7.3 EV vehicle infrastructure investments and the annualised costs of ownership

The analysis presented here is based on home charging only, this yields a conservative estimate of the percentage of vehicle kilometres that will be covered by PHEVs. For the widespread adoption of EVs, additional charging infrastructure is likely to be required to remove consumer uncertainty about range issues, at least with the likely battery technology performance in the short- to medium-term.

The charging of electric vehicles is not completely standardised. The Society of Automotive Engineers (SAE) has defined three levels of charging related to the circuit rating and power of the charging system (Table 7.3). However, an alternative way of considering charging that is more pertinent from an electricity system operator perspective is also possible. EURELECTRIC has laid out their categorisation related to the power and current delivery (AC or DC) (Table 7.3).

Level 1 and normal power charging can rely on existing residential or commercial power circuits. It may not require additional investment, either in the home or for the distribution network, if EV deployment can be scheduled into existing investment plans (AECOM, 2009), but provides the slowest charging rate. Level 2 charging and medium power charging requires addi- tional infrastructure in the home, at work or public parking spaces. In the home or work parking spaces, these charging points may cost between USD 1 000-1 300 each (AECOM, 2009 and NREL, 2013). In public spaces or work parks without existing electrical infrastructure these dedicated charging points may at present cost between USD 4 000-9 000 (AECOM, 2009; Chang, 2012 and NREL, 2013) per charging point.46 However, this should decline over time. In addition, these may require 3-phase power in the home and a corresponding increase in local distribution network capacity to cope.

Table 7.3: Electric vehicle charging infrastructure costs

Note: * Voltage and amps for residential/commercial electricity circuits is country specific. ** This will vary depending on the batteries' DC voltage rating and the power of the charger.

Sources: AECOM, 2009 and EURELECTRIC, 2011.

High power AC or DC fast charging points are sig-nificantly more expensive, and costs range from USD 10 200-50 000 installed (Nemry and Brons, 2010; and Wirges, 2012). They will also tend to shorten the life of the PHEV or EV battery.

The simulation for the Stuttgart region to 2020 (Wirges, 2012) analyses the number and location of charging stations required to support the significant deployment of EVs. Based on a detailed modelling of the location, driving patterns and ownership of EVs, the analysis demonstrates that relatively few public charging locations are required in the base case for EV expansion. However, a higher quota for public charging stations to help accelerate deployment does not have a huge impact on the required number of charging points. The deployment of charging points over time follows an exponential trend.

Table 7.4 presents the results of the increase in annual ownership costs, assuming a 10% cost of capital and a 15 year life for the charging equipment. The results assume that level 2/medium power charging points in the home or in work car parks with access to electricity infrastructure in close proximity requires total installation costs of USD 1 150 on average between now and 2020. For public charging points costs are assumed to average USD 6 000 including all installation works. For work car parks where electricity infrastructure is not closely available or suitable (as in the case of most outside parks), USD 6 000 per charging station is also assumed. Although costs may be lower than this on average for a large-scale roll-out, this is not yet clear. Given most employment occurs in small- to medium-sized businesses, hence limiting the scale of individual projects, this conservative assumption is used. Maintenance costs for the workplace, public and fast charging stations are assumed to average USD 200/year through to 2020.

Table 7.4 presents the results for two cost pathways. The low cost pathway assumes that 75% of home charging points are level 1/normal power connections with no incremental costs. It also assumes 75% of workplace charging stations are placed in car parking areas with ready access to electricity infrastructure and hence have the lower costs identified above. In the high cost pathway, the share of these low cost options is only 25%.

Table 7.4: Electric vehicle charging infrastructure investment needs in 2020 for the Stuttgart region for low cost and high cost pathways

Note: In the column for charging stations the number before the slash is for the Base EV scenario and after the slash for the more public charging point scenario.

Sources: Based on Wirges, 2012 and IRENA analysis.

As can be seen, the average annualised costs of infrastructure requirements add an average of between USD 350 to USD 480/vehicle. This represents an aver- age annualised ownership costs increase for fuel and vehicle purchase costs analysed in Figure 7.7 of 6-25% in 2020 for the lower value for infrastructure costs and 9-35% in 2020. (See Figure 8.2 for the total annualised ownership costs in 2020 without the infrastructure costs).

Figure 7.9: Annualised costs of ownership (vehicle depreciation and fuel costs) in 2020 for electric vehicles over 160 000 km including charging infrastructure costs

Note: Analysis is based on Figure 7.7 and Table 7.5.

The impact of the increase in the annualised costs of EVs for which direct comparisons with an ICE equivalent are possible are presented in Figure 7.9. For small, relatively efficient ICE vehicles, the additional infrastructure charging costs are an issue that could slow the competitiveness of EVs. For larger, less fuel-efficient ICEs, average charging infrastructure costs by 2020 still result in EVs being competitive with a fossil fuel equivalent. However, this is apportioning average costs to each vehicle owner. In reality, vehicle owners will be able to choose the level of charging infrastructure they access and hence the costs they face. Figure 7.7 reflects most EV owners accessing charging with level 1/normal power charging points that require little or no incremental costs. Figure 7.9 represents the case where vehicle owners access a wider range of charging points, although still predominantly at work or at home. These scenarios are consistent with the assumption that PHEV and EV deployment is focused on urban users and the predominantly short journeys that dominate their total annual vehicle kilometres.

46 The lower value is for a charging station with ten connections, significantly helping to amortise costs.