Xcel Energy, a national leader in the clean energy transition, announced today (August 12) its vision to drive toward powering 1.5 million electric vehicles in its service areas by 2030. As a result of this vision, EVs would make up 20% of all vehicles on the road in those areas, more than 30 times the number today, helping save customers billions in fuel costs, while significantly cutting carbon emissions from transportation.
By making it easy for more people to use EVs through new charging infrastructure and customer programs, the company's vision will build the future of clean, affordable transportation in the eight states it serves. As drivers, ride-share companies, public transit and other fleet operators replace vehicles with EVs, they will see substantial savings on fuel, because driving electric is equal to spending about $1 per gallon of gas and can be significantly less when charging overnight. By 2030, an EV would cost $700 less per year to fuel than a gas-powered car, saving customers $1 billion annually. To make the company's vision a reality, it will need the support of policymakers, manufacturers and other stakeholders.
Building on the company's vision to provide 100% carbon-free electricity by 2050, powering 1.5 million EVs would reduce carbon emissions by nearly 5 million tons annually by 2030, or about three tons of carbon reduction per vehicle. Electric vehicles charged on the increasingly clean Xcel Energy system will have about 80% lower carbon emissions than gas-powered cars by 2030. More EVs would also improve air quality in our communities by reducing other emissions, like nitrogen oxide and fine particulate matter, that have the greatest impact on public health.
The transition to more electric cars, trucks and buses will also help keep bills low for all customers, including those who don't drive an EV. The additional electricity sales generated by EVs more than pay for the system investment required to support them. So as more vehicles transition to electric, everyone will benefit from cleaner air and lower bills.
"Electric vehicles are the next frontier in the clean energy transition, and we are committed to making charging EVs easy, convenient and affordable for customers," said Ben Fowke, chairman and CEO, Xcel Energy. "By accelerating EV adoption in the coming years, we can drive major reductions in carbon emissions while helping our customers save money and making the most of our clean energy investments. We have substantial plans in place in the states we serve, and we can expand on this with partnership and support from policymakers, regulators, customers, automakers and our communities."
"We are already busy creating new charging options for customers, whether they are residential customers or companies and government agencies with large vehicle fleets," said Brett Carter, executive vice president and chief customer and innovation officer, Xcel Energy. "Our new, ambitious EV vision builds on this work as we continue to lead the clean energy transition and enhance the customer experience while keeping bills low. We are actively seeking partnerships with automakers, tech and charging companies, other private and public sector entities, as well as our communities and customers, to find innovative ways to drive toward an electric vehicle future."
The company is developing its EV plans and partnerships with a focus on equity, accessibility and fairness, allowing everyone to benefit from the growth of EVs. In addition to helping customers who own EVs charge up at home and on the go, its programs aim to give all customers access to clean, affordable, electric transportation. That includes working with transit agencies and car sharing organizations to increase access to the benefits of electric transportation, especially for those in underserved communities.
Xcel Energy will help lead the way in its own operations, with plans to electrify all sedans by 2023, electrify all light-duty vehicles by 2030 and have 30% of its medium- and heavy-duty vehicles electrified by 2030.
In Colorado, Xcel Energy filed a comprehensive, multi-year transportation electrification plans with state regulators in May that gives all its customers more opportunity to access and benefit from EVs, whether they drive one or use transportation services that use them. The plan proposes launching 20 new programs such as home, multi-family, commercial fleet and community-based charging, rebate programs, advisory services, and an EV school bus program to expand electrification opportunities for all.
"Cars and trucks are one of the largest sources of pollution in our state, and with our electric utilities increasingly switching to renewable energy, it's even more beneficial to embrace electric cars, trucks, and buses. Switching to electric will help protect our air, cut carbon emissions, and save consumers money at the pump," said Colorado Governor Jared Polis. "I set a goal of nearly a million EVs on the road by 2030, and our partnership with the private sector will get it done. We welcome these ambitious commitments and look forward to working with them to achieve Colorado's electric future."
"Xcel Energy's commitment to transportation electrification will go a long way toward helping Denver reduce emissions from the transportation sector, while ensuring that all of our residents have access to the benefits of electric vehicles," Denver Mayor Michael B. Hancock said. "We look forward to a continued collaboration with Xcel Energy to support clean and affordable transportation options."
Plans and programs will drive toward 1.5 million EVs
Xcel Energy is already launching and developing partnerships, programs and services to reduce barriers to EV adoption while making EV charging easier and more affordable. The major plans the company has proposed in Colorado, Minnesota, New Mexico and Wisconsin aim to support residential charging, increase access to electric transportation for all customers, speed fleet electrification, and expand public charging options. Through its plans so far, Xcel Energy has proposed investing $300 million to accelerate adoption of EVs in its communities.
From working with states and communities in their efforts to transform mobility and increase access to electric transportation, to launching residential programs that save customers money on charging, the company is already making progress in its drive toward a cleaner transportation future.
Highlights of the initiatives underway include:
- A charging subscription pilot in Minnesota allows customers to charge up as much as they need on nights and weekends for one low, flat monthly price, and a home charging service program coming soon that makes it easier for customers to have charging equipment installed.
- A residential smart charging pilot launching later this year that will reward customers in Colorado for conveniently optimizing their charging times to benefit the grid and use more renewable energy.
- Pilots and programs to increase access to public charging in Colorado and Minnesota by providing infrastructure to help reduce the upfront costs
- New residential and business programs for customers in Wisconsin will significantly lower the cost of charging equipment and encourage charging during low-cost, off-peak hours.
- Education and advice for customers and the public about the benefits of electric vehicles, whether they visit Xcel Energy's website, visit a dealership or call the company's energy experts.
- Fleet infrastructure programs help public transit agencies and fleet operators plan for and implement charging solutions that drive their transition to electric vehicles.
- Active conversations with a wide variety of partners to help achieve this 2030 EV vision.
For additional information the company's EV vision and plans, visit the company's http://www.xcelenergy.com/ElectricVehicles.
About Xcel Energy
Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on Twitter and Facebook.
Forward-looking statement
This release contains forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements include statements and projections related to emission reductions, planned investments, regulatory initiatives and customer savings, and are identified in this document by the words "aim", "can", "goal", "plan", "propose", "will", "would", "vision" and similar expressions. Actual results may vary materially. Factors that could cause actual results to differ materially include, but are not limited to: uncertainty around the impacts and duration of the COVID-19 pandemic; successful long-term operational planning; commodity risks associated with energy markets and production; general economic conditions, including the availability of credit, actions of rating agencies and their impact on capital expenditures; business conditions in the energy industry; competitive factors; unusual weather; effects of geopolitical events, including war and acts of terrorism; changes in federal or state legislation; regulation; actions of regulatory bodies; and other risk factors listed from time to time by Xcel Energy in its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2019 (including the items described under Factors Affecting Results of Operations) and subsequent securities filings, and the other risk factors listed from time to time by Xcel Energy Inc. in reports filed with the SEC
