Auto analysts project that plug-in electric vehicle (PEV) sales, which include both battery electric vehicles (i.e., fully electric vehicles) and plug-in hybrid electric vehicles (i.e., short duration electric battery with internal combustion engine for longer trips), will rise from 6.6 million in 2021 to 20.6 million in 2025. Plug-in vehicles are predicted to make up 23% of new passenger vehicle sales globally in 2025, up from just under 10% in 2021. The U.S. Department of Energy reports that plug-in electric vehicle sales were 9.1% of all light-duty vehicle sales in 2023, up from 6.8% in 2022. (Source: Bloomberg)
Summary of NRECA EV Resources and Opportunities for Electric Cooperatives
What's Driving Market Growth?
Multiple automakers have outlined plans to electrify significant segments of their fleets over the next decade, with some revealing targets to electrify their entire lineups within five years.
Consumer Demand driving electric vehicle (EV) sales up by 31% globally in 2023, reaching 13.6 million units.
Advances in battery technology have seen the average EV range more than double in the last decade, from 86 miles in 2011 to over 200 miles in 2021 and are expected to improve the performance, safety, and lifespan of EVs. New battery types, such as solid-state batteries, are projected to boost the EV battery market.
The federal and state governments provide various policies and incentives to promote the adoption of EVs. These include subsidies, tax credits, regulations, and infrastructure development.
What's the Opportunity for Consumers and Co-ops?
Fueling vehicles with electricity presents a growth opportunity for co-ops that lowers cost for consumers.
Co-ops may want to consider policies and programs to facilitate EV adoption while preventing stress on the distribution grid.
The move from fossil fuels to electricity as the fuel source for vehicles will lower total emissions now and be even better in the future.
What is NRECA Doing?
NRECA is closely tracking the evolution of the EV industry, and is committed to informing members on various aspects of EVs such as program design, rate setting and system impact. Future work is focused on business models that co-ops could consider if they want to pursue an EV program.
In an effort to help co-ops take advantage of the unprecedented funding opportunity afforded by the bipartisan infrastructure (BIL) NRECA has established several consortia focused on specific topic areas. The Cooperative Approach to Vehicle Electrification (CAVE) consortium is a network of electric cooperatives that have implemented or are planning to implement a variety of electric transportation programs.
SUMMARY OF NRECA EV RESOURCES AND OPPORTUNITIES FOR ELECTRIC COOPERATIVES
NRECA Contact
Jennah Denney
