become a flexibility resource able to aid in their own integration and that of higher shares of variable renewables or other distributed energy resources into the grid.

Advancing technologies and reducing battery costs

In the SDS, annual EV battery deployment is 30 times higher by 2030. Reaching this level of deployment will require continued cost reductions, and battery efficiency and density improvements beyond what can be achieved with current technologies.

Electric cars currently cost more to purchase than similar-sized conventional cars, and even from a total cost of ownership perspective (including operational costs such as fuel), the economic advantages of electrification are limited to a relatively narrow range of cases. The cost challenges related to EVs are primarily linked to the battery, one of the major cost components. Technological advances allowing for more compact batteries with longer ranges, extra durability (the capacity to withstand a large number of charge/discharge cycles without performance being affected) and the capacity to charge at very high power (fast/ultra-fast charging, from 100 kW to 1 MW), will also influence level of EV adoption.

Allowing EVs to become a flexibility resource for the grid

High EV uptake with unmanaged charging can pose a challenge for the power system if charging coincides with the high-demand periods of the main power system, resulting in greater peak demand and requiring additional peak generation capacity. Increasing EV uptake can also overload distribution networks and necessitate local power grid upgrades such as transformer replacements and cable reinforcement.

Conversely, if adequately managed, EVs can also provide demand-side response (DSR) solutions across a wide range of timescales. Unlocking DSR opportunities from the participation of EVs would help integrate a higher share of variable renewables such as wind and solar power as well as other distributed energy resources. This is a major opportunity given the challenges of electricity system operators to conciliate supply and demand while integrating greater shares of variable renewable energy and other distributed energy resources.

Rail

Expanding high-quality urban rail transport depends on political champions, thorough project viability and costs assessments and effective funding, as much as it does on technical issues. Equally important are sound construction, installation of the necessary equipment and hardware, and well-managed operations.

Digital technologies can be used to help integrate rail with other transport modes, provide superior service and increase utilisation to raise revenues and reduce costs.

Digitalization of rail: automation, management and control systems

By reducing the time and distance between trains, digital technologies can facilitate more intensive use of rail infrastructure, which increases capacity and boosts investment returns while improving user convenience and maintaining high safety standards.

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