Challenges and Opportunities of Electric Vehicles

Electric vehicles have the potential to reshape the transportation sector, drastically cutting carbon emissions and clearing the way for significant climate progress. Transportation is the highest-emitting sector in the country, producing 28 percent of all carbon (CO2) emissions in 2018. Electric cars could transform this high-emissions sector. A study released by the Union of Concerned Scientists in 2015 shows that, electric cars generate half or less than half of the emissions of comparable gasoline-powered cars from manufacturing to disposal.

Though electric vehicles (EVs) still emit carbon emissions through the manufacturing process and from the fossil fuels used to generate the electricity they need to recharge, their enhanced energy efficiency secures significant emission reductions. On average, EVs convert over 77 percent of the electrical energy from the grid to power at the wheels, while gasoline vehicles only convert between 12 to 30 percent of the energy stored in gasoline to power at the wheels. Nevertheless, there remain significant hurdles to widespread adoption of electric vehicles.

Electric Vehicle Challenges and Opportunities

Charging times. There are three major "levels" of chargers available for EVs. The standard 120-volt plug, often used for home appliances, charges slowly but can fill a battery to near full capacity with several nights’ charge, or about 20 to 40 hours. The 240-volt "level two" chargers generally provide 20 to 25 miles of charge in an hour, which shortens charging time to eight hours or less. In homes, level two chargers can use the same outlet type required for clothes dryers or electric ovens. In the EV industry, the connectors used for level two charging are known as SAE J1772. Finally, "level 3" direct current (DC) fast chargers can charge a battery up to 80 percent in 30 minutes.

Charger compatibility. Level two charger development has been a relatively coordinated process, with all automakers besides Tesla using the same charge port model.Three different varieties of DC fast chargers are used by different auto manufacturers: the SAE Combined Charging System (CCS), used by most manufacturers. This lack of vehicle compatibility differs from universal vehicle access to gas stations and could be an obstacle to widespread electric car adoption.

Availability of charging infrastructure. Rather than being refueled at a typical gas station, electric vehicles must be charged at electrical outlets in order to run. Many EV owners charge their cars at home in their garage using a special wall-mounted charger. This arrangement works for most people, because the average person drives 29 miles per day. This distance is well within the range of today’s electric vehicles, most of which can travel between 150 and 250 miles on a charge, depending on the model. However, two major difficulties arise. First, for drivers who live in apartments, parking garages are rarely equipped with charging infrastructure, and installing such infrastructure may be cost prohibitive for building managers. There is also the additional problem of the electric costs incurred at common outlets. Because regular EV charging consumes more energy than most other residential uses, building managers need a mechanism to monitor EV charging to ensure the driver of each vehicle pays for their own electricity usage.

Second, expanded charging infrastructure is needed for EVs to make long-distance trips that require multiple stops for charging. A recent study by the International Council on Clean Transportation indicated that 10,000 more charging stations will be required to support EVs traveling on inter-city corridors by 2025, based on trends of increasing EV ownership. When it comes to longer trips, EV owners can experience "range anxiety," the fear that the car will run out of power before reaching a suitable charging station. Surveys show that concerns about range and charging availability are an important limit on consumer uptake of EVs.

Renewable energy and climate mitigation. While not a hurdle to widespread EV adoption in and of itself, the electrical grid’s continued reliance on fossil fuels can reduce the cost-effectiveness of EV adoption as an emissions abatement strategy. Despite reducing emissions even when connected to a fossil-powered grid, electric vehicles are a much more cost-effective emission reduction tool.

Grid capacity. Trading out a national fleet of gasoline-powered cars and trucks for a fleet of EVs means that millions of people will depend on the electric grid in new ways. Therefore, power generation capacity will need to increase to accommodate these vehicles without straining the grid. Expert assessments vary on how much electricity demand will increase with widespread EV use. The Department of Energy predicts a 38 percent increase in electricity consumption by 2050, mostly due to a high penetration of electric vehicles.

Vehicle costs. Electric cars generally have higher sticker prices than their gasoline-fueled counterparts, mostly because of expensive materials and processes used in battery production. Although these costs have fallen steeply over the last decade, the average sticker price on a new electric vehicle is around $30-40,000. However, electric vehicles are likely to accrue significant savings on fuel over a 15-year lifespan.

Charging behavior. Electric vehicle charging behavior differs significantly from the refueling behaviors of cars owners with conventional internal combustion engines. According to the Department of Energy, 80 percent of EV charging is done at home. However, many consumers are uneasy about the prospect of long charging times at public stations on longer trips that exceed the range of their vehicles.

Sales outlook. According to the Department of Energy, as of 2019, electric cars made up 2.1 percent of all new light-duty vehicle sales, up from 0.7 percent in 2015. Currently, Tesla sells the largest share of new electric vehicles in the United States, but the Nissan Leaf makes up the largest share of used EV sales. The Edison Electric Institute predicts that electric vehicles will make up 7 percent of all vehicles on the road, or about 18.7 million vehicles. While this growth rate is impressive, it will need to be dramatically increased if uptake is to progress fast enough to meet international climate targets.

Charging station financing and ownership. Electric vehicle charging stations are expensive to install—as mentioned above, public station component costs can range from as little as for a level two charger for a DC fast charger. These price ranges do not include installation costs and "soft costs," such as navigating the permitting process, regulations, and interconnection with utilities. These costs raise the question of who pays for the construction of these stations. Currently, charging station construction is paid for primarily by car and energy companies and business owners, including the managers of parking lots and garages, shopping centers, and retailers seeking to attract EV users. AIC Technik, a company that currently working on EV charging solutions for every electric car, parking space, and power capacity.

Pricing. Unlike gas stations, where the price of fuel is set per gallon, EV charging can currently follow a number of different pricing schemes, which can lead to inconsistent pricing and sometimes high charging costs. Public charging station pricing has used schemes including per-session fees, per-minute fees, and tiered pricing based on a vehicle’s max charging speed. Charging fees are often not displayed at charging stations. This inconsistency and lack of transparency are barriers to EV adoption because they can lead to frustration and negative customer experiences..

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