Source: Adapted from US Department of Energy (2024) Port Electrification Handbook, Pacific Northwest National Laboratory.
Port electrification has a series of expected benefits:
- Environmental. One of the core expected benefits of electrification is the reduction of environmental impacts generated by ports. Port equipment, particularly trucks, cranes, portainers, and gantry cranes, were conventionally powered by fossil fuels. Its electrification would result in a significant decline in air and water quality with fewer pollutants such as sulfur dioxide, particulates, and carbon monoxide and discharges into aquatic ecosystems. Electric equipment generates substantially less noise than its fossil fuel equivalent. Since communities in proximity to port facilities and their access thoroughfares are exposed to environmental externalities, the expectation is an improvement in the quality of life. Cost savings can also be realized through better compliance with environmental regulations and related incentives.
- Economic. While electric equipment can be more capital-intensive, it is also more energy-efficient and has lower maintenance costs, which can lead to lower operational costs. If a port can generate some of its own electricity or if local electric power is low-cost, additional operational benefits can be derived. Electrification can also lead to new economic multiplier effects by attracting related industries, including innovative capabilities in renewables.
- Resilience. If port electrification involves the development of port electric grids, resilience to power supply disruption can be improved, allowing the continuation of operations. Energy dependence on imported fossil fuels can also be reduced.
It is relevant to note that many of these benefits are expected but have not been fully demonstrated. Further, port electrification can be associated with a series of drawbacks:
- Technology. Equipment in its initial phase of development, particularly electric vehicles, is usually more expensive and less efficient than its fossil fuel counterparts. Making a business case for purchasing electric equipment can be difficult, but costs have been declining with the gradual adoption of electric vehicles. Electric equipment, particularly vehicles, may not be the equivalent of their fossil fuel counterparts as they require charging and may not generate the same amount of power. This can increase the risk of operational disruptions.
- Electrical. Port electrification significantly increases the load on local power grids, which can be expensive and complex to upgrade. It may require entirely new power generation capabilities, requiring a higher level of coordination with utility providers. With the development of port electric grids, the port is no longer a large electric customer, but also a potential utility provider.
- Implementation. Since ports are composed of multiple stakeholders, many tenants of the port authority, coordination can be complex. Some stakeholders could be proactive toward electrification, as they may have much to gain, and others may be antagonistic, particularly if electrification disrupts their business model. From a labor perspective, electrification disrupts the workforce by reducing those related to the operation of fossil-fueled equipment and requiring new sets of skills for the electric equipment.