Investor Presentaiton
ELECTRIFICATION AND ELECTRIC VEHICLES
Movement Towards A Reduced-Carbon Economy Will Require Significant Power Grid Investment
Over the coming decades, developed economies are
expected to increasingly utilize electricity to meet
carbon reduction/neutrality goals
Vehicle electrification offers a large carbon-reduction
opportunity, in addition to residential and commercial
space and water heating and industrial and
agricultural electrification
Depending on electrification adoption rates, increased
demand for electricity could require new power
generation of:
Electrification Adoption (%)
100%
Electrification Adoption Rates (1)
■Industrial/Agriculture
■Residential/Commercial
80%
■Transportation
60%
40%
20%
0%
2030
2050
2030
2050
Base Electrification Case
High Electrification Case
Annual Incremental Transmission Investment due to
Electrification (2)
QUANTA
•
70 GW to 200 GW by 2030
•
An additional 200 GW to 800 GW from 2030 to 2050
•
Assumes 75% to 90% of new generation will come from
renewables
Could increase load growth by ~1% annually through 2050(2)
Estimated that U.S. will require $30B-$90B of
incremental transmission investment by 2030 and
an additional $200 B-$600B from 2030 to 2050 (2)
(1) Source: Wires Group "The Coming Electrification of the North American Economy", Mar. 2019
(2) Source: Wires Group "Informing the Transmission Discussion", Jan. 2020
Annual Transmission Investment
($ billion/year)
$50
Historic Inv.
Incremental Investment
$25B/year
$40
$30
$7B/year $7B/year
Transmission for
Peak Load
Growth
Transmission for
Renewable Capacity
$20
$3B/year
$10
$0
10-Year
Average
2018 to
2030
2031 to
2050
2018 to
2030
2031 to
2050
Base Electrification Case
High Electrification Case
Notes: The historical average reflects transmission investments from 2006 to 2016 based on transmission
capital expenditures reported on FERC Form 1.
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