The EV charging network in Washington state, USA, has been given a major boost thanks to new legislation that incentivizes utility companies to install charging stations. Following the passing of the law, the state’s utility companies can now rate-base investments in charging stations and infrastructure. This means they can pass costs on to ratepayers, and are therefore guaranteed the same rate of return as for more conventional investments, such as transmission and distribution networks.
Today, the lack of charging stations and the cost of building charging infrastructures are considered the main barriers to EV growth. The new law aims to address this issue by increasing the role of utility companies, which have both the expertise and the financial means to install chargers in office buildings, individual homes or apartments. Unlike private sector companies, utilities are more likely to focus on a wider range of customers rather than concentrating exclusively on high profit markets.
The ultimate objective of the new law is to increase EV adoption in Washington. As much of the state’s electricity is generated by hydropower, electric-powered transport represents a particularly efficient way to reduce carbon emissions.
Source: Renault/Nissan Alliance
Picture credit: via www.utilitydive.com