Projected Shortfall of 49 Million EVs in Europe by 2040 Raises Energy Concerns
A study by Transport & Environment forecasts a deficit of 49 million electric vehicles (EVs) in Europe by 2040, leading to significant energy infrastructure challenges. The implications include the need for 150 additional power plants and a 37% drop in new solar installations, resulting in a loss of 6 terawatt-hours of clean energy annually.
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The anticipated decline in electric vehicle adoption in Europe could necessitate the construction of 150 additional power plants to meet energy demands. Concurrently, new solar installations may decrease by 37%, equating to a loss of 6 terawatt-hours of clean energy yearly.
This scenario would impose an additional financial burden of approximately four billion euros per year on the electricity grid. In response, Transport & Environment advocates for mandatory bidirectional chargers starting in 2032, allowing EVs to serve as energy storage.
Meanwhile, Volkswagen, Stellantis, and Renault propose that 70% of vehicles sold in the EU should have local value creation. Given outdated EU grid codes, Germany and the Netherlands are developing their own regulations, raising concerns about market fragmentation. Additionally, studies highlight the potential of biogas technologies, which could deliver 12.6 gigawatts by 2030, while the decentralized storage market is experiencing significant growth, with a 70% increase in new installations noted in early 2026.
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