Impact of electric vehicles: Will German households pay less for electricity?

Abstract High energy efficiencies imply that electric mobility is regarded as an important technological option to reduce greenhouse gas emissions from the transport sector. However, electric vehicles (EVs) also have impacts on electricity grids and electricity generation. Hence, this paper explores how private EVs affect residential electricity prices in Germany. We examine effects of EVs on electricity generation, the contribution of controlled charging and impacts on distribution grid grids. We show that in 2030, private EVs can reduce the electricity prices for households since at distribution grid level, the additional electricity demand increases the overall utilisation of the grid and lowers specific costs. Because the additional load of EVs leads to an increased usage of power plants with higher variable costs, there is the opposite effect on electricity generation costs, although limited by controlled charging. Overall, the effect of rising electricity generation costs is usually overcompensated by falling specific grid charges.