According to a new report released by the Energy Systems Integration Group (ESIG), a nonprofit focused on grid transformation, on April 4, 2023, state transportation plans created to access funds from the National Electric Vehicle Infrastructure (NEVI) Formula program do not consider the locational needs of the U.S. power grid.[1] The NEVI program was created by the Infrastructure Investment and Jobs Act (IIJA) and provides $5 billion to states to develop a national electric vehicle (EV) charging network. The Federal Highway Administration (FHWA) approved plans submitted by all 50 states, the District of Columbia, and Puerto Rico in 2022.

As EV sales increase and charging stations are built, new demands will be placed on electric utilities. ESIG’s report, titled “Leveraging Locational and Temporal Flexibility in Transportation Electrification to Benefit Power Systems,” examined how locationally flexible demand from EVs could be used to address grid needs. It considered potential use cases and their challenges, identified key questions around designing incentives, and offered ideas for regulators and policymakers as they work to support EV infrastructure. The report finds that “Well-managed electrification across the distribution and transmission systems can reduce overall costs and emissions, improve equity outcomes, and help smooth variability in wind and solar generation.” Optimally connecting EV loads means charging site planning “should consider transmission and distribution constraints and locations where customers can take advantage of lower power prices.”

[1] https://www.esig.energy/leveraging-locational-and-temporal-flexibility-in-transportation-electrification-to-benefit-power-systems/