Abstract
As of 2024, more than 1.8 million electric vehicles (EVs) were on the road in California. The state had aimed to reach five million EVs by 2030 and require 100% of new vehicle sales to be electric by 2035 through its Zero-Emission Vehicle rule; however, federal action has put this plan on hold, and California is challenging this action in court. Regardless, rapid growth in EV adoption will put new demands on California’s electricity system, requiring significant investments in both the power distribution grid and EV charging infrastructure.
Meanwhile, utilities may already be grappling with the challenges of accommodating the growing power demands from new data center facilities that support artificial intelligence. Without adequate proactive investments in distribution grid upgrades and consumer programs to manage demand, the added load from widespread EV charging (with larger, more power-hungry batteries) could potentially overload local grids, compromise reliability, degrade the quality of transformers and distribution systems and increase costs to both utility providers and ultimately ratepayers.
California utilities and policymakers must ensure that the distribution grid is prepared for this new load, while maintaining reliable electricity service and keeping costs low for ratepayers. As the EV market evolves, the distribution grid must rapidly grow into a smarter, more flexible, and more agile system. With well-designed charging programs and new technologies, additional EV charging capacity holds the promise of creating downward pressure on electricity rates. Advances in technology can support this promise through greater vehicle-to-grid integration (VGI) (i.e., strategies for altering EV charging time, power level, or location of charging (or discharging) to benefit the grid), managed charging programs, and other tools to further merge EVs into California’s grid. VGI turns EVs into interactive grid resources, enabling not only new methods to manage consumer demand but also bi-directional charging (known as vehicle-to-grid (V2G)) that can enhance grid flexibility and reliability. Investing now to modernize the grid and adopting new demand management programs can pay dividends in the future, supporting California’s ambitious EV deployment goals while keeping electricity rates affordable.



