Dealerships that want to go all-in on electrification are in a race—a race for load capacity, according to Sean Gouda, Executive Vice President, Future Energy.
“Utilities don’t have enough load capacity for every property [and business] to integrate EV charging at this time,” Gouda said in his Live Stage session on Friday. “It’s a race for dealerships to get in line with the utility company before load capacity is taken up in their area.”

The main issue is utility upgrades are long-term capital projects that can take up to five years to complete. Distribution circuits have only so much capacity available. Utilities must install new lines, and upgrade transformers and substations. Coupled with the increase demand for electrification and the approaching fleet of EVs, dealers are facing potential electrical gridlock.

“It’s really important to get out ahead of this,” Gouda cautioned. “Dealers need to coordinate with the utility to ensure the supply is there for your business.”

He urged dealers who are investing in electrification to “engage with your utilities sooner rather than later because that line is already very long.”

Gouda also recommended that dealers who are installing EV infrastructure, such as transformers and panels, take a long-term view when it comes to planning. “Everything you build should have a modular capability to it. You want to future-proof these components and build the foundation to expand your business in EVs. Spend the money now … to electrify your business for five or even 10 years from now.”

IHS Markit is sponsoring the EV Daily segments featured on Live Stage each day during NADA Show 2022. Watch the Livestream from the Live Stage at NADA Show and catch more of Gouda’s session in the video below.