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EXECUTIVE SUMMARY

From Grid to Charger

From Grid to Charger

How the Electrical Contractor Can Win in the EV Space

KEY TAKEAWAYS
  • Driven by multiple factors, EV adoption is rapidly accelerating.
  • The e-mobility market involves more than just the car.
  • There are multiple aspects in creating the charging infrastructure.
  • Opportunities for infrastructure and service providers are available now.
  • ABB provides equipment supporting the electrification of the EV infrastructure.
Electric vehicles (EVs) represented 4% of all new cars sold in the U.S. in 2021 and are projected to represent 30% of new cars by 2030.

An entire infrastructure is required to support EVs, including chargers, gear and components, and upgrades to the electric grid. In total, e-mobility is predicted to be a $100 billion market in the U.S. by 2030; this is a once-in-a-generation opportunity with enormous revenue potential for electrical contractors (ECs). EVs create additive revenue opportunities for ECs in both residential and commercial markets. Understanding where these revenue opportunities lie—now and in the future—as well as their funding sources can help savvy ECs win new business.

 

ABB understands the important considerations for grid-to-charger electrical distribution systems, charger types, power levels, equipment needs, and more. ABB offers world-class technology for a wide range of applications and installations in the EV market, helping ECs electrify the U.S. for EVs.

From Grid to Charger: How the Electrical Contractor Can Win in the EV Space

How can the electrical contractor win in the EV space? Learn what’s driving EV adoption, why this trend is accelerating, how EV charging will transform the electrical market, and where to look for revenue opportunities. 
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SPEAKER

Matthew Young
Business Development Leader, E-mobility Infrastructure, ABB
Matthew Young is the U.S. Business Development Leader for E-mobility Infrastructure at ABB Electrification, a global leader in electrical products and solutions operating in more than 100 countries. At ABB, Matthew creates growth strategies for EV infrastructure and helps develop strategic partnerships for ABB in the grid-to-charger space. Prior to EV infrastructure, Matthew held leadership roles for communications teams across multiple industries.
Context
Matthew Young shared information on trends driving EV adoption, what the EV market looks like now and in the future, opportunities for revenue for ECs, and how federal funding impacts the electrification market. He also discussed ABB’s role in the EV market.

Key Takeaways

EV adoption is rapidly accelerating, with multiple factors driving this acceleration. Changes driven by EV adoption are creating new revenue opportunities for ECs. The actual number of electric vehicles sold in the U.S. in 2021 doubled compared to 2020, ultimately reaching 4% market share by the end of 2021. Globally, electric vehicles represented 8.5% of car sales.
Electric vehicles sales are accelerating for four main reasons:
Energy Policy
Energy Policy
Utility regulation and utility commission proceedings and rate cases are providing funding for charging.
Technology
Technology
Battery performance has improved, which in turn improves the performance of electric vehicles. “These cars are extremely fun to drive and have amazing performance,” said Mr. Young.
Economics
Economics
As the cost for a battery pack nears $100 per KWh, EVs will be cheaper to produce than gas cars. The cost of maintaining an EV has also decreased, while private investment by auto manufacturers and others surpassed $500 billion.
Environmental Policy
Environmental Policy
Significant policy changes, like the infrastructure law in the U.S., are driving climate policy and the adoption of low-carbon technology. Almost every U.S. state now has a target for lowering emissions/EV adoption and incentives for charging.
50%

BloombergNEF predicts that by 2033, about 50% of vehicles sold in North America will be electric.

30%

Electric passenger cars are expected to comprise 30% of new sales in the U.S. by 2030.

50%

Electric transit buses are predicted to comprise 50% of all new bus sales by 2030.

This accelerated adoption of EVs translates to a significant demand for chargers. In a 2020 report by The Brattle Group, it was estimated that for 20 million EVs on the road by 2030, 13 million chargers will be needed, representing approximately $100 billion of electrical hardware investment and another $20 billion of services. This trend is already occurring as in 2021 there was a 20% increase in the number of charger ports in the U.S.

When considering the e-mobility market, it involves more than just the car.

When considering the e-mobility market, it involves more than just the car.

There are four main parts to electric vehicle infrastructure and maintenance:
Grid
GRID UPGRADES
to support EV adoption

$60 billion

Gear & Components
CUSTOMER-SIDE GEAR
bridges grid to charger

$17 billion

EV CHARGERS
13 million ports

$24 billion

As cars electrify, energy is going to move away from liquid refueling infrastructure toward electrical infrastructure. Each area of the market offers billions of dollars in opportunity. The total e-mobility infrastructure opportunity is estimated to be $100 billion by 2030. Just outside of the grid, the market for chargers and the gear behind the chargers is predicted to be an additional $40 billion. And, these estimates may be low. Based on recent accelerating trends, the total addressable market may now be $110 or $115 billion.

There are multiple aspects in creating the charging infrastructure.

In the charger market, there are many different types of chargers, but two main types of charging:
Alternating Current
Alternating Current
AC, or alternating current, is usually measured in hours.
Direct Current
Direct Current
DC, or direct current, is usually measured in minutes, which is orders of magnitude faster than AC.
Power level measures, or kilowatts, are based on the speed of charge for a given type of charger, which is dependent on the vehicle’s ability to take a given speed of charge. Application of chargers varies. For example, level 2 charging (available in most residences) is capable of charging a vehicle overnight, while level 3 DC fast charging can charge a car in less than an hour, with even higher-powered charging completed in less than 15 minutes.

Charger and gear electrical components to meet the requirements of one example application: DC High Power

Charger and gear electrical components to meet the requirements of one example application: DC High Power

DC High Power—175 kW or 350 kW
Highway corridor travel, metro ‘charge and go’, large fleet, OEM R&D
DC High Power—175 kW or 350 kW
Highway corridor travel, metro ‘charge and go’, large fleet, OEM R&D
5-30 Minutes
5-30 Minutes
LV 480v
LV 480v
Surge Protective Device
(in panel)
Gear & Components
Switchboard
Safety switches

Optional:

LV step-down transformer for lower voltage devices onsite

LV 480v
LV 480v
Surge Protective Device
(in panel)
Gear & Components
Switchboard
Safety switches

Optional:

LV step-down transformer for lower voltage devices onsite

3600A

total

8x High Power DC chargers (175 kW)

2x High Power DC chargers (350 kW)

Upstream from the charger is the circuit breaker. Depending on the charger type, the upstream circuit breaker recommendation varies correspondingly, requiring a range of circuit breaker options as well.

 

On the services side, some end users opt for separate utility services for EV charging, whether to make it easier to meet grant funding requirements, to facilitate the addition of new servers and equipment rather than upgrade existing hardware, or to meet future bidirectional charging needs.

300A

for each 175 kW

600A

for each 350 kW
“Start with where the customer is, where the end user is, and what type of charger they are looking for. Then, do the back-of-the-envelope math on the upstream circuit breakers so you get a sense very quickly for what type of installation you’re looking at.”
— Matthew Young, ABB

Opportunities in the EV market are available now and in the near future, for both infrastructure and service providers.

Large opportunities in the EV space exist now, such as building the electrical infrastructure for delivery fleets, charge point operators, convenience fuel stations, and charging integrators. Other opportunities coming soon include large rental fleets, hotel operators, commercial property managers, local fleets, multifamily dwellings, retail and shopping centers, and large parking decks. The government and utilities, as well as transit bus fleets and auto dealers, currently represent a significant opportunity for electrical contractors, with school bus fleets and airport operators close behind.

The National Electric Vehicle Infrastructure section of the Infrastructure Investment and Jobs Act provides a total of $5 billion over five years to all 50 states for EV investment (including chargers related equipment, and electrical installation). The law has defined a goal of creating a national public charging network with a minimum of four 150-kilowatt chargers every 50 miles along major highways. These opportunities do not only exist for the charger and gear for charging markets, but also for utilities.

Utilities also have significant EV opportunities, including four main areas of investment:

Electrifying their own fleets 
Forming or joining regional utility coalitions to create highway charging networks within their region
Make-ready programs that go beyond the meter to produce a site ready for charging
Grid upgrades, including transmission, distribution, grid-side energy storage, power generation, and more
“Utilities all across the country have been preparing for this for years. If everybody switched to EVs immediately, the world would need about 25% more electricity than it makes now. I’m convinced that when people see the benefits of electric vehicles and the payback time on them, we’re going to find a way to make it work. And the good news is that it’s not a surprise for us. We will make it work.”
— Matthew Young, ABB
Three of the top potential funding sources for these investments include:

Utility rebates

Utilities sometimes fund make-ready programs or offer make-ready rebates to end users where a complete “stub” site for a charger is installed.

State rebates

Depending on the state, various departments—such as the Departments of Transportation, Energy, Commerce, Ecology, or even city-level Departments of Transportation—sometimes offer rebates for the installation of EV charging electrical equipment and chargers. Twelve states have adopted the Zero Emission Vehicle program, which offers incentives for manufacturers and buyers to go electric.

Volkswagen (VW) settlement funding

As part of a settlement with VW, funding was set aside to support clean vehicles and charging infrastructure across the United States. This is state funding awarded to cities, towns, and public agencies for local projects.
ABB offers products for every phase of the EV market
GEARS AND COMPONENTS
MV Switchgear
Load Interrupter Switches
ReliaGear Switchboard
Surge Protective Devices
LV Step-Down Transformer
ReliaGear Power Panelboard
Safety Switches
CHARGERS
Wallbox Chargers 
Fast DC Chargers 
High Power DC Chargers
DC HVC Chargers
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GEARS AND COMPONENTS
MV Switchgear
Load Interrupter Switches
ReliaGear Switchboard
Surge Protective Devices
LV Step-Down Transformer
ReliaGear Power Panelboard
Safety Switches
CHARGERS
Wallbox Chargers 
Fast DC Chargers 
High Power DC Chargers
DC HVC Chargers
First Feature Title
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Second Feature Title
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“ABB has been electrifying the United States for more than 100 years,”  Mr. Young said. “The ABB family of companies offers world-class EV market technology, including breakers, electrical boxes, panels, switchboards, and chargers, all built with innovations that make installation easier. And ABB’s reliable tech support and customer service provide the support you need, when you need it.”

Additional Resources

From Grid to Charger
Gain information on trends driving EV adoption, what the EV market looks like now and in the future, opportunities for revenue for ECs, and how federal funding impacts the electrification market. 
View Executive SummaryOpens in a new window.
Simplifying the Road to Total Electric
Learn how solution architectures can overcome the hurdle of EV fleet depot charging and view a roadmap for private fleet owners and transportation authorities who are ready to begin their journey to total electric. 
View White PaperOpens in a new window.
ReliaGear™ Smart Power Distribution

Discover how the new line of ReliaGear smart power distribution products utilizes smart design and smart technology to simplify every level of protection for your project.

 

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