Glendale Water & Power (GWP), a leading member of the Southern California Public Power Authority, wanted to explore how investing in an infrastructure to support electric vehicles (EVs) could help it achieve revenue growth. GWP asked PA to consider how the demand for electric vehicles will develop in the short and long term, and to assess the impact on GWP’s revenue and load forecasts.
We reviewed the strategies and programmes implemented by several leading US utilities and charging-station providers, and the cost and operating details of the charging infrastructure. We also developed a quantitative model to forecast EV demand in GWP’s service territory, the impact of EVs on GWP’s distribution network and the associated financial benefits, risks and uncertainties.
Our analysis showed that GWP can expect approximately 6,000 EVs in its service territory by 2020. Ten years after the EV infrastructure is implemented, this will equate to 16 GWh of additional energy demand due to EV charging and annual revenues of more than $1.5 million. Our work showed that EVs can be expected to produce $7 million in Net Present Value for GWP over the 10-year period and, as a result, GWP is moving forward with its EV plans.