Section 2: Beneficial Electrification End-Use Applications

Transportation Electrification

Part 1: Overview

The Future of Transportation is Now

2022 Rivian R1T truck. Photo Credit: Rivian

Electric vehicles (EVs) are poised to become one of the single biggest opportunities — and challenges — to electric utilities in their history. EV adoption will expand rapidly in the next 5-10 years. Most automakers are now putting the vast majority of their R&D investments into EVs, which will lead to big changes in the choices that auto companies present to consumers.

EV costs have fallen rapidly in recent years, underpinned by plunging battery prices and increased production efficiency. Soon, a number of vehicle classes will be at cost parity with internal combustion engine (ICE) vehicles due to falling battery costs. And electric pickups and SUVs are on the way, with several models coming in 2022-23. Larger trucks (Class 3-8) and buses are also being developed and deployed. Many more exciting categories are in the pilot stage, including electric garbage trucks, fire trucks, and tractors.

What Is an Electric Vehicle (EV)? 

  • An electric vehicle has a plug to charge its battery which is fueled by electricity

  • Fully electric vehicles are often called Battery Electric Vehicles (BEVs) or “pure electrics.” BEVs do not have an internal combustion engine (ICE). All energy powering the electric motor comes from the battery. 

  • Plug-in hybrids (PHEVs) have both an internal combustion engine and an electric motor with a small battery. PHEVs can be plugged into an electrical outlet and run purely on electricity for this electric-only range.

  • This toolkit does not consider hybrids as electric vehicles unless they are PHEVs.

Next-Generation EVs are Turning Heads

  • More options from more manufacturers — electric trucks and SUVs have arrived

  • Longer ranges and expanded rapid charging networks are taking EV drivers to more places

  • Competitive pricing is bringing many EVs at or near cost parity with ICE counterparts

  • These factors will bring EV adoption to a tipping point — and utilities should prepare

Ford F150 Lightning. Photo Credit: Ford Motors

Electric Vehicles Can Strengthen the Grid

EVs can provide load management benefits to the utility to manage potential load growth. They can serve as a large network of grid resources if the utility proactively creates a managed charging program to help prevent large potential costs of coincidental peak and distribution system constraints. A proactively managed charging program can mitigate potential risks from increased coincident peak demand. It is important to incentivize these positive charging practices while EV penetrations are small. There is a risk if the utility waits to create an effective managed charging program that behavioral shifts may be more difficult to make.

Managed charging (V1G) technologies can mitigate downside risks in the near term. It is important to begin designing and implementing a managed charging program in order to prevent peak constraints and ingrained customer behavior. Additionally, vehicle-to-grid (V2G/V2L) technologies offer utilities a paradigm-changing opportunity for wide-reaching storage options that have so far been elusive. Leveraging EVs as a large network of grid assets increases the value to the utility and can share further financial benefits with customers.

To learn more, see the Toolkit page “EV Charging Solutions”

Electric Vehicles Can Save Customers Money


Upgrading from fossil fuel vehicles can save customers money across vehicle classes.

Electricity prices are far more dependable than erratic gasoline prices, which can provide a clearer payback period for folks switching.

With so many electric cars and trucks coming out, switching from an internal combustion engine to an electric motor is becoming more common.

Less Expensive to Operate

  • Efficiency pays off: electric motors are considerably more efficient converting energy to motion than ICE equivalents. Depending on the vehicle type and electric versus fossil fuel costs in an area, EVs can cost less than half or as little as 1/10th the cost of operating an ICE equivalent vehicle

  • Reduced maintenance costs also help lower the total cost of ownership. While tires still need rotation and replacement, there are no oil changes and brake maintenance in regions outside heavy road salt use is also greatly reduced.

Reducing the Rural Energy Burden

  • Rural residents driving gas- or diesel-fueled vehicles often pay more to fuel their vehicles than urban or suburban residents due to longer distances traveled or larger vehicles.

Stable Fuel Costs

  • Customers can count on stable electricity prices as compared to the volatile fossil fuel market

Increasing Affordability

  • New pickups and crossover SUVs are on the market at or near cost parity with ICE equivalents

  • Continued EV sales across all vehicle classes and types will help drive new costs lower and more importantly will help develop a mature used market where most people purchase vehicles

What Can the Utility Do to Help Drive Affordability?

    • Develop a managed charging program that works with customers to help purchase and install appropriate hardware and reward them for off-peak charging

    • Help train a network of electricians to provide uniform, affordable service to customers needing electrical upgrades and EVSE installations from residential to fleet customers

    • Partner with local auto dealers to offer incentives and track vehicle purchases

    • Work with fleets to plan for electrification and design strategies to help pay for potential diesel to electric cost differentials by leveraging the large batteries in these vehicles as grid assets (V2G)

    • Offer a full spectrum of engineering and design services for fleets

    • Partner with public and private fleets early in their transition to electric vehicles can help save your fleet customers a lot of money and headaches

Learn More in “EV Charging Solutions” and Section 4’s TE Program Framework (coming soon)

EVs Can Improve People’s Lives

EVs Reduce Overall Emissions

Lower Emissions, Lower Costs

The transportation sector accounts for approximately one-third of U.S. greenhouse gas emissions. On-road vehicles account for over 80% of those transportation emissions. A household replacing an ICE with an EV will completely eliminate their tailpipe emissions.

By replacing an ICE pickup truck or SUV with the electric equivalent, a household can not only save a substantial amount of money on fuel, but also improve local air quality. And since private and public sector fleet vehicles are always on the road, electrifying these cars means taking the emissions out of the necessary operations of transit, refuse, police, and trucking.

Additionally, if vehicle charging is managed, EVs become grid assets that work to balance the electricity demand across a larger area, creating a more robust and flexible grid.

This is Beneficial Electrification

Additional Resources

Landing Page: End-Use Applications