Electric Vehicle Adoption Challenges the Power System – Smarter Policies Needed to Protect the Grid

CERE researcher reveal how electric vehicle adoption reshapes household electricity use – and why smarter incentives are needed to protect the grid.

As Sweden races toward a future of net‑zero emissions, a new study from Umeå University shows that electric vehicles (EVs) are already reshaping household electricity consumption in ways that could challenge the country’s power system. Evelina Jansson, researcher at CERE, analyzed data from nearly 5,000 households and found that adopting an EV increases electricity use by 10–20 percent, with most charging concentrated in the evening hours.

“The timing of demand is the real issue, not just the total increase,” explains Jansson. “Households tend to plug in their cars after work, between 4 and 8 pm – exactly when the grid is already under the most pressure.”

The study distinguishes between battery electric vehicles (BEVs) and plug‑in hybrids (PHEVs). BEV households consumed on average 0.27 kWh more per hour after adoption, while PHEV households added 0.14 kWh. That translates to a 20 percent rise in electricity use for BEVs and 10 percent for PHEVs.

Interestingly, Jansson’s event‑study analysis shows that while overall household electricity use gradually declines after adoption – possibly due to behavioral adjustments or reduced charging of PHEVs – peak demand remains persistently higher. “Even when households cut back elsewhere, the maximum load in the evening stays elevated. That’s a clear signal to grid operators,” she notes.

The findings carry important policy implications. Without incentives to shift charging to off‑peak hours, Sweden’s distribution grids may face mounting stress. Time‑of‑use tariffs, peak‑hour pricing, or discounts for overnight charging could help balance demand.

The study also highlights the role of solar panels: households with solar installations offset some of the added EV load, though production peaks during the day while charging peaks at night. “If we can store daytime solar energy for evening use, the impact of EVs on the grid could be significantly reduced,” Jansson suggests.

By offering the first empirical evidence on residential EV charging in Sweden – and in a Nordic climate with extreme seasonal variation – the research provides crucial insights for policymakers, utilities, and households alike.

“EVs are here to stay, but how we manage their integration into the grid will determine whether they become a challenge or an opportunity,” says Jansson.

The study can be read here.