By Stefan Zschiegner, Itron
The U.S. has reached a critical tipping point: 5% of new car sales are powered only by electricity. Although this number might seem insignificant at first glance, a Bloomberg analysis found that this is the threshold signaling the start of mass adoption of electric vehicles (EVs).
Reaching the 5% threshold appears to be just the beginning – as rising gas prices, the impact of climate disruption and government incentives such as the Inflation Reduction Act continue to boost consumer demand for electric-powered cars.
As consumers start to ditch their gas-powered cars for more eco-friendly options, the right infrastructure must be in place to make the transition as smooth as possible. This includes ensuring the power grid can keep up with spikes in energy demand. Of course, there will always be bumps in the road when rolling out new technology, but too many obstacles may discourage potential buyers and slow the adoption rate. There has been a lot of work done to get us to where we are today; the energy grid should not be what gets in the way.
Taking a page out of the Golden State’s playbook
California has become a model example of EV adoption – it has the country’s largest number of EVs on the road. The AP recently noted, “California already has some of the nation’s most ambitious goals for weening off of fossil fuels by transitioning to electric cars and home appliances.”
In 2020, Governor Newsom issued an executive order requiring sales of all new passenger vehicles to emit zero-emission by 2035. And some California cities have banned new gas stations to accelerate EV adoption. The movement started in Sonoma County, with other localities following suit.
Despite these measures, California continues to see firsthand the destruction climate change can cause and its impact on the grid. In 2020 and 2021, California residents dealt with rolling blackouts. With temperatures reaching record-breaking levels in 2022, it’s no surprise that California is determined to continue prioritizing eco-friendly policies.
However, it’s not just California that is dealing with the impact of climate disruption. As the rest of the country inevitably begins to follow California’s example when it comes to encouraging EV adoption, it’s up to utility companies to ensure our aging grid can support the impending surge in electricity demand.
A modern solution is needed to solve current challenges
From auto manufacturers and government entities to personal and commercial consumers, it’s clear that virtually all stakeholders are on board with the transition to EVs. So now for the million-dollar question – can the grid keep up?
Traditionally, when there has been an increase in demand for electricity, utilities have focused their resources on adding more distribution infrastructure. However, it’s becoming increasingly clear that the status quo won’t work, as EVs bring unprecedented complexity to grid planning and management. Everything from the lack of visibility into where EVs are being used and when and where charging will occur to the pure scale of adoption makes the utility’s job of providing reliable services increasingly difficult.
This is where distributed intelligence (DI) comes into play.
Distributed intelligence (DI) moves analysis, decision making and action to the edge of the utility grid and city infrastructure, whereby edge-of-the-grid devices run various applications and process data in real-time rather than sending it to the back office for analysis. By securing access to data in as close to real-time as possible, utilities can detect impedance intolerances and right-size transformers, discover theft, and address power quality challenges as they arise.
Plus, using smart endpoints (meters, devices, and other sensors) with peer-to-peer connectivity, DI applications are downloaded to DI devices in the field to solve challenges.
DI provides an advantage for the utility – and benefits can be passed along to their customers. Take EV fleets, for example. Optimizing fleet charging is key as large charging depots cause exponentially more strain on the grid than personal electric vehicles, and energy costs can quickly become cost prohibitive for the end user. With the proper insight, EV charging operators can plan, operate, and manage their EV fleets at the highest performance level and lowest costs, as well as integrate charging assets with other distributed energy resources (DERs) such as solar and storage.
It’s important to note that while DI helps utilities meet increased energy demand and ultimately keep the lights on, it also enables utilities to be more efficient and realize the revenue benefits of increased demand. This is a game changer for the industry after experiencing years of stagnant growth.
A reliable grid is essential for EV adoption
Distributed intelligence is a win-win. It provides utilities with more visibility to increase revenue while simultaneously boosting the resiliency and reliability of the grid. Simply put: the grid is better equipped to support the EV boom with DI.
No one can argue that the grid is a vital piece of the EV puzzle, and with the right investments, it will be ready to handle whatever comes its way.
About the Author
Stefan Zschiegner joined Itron in March 2020 as VP Product Management for the Outcomes business. Prior to joining Itron, he held product business leadership roles driving digital transformation in telecom (leading Mitel’s Cloud business) and in manufacturing (Velo3D). Previously Zschiegner held product leadership positions in energy solutions at Enphase Energy and driving global growth with grid connected solutions for First Solar. His education includes the Executive Marketing Management Program at the Stanford Graduate School of Business, and a masters equivalent degree in electrical engineering from Technical-University Hamburg in Hamburg, Germany.
Itron Inspire, the company’s annual event that brings customers together to discuss and share ideas, collaborate on new solutions, and network with peers begins next week. POWERGRID will be there September 25-27. Learn more.
