Facilitating Decarbonisation in Emerging Economies Through Smart Charging
Abstract
The International Energy Agency (IEA) estimates that increasing electric vehicle (EV) stock from 17 million units today to 808 million units by 2040 can contribute to reducing transport emissions by 36%. This decarbonization is bolstered by the decarbonization of power systems, which can benefit emerging and developing economies with ambitious renewable energy deployment targets. The diversity of transport modes undergoing electrification, from public transport to personal electric vehicles and two and three-wheelers, requires smart strategies to ensure a smooth and secure integration.
Key Points
- Electric Vehicle Stock: By 2040, the EV stock is projected to reach 808 million units, contributing to a 36% reduction in transport emissions.
- Power Sector Decarbonization: The power sector's decarbonization, driven by increasing uptake of renewables, will reduce emissions by 56% by 2040.
- Unique Diffusion Patterns: Electric two- and three-wheelers are more common in Asia, with electric three-wheelers accounting for 46% of total three-wheeler sales in 2022. Electric buses are gaining traction in Latin America, reaching cost parity with diesel buses.
- Grid Challenges: Integrating EVs into the power system requires significant grid capacity and investment. High losses and low reliability in power systems, especially in emerging economies like Brazil and India, complicate this process.
- Life-Cycle Analysis: The emissions reduction impact of shifting to EVs is more positive if the average emissions intensity of the electricity used for charging is below 800 grams of CO₂-eq per kWh.
- Renewable Energy: Increasing the capacity and consumption of low-carbon generation, such as solar and wind, is crucial to lower the operational emissions of incoming EV fleets.
Grid Losses and Reliability
- Grid Losses: Countries like Indonesia, Thailand, and Vietnam have high transmission and distribution losses ranging from 0% to 20%.
- System Average Interruption Duration Index (SAIDI): The SAIDI ranges from 0.05 to 30 hours across various countries, indicating varying levels of power system reliability.
Recommendations
- Digitalization and Smart Charging: Implementing digitalization and smart charging strategies can help improve grid security and decarbonization.
- Policy and Regulatory Frameworks: Establishing robust policy and regulatory frameworks is essential for the successful integration of EVs.
Conclusion
The integration of electric vehicles in emerging economies presents both challenges and opportunities. Effective strategies and policy measures are needed to ensure a smooth transition towards a more sustainable transportation sector.
