Transportation Electrification Building Blocks: Practical Guidance to Plan for Rapid EV Load Growth

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The report emphasizes the urgent need for proactive grid investment to support the rapid growth of electric vehicle (EV) loads, highlighting that current infrastructure deployment is insufficient to meet market expectations [4][16] - It identifies significant uncertainty, existing regulatory paradigms, and utility risk aversion as root causes contributing to the challenges faced by utilities and regulators in planning for EV load growth [5][18] - The report outlines a framework of "building blocks" to guide regulators and utilities in effectively planning for EV load growth, focusing on long-term market expectations and improved load forecasting practices [9][24] Summary by Sections Executive Summary - EV load growth presents challenges for utilities and regulators, with current grid infrastructure deployment being too slow to meet market expectations [4][16] - Root causes include significant uncertainty regarding load characteristics, a reactive regulatory paradigm, and risk aversion among utilities and regulators [5][18] - Recommendations for regulators include leveraging existing tools for forward-looking planning and establishing metrics to track performance [7][25] Understanding the Challenge - The report notes that the number of light-duty and medium-/heavy-duty EVs in the US is expected to rise exponentially, necessitating a rapid buildout of charging infrastructure [10] - By 2035, EV charging is projected to consume about 15% of current electricity production, indicating a substantial increase in electricity demand [11] - The report highlights the distinct characteristics of EV load growth compared to other sectors, emphasizing the need for tailored planning [15][16] Transportation Electrification Building Blocks - The report outlines six building blocks to support effective planning for EV load growth, including setting grid planning guidance, improving load forecasting, and prioritizing efficient use of distribution infrastructure [22][24] - Regulators are encouraged to work with utilities to update planning practices and ensure that best available data on future loads is consistently applied [25] - The framework aims to help answer critical questions regarding infrastructure needs, efficient resource allocation, and necessary changes to meet future demands [9][24] Conclusion - The report concludes that addressing the challenges of EV load growth requires a coordinated approach among regulators, utilities, and stakeholders, focusing on proactive investment and improved planning practices [19][22]