Supply and Demand: Electricity For Electric Vehicles

Can you imagine going to charge your electric vehicle and having to pay a different amount for charging in the morning than at night? Well it is very possible that there will be price fluctuations that could differ by the hour depending on environmental climates in various areas. In some areas that experience intense heat waves, electricity cost will rise during certain hours of operation. Even running your air conditioner during these peak hours can run you up to 3x more cost than usual. This is to be expected with electric cars, so when you decide you want to charge your car today but the electricity price was cheaper this morning, what are you going to do? What can you do? It is a frustrating thought, yet it is one of the unspoken dilemmas associated with electric vehicles..

Location Affects Price Of Electricity?

Depending on where you are located, the price of your electricity will differ. Certain states pay more for electricity due to the infrastructure setup. States like Hawaii and California pay over 20 cents on average per kilowatt an hour. This is important to understand before you purchase an EV. Something else to consider when owning an EV is that the higher the price of electricity is, the more limited your electricity supply is. This means that if EVs become extremely popular, there must be enough accessible supply of electricity in your area. Without the proper infrastructure set up, the demand for EVs will continue to rise and the supply of electricity will have to rapidly grow. 

Do We Have Enough Electricity?

Currently, the answer is yes. Since the idea of electric vehicles is still relatively new, people are transitioning slowly to them. Automotive manufacturers make claims about producing only electric vehicles within the next 20 years, while states start banning sales of ICE vehicles within this timeframe. The Governor of California has announced the ban on the sale of new gasoline-powered cars beginning in 2035. After that date, all new cars and trucks sold in the state will have zero emissions. Meanwhile, General Motors aims to sell only electric cars by 2035. When others begin making similar claims and the demand for electricity increases, it might become hard to obtain charging capabilities. This can especially happen in areas where the power supply is already choppy. 

During times of increased electricity use, some cities may experience power outages. During those moments owners of EVs may find themselves unable to charge their vehicles and immobilized. In an interview with Matt Watson, founder of Precious Metals Commodity Management LLC, he has stated “We would need to grow the global power grid by 50% just to charge the 2 billion EVs anticipated on the road by 2050.” The infrastructure in which we collect this electricity will need to rapidly change to withstand the anticipated spike in usage. At present, the power grid is on demand which means that electricity acquired moves instantly to areas that need it. We must consider how we will get electricity as we continue on the zero emission vehicle path.