EV uptake set to transform the grid in the Australia – but how much?

Electric vehicles (EVs) are slowly becoming more popular in Australia, with new car sales increased during the last two years. Although Australia is behind in EV deployment compared to other countries, Federal and state governments have taken serious steps to accelerate EV uptake. Therefore, EVs could play a significant role in the future of the National Electricity Market (NEM), especially after 2030, when EV uptake could exceed 7,000 MWh based on the forecast in AEMO’s Step Change scenario.

By now, many would know that EVs could present challenges for the NEM due to uncertainty in the scale and characteristics of additional load that could be imposed on the grid. Moreover, the situation could be exacerbated if EV charging loads occur during the evening peak period (when drivers return home and plug in).

On the other hand, EVs could be beneficial to the NEM, acting as “batteries on wheels”. However, to realise these benefits requires an evolution in how we think about EVs. Simply put, EVs can help the grid in two ways, including:

  • Managed charging: A charging management aims for EVs to be charged during solar peak and/or midnight.
  • Vehicle-to-grid (V2G): Employing V2G technology that provides the grid with energy and frequency control supports, making EVs an opportunity rather than a challenge.

EV deployment in Australia is comparatively low compared to other countries due partly to a lack of solid infrastructure to support EV uptake. However, as EV uptake increases, charging management developed via efficient policy and regulatory guidelines is a feasible and realistic initial solution to EV integration into the NEM.

In this regard, there are a number of questions that should be addressed:

  • Which groups of EVs (passengers, trucks, buses, commercial buses, etc.) are the largest in terms of annual load demand?
  • Are these groups flexible enough to shift their load if required?
  • How much GWh of EV load can be shifted to high renewable generation hours by changing EVs charging patterns?
  • How much GW would AEMO expect as the maximum EV load demand during a peak dispatch interval?

To answer these questions, in this Chart of the week, Cornwall Insight Australia simulates the growth trend of EVs across different groups in terms of annual load. Then, the most potential group/s will be selected based on their total EV load and also flexibility to shift their charging profile to high solar/wind generation hours. Finally, the potential GWh of shifting for the most extreme EV load scenario is evaluated to realise the expected renewable generation utilisation.

Our simulations show that the passenger EV group has the highest load demand among all EV groups, with an average yearly share of around 75%. Passenger EVs have higher aggregation potential and flexibility to shift their charging time compared to other groups as well. Therefore, it will be more beneficial for retailers and EV aggregators to focus on this group. Based on these simulations, the range of passenger EV capacity forecast over a 30-year period is displayed in Chart 1. The range represents the passenger EV capacity in high population-high EV to low population-low EV uptake scenarios. In this regard, AEMO could deal with an uncertain daily EV load in the range of 16.18GWh to a staggering 36.61GWh for the passenger group in the year 2052, based on our model.

An outstanding concern about the high EV penetration is power system constraints after a sudden rise in EV charging load during peak time. Chart 2 shows three potential EV charging approaches, while the objective is to switch passenger EVs load from peak period (convenience charging – CH1 in Chart 2) to high solar/wind generation periods (midday and night charging – CH2 and CHE3 in Chart 2 respectively).

As can be seen in this chart, by 2052, the convenience charging profile results in a 3.13 GWh EV load during the peak interval of 20:30 in the extreme high population-high EV scenario. By shifting from convenience to midday charging (CH1àCH2), 11.02GWh more utilisation of solar generation can be obtained. Similarly, 11.55GWh more wind power utilisation/less curtailment is expected by changing the charging pattern from convenience to night-time (CH1àCH3).

While this is an extreme scenario, it is necessary to highlight the role of governments and aggregators in offering some incentives to EV customers and persuading them to change their charging habits.

Cornwall Insight Australia recently presented a webinar on the state of the EV market in Australia. The webinar explored the EV market to date, projections for the future and regulatory and market changes needed to manage the EV uptake. For a copy of the webinar slide deck, please contact us at enquiries@cornwall-insight.com.au.


To keep reading, please log in to your account or sign up for free

Alternatively, please sign up to receive free market insight online and direct to your inbox

Related thinking

Commercial and market outlook

Spot the spread: Are current battery revenues enough to encourage further investment?

In AEMO’s ‘Step Change’ scenario, it was estimated that storage capacity in the NEM would need to increase by a factor of 30 between 2022 and 2050 to support a grid transformation that limits temperature rises below 2 degrees. This represents about 13GW of new storage capacity by 2030 and...

Power and gas networks

Trouble Ahead? – What’s Next For TNUoS Charges?

Some industry participants will be well versed in the Transmission Network Use of System (TNUoS) charging regime, while others may not have had to engage with it before. Regardless of previous involvement, these charges are becoming increasingly important to understand for reasons we will discuss shortly.  In this week’s ‘Chart...

Commercial and market outlook

Feast or famine? FCAS costs in South Australia

Frequency Control Ancillary Service (FCAS) prices are highly volatile, at times resulting in short periods of extremely high FCAS cost. Three such events in recent history are the South Australian (SA) islanding events in November 2019, February 2020, and November 2022. During these events, FCAS costs in SA totalled $16...

Low carbon generation

NSW’s transition to a new era: What will replace Eraring?

After 52 years of operation, the NSW Liddell power station officially shut down last 28 April. With Liddell’s closure, NSW’s transition to a green energy future is in full swing. First announced in 2015, NSW had seven years to ensure there is enough replacement capacity once Liddell is retired. Since...

Commercial and market outlook

It’s the Liddell things that matter

Australia’s oldest coal-fired power plant Liddell retired completely in the last week of April 2023 after 52 years. This giant of AGL, which had a total registered capacity of 2,000 MW, operationally acted as a 1600MW station and 1200MW after the closure of its third unit. Australia’s transition to clean...

Energy storage and flexibility

A look at AEMO pre-dispatch forecasts over the last year

The Energy Security Board (ESB), under the direction of the National Cabinet, is currently working on a number of changes that will impact how generators connect to and operate within the National Electricity Market (NEM). The Congestion Relief Market (CRM) model is one such change to how the NEM currently...

Commercial and market outlook

Iceman Liddell calls it a career

Recently in the news, there has been some concern that the closure of the Liddell power station in NSW will be a repeat of what we witnessed in 2017 with the closure of Hazelwood. Hazelwood’s closure led to higher prices, particularly over summer peak demand periods1. This is a poor...

Energy storage and flexibility

Exploring the impact of storage assets on QEJP sensitivities

Battery storage has great potential to generate high revenues during large market shifts, especially in Queensland (as shown in our previous analysis in Cotw #158). The Queensland government’s recently announced Energy and Jobs Plan (QEJP) would be another big shift as it aims to reduce the state’s reliance on generation...