US electricity demand from EVs rises to new highs in early 2024: Maguire

United States electricity consumption from electric vehicles (EVs) over the first two months of 2024 jumped by over 50 per cent from the same months in 2023 as EVs continue to penetrate the U.S. car market and impact electricity flows.

 

Total electricity use by EVs through February 2024 was 1.58 million megawatt hours (MWh), compared with 1.04 million MWh during the same period in 2023, according to the U.S. Energy Information Administration (EIA).

 

That 52 per cent rise in EV electricity use from early 2023 exceeded the 40 per cent growth rate posted in 2023 from January-February 2022, and indicates that the impact from rapidly expanding EV sales continues to increase in electricity markets.

 

EVs accounted for 16 per cent of all light-duty vehicle sales in the U.S. in 2023, when collective electricity use by EVs overtook electricity demand by U.S. railways for the first time, according to the EIA’s latest Electric Power Monthly report.

 

Annual Trends

 

Total electricity consumption by EVs in 2023 was 7.6 million MWh, up 45 per cent from 2022’s total.

 

The growth lagged the record 49.2 per cent growth in EV electricity demand posted in 2022, but was the second largest annual growth rate on record and brings the five-year average annual growth rate for EV electricity demand to 37.2 per cent.

 

The top state for EV electricity consumption was California, the most populous U.S. state, where EV’s consumed 2.58 million MWh of electricity and accounted for just under 34 per cent of total national EV electricity demand.

 

That share was down from 35.2 per cent in 2022, indicating that EV electricity demand grew faster in other states last year.

 

Florida (458,767 MWh), Texas (417,027 MWh), New York (337,367 MWh) and Washington (308,724 MWh) round out the top five states for EV electricity demand in 2023.

 

In terms of vehicle type, battery electric vehicles accounted for nearly 72 per cent of total EV electricity use, while plug-in hybrids accounted for 28.3 per cent.

 

State Standouts

 

Beyond the top five electricity-consuming states for EVs, 13 other states consumed 100,000 MWh or more electricity for EV charging in 2023.

 

These states cover a wide geographic span from Maryland to Illinois and from North Carolina to New Jersey, and indicate rapid uptake of EVs in car fleets throughout the country.

 

The state with the largest year-on-year growth in electricity demand for EV charging was Oklahoma, which posted a 74 per cent expansion in EV electricity use last year, to 73,058 MWh.

 

A rapid expansion in the installation of public chargers, plus local government incentives for home-based charging equipment, helped accelerate EV uptake in Oklahoma.

 

The states with the lowest electricity demand for EVs last year were North Dakota, Wyoming and South Dakota, which have the lowest per capita ownership rates of EVs in the country, according to the U.S. Department of Energy.

 

Limited public charging infrastructure and concerns about the impact of harsh winter weather on battery life are some of the factors keeping EV growth in check in those states.

 

However, more charging stations are planned throughout the U.S. in 2024 and beyond, while EVs with battery ranges of 300 miles or more are becoming common in manufacturer offerings.

 

In addition, EV prices are under pressure due to high dealer inventories, so the U.S. car fleet looks set to become increasingly electrified going forward.

 

First Published: May 22 2024 | 12:42 PM IST