When electric vehicles are widespread, how will we fuel them? Our model shows the economics can be compelling for powering fast-chargers using gas turbines.
The electricity would cost 13c/kWh, at $3/mcf input gas (e.g., in the US), 20% utilisation of the infrastructure and a c7.5% pre-tax IRR.
Carbon emissions are lowered by c70% compared to oil-fired vehicles. And the grid is spared the strain of sudden demand surges.
Is upside suggested for gas? Utilisation of the fast-charging infrastructure is much more important to the overall economics than the gas price. This means that greater EV adoption can accommodate considerably higher gas prices.
Our model is constructed as a sensitivity analysis, based on economic data from gas turbines (chart below), so you can flex the assumptions.