Are grids prepared for the EV boom?

The International Energy Agency’s recent analysis of the current state of electricity grids highlights a lack of effort for their development— a crucial need to meet the projected energy demand driven by electrification’s growth. As EV sales continue to surge and charging infrastructure becomes increasingly prominent, how can grids support the ongoing development of e-mobility?

Electric vehicle (EV) adoption in developed economies faces a significant rise projected to continue in the coming years, prompting the need to expand charging infrastructure worldwide. As charger manufacturers consolidate their position in the sector, the demand to support this transition is expected to grow exponentially. An example of the potential strain on electricity grids for the coming years.is McKinsey & Company’s recent analysis, which suggests that — even in the most conservative scenario — the EU will need at least 3.4 million public charging points by 2030.

A recent study by the International Energy Agency has brought to light a lack of ambition and attention towards grids on a global level. This situation casts a shadow over the development of charging infrastructures as it could potentially jeopardize projections for the EV market. The parallel growth of e-mobility and the insufficient development of grid capacity create a substantial obstacle for the industry’s journey towards a more sustainable future.

To meet national climate targets and enhance energy security, the study reveals that the world needs to add or replace 80 million km of grids by 2040. This is equivalent to the total length of all active grids globally today. How did this scenario develop? How is the industry addressing it and what can be done to alleviate the strain on distribution grids imposed by e-mobility’s growth?

A tight schedule

Electricity’s role in modern society has greatly expanded in recent times and it is only projected to continue in this path for the coming future. E-mobility represents a prime example of electricity’s increasing influence in sectors traditionally dominated by fossil fuels, which only means higher energy demand for grids.

China, the United States, and Germany are at the forefront of EV adoption, actively striving to establish charging infrastructure capable of meeting the surging demand. Michael Ward, Media Officer at the California Energy Commission, shares California’s current situation as “the national leader in zero-emission vehicle sales.” “To power EVs, 93,855 public and shared private chargers have been currently installed throughout the state, in addition to personal home chargers not open to the public,” describes Ward as one of the top examples that grids must sustain.

Renewable energy projects are a key element in grids' lifespan. | © zaschnaus - stock.adobe.com

The IEA states that grids not only need to be upgraded but are also in need of major changes on how they are operated and regulated. While annual investment in grids needs to double to more than USD 600 billion a year by 2030, flexibility also needs to be addressed through distributed resources that can integrate renewable energy projects. What experts call “greening the grid”.

These initiatives play a key role in ensuring a supply of 100% clean energy for worldwide net zero targets. However, the report also mentions a growing queue of projects that are still waiting to be connected to the grid. Nearly 1,500 gigawatts worth of these projects are in advanced stages of development, five times the amount of solar and wind energy capacity added worldwide last year.

“By 2050, in the United States we'll be pushing two to three times as much through our grid as a result of home electrification, transportation electrification and certain industrial processes of electrification. That's a momentous increase in the total energy going through the grid,” explains Quincy Lee, CEO of Electric Era, an EV charging solutions provider based in the US.

Estimations indicate that modernization and the expansion of grids can take between 5 to 15 years due to planning, permitting and completion processes. When compared to timelines required for renewable projects (1 to 5 years) and charging infrastructure (approximately 2 years), the clock is ticking for grids and the need for action is urgent.

Loosening the grip

Grid adaptation is anticipated to become a top priority once EV ownership exceeds the 20% mark. The IEA specifies that, in most developed economies, EVs are primarily charged in residential areas. However, unmanaged charging processes can lead to higher peak demand, potentially disrupting the supply as grids face increased stress.

To address this issue, the agency encourages the deployment of adequately sized transmission and distribution grids is encouraged , coupled with the implementation of dynamic tariffs and smart charging solutions. In addition, companies focused on developing charging infrastructure are actively contributing to easing grid stress through various measures.

“To achieve such a radical and fast-paced transformation, GRIDSERVE is using innovative technology to minimize issues caused by grid connection lead times. For example, the Cornwall Services Electric Super Hub uses a combination of a 100kW grid connection, lithium-ion batteries, solar energy and the latest software developed by GRIDSERVE Technologies to provide High Power Charging,” a GRIDSERVE spokesperson stated.

GRIDSERVE's Cornwall Services Electric Super Hub | © Gridserve

The battery is able to store energy generated from the solar panels to charge cars or power the grid in times of peak demand. — GRIDSERVE's Cornwall Services Electric Super Hub | © Gridserve

Deploying charging infrastructure in rural environments will require higher investment costs due to their distance from existing grids. The increasing prominence of utility-scale power generation has led to distributed-scale resources being more prominent, such as microgrids. This technology offers a dependable backup solution to enhance resilience and allow for the deferral of grid upgrades without impeding the growth of load from EV charging.

On the other hand, EVs are also projected to continue evolving and integrating power-management capabilities. For example, vehicle-to-grid technology (V2G) is capable of not only sending power back to the grid during peak demand periods but also to improve resilience. “V2G EVs can use excess power from solar and wind farms to charge during the day for use in the evening when demand is high. These vehicles can also act as on-site generators, providing backup power for homes for up to three days or more,” states Ward.

While the growth of EVs is anticipated to escalate energy demand for electricity grids, key players in the sector have proactively implemented effective measures to mitigate grid stress. Although these developments have proven to prolong the lifespan of existing grids, they only temporarily delay addressing the fundamental challenge. Worldwide grid development must be tackled in order to achieve net-zero targets.