Will the electric grid support all our newly-electrified homes and cars?

People often ask us if our grid in California can support all this electrification. The answer is yes!

Updated August 2024

California is allocating billions of dollars to develop and improve its energy infrastructure, focusing on clean energy sources. This investment is bringing the state closer to its goal of transitioning entirely to zero-carbon electricity sales by 2045.

But what about all the power outages? you may ask. While power outages in California have been increasing over the past several years, the main causes aren't related to the electrification of our homes and cars. Instead, the outages are due to Enhanced Powerline Safety Settings (EPSS) implemented by utilities like PG&E to prevent wildfires, extreme weather events, and outdate power infrastructure.

Charging EVs – No Problem.

Let's start by debunking the widespread myth that the power grid can't handle EV charging.

More than 1 million electric vehicles are registered in California, and charging them uses less than 1% of the state’s grid, even while charging during the day. In fact, as the following video explains, EVs can even help our electric grid.

This article provides a great breakdown that explains how electrification will help our grid and actually lower utility costs for Californians.

California’s grid is primed to support the transition of buildings from using gas to employing clean electricity. In fact, these new electric loads can put downward pressure on utility bills for all Californians.

How Electrifying Actually Helps Our Grid

Electrifying helps our grid become more reliable and affordable in three ways:

Smoothing out demand throughout the year
Shifting day-to-day demand away from peak hours
Lowering electricity costs by fully using existing infrastructure

We cover each of these points in more depth below.

Smoothing out demand throughout the year

Our grid is built to provide enough capacity for our peak demand, which is driven by running AC on hot summer days.

The major gas devices we're replacing with electric appliances are furnaces and hot water heaters. These devices mainly use electricity in winter, when grid demand is significantly lower than summertime.

The result of electrifying these appliances is that wintertime electrical demand will shift upwards, (the dotted blue line) but it'll still be well below peak summer demand; meaning it's still well under the grid's capacity.

Shifting day-to-day demand away from peak hours

One of the most exciting aspects of smart electric appliances like heat pump water heaters is that they can automatically turn on when electricity is plentiful and cheap, and turn off when it's expensive at peak demand.

Heat pump water heaters can store hot water for 12 hours or more, meaning they can run at midday, provide plenty of hot water for a family's needs in the evening during peak demand, and then run again in the middle of the night.

The same principle applies to charging EVs, and even somewhat to heat pump furnaces.

This type of load shifting is called demand response, and it's a key part of our strategy for creating a clean, reliable grid.

Lowering electricity costs by fully using existing infrastructure

Our electricity rates are set based on the costs of generating and delivering electricity to meet the current demand. By increasing demand without needing new infrastructure to generate more electricity, our rates will get lower over time.

Our electric costs in California have gotten more expensive mainly due to climate change fueled wildfires, not due to home electrification.

According to this study published by NRDC, by spreading utilities’ grid infrastructure costs over broader demand for electricity through building and transportation electrification, the average customer's bill in 2030 will be 16% lower than the "business-as-usual" scenario.

For more on these topics, see this this terrific post from electrification expert Dave Intner at Southern California Edison.