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A new study from E3 shows big potential cost savings for utilities with smart chargers.

Ditching the combustion engine for an electric vehicle is a good first step for cutting transportation emissions. But it’s becoming increasingly clear that owning an electric car on its own is not enough. When and how you charge the car makes an enormous difference, not only for reducing CO2 emissions, but also for helping the power grid withstand the coming electrification wave.
We know that not all charging is created equal. Location, for example, is an obvious difference-maker. In places with ample renewable energy such as hydro-dominated Washington or solar California, electric vehicles produce vastly less climate pollution over their lifetimes than gasoline cars. In places with fossil-fuel-heavy grid, the climate benefit is still there, but much smaller.
The matter of when to charge is, similarly, about aligning EV charging with the supply of renewable energy. As Heatmap has noted before, it makes sense for solar-heavy states to encourage EV owners to charge at midday when clean energy generation peaks — that would help to level out California’s duck curve rather than make it worse. That’s easier said than done, though, since not everyone’s workplace has electric vehicle chargers. Besides, the simplest form of the EV lifestyle is to plug in upon returning home from work and errands in the evening, the very moment when electricity use spikes and solar energy is dropping off for the day.
Charging’s place and time are both important for maximizing the climate good EVs can do. They are also matters of growing importance for electric utilities that must learn how to balance the coming acceleration in electricity demand without seeing their costs spiral out of control. According to new research by the group Energy and Environmental Economics, smarter ways to optimize the when and the how of EV charging could save them an enormous amount in upgrade costs.
E3’s researchers ran case studies, including one that modeled the EV-heavy territory of Southern California Edison, to find out how different approaches to widespread EV charging affected how much extra costs the utilities incurred. The researchers considered three approaches to charging. In the first, “unmanaged,” drivers plug in as soon as they get home and the vehicle charges until full. In the second, a “passive managed" scenario, the EV doesn’t necessarily charge to full immediately, but instead waits until off-peak hours when the price of electricity drops. The third, “optimized,” used Rhythmos.io’s software to imagine a system wherein a car can detect the exact moments to charge to place the least strain on the grid.
The differences were stark. E3 used California’s official Avoided Cost Calendar to measure the added costs to SCE under each scenario. Whereas unmanaged charging cost the utility $984 per EV added to the system, optimized charging dropped that figure to just $407, a 60% reduction. (The middle-ground scenario came in at $686.)
Much of these savings are attributable to avoiding the wear and tear and possible overloads that electrical transformers would suffer in a world where everyone tries to charge their EVs all at once. (The transformers that form that backbone of the power grid are rated to specific currents and voltages they cannot safely exceed, which is one of the limiting factors on how much the system can handle.) It’s a particularly pressing matter in this age of transformer shortages, when it can take years to get a replacement for a broken or outdated one.
Although the financial and resilience benefits of optimized EV charging are clear in E3’s findings, they’re far from simple to achieve in the complex moment-to-moment reality of the grid. E3 study coauthor Eric Cutter told me it starts with communication — utilities could give EV drivers a forecast a day in advance, for example, telling them when clean energy will be in good supply and prices will be low.
“They could say, ‘Tomorrow is a sunny day, so please charge during the day,’ or, ‘Tomorrow is a cloudy day, and it happens to be very hot and humid, so the air conditioners are going to be ringing, so please don't charge in the evening and charge late at night,’” he says. “And they could make that determination each day as to what's going to be the most beneficial for the system.”
But much of this work will be automatic and algorithmic. For optimized charging to work, all drivers have to do is leave their EV plugged in and be okay with whenever the system decides to send them electricity. The software will decide which cars get which levels of charge, and when, to minimize strain on grid infrastructure.
That raises another question about trust. People who don’t like the local power company — and there’s a lot of them — might not want to allow that entity to decide when their EV gets to charge. They also might not trust that they’ll have enough battery range when they need it. To combat the first issue, Cutter said, perhaps drivers will sign up for a charging management system run through their car’s manufacturer, since drivers often have a better opinion of Honda or Ford than they do of their utility. And to fight the range anxiety problem, he says, some pilot programs have given customers a button to opt out of optimized charging.
“What the programs have found out is that customers want the button, but they never use it. It's very, very rare,” he says.
The number of EVs in America, especially in markets outside California, has yet to reach a point where a smarter way to charge has become a necessity. Although their sales share is rising, EVs accounted for just 8.1% of cars sold in 2024; only California has seen the energy demand from electric vehicles exceed 1 million megawatt-hours, though the numbers are rising fast. Even with EVs and electrification facing stiff political headwinds, utilities across the nation are already at work on plans to handle the influx of EV demand.
“Ten years ago when we were talking to utilities, a lot of them would say, ‘We're not worried about EVs. Come back to me when that's 5% of adoption or 10% of load.’ But not anymore. I don't think utilities anymore are waiting until that level of adoption to start thinking about how they need to plan for them.”
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Representative Mike Levin, It’s Electric, Rivian, and more showed up for the mobility session at Heatmap House.
On the surface, the climate case for electric vehicles is simple: Battery-powered cars can eliminate our need to burn dirty gasoline and diesel, and as more renewables come onto the grid will only run more and more cleanly. But the benefits that can be gained from electrifying the vehicle fleet run far deeper, a case that a variety of speakers made at Heatmap House on Wednesday as part of New York Climate Week.
Andrew Peterman, director of advanced energy solutions at the EV maker Rivian, explained how electric vehicles are becoming a multi-tiered grid solution. Rivian itself is cooperating with drivers and utilities to create automatic smart charging so that EVs can charge when energy is abundant and inexpensive, saving the user money — in some cases as much as $1,000 per year — and easing strain on the grid. Doing so helps to keep electricity prices down, which is good for the country and for the bottom line of an electric vehicle maker.
“Our ability to sell and give people value out of an electric vehicle can only be enabled if we transform the grid to be able to be affordable, reliable, and cleaner for everyone,” Peterman told Heatmap deputy editor Jillian Goodman. “We need to use our role in the energy system to enable customers to get more value out of the grid. So everything we do is about grid transformation to enable electric vehicles to have an even stronger and stronger value proposition. When we bring down electricity costs, that brings down the total cost of ownership for our vehicle owners.”
Of course, energy can go in the other direction, too. Now that millions of EVs are on the road, the multitude of kilowatt-hours stored in EV batteries can be a grid asset. That goes for vehicle-to-grid integration, where EVs can discharge energy to help balance the grid when they’re not driving. But it’s an especially compelling proposition when those batteries get older and are no longer optimal for powering vehicles. Rivian is working with partners such as Redwood Materials to recycle old EV batteries and to repurpose some as grid storage. The same is true at Waymo, whose fleet of autonomous, only-electric rideshare vehicles have racked up hundreds of thousands of miles in some cases.
“Our fleets are sometimes outlasting our batteries where they still work, but they’re just not optimal for the ride-hailing fleet,” Waymo head of environment and sustainability Adam Lenz told Nico Lauricella, Heatmap’s CEO and editor in chief. “So we’re taking those batteries out, refreshing them, and then there’s still a lot of life left on this battery. We’re working with a partner that’s based out of L.A. County where we provide service and they’re deploying those batteries to support front of the meter grid storage.” (Waymo is also a sponsor of Heatmap House.)
It’s clear that the rideshare economy will be dominated by electric vehicles, and Lenz argued that this fact helps extend the climate benefits of electrification and autonomy to people who don’t want to drive or have been priced out by the upfront costs of an EV. The promise that self-driving cars will ultimately be much safer compared to those driven by fallible humans makes it safer to walk or bike, the most sustainable transportation methods. Waymo recently introduced a partnership with Visa to give San Francisco Bay Area riders a $2.85 Waymo account credit (the price of a bus ride in S.F.) when they combine a rideshare trip with a train or bus linkup to create a mulit-modal journey — a roundabout way to create “free” buses.
Across the country, EV charging could help give New York City not only cleaner skies but also improved grid management. The city’s Green Ride Initiative is meant to have New York’s taxi and rideshare trips be majority-electric by 2030, yet NYC has been a charging desert compared to other dense cities like London. Tiya Gordon, co-founder and COO of charging company it’s electric, came to Heatmap House to discuss her company’s recent win of a contract to install 700 new street chargers in New York, which has only 88 today.
It’s not just how many chargers are going in, she said, but where — the majority will go into neighborhoods in Brooklyn and Queens where rideshare drivers live and park their cars overnight. Albert Gore, executive director of the Zero Emission Transportation Association, added: “It makes a lot of sense also when you think about the impact to the grid. If you are directing a lot of that charging at night, particularly for these high mileage use cases, that actually puts downward pressure on electricity rates. EVs are a very, very flexible load.”
“We will not cease exports of U.S. diesel,” the Secretary of Energy told us at Heatmap House.
Secretary of Energy Chris Wright threw cold water on a potential diesel export ban, telling Heatmap executive editor Robinson Meyer that the president “didn’t endorse it.”
“We are open to any ideas to lower energy prices for Americans,” Wright said at our Heatmap House event at New York Climate Week. “We have a continual, thoughtful dialog based on the facts on the ground of what are the most practical steps moving forward, and it looks like right now we do need to grow the diesel supply in the United States.”
There could be some adjustments to the diesel industry, Wright told Rob, saying there may “be some tweak in where diesel flows out of U.S. refineries.” About a full-scale ban, however, he was unequivocal. “We will not cease exports of U.S. diesel.”
That stands in contrast to President Trump’s remarks Tuesday, when he told reporters, “I’ve said, ‘Let’s not send out the diesel.’ I’ve called for it. I’ve called for it within my people.” Politico reported Wednesday afternoon that the administration is “preparing” a 90-day export ban.
When asked if a diesel export ban would hurt America’s reputation as an energy superpower, Wright told Heatmap, “It certainly would have impacts.” But, he added, “I don’t think there’s serious consideration, although there’s always been a dialogue. I don’t think you will see a blanket ban on diesel. And yes, of course, we want to be the energy superpower supplying the whole world.”
Some Republicans in Congress have called for a diesel export ban, including Iowa Senator Chuck Grassley, who represents agriculture-heavy Iowa. High diesel prices impose a particularly large cost on two groups: farmers and New Englanders. Farmers need diesel to fuel equipment to harvest crops and trucks to move their goods, while millions of New Englanders rely on heating oil — which is virtually interchangeable with diesel — to heat their homes in the winter. Bills for heating oil may exceed $2,000 this winter, according to Mark Wolfe, the executive director of the National Energy Assistance Directors Association
Diesel prices today are sitting at just over $6.50 per gallon, according to AAA, up from $3.69 a year ago and $5.60 just a month ago.
The former vice president joined us at Heatmap House at New York Climate Week to talk about electric vehicles, artificial intelligence, and why clean energy will ultimately win.
In front of a packed room at Heatmap House on Wednesday morning, former Vice President Al Gore made the case for optimism on climate change.
“There is a possibility we will look back on this year of 2026 as the positive tipping point on climate,” he said.
He started with some high water marks in renewable energy and electric vehicles. Last year was the first year that the production of energy from renewable sources exceeded the overall increase in global energy demand, for example. Whereas 20 years ago, when Gore’s landmark climate change film An Inconvenient Truth premiered, there were virtually no electric vehicles on the road, by the end of this year about 30% of all new cars sold globally will be EVs.
On top of that, he later added, “the war in Iran marks the second time in four years that the fossil fuel supply chain has been disrupted, and price volatility has returned, and people around the world have reacted to this and in a really dramatic way.” Just in the past six months, EV sales reached record levels in 50 countries; Korea’s president committed to speed its transition off fossil fuels; Thailand announced a shift from liquified natural gas to renewables; and solar is booming in Africa.
“These are signs that this thing is really moving into high gear,” he said. “The fossil fuel industry is losing, they know they’re losing, and they’re trying to slow down how quickly they lose.”
Gore was also surprisingly hopeful about artificial intelligence, arguing that data centers were a cause for concern but “not a justification for panic.” He’s not convinced that the carbon emissions from powering artificial intelligence will have a decisive impact on our climate trajectory, and is far more worried about “cognitive atrophy and the emergence of an intelligence that makes us no longer the apex intelligence on the planet.”
The conversation with Gore followed an interview with one of his climate champion descendents, so to speak. Mikie Sherrill, the governor of New Jersey, showed off her energy bona fides in a conversation about her approach to affordability and data centers. She talked up her administration’s swift approvals of solar and battery projects to ensure they made the deadline for federal tax credits, lifting the state’s moratorium on nuclear, and implementation of virtual power plants.
“There is a crisis going on, so you cannot simply say to people, ‘Sorry, your bills are just going to keep skyrocketing,’” she said. “That is not the answer, which is why we’ve acted so aggressively.”
Sherrill also criticized data center developers for the way they have frequently come into the state without engaging with communities. “I told a data center, I said, ‘You guys have been horrible at it. I’m just telling you, nobody knows what a data center is, and you need to explain why it's even important. Are you curing cancer? What are you doing? Why is this a societal benefit?’”
She encouraged future Democratic candidates for public office to make sure they have a deep understanding of the specific energy circumstances of their state, and to speak to that on the campaign trail. “The can has been kicked down the road on too many different issues, and if you were going to try to duck your head and say some mealy-mouthed thing like, ‘We’re going to do all of the above’ and ‘Everyone's welcome and we like business,’ that’s not going to cut it.”