Electric Vehicles Affect The Grid And Gasoline Demand

If you're thinking of upgrading to a plug-in electric car, make sure you know how you'll keep it charged. Some states have more charging stations than others. Luckily, in the near future, there may be more access to the energy you need to keep your electric vehicle running. And you won't have to worry that charging your car will put on a strain on your city's resources.

Eight car manufacturers are working with 15 utility companies in the U.S. to ensure the electric grid won't be overloaded by electric cars. The group is led by the Electric Power Research Institute, and it's the first time so many manufacturers and utilities have worked together on a single cause, according to a statement from the EPRI.

Without a strategy to integrate electric vehicles into the grid, the growing number of cars could cause blackouts. The group's initial plan is to create an interface that allows utilities to work with electric vehicle owners to schedule charging times, according to the source. That way, the utilities can plan for vehicle charging at times of low energy demand.

Electric up, gas down

According to information gathered by Navigant Research, the global demand for gas will decrease after 2021 because of the rising popularity of electric cars and more fuel efficient technologies. The Transportation Forecast: Global Fuel Consumption report stated the worldwide need for gas is going to decline in the future, and will decrease 4 percent between 2014 and 2035. Four percent may not seem like a large amount, but that could translate to millions of barrels of oil.

On a personal level

By switching to an electric vehicle, your personal demand for gas will surely decrease, which can lower the costs of owning a car. Running a car on energy is less expensive than a gas-powered vehicle - especially when gas prices rise.

Whether or not the electric vehicle affects the price of your auto insurance may depend on your state and local area. Some states and insurance companies provide discounts for green vehicles.