Contrary to some media headlines, the electrical grid as it exists today is prepared to handle the electric vehicles (EVs) currently plugging in and, as EV sales continue to increase, electric utilities are already planning improvements to accommodate millions more of them. While industry and policy leaders are making preparations to welcome new EV drivers to the road, utilities are identifying new technology solutions that allow EVs to benefit the grid — from cost reductions for all utility customers to reliability improvements to climate pollution reduction. 

In the U.S., electricity use has remained fairly flat over the last 20 years, even though the population has increased by 30 million, we have bigger homes, we’ve added more than 5,000 high energy demand data centers, and we now have nearly 2.5 million EVs plugging in. Yet, through November 2023, electricity generation fell by 1.1%. This is thanks mostly to increased efficiency across the board; however, increased efficiency will only get us so far. Electric utilities will need to increase power capacity along with other technical upgrades, and EV service providers can use modern software to adjust load capabilities to accommodate the expected influx of EV drivers on the road. 

In California, where EV adoption is growing the fastest, we need electricity distribution investments between $6 and $20 billion by 2045 to meet the needs of 5 million EVs. Those investments will pay back dividends for ratepayers, as well as climate and energy security. At a recent Veloz meeting, Joshua Copenhaver, Director of Resource and Environmental Planning and Strategy at Southern California Edison presented on the topic of electric rates and transportation electrification: “With the greater efficiency of EVs and new technologies as well as managed charging behavior and load adjustments, customers will save about 40% on their total energy spend by 2045.” 

EVs have already saved ratepayers billions of dollars on their monthly electricity bills by providing more than $3 billion in net revenue to the grid between 2011 and 2021. Savings will continue to increase as more EVs are plugged in and more renewable energy comes online. 

In many ways, EVs are batteries on wheels. EVs can store a lot of power and have the potential to send that power back to the electrical grid during peak energy demand periods. This is known as vehicle-to-grid (V2G) charging or bidirectional charging. For example, in some parts of the country, you might have experienced a power outage due to people pulling too much energy from the grid at once. In this scenario, with V2G charging, energy stored in EV batteries can be pushed back into the grid to alleviate the strain. This technology is being tested right now in Oakland, where 74 electric school buses and bidirectional chargers will serve as a Virtual Power Plant (VPP), giving 2.1 gigawatt hours of energy back to the power grid annually.  

In Southern California, San Diego Gas & Electric’s (SDG&E) V2G Pilot Program with Cajon Valley Union School District includes eight electric school buses that will connect to 60kW bi-directional DC fast chargers, discharging surplus energy to the grid during peak demand hours while also reducing energy costs for the district’s schools. “This initiative not only promotes sustainability but also helps us deliver safe, clean, and reliable energy to our communities,” said Miguel Romero, SDG&E Chief Commercial Officer. “At SDG&E we’re proud to collaborate with our community to make this happen, enhancing our power supply’s reliability and strengthening our energy infrastructure for future generations.” 

PG&E is also piloting three types of V2G programs and the utility just approved the Ford F-150 Lightning and bidirectional charger to be used in vehicle-to-home (V2H) setups. V2H can potentially save EV drivers money on their utility bills, provide new revenue generation opportunities, and offer owners energy security by being able to push electricity directly into their homes in the event of a power outage. Whether it’s impacting the whole city, a neighborhood or just your home, thanks to this technology you won’t be left in the dark. Safer than a generator, EV batteries emit zero deadly pollutants. 

The good news is that EV owners can help support the stability of the grid and the health of their EV’s battery, while potentially saving some money, by following a few simple tips: 

1. Charge in off-peak hours. Programming your EV to charge when there’s more power available can save you money and relieve strain on the electrical grid. In many parts of the country, electricity is cheaper late at night when fewer people are awake and using electricity. Check with your electricity provider to learn when it’s cheapest to charge.  

1. Avoid charging to 100%. In hot weather, charging up to 80% instead of full capacity can decrease the stress on the battery in your EV by limiting internal resistance. This smart tip also reduces strain on the electrical grid by reducing charging time. 

1. Park in the shade. Whether it’s in the garage, a carport or under a tree, keeping your EV cooler can help minimize the drain on your battery and increase efficiency by reducing the need to run the air conditioning at maximum to cool your vehicle down. 

1. Pre-condition. Cool your EV down while it’s still plugged in. This helps maintain your battery capacity before you leave so you’re not running the air conditioning on maximum while on the road. 

1. Drive slower or use “Eco mode.” Anything to help reduce the need to plug in. Driving slower and using a more efficient driving mode can help your battery last longer resulting in the need to charge less often or not as long. 

Plugging millions of EVs into the grid over the next few decades does come with challenges, but they are obstacles we can overcome. For many EV owners, the question is, “How can I remain energy conscious?” For the EV-curious, they may be asking, “Is an EV right for me?” And for policy and industry leaders, the critical question is, “How do we plan and make the right electrical grid investments?” Climate change can bring extreme weather events that strain the grid and EVs can help mitigate harmful grid impacts as we move toward an Electric For All future. 

Veloz is leveraging its leadership, member communications channels, connections and convening power to overcome challenges and embrace the opportunities of getting more EVs on the electrical grid to speed up the goal of Electric For All. Together we can support a safe, more reliable and flexible electricity system that benefits everyone. 

EV myths are addressed here each month in my Ride to Zero Blog. Sign up here to get the latest news, invitations to events, and announcements on the road to electrified transportation.