What the Transition to Electric Vehicles Means for the U.S. Power Grid 

They’ve been championed as an eco-friendly alternative to traditional cars. But as more rechargeable electric vehicles (EVs) hit the road, how will the U.S. power grid—already strained due to record high temperatures and other factors—be able to meet the demand? Here we’ll discuss what’s happening with the power grid right now, what obstacles still need to be removed, and potential risks and benefits associated with the transition from gas-powered vehicles to EVs. 

Concerns, Costs, and Other Challenges 

By 2030, Bloomberg predicts more than 50% of new cars purchased in the United States will be EVs. Heightened use of electric power in general is also expected, in applications including heating, cooling, and today’s computer-driven industries, which require electricity-hungry semiconductor chips. This will necessitate large-scale and expensive upgrades to our national power grid.  

The United States has only recently put extensive resources into upgrading our energy infrastructure. The Bipartisan Infrastructure Law, passed in 2021, dedicates more than $20 billion to upgrading our power grid. Portions of these funds are currently being allocated to: 

  • Constructing new transmission lines. 
  • Reinforcing existing transmission lines for weather resistance.  
  • Making smart grid updates. 
  • Expanding battery storage capacity. 
  • Creating local microgrids. 
  • Modernizing underground monitoring and control equipment. 

These endeavors are both costly and complex. A study ordered by the California Public Utilities Commission projects that it will cost their state $50 billion to upgrade its grid to power the number of EVs it hopes to have on its roads by 2035. High-voltage transmission lines, which can effectively deliver power from a variety of sources to all corners of the country, must span myriad cities, counties, and states, and those areas fall under the authority of many different utility companies and regulatory agencies. Permitting can sometimes take more than 10 years.  

Yet the cost of not being ready to meet the anticipated 18% increase in demand for electricity in the U.S. by 2030 and the already-growing demand for EVs is also high. As during the fuel crisis of 1973-1974, which saw nationwide gasoline shortages and long lines at the filling station, we could see similar situations at the charging station, with no end in sight. Regular shortages could occur as power outages or blackouts, which could not only bring EVs to an abrupt stop but upend our daily lives. 

Progress, Spare Power, and Jobs 

There is some hope on the horizon for California, which is leading the way nationally on EVs despite an expensive road ahead. They’re working toward tripling their electric grid capacity ahead of their 2035 targets and producing significant energy through renewable sources. They’ve also forecast that EVs will only total about 4% of their energy demand in 2035 and therefore not place a major strain on resources. 

The technology-focused publication Wired shared an interesting perspective: that EVs might not be a drain on the power grid but a boon to it and to energy consumers. Here’s why: 

  • EV batteries can store a lot of power. 
  • Most cars sit unused 95% of the time. 
  • During extreme temperatures when power demand increases, an EV owner could sell excess power from their EV battery back to the utility company, alleviating strain on the power grid. 
  • During a power outage, an EV owner could actually use their own car battery to get electricity flowing back into their house.  

The need for workers to install the power lines that connect electric vehicle charging stations to the power grid, as just one example, will also lead to expanded job opportunities for those in that field. So, while the challenges of transitioning our power grid to accommodate EVs and our other needs are considerable, they may not be insurmountable and are certainly offset by some of the advantages that will likely result. 

Refine Your Energy Business Skills and Credentials Here 

With our longtime ties to the energy industry, The University of Texas Permian Basin is uniquely positioned to provide programs built around the latest developments in the field. Our AACSB-accredited College of Business empowers you to complete these career-enhancing credentials from practically anywhere in the world, 24/7, on your own schedule: 

Online Master of Business Administration with Certificate in Energy Business (36-45 credits) 

  • Gain the broad business foundation and prestige of an MBA. 
  • Expand your energy industry expertise through focused specialty courses.  
  • Finish in as little as four semesters—about the amount of time it’ll take you to complete the MBA alone—and add two valued credentials to your resume. 
  • Boost your earning potential by 16% over a bachelor’s degree. 

Online Master of Science in Energy Business (30 credits) 

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  • Build new energy business skills and credentials quickly. 
  • Try graduate courses before committing to a master’s degree program. 
  • Finish in as little as two semesters. 

Prepare for a rewarding career in a dynamic field. The power is in your hands! Get program details and apply today! 

Sources: 
https://www.nytimes.com/2021/01/29/climate/gm-electric-cars-power-grid.html
https://www.cnbc.com/video/2023/07/01/why-the-us-power-grid-is-underprepared-for-the-ev-revolution.html