Charging networks and the grid

All of the jurisdictions studied made significant progress on public charging from 2010 to 2020, enough to support a first phase of PEV deployment involving early adopters and niche users of PEVs. As PEV deployment extends to mainstream consumers and fleet buyers, the challenge of ensuring high-quality public charging magnifies. Both China and the United States undertook city-level demonstrations of charging infrastructure before attempting to accomplish widespread commercialization of PEVs. The two countries diverged in policy direction after the demonstration projects ended. The United States allows each of the 50 states to chart their own charging policies while in China the central government shapes the development of the sector through goals, mandates, and subsidies. An encouraging development in both countries is the emergence of a vibrant private sector that supplies charging services to motorists for a fee. California has been a leader in the development of private-sector companies that develop hardware and software for stations and supply charging services. The European Union was proactive in issuing guidance on public charging to the Member States; the EU is also helping subsidize fast charging for long distance travel. Following Norway’s lead, all countries have come to realize that fast charging on highways is crucial to full commercialization, and the buildouts are underway. Subsidies are required because the business model for fast charging continues to be challenging, even in Norway. In Japan and Western Europe, the progress on public charging has been so good that more PEV deployment is required to justify the chargers. Unused public charging stations can create public cynicism about pro-PEV policies. Once the early phase of PEV deployment occurs, China will need to find a way to supply “home charging†to the large share of its urban population that lives in high-rise apartments or other settings where charging at home is not feasible. Retrofitting charging stations at curbsides and parking lots is expensive but may be necessary. Unless a solution emerges, consumer demand for used PEVs will remain depressed, which in turn will slow the rate of deployment of new PEVs (especially when subsidies for new PEVs disappear). Numerous Level 3 fast-charging stations operate on selected highways around the world, promising an 80% charge in 30 minutes. Those investments may already be obsolete because innovation is offering the prospect of ultra fast charging. GM and Porsche have announced that Level 3 charging on highways will not be fast enough to meet the demands of motorists and support mass commercialization of PEVs. New PEVs with “ultra-fast†charging capability will offer an 80% charge in 10 to 15 minutes. However, such capability requires more expensive battery packs and may shorten the lives of batteries. The burden on the grid may increase and service providers may need to charge higher prices to PEV owners to cover demand charges and premium rates for ultra-fast charging. The pace of deployment of ultra-fast charging is uncertain but, if innovation reduces costs, ultra-fast charging could help spur mass commercialization of PEVs. Innovation in the electric utility sector is crucial to support mass commercialization of PEVs. All regions of the world have been slow to embrace promising reforms such as TOU pricing, cost-based demand charges, and equitable models for financing public charging networks. Early enthusiasm for some innovations (e.g., V2G systems and battery swapping) tempered as pilot efforts clarified the logistical and cost issues and as alternative innovations surfaced (e.g., secondary use or recycling of batteries or materials).