[well color="alternate-2"]
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. Energy Information Administration reports that plug-in
electric vehicle sales were 10.1% of all light-duty vehicle sales in 2024, up
from 9.4% in 2023. (Sources: U.S. Energy Information Administration and
Bloomberg)
[/well]
Summary of NRECA EV Resources and Opportunities for Electric Cooperatives
What's Driving Market Growth?
[section]
[section-item]
[row]
[column 6]
- Multiple automakers have outlined ambitious plans to electrify significant segments of their fleets over the next decade, with some aiming to electrify their entire lineups within five years. While some adjustments were made in 2024 due to market dynamics, the future looks promising. Automakers like Honda and General Motors are gearing up to significantly ramp up their EV production by 2027, leveraging advanced battery technologies to meet growing consumer demand.
- Consumer demand drove electric vehicle (EV) sales up by 25% globally in 2024, reaching 17.1 million units.
- Advances in battery technology have seen the average EV range more than triple in the last decade, from 86 miles in 2011 to 283 miles in 2024. These advancements are expected to further improve the performance, safety, and lifespan of EVs. New battery types, such as solid-state batteries, are projected to significantly boost the EV battery market by offering higher energy density and faster charging times.
[/column]
[column 6 center]
[image-caption title="Source%3A%20Energy.gov" description="%20" image="%2Ftopics%2Fdistributed-energy-resources%2FPublishingImages%2Fplug-sales.png" /]
[/column]
[/row]
[/section-item]
[/section]
[accordions]
[accordion title="More%20Detail"]
The wise use of electricity, Beneficial Electrification, has sparked widespread re-thinking of policies that encourage or mandate less electricity use and promote infrastructure planning. Advancements in electric technologies continue to create new opportunities to use electricity as a substitute for on-site fossil fuels like natural gas, propane, gasoline, and fuel oil, with increased efficiency and control.
Auto manufacturers are taking note, and as of January
2025, there are currently over 50 battery-electric vehicle models available in
the US, with 60 new or updated EVs slated to release in 2025. EV alternatives
for every driving need are also commercially available, such as electric
transit and school buses, all-electric 18-wheelers, ferries, and agricultural
equipment.
Although the EV market is currently small, adoption is increasing. If current trends continue, co-ops could see significant penetration of electric vehicles over the next 15 years, particularly in suburban areas and bedroom communities for large cities.
Auto manufacturers' commitments to all-electric lineups and shifts in policy and consumer demand are drivers of this rapid growth. Advancements in technology are allowing manufacturers to build cheaper and longer-range EVs, decreasing the major barriers to EV adoption of initial cost and range anxiety.
[/accordion]
[/accordions]
What's the Opportunity for Consumers and Co-ops?
[section]
[section-item]
[row]
[column 6]
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.
[/column]
[column 6 center]
[image-caption title="Source%3A%20CNBC" description="%20" image="%2Ftopics%2Fdistributed-energy-resources%2FPublishingImages%2Felectricity-v-gas.png" /]
[/column]
[/row]
[/section-item]
[/section]
[accordions]
[accordion title="More%20Detail"]
If more vehicles are fueled with electricity in the coming years, a significant share of the $224 billion that Americans spend annually on gasoline would be redirected to the electric utility sector. This presents a growth opportunity for cooperatives that could lead to lower costs for consumer-members.
For co-ops, managing the timing of plug-in electric vehicle charging is essential if co-ops want to reap the potentially significant financial benefits from the plug-in electric vehicle (PEV) load. Co-ops can expect a 13 to 40 percent increase in electricity consumption among households that own an EV.
Encouraging off peak charging for households with level 2 (higher capacity, faster) chargers is important in order to minimize the negative impact to distribution systems. Increased adoption of EVs charging in co-op territories presents several opportunities for co-ops, including the ability to be their members’ trusted energy advisor by educating and engaging on the benefits of EVs, including how and when to charge them. Tracking the location of PEV adoption is also important to prevent stressing the distribution grid.
There is also an opportunity for co-ops and utilities to lead with rate design and charging programs. For cooperatives in areas with growing EV adoption, they may consider coordinating the charger installation process and providing incentives and price signals for when the vehicles charge, so that the demand management strategies of the co-op are supported rather than negatively impacted. For co-ops in largely rural areas, many may choose to take no action at this time, although it is recommended that even these co-ops have an idea of how they will respond to an EV connecting to their lines.
However, if co-ops can manage these key variables, PEV adoption is likely to result in increased profit, value to consumers, and beneficial electrification.
[/accordion]
[/accordions]
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
[button title="Search%20Electric%20Vehicle%20Resources" link="%2Ftopics%2Fdistributed-energy-resources%2FPages%2Fdefault.aspx%3FRollupPage%3DElectric%2520Vehicles%23content-area" /]
NRECA Contact
Jennah Denney
Related Topics
[button title="Battery%20Energy%20Storage" link="%2Ftopics%2Fdistributed-energy-resources%2FPages%2FBattery-Energy-Storage-Overview.aspx" /]
[section]
[section-item]
[row]
[column 12][/column]
[/row]
[/section-item]
[/section]