Problem

The electrification of medium- and heavy-duty vehicles (MHDVs) is a crucial step in achieving sustainability goals and reducing emissions. However, it poses significant challenges for the current grid infrastructure, which was not designed to handle the high-power charging demands of MHDVs, especially during peak periods or in areas with limited grid capacity. Addressing these challenges requires substantial upgrades to transmission and distribution networks, integration of renewable energy sources, and energy storage. Without these upgrades, the electrification transition risks grid instability, increased costs, and delays in meeting climate goals.

The Environmental Defense Fund (EDF), a leading nonprofit organization dedicated to tackling pressing environmental issues, recognized the need to address these challenges. EDF engaged Energeia as a part of a team to analyze grid planning and investment strategies for MHDV electrification. The study focused on determining the economic and technical feasibility of proactive grid investments, which anticipate future needs, compared to sequential investments that address load requirements as they arise. The analysis aimed to identify cost-effective strategies to meet rising EV demand while ensuring reliability and efficiency.

Services/Results

Energeia partnered with Black and Veatch to deliver this report. While there are several different potential proactive investment methods, Energeia’s analysis compared proactive investments in the form of substation voltage upgrades with sequential substation capacity upgrade methods, using case studies of Con Edison in New York and CenterPoint in Texas.

The findings revealed that proactive planning often delivers cost savings when load growth is significant and predictable. A mixed approach combining proactive and sequential strategies was deemed optimal for balancing cost and flexibility across varying circumstances. The study also highlighted the importance of managed charging, demonstrating that tools like time-of-use incentives and active controls can help mitigate peak demand, delay infrastructure upgrades, and lower costs.

Fleet electrification presents additional complexities, including the need to align EV adoption timelines and geospatial location with grid readiness planning so the grid can accommodate high energy demands for MHDV charging. Energeia emphasized the importance of early engagement between utilities and fleet operators to improve forecasting and streamline planning to enable efficient infrastructure development that mitigates the risk of stranded assets.

Outcome

The report, published by EDF on November 6, 2024 here, underscores the value of proactive planning in reducing costs and enhancing grid readiness for MHDVs. Energeia is proud to have supported EDF in advancing its mission to address climate change and promote clean energy. The study provides actionable insights for utilities and stakeholders, contributing to a sustainable, cost-effective future in transportation electrification.