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By 2035, electric vehicles (EVs) will make up about half of new car sales worldwide, constituting a significant shift toward sustainable transportation and a reduction in carbon output. This is not a cause for celebration just yet. While EVs do not emit greenhouse gases from their tailpipes, their charging process is a critical factor in the overall carbon output generated by EVs. Charging processes may vary significantly in terms of the source of the electricity used, grid management and methods undertaken to address grid constraints. With a significant buildout of public EV charging infrastructure underway to ensure access for millions of drivers, commitments to reducing carbon emissions in the charging process must remain front and center. Charging stations are considering renewable sources together with energy storage systems to substitute for or supplement the grid to be environmentally friendly as well as to have sufficient power.
The McKinsey Center for Future Mobility (MCFM) predicts that by 2030, the annual demand for electricity to charge EVs in the United States, for example, will surge from 11 billion kilowatt-hours (kWh) to a staggering 230 billion kWh. Without sufficient oversight, this surge may increase peak demand, cause transformer overloading, force early replacement of equipment, and worsen power quality. Utilities are thus increasingly challenged to provide sufficient and environmentally-friendly power for the growing number of EVs. There are currently around 55,000 EV infrastructure charging stations around the United States. Their emissions vary significantly, depending on the type of energy used for charging. MIT researchers looked at the carbon intensity of America’s power grid, finding that the average EV emits about 25 percent less carbon than a comparable hybrid car. The degree of carbon outputs varies significantly between states, depending on charging energy sources, with hydropower having vastly less carbon output than coal.
Renewable energy sources, such as solar and wind power, are gaining traction, offering more sustainable alternatives to fossil-fueled electricity generation. Solar-powered EV charging, whether stand-alone or grid-tied, provides drivers access to EV charging via renewable resources. However, high costs and constraints in production speed will stand in the way of grid utilization of renewables when faced with intense energy demands.
With efforts to meet the demands of around-the-clock EV charging, it is important to adopt solutions that increase power capacity while also being environmentally sustainable.
This involves orchestrated and incentivized participation of the entire EV charging ecosystem. By using smart charging technologies and load-balancing strategies, the charging process can be optimized for efficiency and sustainability. Systems can manage the charging load intelligently, ensuring smooth power distribution across the grid. This approach minimizes peak demand, reduces strain on the existing infrastructure, and maximizes the utilization of renewable energy sources. In the Netherlands, for example, following recent grid instability, smart charging is used to avert a short-term crisis until upgrades to the grid and additional clean energy sources come online.
Efficient charging infrastructure also entails expanding the availability of charging stations in strategic locations, including public parking lots, commercial centers, and along major transportation routes that should be equipped with charging infrastructure to provide convenient access to charging facilities for EV owners. Policy-makers integrate sustainability considerations into the planning and expansion of charging infrastructure to enable a robust and eco-friendly charging network.
Because renewable energy solutions such as solar and wind are intermittent, charging stations must be paired with energy storage to meet the increase in demand for fast charging. To do so, existing grid infrastructure can combine renewable energy resources with battery storage, hydrogen fuel cells for reliable, weather-resilient on-site power generation, and other creative clean energy solutions. One example is EVOX™ by GenCell, which provides reliable, fast and efficient supplemental charging for multiple vehicles while contributing to emissions reductions and withstanding climate issues due to extreme weather.
As ESG policies and regulations tighten worldwide in response to consumer, business, and governmental efforts to overcome the climate crisis, EV chargers are committing to green power. Regulators and local governments are aiming to make EV charging available equitably to all vehicle owners and that power for public EV charging is managed appropriately as the adoption of EVs grows. In the US, the Bipartisan Infrastructure Law (BIL) provides $7.5 billion to develop the country’s EV-charging infrastructure. The goal is to install 500,000 public chargers—publicly accessible charging stations compatible with all vehicles and technologies—nationwide by 2030.
Regulators and utilities are looking towards various solutions to cap the peak load demands for power. For example, utilities in California are employing time-of-use rates to incentivize off-peak charging.
Government policies can incentivize renewable energy sources for EV charging. These measures may include tax incentives, grants, subsidies, and favorable regulations that encourage clean energy use and the development of sustainable charging infrastructure.
The need to develop EV charging stations creates valuable business opportunities, and their environmental impact is an important consideration in strategy planning. For businesses and operators in the EV charging space, deploying sustainable power can ensure sufficient power capacity while addressing customer demand for sustainable practices, enhance brand reputation, and provide long-term efficiency. By investing in green infrastructure, charging stations can enter the evolving EV landscape with a competitive edge, confident that they have what it takes to meet evolving regulations, environmental standards and provide a solid business proposition.