Coordinated energy and transport policies for electromobility: The case of Norway

Publication Type:

Conference Paper


Gerpisa colloquium, Paris (2019)


Coordinated energy and transport policies for electromobility: The case of Norway

We observe a rapidly rising share of the passenger car fleet becoming electric, and a shift to electric vehicles may be key to reach ambitious CO2-targets at least cost. Electric vehicles (EVs) will make the transport and energy systems more intertwined: EV-friendly transport policies increase the demand for electricity and thus impact on electricity distribution networks while electricity policies immediately impact on the generalized costs of driving EVs.

There exists some literature that looks at how the electrified transport will affect the need for grid investments and/or demand management in order have sufficient power capacity (see e.g., Azadfar, Sreeram, & Harries, 2015; Barton et al., 2013; Clement-Nyns, Haesen, & Driesen, 2011; Hattam & Greetham, 2017; Mwasilu, Justo, Kim, Do, & Jung, 2014; O’Connell et al., 2012). Most of these studies assume that transport demand, and therefore EV users’ demand for electricity, is exogenous (Daina, Sivakumar, & Polak, 2017a, 2017b). This paper contributes to the literature by looking at the mechanisms and outcomes in both the transport and energy market, and the feedback in-between them. This paper uses a stylized transport and energy model for the greater Oslo area to study costs and benefits in both the electricity market and transport market jointly. The model, which builds on Börjesson, Fung, and Proost (2017) and Wangsness, Proost, and Rødseth (2018), allows for the agents’ choice of car, their transport pattern and (if they own an EV) how much to charge the car at home during power peak and off-peak hours to be determined endogenously in the joint market equilibrium. The analysis will give some insight into the feedback between the transport market and electricity market and how policies in one market can affect the equilibrium in the other.

Based on this motivation, we ask the following two research questions: 1) What costs can we expect today’s EV policies to impose on the local distribution grid, and subsequently on all electricity users? 2) What are the added CO2 abatement costs when the costs of EV charging to the local grid are factored in?

We expect to find that imposed cost on the grid amounts to relatively small extra costs on other electricity users, and relatively small additions to the cost necessary to reach ambitious CO2 targets in the greater Oslo area. We also expect to find that the costs can be reduced by applying peak tariffs instead of uniform tariffs. This is because it provides a better balance between investment costs and the EV owners’ disutility of charging during off-peak hours.


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Copyright© Gerpisa
Concéption Tommaso Pardi
Administration Géry Deffontaines

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