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The Impact of Electric Vehicle Density on Local Grid Costs: Empirical Evidence from Norway

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  • Paal Brevik Wangsness and Askill Harkjerr Halse

Abstract

While a rapid shift towards electric vehicles (EVs) will contribute to reducing carbon emissions from the transport sector, there are concerns that uncoordinated charging of EVs might impose challenges for the local electricity grid. Our study is the first to investigate this empirically in a country-wide analysis, using data from the country with the highest market share of EVs, namely Norway. We present the regulatory framework in which Norwegian grid companies operate and discuss the possible impact of EV charging. Using panel data on 107 grid companies over the period 20082017, we then estimate the effect of local growth in EVs on local grid costs. We find that increases in EV stock are associated with increases in costs which are both statistically and economically significant. However, there is a lot of heterogeneity in these results, where the effect on grid costs are higher for small grid companies in rural areas.

Suggested Citation

  • Paal Brevik Wangsness and Askill Harkjerr Halse, 2021. "The Impact of Electric Vehicle Density on Local Grid Costs: Empirical Evidence from Norway," The Energy Journal, International Association for Energy Economics, vol. 0(Number 5).
    • Handle: RePEc:aen:journl:ej42-5-wangsness
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    Cited by:

    1. Iliana Ilieva & Bernt Bremdal, 2021. "Utilizing Local Flexibility Resources to Mitigate Grid Challenges at Electric Vehicle Charging Stations," Energies, MDPI, vol. 14(12), pages 1-15, June.
    2. Steinbach, Sarah A. & Blaschke, Maximilian J., 2024. "Enabling electric mobility: Can photovoltaic and home battery systems significantly reduce grid reinforcement costs?," Applied Energy, Elsevier, vol. 375(C).
    3. Sherzod N. Tashpulatov, 2022. "Modeling Electricity Price Dynamics Using Flexible Distributions," Mathematics, MDPI, vol. 10(10), pages 1-15, May.
    4. Floris Montfoort & Peter T. Dijkstra & Machiel Mulder, 2024. "The impact of energy transition on distribution network costs and effectiveness of yardstick competition: an empirical analysis for the Netherlands," Journal of Regulatory Economics, Springer, vol. 65(1), pages 85-107, June.
    5. Wangsness, Paal Brevik & Proost, Stef & Rødseth, Kenneth Løvold, 2021. "Optimal policies for electromobility: Joint assessment of transport and electricity distribution costs in Norway," Utilities Policy, Elsevier, vol. 72(C).
    6. He, Xiaoping & Jiang, Shuo & Yu, Yuxuan & Su, Siyi, 2025. "Impact of novel infrastructure investments on productivity: Evidence from public procurement of EV charging facilities in China," Energy, Elsevier, vol. 334(C).

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    JEL classification:

    • F0 - International Economics - - General

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