FERC Conference highlights Grid challenges of EV transition

At Energy Fairness, we’ve doubled down on our support for EVs over the past few years. Our question, however, remains the same as it was over a year ago: How will our power grid handle the influx of EVs? That was precisely the concern highlighted at a recent FERC conference of more than 30 state and local energy officials, researchers, and utility executives.

In recent years, there has been a massive push to encourage U.S. consumers to adopt electric vehicles (EVs) on a large scale. Not surprisingly, California has taken the lead by phasing out the sale of new gas-burning cars in the state by 2035. Aiming to follow suit at the Federal level, the Biden Administration has ramped up the pressure to transition, allocating $174 billion to electric vehicles in its American Jobs Plan. 

At this month’s conference, panelists discussed the benefits and costs of the transition and the transmission infrastructure needed. As an independent Federal agency regulating the interstate transmission of electricity, FERC will play a pivotal role in supporting state and local policymakers in transitioning to an EV fleet.

How could the EV transition affect our power grid? Mass adoption of EVs, along with a shift from gas to electric for heat, and home appliances, could put a massive strain on power supplies. Some estimates suggest that the transition could cause electricity demand to double by 2050. This projection led Pedro Pizzaro, with the Edison Electric Institute, to state that “electrification is going to be one of the most economic tools for decarbonization…the scale of electrification needed will be very significant.”

Simple solutions like smart charging or incentivizing consumers to plug in the EVs during off-peak hours will assist in the transition to a predominantly electric fleet. Still, these solutions can only regulate electricity demand on the margins. We will also need new, high voltage transmission lines and upgrades in energy efficiency to get everyone’s car charged while keeping the lights on.  

The need for additional electric infrastructure leads us to another question: Who pays? While some panelists at the conference claimed that electrification would bring down costs for consumers, they did acknowledge that energy prices will go up, at least initially. And as always, any time prices rise, it’s the poor who suffer the most.

Energy Fairness has written extensively about how a multi-billion dollar cost-shift has subsidized the adoption of roof-top solar on the backs of consumers who can afford it the least. We shouldn’t make the same mistake in our zeal for EV adoption.

The shift towards electric vehicles is a worthy goal, but we must ensure that there is adequate transmission and distribution infrastructure to absorb this demand and that the adoption of EV is affordable and reliable for everyone, not just the most financially fortunate.