Cost: The business case for investing in public charging infrastructure is weak due to high costs and initial consumer preferences for home charging. Pilots reveal a risk that consumers may not use public charging spots at rates required to recover costs, which range from approximately $5,000 per charging station to $50,000 for units capable of fast charging a car in approximately 30 minutes.
- Control: Infrequent charging by consumers will limit the ability to control the impact of charging on power flows. Pilots show that PEVs meet the driving requirements of typical city users who may therefore not plug in their cars daily. This increases the unpredictability of charging and reduces control. Plugging in vehicles whenever parked will help grid management, easing the strain on the grid.
- Scale: While most electrification technologies work in isolation, there are too few electric vehicles in pilot areas to robustly test the technologies and their integration with each other. Grid impact will thus need to continue to be closely monitored as the market develops.
“Plug-in EVs have extensive implications for business models because they require changes in consumer behaviour and can increase strain on the grid,” said Melissa Stark of Accenture. “It will be critical to improve understanding of consumer preferences and to change consumer behaviour through creative incentives if utilities and service providers are to manage the impact on the grid.
