Current State of Transportation Electrification Michael S. Mazzola, Ph.D., P.E. Executive Director July 25, 2018 Energy Production and Infrastructure Center

Future State of Transportation Electrification? Affordable EV’s for all that need them Convenient charging options for all lifestyles

Why Does Transportation Electrification Matter? The United States uses 28% of its energy each year to move people and goods from one place to another. The largest share is consumed by cars, light trucks, and motorcycles. 92% of the energy used in this sector comes from gasoline and diesel fuels. The U.S. consumed 7.6 trillion kWh of transportation energy in 2012 (25% of world demand). Duke Energy delivered 90 billion kWh carbon-free nuclear energy in 2017. Where will the electrical energy and delivery infrastructure come from to electrify transportation? Source: National Academies of Science, Engineering, and Medicine

But is transportation electrifying? Global EV Outlook 2017 International Energy Agency “Declining year-on-year increments are consistent with a growing electric car market and stock size.” “The scale achieved is small: the global stock is just 0.2% of the total number of passenger light-duty vehicles.” “EVs have a long way to go before reaching deployment scales capable of making a significant dent in the global oil demand and greenhouse gas (GHG) emissions.”

The future is accelerating… Electrify America and Canada adding thousands of charging stations over next 10 years. Extreme Fast Charging (5-20 minutes to 80% SOC) could make “refueling” a reality. Automakers in America, Europe, and China rushing to supply many new BEV models by 2025.

Problem Statement for the Electric Utility Industry Regulatory! How to make the case to justify recovery of capital invested in EV infrastructure? Perception that EVs are “toys for rich people.” When and how will more than the top 1% use electric transportation? Business Case for the Electric Utility Industry Regulated utilities earn returns on deployed capital. Government should be educated that IOU’s are the patient capital! Replacement of petroleum as a transportation fuel requires the scale of large utilities. Opportunity to boost revenue and asset utilization. Major cities are the best, near-term options for all socio-economic backgrounds to benefit from transportation electrification. All electric mass transit All electric personal automobiles