Headwinds: Challenge 1

United States Energy Production and Infrastructure

Within the United States, energy production and/or distribution is managed by one of three entity types: investor-owned utilities (IOU), publicly-owned utilities (Munies), or cooperatives (Co-ops). In total there are 2,938 individual entities producing and/or distributing energy to end-use customers on an industrial, commercial, or residential scale. (Table 1)

Additionally, according to the Energy Information Administration (EIA), there are over 80 electric grid balancing authorities to ensure that energy supply always meets the public’s demand for energy. The map below outlines the United States’ interconnected electrical grid. (Image 1)

It is evident that the United States’ generation, transmission, and distribution networks are highly complex, and while somewhat interconnected, they are still highly fragmented making it difficult for the nationwide scaling up of the infrastructure, which would be a heavy lift once battery-electric commercial vehicles are introduced.

Production

Energy consumption steadily rose from 1950 to 2005. To meet these demands, utilities built production facilities of many different sources at a quick pace for 40 years. During that rapid increase in capacity, the predominant fuel sources were coal, nuclear, and hydroelectric. Consequently, many of these coal facilities are aging and facing likely decommissioning as producers look for more environmentally friendly fuel sources such as wind generation. (Table 2)

Transmission and Distribution

The distribution network being built around the same time is also aging. It is estimated that over 2/3 of the nation’s transmission lines and power stations are substantially older than 25 years old. Additionally, over half of the nation’s distribution lines are well past their 50 year expectancy. (American Transportation Research Institute)

Renewables

Renewables are vital as the United States moves toward the goal of being a green energy production nation. However, the most predominate alternative sources (wind and solar) are beholden to favorable weather conditions.

Scaling-Up for Zero-Emission Commercial Vehicles

It is widely understood that the United States aging electrical grid cannot meet the generation, transmission, and distribution supply that a nationwide deployment of ZEV commercial vehicles would demand. Every state would require additional capacity to meet the demand. It is estimated to cost $370 billion to build new and update existing infrastructure. Below you will see the state breakdown of how much of the current capacity would be consumed by ZEV commercial vehicles. (Clean Energy Coalition) (Image 2)

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