BNEF: EVs will suck up nearly 9% of total global electricity demand by 2050

BNEF: EVs will suck up nearly 9% of total global electricity demand by 2050

According to a report released by research firm Bloomberg New Energy Finance (BNEF) on Tuesday, electric vehicles (EVs) are expected to suck up a much higher percentage of world’s total electricity demand in the coming years, as compared to the present consumption.

Going by the figures shared by London-based BNEF in its report, EVs will suck up approximately 9% of total global power demand by the year 2050; with the percentage share likely to be as high as 24 percent in some countries like Germany.

The figures shared by BNEF are noteworthy because EVs presently suck up barely 0.2 percent of total global power demand.

As per the explanation given by BNEF in the report, the projected growth in power demand by EVs in the coming years will largely be an outcome of the fact that the costs of batteries are likely to fall by two-thirds by the year 2030. Moreover, an increasing number of utilities will introduce new time-of-use rate policies for giving consumers the advantage of charging their EVs during the periods of low electricity demand and cheaper rates.

In reference to the expected drop in battery costs in the future, BNEF’s New York-based analyst Salim Morsy said during an interview that “lower battery prices unlock more EVs,” and added that battery prices have fallen “faster than we expected.”