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How grid reinforcement costs differ by the income of electric vehicle users

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  • Sarah A. Steinbach

    (TUM School of Management)

  • Maximilian J. Blaschke

    (TUM School of Management
    Massachusetts Institute of Technology)

Abstract

The simultaneous charging of many electric vehicles in future mobility scenarios may lead to peaks and overloads threatening grid stability. The necessary infrastructure investments vary by the number and model type of vehicles driven and the residents’ charging preferences. These attributes significantly depend on socio-economic factors such as income. Using power flow simulations based on real-life driving profiles, we predict massive cost asymmetries with an investment demand up to 33-fold in higher-income compared to lower-income neighborhoods. Many grid operators may redistribute these costs through an across-the-board electricity price increase for all households. In times of rising electricity prices, these unwanted inequitable costing allocations could lead to severe challenges and energy poverty. Policymakers should consider countermeasures like dynamic electricity pricing schemes, income-based electric vehicle subsidies, or improved charging network access to ensure energy equity in future mobility scenarios. Our analysis of the impact of socio-economic factors on electric vehicle grid infrastructure and their quantification contributes to the energy equity discussion.

Suggested Citation

  • Sarah A. Steinbach & Maximilian J. Blaschke, 2024. "How grid reinforcement costs differ by the income of electric vehicle users," Nature Communications, Nature, vol. 15(1), pages 1-11, December.
    • Handle: RePEc:nat:natcom:v:15:y:2024:i:1:d:10.1038_s41467-024-53644-0
    DOI: 10.1038/s41467-024-53644-0
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