Energy Transition Handbook - Flipbook - Page 33
Energy Transition Handbook 2021
33
The EV charging ecosystem developed to support
the anticipated exponential growth in EVs will
need to be “smart” to time-shift and smooth
out the load on the energy system and avoid a
significant increase in peak load on the national
electricity network (for example if people return
from work and all begin to charge their EVs
at the same time). “Smart” charging will also
facilitate interoperability between vehicles,
support the creation of an energy efficient, low
carbon and lower cost energy system, allow
interaction between EVs and other smart devices
in the home/workplace (eg battery storage and
solar generation) enabling the delivery of EaaS
solutions and allow EVs to be aggregated and to
operate as “virtual power stations” delivering V2G,
V2B and V2H services.
•
V2G, V2B and V2H can result in battery
degradation. Vehicle or battery owners will
need to be insulated from or rewarded for this
risk. Interaction with EV battery warranties
is key
•
EV charging solutions that can secure long
term demand/revenue certainty (e.g. by
contracting with a credit worthy fleet, last mile
delivery or ride share customer or by building
up a stable subscriber base) will be attractive to
investors and lenders
•
Site selection involves a delicate triangulation
between expected vehicular footfall, land
cost and grid connection cost (which can
vary significantly if reinforcement works
are needed)
Key EV charging infrastructure issues:
•
It is unclear how exposure to wholesale
electricity price volatility will be passed on
to end customers and this may vary from
solution to solution
•
Change of law or related technical standards
may unexpectedly increase project costs
•
Competitor charging solutions with equivalent
or better technology, pricing or charging
speeds may negatively affect demand or render
solutions obsolete. Future proofing may be
difficult or costly
•
EV charging solutions are often heavily
dependent on intellectual property (IP).
Appropriate protection for IP infringement
will be needed
•
Price disparity, range anxiety, and a perceived
lack of access to charging stations
•
The optimal balance of slow, fast, rapid
and ultra-rapid charging and home, work,
destination and en route solutions will emerge
(and is likely to change) over time
•
The increase of “ride-sharing” and the
emergence of autonomous vehicles will
increase annual vehicle mileage (and charging
demand) and change the charging footprint
•
Business models will vary with EV charging
solution providers combining different
available revenue streams
•
The sale of power to the grid (V2G) or behind
the meter (V2B and V2H) offers significant
potential additional revenue