A report has revealed that the European electricity grid is currently unprepared to accommodate the anticipated rise in electricity demand from the electrification of light-duty vehicles.

Released by the Transport & Mobility Leuven (TML) for the European Automobile Manufacturers’ Association (ACEA), the report outlines the progress and challenges in the EU automotive sector’s transition to zero-emission mobility.

TML’s first quarterly key performance indicators (KPIs) focus on four areas: the electricity grid’s capacity for EV charging, consumer perspectives on EV affordability and accessibility, charging infrastructure availability, and competitive energy prices for manufacturing.

The report indicates that all European countries “fall short” in solar panel installations and the “grid is not ready for smart charging”.

The quarterly update offers insights to help policymakers and industry leaders identify roadblocks.

It highlights uneven progress across key areas of transition, emphasising the urgency and complexity of shifting to zero-emission mobility.

While Europe meets certain benchmarks, significant gaps remain, potentially delaying progress if not addressed.

The report adds that regular KPI monitoring is essential for agile responses and alignment between ambition and implementation.

TML will provide quarterly updates on the state of enabling conditions.

In terms of consumer adoption, the report reveals that the uptake of zero-emission vehicles is below the levels needed to meet the 2035 target, particularly for light commercial vehicles.

Affordability was cited as a significant barrier to consumer adoption, especially with reduced financial incentives.

The issue is most acute in the mini and small car segments and for those relying on public charging networks.

Performance metrics for recharging and refuelling infrastructure reveal a varied outlook.

Although all European countries meet Alternative Fuels Infrastructure Regulation (AFIR)-based charging capacity targets, public charging infrastructure is often perceived as inadequate.

The report also points out that hydrogen refuelling infrastructure falls short of the AFIR target of one station every 200km along the TEN-T network.  

In manufacturing, European automobile manufacturers face challenges due to higher electricity costs compared to China and the US, limited EV battery production capacity, and increasing reliance on imports. 

The report said addressing these issues is crucial to strengthening the global competitiveness of Europe’s automotive sector.