Working Paper 003: Reforming electricity rates to enable economically competitive electric trucking

TitleWorking Paper 003: Reforming electricity rates to enable economically competitive electric trucking
Publication TypeUnpublished
Year of Publication2019
AuthorsPhadke, Amol A, Margaret McCall, Deepak Rajagopal
Date Published06/2019
Keywordselectric vehicles, electricity pricing, transportation
Abstract

The imperative to decarbonize long-haul, heavy-duty trucking for mitigating both global climate change as well as air pollution is clear. Given recent developments in battery and ultra-fast charging technology, some of the prominent barriers to electrification of trucking are dissolving rapidly. Here we shed light on a significant yet less-understood barrier, which is the general approach to retail electricity pricing. We show that this is a near term pathway to $0.06/kWh charging costs that will make electric trucking substantially cheaper than diesel. This pathway includes i) reforming demand charges to reflect true, time-varying system costs; ii) avoiding charging during a few specific periods (<45 hours in a year) when prices are high; and iii) achieving charging infrastructure utilization of 33% or greater.

Refereed DesignationDoes Not Apply