Plug-in electric vehicles (PEVs) could significantly reduce gasoline consumption and
greenhouse gas (GHG) emissions in the EU’s transport sector. However, PEV well-towheel
(WTW) emissions depend on improvements in vehicle technology and on the
emissions produced in generating the electricity to charge the vehicle. This electricity is
produced to a certain extent by conventional GHG emitting technologies such as coal,
petroleum and gas depending on each country’s electricity generation mix. Hence,
individual country assessments need to be done to evaluate the potential gains from PEVs.

This research quantifies the reductions in GHG emissions and gasoline consumption
achievable by plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles
(BEVs) in several EU member states, focusing on two timeframes: present time and year
2035. It also outlines (1) the potential impacts that widespread PEV adoption can have on
the electricity infrastructure, (2) how the PEV electricity retailing activity should be
regulated to prevent utilities exercise market power, and (3) how to ensure
interoperability among PEVs. Finally, this work presents projections on the incremental
costs of PEVs and fuel costs savings in the EU from using PEVs.

Based on the findings in this analysis, several conclusions can be drawn. First, GHG
emissions assessments should consider average electricity emissions instead of marginal
emissions. Second, PEVs can consistently reduce gasoline consumption but they will
only reduce GHG emissions in countries with a less carbon intensive electricity
generation portfolio (unlike Poland). Third, the impacts of PEV fleets on the electricity
system can only be evaluated on a case-by-case basis, transformers in the distribution
network being the most likely element to be affected. Four, although in EU countries fuel
cost savings over the driven lifetime of a PEV are significant, upfront costs of PEVs are
higher than those of mainstream technologies. Government-supported pilot projects and
tax incentives can help lower cost of ownership and build the market to ultimately lower
manufacturing costs.

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