Three Challenges Facing Building Owners Amid Growing EV Demand

The EV industry has seen explosive growth in recent years with the number of electric cars on the road growing to 26 million in 2022^[i]. This is up 60% from the previous year and more than five times as many compared to 2018. By 2030, it's estimated that EVs will encompass over half of new vehicle purchases globally^[ii].

The rapid adoption of EVs can be attributed to several factors, including greater emphasis on electrification as a mantra of clean energy; a growing number of countries offering incentives to citizens that go electric;^[iii] and the increasing affordability of EVs to a more socially conscious global population.

As demand continues, so will the need for EV charging technologies in the places where we work, dine and shop, creating pressure on building owners and operators to invest in charging infrastructure.

Adopting charging solutions in buildings will not only help support the growing EV demand but can also offer other advantages like a greater appeal to employees for businesses that provide this amenity and potentially increased traffic to commercial and retail spaces with this type of technology.

Building owners need to get ready for this transition. Here are a few things to consider:

1. Have an energy resilience plan in place. More electric cars on the road means more power will be required to keep these vehicles moving. We are poised to see an increase in power demand in the coming years as the electrification movement continues. According to Princeton data, electric demand for light-duty electric vehicles is set to increase by nearly 3,400% by 2035^[iv]. Buildings adopting EV technology should consider using renewable energy or even energy storage systems to help offset or support additional energy consumption to help increase their energy resilience.

2. Think about how to scale their electrical infrastructure as EV consumption. Building owners and operators need to invest in technologies that can help scale their energy consumption, manage utility costs and understand how EV adoption will impact their operations. When selecting and investing in EV infrastructure technologies, building owners and operators must balance using short term solutions versus managing long term needs. They should consider investments that can be scaled in the future to avoid having to change out technologies when their circumstances do.

3. Understand the impact of an EV load on their building. Grid resiliency to support the growing demand of EV charging at buildings is a potential challenge. Grids cannot transform overnight. Building owners need to look for solutions that enable them to support grid resilience, manage the EV load on their building and overall energy demand, and reduce their need for on-site power. Collaboration is also needed between building owners, utility companies and grid owners to plan for energy demand forecasts and potential infrastructure upgrades.

Power is the lifeline to the EV movement, to electrification, to our buildings and their ability to operate. Grid and building owners must work together to address these challenges to help productively support the growth of EVs so they aren’t just considered a trend but the status quo as we work to lessen our carbon footprint. To learn more about our powerful solutions that help support EV infrastructure, connect with one of our experts today.

^[i] IEA, Global EV Outlook 2023: Catching up with climate ambitions, [Accessed Sept. 21, 2023] April 2023

^[ii] IEA, Global EV Outlook 2023: Catching up with climate ambitions, [Accessed Sept. 21, 2023] April 2023

^[iii] World Economic Forum, These Countries Offer The Best Electric Car Incentives to Boost Sales, Sean Fleming [Accessed Nov. 2, 2023] June 2021

^[iv] Vigour Times, The Potential Strain on Power Grid Caused by the EV Boom, Cameron Barns, [Accessed Sept. 21, 2023] July 2023