Optimized Electric Vehicle Charging Stands to Yield $30 Billion in Yearly Savings by 2035: Study Shows

In the rapidly evolving landscape of renewable energy, electric vehicles (EVs) are poised to play a significant role, with their numbers projected to reach almost 79 million on U.S. roads by 2035, according to the Edison Electric Institute. This shift brings both opportunities and challenges for utilities, as the demand from growing EV adoption begins to show up on the electric grid.

The growth of EVs is evident, with electric vehicles reaching over 10% U.S. market share in 2024, and in the first half of 2021, more than 600,000 have been sold. These vehicles are expected to be foundational parts of Virtual Power Plants, helping to unlock energy capacity, reduce costs, and stabilize the grid.

With managed charging, utilities can create a more decentralized, optimized, and affordable grid. Programs that include a vehicle-to-grid bidirectional charging component could more than double the benefits of managed charging. Each actively managed electric vehicle can create up to $575 in avoided costs for utilities, and each can save utilities $145 to $575 annually for every customer enrolled.

However, the main challenges for implementing bidirectional charging for electric vehicles by automakers and energy providers include technological issues, the need for utilities to become comfortable with interconnection requirements, and unclear regulatory and communication frameworks. Political support and clearer regulations are needed to address these hurdles, including certification of compatible vehicles and charging stations, definitions of communication protocols, and incentives such as reduced grid fees or subsidies planned for 2025 and beyond.

Despite managed charging solutions being ready to operate at scale, the same isn't true yet for bidirectional charging. An NREL report looking out to 2050 noted that EVs are expected to be the largest source of electricity demand growth and will require investments in generation, transmission, and distribution systems. The report also emphasized the importance of smart integration of EVs for grid flexibility, reducing electricity costs, and increasing resiliency.

The research from ev.energy and The Brattle Group suggests managed charging programs for electric vehicles could generate $30 billion in annual utility savings. The report indicates that managed charging could lead to a 10% reduction in all customer electric bills by 2035, whether they own an EV or not.

As the electric grid continues to evolve, the adoption of managed charging and bidirectional charging for electric vehicles presents a significant opportunity for utilities to optimize their grids, reduce costs, and provide benefits to all customers. A proactive approach to managing the demand is necessary to overcome the barriers and ensure a smooth transition to a more sustainable, decentralized, and affordable energy future.

Optimized Electric Vehicle Charging Stands to Yield $30 Billion in Yearly Savings by 2035: Study Shows