Enabling E-Mobility : Can Photovoltaic and Home Battery Systems Significantly Reduce Grid Reinforcement Costs?

As governments boost sustainable mobility, electric vehicle adoption has increased tremendously and will further accelerate. Electric vehicles, however, challenge distribution grids as related electricity demand increases the risk of overloads. Significant grid enhancements and infrastructural investments will become necessary to mitigate these overloads. Our paper evaluates the potential of reducing investment needs with more decentralized photovoltaic electricity generation and battery energy storage systems. We estimate these savings could reach up to €20 billion within the EU grids. In rural areas, photovoltaic and battery systems are especially effective for electric vehicle penetrations up to 20%. Suburban and urban grids could achieve significant savings for electric vehicle penetrations up to 60%. We recommend that policymakers facilitate decentralized electricity generation to unlock additional benefits from a societal cost perspective, increase the share of sustainable electricity consumption and improve energy security