Ofgem proposes system reforms to support electric vehicle revolution
Press release
- Publication date
- Industry sector
- Supply and Retail Market
- Distribution Network
- Transmission Network
- Flexible charging can allow at least 60 per cent more electric vehicles to be charged according to Ofgem research
- Reforms will keep costs down and harness benefits to energy system
- Flexible use of grid will also accommodate more renewable generation and other new technologies
Ofgem has set out proposals to take forward reforms to support millions of new electric vehicles forecast on Britain’s roads in the coming decades while keeping costs down for their users and all energy consumers.
More flexible use of the energy system will allow more electric vehicles to be charged from the existing grid and reduce the need for expensive new power stations and extra grid capacity to be built.
The energy system is undergoing a radical transformation thanks to such new technologies while more electricity is coming from intermittent renewable sources.
Ofgem is consulting on plans which will reduce the cost to consumers of meeting the extra demand from electric vehicles as well as connecting them and more renewable generation, battery storage and other new technologies to the grid.
According to Ofgem analysis published today if owners use ‘flexible’ charging - where they only top up outside peak demand times on the grid – at least 60% more EVs could be charged up compared with ‘inflexible’ charging where electric vehicles are only charged at peak times.*
Flexible charging does this by allowing electric vehicles to be charged when energy prices are cheapest, for example when wind and solar power is generating lots of electricity or when there is less demand across the system.
Flexible charging also helps to keep energy costs down for all consumers as technology allows stored electricity from electric vehicle batteries to be sent back onto the grid when it is needed.
Ofgem’s proposed reforms will give incentives for customers to charge their electric vehicles at the right time. The reforms will free up existing grid capacity to allow new generators, including businesses or other organisations which want to generate their own power on-site, to get connected to the grid more quickly. The reforms would make the electricity system more efficient by giving generators and other users more choice and flexibility on how they connect to the grid.
Jonathan Brearley, executive director, systems and networks, Ofgem, said: “Ofgem is working with the government to support the electric vehicle revolution in Britain which can bring big benefits to consumers. Our reforms will help more users charge their electric vehicles and save them money.
“The proposals we have announced today will also harness the benefits of electric vehicles and other new technologies to help manage the energy system and keep costs down for all consumers.
“The way we generate, transport and use electricity – and power our cars - is undergoing a radical transformation in Great Britain.
“Ofgem will ensure that the energy system is fit for this exciting, cleaner future and at the lowest cost for consumers.”
Notes to editors
- *The Ofgem analysis looks at the impact of EV charging on typical household electricity demand across five scenarios. They investigate the impact of charging at different speeds, and during different times of the day. The analysis showed that when flexible chargers were used at least 60 per cent more electric vehicles could top up using the lower voltage electricity grids without needing to upgrade network infrastructure.
For flexible charging to work EV owners will need to use ‘time of use’ tariffs available through smart meters where, for example, the price of electricity can be cheaper outside peak time, when there is less strain on the electricity grid. The Ofgem analysis is based on a previous study by the Energy Networks Association about managing integration of electric vehicles on the networks. - Ofgem intends to work with the industry to overhaul energy system rules and put the reforms in place between 2022 and 2023.
Further information
For media, contact
Chris Lock: 0207 901 7225
Media out of hours mobile: 07766 511470 (media calls only)
About Ofgem
Ofgem is the independent energy regulator for Great Britain. Its priority is to make a positive difference for consumers by promoting competition in the energy markets and regulating networks.
For facts, figures and information about Ofgem’s work, see Energy facts and figures or visit the Ofgem Data Portal.
For energy insights and updates straight to your inbox from Ofgem, please subscribe.