Energy and environmental costs for electric vehicles using CO2-neutral electricity in Sweden

Electric vehicles (EVs) may provide an alternative for CO2-neutral transportation services. This article analyses the cost of energy and emissions from using electricity produced from Swedish renewable energy sources in electric vehicles, and compares it with the cost of an alternative in which biomass-based methanol is used in internal combustion engine vehicles (ICEVs). These costs do not include vehicle and battery costs. Cost estimates of electricity, calculated using a marginal cost perspective, include production costs as well as the cost of distribution and vehicle recharging. The energy cost per km for vehicles using electricity is calculated to be 30-70% of the cost of biomass-based methanol, depending on the general level of electricity demand, the need for grid upgrading, and the assumed cost of biomass-based methanol. A high general electricity demand in society would require expensive condensing plants to supply the vehicles, whereas with a lower demand, cheaper cogeneration and wind power plants could be utilised. An electric vehicle, used as the average Swedish car, would, during its lifetime, have energy and environmental costs 30000-40000 SEK ($4000-5400) lower than the current state-of-the art ICEVs using biomass-based methanol. An electric vehicle used mainly in the city centre might have energy and environmental costs which are 130 000-140 000 SEK ($17 000-19 000) lower than a current methanol-fuelled car. With future improvements in the energy efficiency and environmental performance of ICEVs the difference will be significantly reduced. If battery costs were included in the cost calculations, EVs would not be cost competitive with future ICEVs, even if battery costs are reduced to $100/kWh. (C) 2000 Elsevier Science Ltd. All rights reserved.