How to incentivise the efficient deployment of electric vehicles

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Client CEPA
Dates Oct - 2017
Sector(s)Energy
Service(s)Policy & Economics
The UK energy regulator (Ofgem) has recently unveiled its new ‘strategy for regulating the future energy system’. One of its objectives is to ensure an efficient locational management of the energy system, such that networks allow the transfer of energy from areas of surplus generation to areas of surplus demand. Ofgem also wants to incentivise the efficient development of energy networks in the longer term, taking account of the fact that it is yet unknown how exactly energy networks will be used in the future. In our briefing, we examine how the regulatory framework implied by Ofgem’s strategy would affect one of the main drivers of the change: electric vehicles (EVs). In particular, we ask how EV users would respond to the incentives embedded in the current and future regulatory frameworks.