America has a new, developing energy source. And it's quietly growing larger every day. It will become the largest source we have... by far. It's not solar... or wind. I'm talking about the increasing number of electric vehicles in the U.S. Today, there are more than 1.4 million EVs on U.S. highways. By 2025, that number could reach 6 million vehicles. The EV adoption rate will continue to rise, as manufacturers offer new EV models to replace fossil-fuel-burning ones. Individually, EVs have battery packs ranging in size from 40 to 100 kilowatt-hours (kWh). Like most cars, they spend 95% of their time sitting idle. In the evening, most owners park their EVs and plug them into a charging port. In spite of what is often reported, it doesn't take eight hours to charge the average EV after a daily commute. It usually takes just two to three. I know because my wife has been driving a Tesla (Nasdaq: TSLA) Model X for nearly five years. When she comes home, she plugs the car into its wall charger in our garage. It sits there for at least 12 hours. That's a lot of idle time, over and above the amount of charging time. And that idle time could soon be highly profitable for EV owners. Wasted PotentialLet me explain. Utilities pay a small fortune for peak power. That's because they have to run "peaker plants." These plants generate power for a few hours each day. Most run on natural gas. Utilities fire them up to provide power during peak hours. That's from 10 a.m. to 8 p.m. in the summer and 7 a.m. to 11 a.m. and 5 p.m. to 9 p.m. in the winter. The rest of the time, peaker plants sit idle, not making any money. So utilities have to charge more for peak power in order to recoup the cost of those plants. |
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