Plug-in Electric Vehicle Cost-Benefit Analysis: Nevada
MJB&A has evaluated the costs and benefits of increased penetration of plug-in electric vehicles (PEV) in the state of Nevada. The study estimated the benefits that would accrue to all electric utility customers in Nevada due to greater utilization of the electric grid during off-peak hours, and increased utility revenues from PEV charging. In addition, the study estimated the annual financial benefits to Nevada drivers from owning PEVs–from fuel and maintenance cost savings compared to owning gasoline vehicles, and the annual financial benefits to owners of public EV charging infrastructure. The study also estimated the societal benefits resulting from reduced gasoline consumption and their associated reduction in emissions.
Two different penetration levels between 2030 and 2050 are utilized to estimate costs and benefits. The “ZEV Goal” scenario is based on Nevada’s participation in a program similar to the 8-state ZEV Memorandum of Understanding. The “State GHG Goal” scenario includes more aggressive PEV penetration levels - reaching 95 percent by 2050 - that would be required to achieve deep reductions in vehicle air pollution emissions.
If Nevada PEV adoption follows the ZEV Goal trajectory, the net present value of cumulative net benefits from greater PEV use in Nevada will exceed $3.2 billion state-wide by 2050. If PEV adoption were to hit 95 percent by 2050 (State GHG Goal scenario), the net present value of cumulative net benefits from greater PEV use in Nevada could exceed $21 billion state-wide by 2050.
A large portion of the direct financial benefits to Nevada drivers derives from reduced gasoline use - from purchase of lower cost, locally produced electricity instead of gasoline imported to the state. Under the State GHG Goal scenario, PEVs will reduce cumulative gasoline use in the state by more than 4 billion gallons through 2050, helping to promote energy security and independence, and keeping more of vehicle owners’ money in the local economy, thus generating even greater economic impact.
This study was conducted by M.J. Bradley & Associates, an ERM Group Company, for the Natural Resources Defense Council, Southwest Energy Efficiency Project (SWEEP) and Western Resource Advocates; it is intended to provide input to state policy decisions about actions required to promote further adoption of electric vehicles.
SWEEP is a public-interest organization promoting greater energy efficiency and clean transportation in Nevada, Colorado, Nevada, Nevada, Utah, and Wyoming. SWEEP collaborates with utilities, state and local governments, environmental groups, national laboratories, businesses, and other energy experts.
Western Resource Advocates is a non-profit environmental law and policy organization dedicated to “restoring and protecting the natural environment of the Interior American West." Its mission is to “protect the West’s land, air and water to ensure that vibrant communities exist in balance with nature”.
The full report of the Nevada analysis is available here.