Economic Sustainability

Energy independence

The use of EVs greatly contributes to a stronger European independence from traditional energy fossil fueled energy sources, especially supplies, as the market share for diesel and petrol will is expected to decrease substantially in the coming years.

Around 1,740 million barrels of oil per year could be saved by 2050 in Europe with the transition to a zero emission passenger car fleet, the equivalent of €78 billion at the price of $45 per barrel (Source: EAFO, 2017).

Total Cost of Ownership (TCO)/Affordability

The purchase cost parity between a Battery Electric Vehicle (BEV) and a comparable Internal Combustion Engine Vehicle (ICEV) is should assumedly to be achieved reached in the period 2022-2026 between a Battery Electric Vehicle (BEV) and a comparable Internal Combustion Engine Vehicle (ICEV), with BEVs being comparatively lower in cost after that.

The average TCO for a Zero Emission Vehicle (ZEV) will be €0.04 to €0.06 per kilometre, less than an ICEV, by 2030. This represents societal savings of €140 billion to €210 billion per year for a 100% ZEV EU car fleet (Source: EAFO, 2017).

V2G/Smart Charging

While there has been much discussion surrounding the impacts of electric vehicles on the electricity distribution grid, we believe that with the right approach and with consumer charging incentives, that foreseen impact will be manageable.

This includes both ‘smart charging’ and ‘vehicle-to-grid (V2G)’, as they will help provide alternatives to the costly reinforcements of the electricity grid.

For instance, one study found that the benefits of smart charging to the grid could lead to a benefit across the system of €140 million per year in 2030. This is also consistent across countries in scenarios with high EV deployment (Source: Low-Carbon Cars in Germany, Harrison P, 2017, Fuelling Europe’s Future)

Assuming that V2G is fully enabled through investment and legislative changes by 2030, V2G would offer net benefits of around €650 per EV per annum in the UK and France for a 7kW charger (even after accounting for the cost of the necessary hardware, electricity losses and battery degradation costs) (Source: Low-Carbon Cars in Germany, Harrison P, 2017, Fuelling Europe’s Future).

Comparative Schemes

(Source: PSPA, REPORT – Electric vehicles as an element of power grid)