Rising electricity costs to affect transition to electric vehicles
POWER & RENEWABLE ENERGY

Rising electricity costs to affect transition to electric vehicles

Wholesale electricity costs are at their peak levels in years, and this is having a knock-on effect for anything that uses electricity, the running prices of the average EV may also rise.

The United Kingdom has responded by burning more gas to generate electricity, but gas costs are at a record high. The result is that wholesale electricity prices are at their highest levels in years.

One benefit of owning an electric vehicle (EV) is that they are normally cheaper to run, even if the price of purchasing one is higher. On average, driving an EV for 100 miles will cost about £4-6, against £13-16 in a diesel or petrol car.

In the first half of the prior decade, almost all public chargers in the UK were free to use. While it is correct that fossil-fuel prices are increasing too, motorists want good reasons to shift to EVs. But as electricity costs increase – and with them, the running prices of the average EV may also rise.

In 2019 and 2020, in the UK the average cost per kilowatt-hour (kWh) of electricity was about 18p. An online quote from one of the big six energy providers of the UK presents an average cost of nearly 24p per kWh for September this year.

Filling up an EV will still cost you half of what it costs to fuel a petrol or diesel car. But public charging rates differ wildly, from around 24p per kWh at some rapid chargers to 69p at other units at motorway service stations that give super-fast charging.

The Evs' full charge will cost £34.50 at 69p, which is equivalent, or in some cases, more than using fossil fuels. But even so, the financial benefits of switching to an EV don’t seem so strong when electric prices are high.

Many countries are building more resilient power networks based on producing electricity and storing that in huge grid-scale batteries known as megapacks to utilise when renewable electricity is not being generated.

Electric cars could be a component of that storage too. Trials are ongoing to evaluate the viability of vehicle-to-grid technologies, which allow car batteries to transfer their power to the local grid during a shortage.

In an energy crisis, rather than being costlier to fuel, EVs, and their huge grid-connected batteries, could help to prevent future crises, and high costs.

Image Source


Also read: EV Jagat launched in India to boom in country’s EV sector

Wholesale electricity costs are at their peak levels in years, and this is having a knock-on effect for anything that uses electricity, the running prices of the average EV may also rise. The United Kingdom has responded by burning more gas to generate electricity, but gas costs are at a record high. The result is that wholesale electricity prices are at their highest levels in years. One benefit of owning an electric vehicle (EV) is that they are normally cheaper to run, even if the price of purchasing one is higher. On average, driving an EV for 100 miles will cost about £4-6, against £13-16 in a diesel or petrol car. In the first half of the prior decade, almost all public chargers in the UK were free to use. While it is correct that fossil-fuel prices are increasing too, motorists want good reasons to shift to EVs. But as electricity costs increase – and with them, the running prices of the average EV may also rise. In 2019 and 2020, in the UK the average cost per kilowatt-hour (kWh) of electricity was about 18p. An online quote from one of the big six energy providers of the UK presents an average cost of nearly 24p per kWh for September this year. Filling up an EV will still cost you half of what it costs to fuel a petrol or diesel car. But public charging rates differ wildly, from around 24p per kWh at some rapid chargers to 69p at other units at motorway service stations that give super-fast charging. The Evs' full charge will cost £34.50 at 69p, which is equivalent, or in some cases, more than using fossil fuels. But even so, the financial benefits of switching to an EV don’t seem so strong when electric prices are high. Many countries are building more resilient power networks based on producing electricity and storing that in huge grid-scale batteries known as megapacks to utilise when renewable electricity is not being generated. Electric cars could be a component of that storage too. Trials are ongoing to evaluate the viability of vehicle-to-grid technologies, which allow car batteries to transfer their power to the local grid during a shortage. In an energy crisis, rather than being costlier to fuel, EVs, and their huge grid-connected batteries, could help to prevent future crises, and high costs. Image SourceAlso read: EV Jagat launched in India to boom in country’s EV sector

Next Story
Real Estate

Serene, Gardencity to Develop Rs 3 Billion Senior Living Project in Bengaluru

Serene Communities, a leading senior living brand, has partnered with Gardencity Realty to develop a premium senior living community in Budigere, one of Bengaluru’s fastest-growing residential micro-markets. The project will span approximately 300,000 sq ft, with a Gross Development Value of about Rs 3 billion, and will add roughly 250 senior-friendly residences to the city’s growing retirement housing segment.The launch forms part of Serene Communities’ national expansion strategy. The company has 11 new projects under development with a planned investment of Rs 25 billion that will add..

Next Story
Real Estate

Alliance City Developers Marks Major 2025 Milestones in Vile Parle

Alliance City Developers Realtors has announced significant project milestones and expansions in 2025, underscoring what the company terms a transformational year. The developer completed multiple residential projects and launched two premium developments in Vile Parle (East), one of Mumbai’s most sought-after neighbourhoods.During the year, Alliance Legacy in Matunga (East) received its Occupancy Certificate (OC), while Alliance Eternis in Borivali (West) and Alliance Vista in Vile Parle (East) were granted Completion Certificates (CC), marking final project delivery. Alliance Abhimanyu is ..

Next Story
Infrastructure Energy

Moro Hub and PwC Middle East Partner to Accelerate Smart City Solutions

Moro Hub, a subsidiary of Digital DEWA, the digital arm of Dubai Electricity and Water Authority (DEWA), has announced a strategic collaboration with PwC Middle East to advance Smart City, Integrated Command Centre (ICC), Critical Infrastructure Monitoring and Internet of Things (IoT) initiatives across the region. The partnership brings together Moro Hub’s digital infrastructure and IoT capabilities with PwC’s global expertise in digital trust, smart city strategy and cybersecurity to support the UAE’s vision for intelligent and sustainable cities.“Our collaboration with PwC Middle Ea..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App