The Electrical Grid is Preparing for the Rise of Electric Vehicles, Says Industry Expert

Despite concerns among investors, industry expert Anthony Sassine reveals that utility companies are actively preparing for the increased adoption of electric vehicles (EVs). Sassine, senior investment strategist at KraneShares, comments that utility companies in countries like the U.S. and China are already planning up to 15 years in advance to ensure that the electrical grid can support the transition to EVs.

While the limitations of the grid have been a concern, Sassine explains that utility companies, who have been actively engaged in conferences and discussions with industry participants, have been planning for this shift for a long time. They are building contingency plans and educating consumers on the benefits and challenges of EVs.

One of the key issues, according to Sassine, is peak charging. When people return home from work, they tend to charge their EVs simultaneously, causing a surge in electricity demand during peak hours. To address this, various initiatives are being implemented, including the installation of chargers at workplaces and shopping centers. These measures allow EV owners to charge their vehicles during the day, spreading the demand over a longer period and reducing the strain on the grid during peak hours.

Sassine highlights that these initiatives are already underway in the U.S., particularly in California, and demonstrate how utility companies are thinking long-term and proactively preparing for the growth of EVs.

Sources: Anthony Sassine, KraneShares