Electric vehicles (EVs) are gaining popularity as a promising substitute for the current transportation means. In addition to being cheaper to maintain and safer to drive, they have far less harmful emissions and better economic savings in the long run.
Owing to its numerous advantages, a recent survey from Bloomberg New Energy Finance predicted that around 50% of all new cars sold would be electric vehicles by 2040.
However, due to the quick and frequent advancement in the field of electric-powered machines, the electric cars do not have a high resale value since newer, better versions keep emerging exponentially. If you are looking to sell your older model to get a better version of EV, then free car valuation tools can give you a general idea about the worth of your current model.
Despite the depreciating value, the market for EVs is expected to reach 3.8 million by 2020, with the major players, like Tesla, expanding the production to meet the rising demand.
Electric cars are especially an excellent investment for people residing in the developing countries due to numerous reasons:
More efficient power grids
Electric vehicles, primarily their batteries, can help balance the supply and demand on the power grids. The batteries can consume electricity when there is a peak in the supply and deliver power back to the grid when there is an increase in demand.
Batteries in electric cars function as a storage unit for electricity and balance the power flow. When the electric grids produce excessive amounts of energy, the owners of the EVs can charge their batteries to the maximum to absorb the excess power. Alternatively, when there is an increase in demand, the batteries can release the stored electricity back to the grid for a monetary rebate.
The balancing of the fluctuating power grids is highly beneficial to the electric infrastructure. In addition to the reduced wastage of electricity, it can also save the grids, specifically the transformers and distribution lines from damaging. Consequently, it saves the cost of repairing or replacing these structures, which can be in millions.
Moreover, developing nations suffer from electricity problems predominately because of the lack of funds to invest in better grid infrastructure and repair the components that undergo wear and tear due to power fluctuations.
A one-time investment in installing electric charging stations across the country and promoting the adoption of electric vehicles can save them from this recurring issue.
Cheaper and reliable electricity
As mentioned above, EVs have the capabilities to protect the electric grid, transformers, transmission wires, etc. from damage, thereby saving millions in cost. Consequently, your electricity bills will also reflect this decrease in repairing cost.
Moreover, the demand for electricity to charge the electric cars begins to rise in the early morning as people leave for work, chores, etc. and peaks in the evening when everyone comes back home. As night falls, the number of people charging their EVs decreases considerably. By offering cheaper electricity during the nighttime, electric companies can distribute the demand over the entire day.
Also, you do not have to stay up all night charging the car. Most EVs are equipped with systems that allow the vehicle to recharge by itself once you have set the time to depart.
The U.S. identifies this non-linear charging pattern and offers special deals to people willing to charge during the night when the demand is at its lowest. Subsequently, electric car owners get to avail reduced rates.
Some government organizations offer monetary refunds to individuals who install charging stations in their homes. The Los Angeles Department of Water and Power is one such organization that gives up to $500 rebates.
Finally, you can also use the time-differentiated rates to earn some money. Since the batteries of EVs have storage capabilities, you can charge the vehicle during off-peak hours and sell the electricity back to the plant for a better rate during peak hours. You can also employ your car batteries to export power in cases of outage due to natural disasters or power plant shut down, thus enhancing the reliability of the electric grids.
Unaffected by fluctuating oil prices
Majority of countries that experience electricity problems are developing nations that rely heavily on petroleum to fuel their vehicles. These countries are also more likely to be affected by extremely fluctuating oil prices, causing severe problems for their inhabitants, especially vehicle owners.
On the contrary, electric car owners do not suffer as much from the increase in oil prices as they are not reliant on petrol to fuel their vehicles.
Moreover, oil is a depleting resource that will eventually become increasingly expensive in the next few decades. As the reserves dry out, more resources will be required to mine the oil, which will have a direct impact on its cost.
Therefore, it is ideal to introduce governmental reforms to institute an advanced grid system that can support the EV charging stations, and encourage the switch from conventional vehicles to electric cars.
Affordability
Electric cars are still considered a luxury, especially in the developing nations since they are more expensive to buy than the conventional models. However, if you charge your EVs during the hours when electricity usage if not at its peak, the cost per mile for electricity is far cheaper than gasoline.
A group of researchers analyzed the cost of owning and running an EV including taxation, insurance, and maintenance. The study concluded that pure electric cars are cheapest to keep and use in the UK, Japan and U.S.
In addition to lower fuel costs, as electricity is cheaper than oil, electric cars have lesser maintenance cost since they have very few moving parts.
Finally, if you want to buy a car in the UK, pure electric vehicles are the cheapest option, according to research published in the journal, Applied Energy.
Conclusion
Electric cars are the future of the automotive industry. While the technology is already renowned amongst developed nations as an excellent alternative to conventional transportation, it can also solve the electricity issues of the developing countries. It can support the power grids, provide affordable and reliable electricity, and reduce the cost of owning a car.
