Electric Vehicles and Power Grids: Challenges and Opportunities

This chapter wants to explain why and how electricity networks and markets are relevant to the development of electric vehicles. Fuel wide availability and price is of course an important determinant of vehicle diffusion path, but the complexity of management of electricity markets introduces new variables to be considered so as to avoid bottlenecks. In particular it is necessary to evaluate: othe generation capacity. Will the generation park of each nation be enough to guarantee an easy supply at reasonable price? othe distribution network constraints. Will the grid support a wide and dispersed connection for battery recharge? The answers to these questions are fundamental not only to build solid development scenarios and to implement adequate policies for infrastructure development, but also for a correct evaluation of environmental impact. The chapter will start with a brief overview of technologies and components for EHV relevant to the grid: different technologies for the engine, on board storage systems and types of charging connectors will be analysed with respect to their alternative impact to the grid. The focus will then be moved to the grid, showing how the paradigm of EHV intersects the emerging paradigm of smart grids, which introduces active demand (with distributed generation), energy accumulation, distributed decision making, unpredictable power flows. In this context EHVs introduce a challenge, i.e. the necessity to manage a multitude of hectic (low predictability) loads located in changing location of the network with possibly peak power over small time frames, and an opportunity, linked to the possibility to give up to the "just in time" production paradigm for electricity thanks to distributed storage capacity. The chapter will try to depict mutual interconnections and to forecast a scenario of the impact on the grid following future development of EHV market. But hot points on the agenda do not concern only technical matters, but economic ones too. Who's going to promote (and pay for) the new infrastructure required? How to quantify externalities (social and environmental benefits, but also costs for the change to the new paradigm)? Regulation matters, pricing mechanisms, management of the congestions, are other arguments to be discussed while considering a wide diffusion of EHV. As a conclusion, electricity networks are changing. Some of these new characteristic represent a necessary condition for the diffusion of EHV, and should then be kept in special account. At the same time EHV can help the full deployment of future smart grids. Conditions for this mutual interaction should be part of private firms an public government strategic plans.