Section 1: Understanding Beneficial Electrification

Why Now Is the Time for Beneficial Electrification

a school bus being charged by an EV charger

LionC electric school buses. Photo Credit: Lion Electric

The power sector is currently undergoing a period of unprecedented transformation. A cleaner and more resilient grid, combined with major advancements in cost-effective end-use electric technologies, has helped push beneficial electrification forward as a key strategy for a wide range of stakeholders.

At the same time, electric utilities are looking for growth opportunities. Beneficial electrification programs—deployed properly—will increase electricity sales while also saving customers money and lowering carbon emissions. This creates a new "win-win-win-win" proposition for member-customers, the environment, electric utilities, and the grid.

Planning for Change

The full electrification of the U.S. transportation, commercial and residential sectors would double electricity use by 2050 and reduce greenhouse gas emissions by 70 percent. The goal of beneficial electrification is to strategically target the most practical and valuable fuel switching opportunities given current technologies, electricity fuel mixes, and energy costs. This toolkit aims to guide and accelerate efforts toward such programs.

Beneficial electrification presents a major opportunity for utilities and the communities they serve. However, these variables are fluid, and what is most beneficial to the environment and individuals may change in just a few years. Therefore, the challenge for utility planners is to anticipate these changes and determine the value of electrification over the lifetime of a particular investment.

The energy landscape is changing fast. Conditions are converging to make the electrification of various sectors an increasingly attractive option for industry, utilities, ratepayers, and our environment.

These conditions include:

  • Rapid growth in low-cost, zero-emissions power combined with rapidly falling battery and storage costs

  • Volatility in fossil fuel prices and availability (especially propane and heating oil)

  • Growing awareness that electrification can save customers money, spur rural economic development, and improve the utility’s financial health while also helping customers

  • Increased efficiency and performance of electric-powered appliances and vehicles

  • Greater need for electricity load management

  • Expectation of meeting emission reduction goals (whether set by the utility or policymakers)