Impact of Electric Vehicles on Energy Markets: Demand, Supply, and Regulatory Implications

Abstract

The worldwide energy business, regulatory frameworks, and the dynamics of demand and supply will all undergo profound transformations as a consequence of the widespread adoption of electric vehicles. As the number of EVs on the road continues to rise, their impact on energy consumption, grid management, and fuel markets is only going to grow. Several significant aspects of the effect of electric vehicle adoption on energy markets include electrical demand, the potential for grid pressure, the role of integrating renewable energy sources, and the separation from traditional gasoline markets. The legal and policy implications of widespread EV adoption should also be carefully considered. These include the need for new pricing structures, improvements to infrastructure, and strategies for managing the transition to EVs. Viewing trends in energy use, new infrastructure, and regulatory responses in key areas might shed light on how electric vehicles are influencing the energy sector. Governments, energy providers, and automakers must work together to make sure that electric car integration into the energy system is sustainable, efficient, and supports broader economic and environmental goals. The authors conclude by recommending that policymakers should work to upgrade the global energy infrastructure, increase the usage of renewable energy, and establish regulatory frameworks to guarantee the long-term sustainability of electric vehicles.