Market Snapshots are energy information updates prepared by Canada's National Energy Board to illustrate emerging trends in various segments of the energy market. They provide topical energy information to Canadians.
In the future, electric vehicle adoption presents a key uncertainty for understanding how energy systems will evolve. Many factors will influence future EV sales including cost, government policy, consumer preferences, advances in technology, and charging infrastructure.
Currently, EVs are more expensive to buy than conventional vehicles with an internal combustion engine (ICE). However, EVs are more energy efficient than ICE vehicles, which could lead to cost savings when driving.
Levelized cost of driving (LCOD) calculates how much it costs to drive a vehicle per kilometer over the vehicle’s life. LCOD is used to compare vehicles with different purchase, fuel, and maintenance costs and lifespans. Thus, LCODs are used in this analysis as a useful way to compare EVs to ICE vehicles.