Whether you think in global climate change or not, the recent California fire devastation caused by drought is extremely real and alarming. California has been on the trail of taking preventative measures for several years including this year with the passing SB100. This adds the state to a growing list of regions and cities that are committing to one hundred pc renewable power. To support this evolution smart grid is becoming increasingly important to supply and enable the necessary bi-directional communication, decentralized and distributed power, demand side management, and microgrids. Frost & Sullivan estimates that at this rate, smart grid is on the trail of reaching approximately $94 billion in revenues worldwide by the year 2024. Electrification of transportation (EoT) may be a direct outcome of measures taken to curtail the impact of greenhouse emission and thus also will act as a key disrupter to the electrical grid.
Today EVs represent only half 1,000,000 vehicles on the road that are concentrated in only a couple of regions, including California, Hawaii, Washington, Oregon to call a couple of. The mixture of regulatory push for clean energy and carbon neutrality combined with changing consumer perspectives will drastically push the amount of EVs on the road. In fact, EVs are expected to succeed in price parity with combustion engine (ICE) vehicles by 2025.
Utilities are actively evaluating the sort of impact EVs will wear grid imbalance. In fact, research indicates that California will add one GW in peak demand once it meets its goal to possess five million EVs by 2025. The typical sort of distribution transformer in residential district will have an influence rating of 25 kVA which will serve five to seven homes whereas PEV employing a Level 2 charger will use approximately seven kVA. Hence, there's a reasonably high risk of transformer deterioration. to feature to the present, consistent with the DOE 67 percent of T&D assets today are at or past their planned life. In fact, 60 percent of transformers within the U.S. are quite 25 years old, making the grid highly vulnerable and subject to failure given any tremendous imbalance.
Despite these challenges utilities also see this as a chance to reinforce their offerings and gain stronger customer loyalty. But this obviously requires investment to an already tight and thinly budgeted industry. There's nobody solution that fits all needs and can be dependent on local energy policies, tariffs, and demographics.
Our research indicates that in interim utilities are going to be watching demand side management (DMS) because the first approach towards managing vehicle charging load. These are already being implemented to support the growing presence of DER and to satisfy state level energy efficiency policy goals.
Longer term batteries could even support the grid in terms of voltage optimization and minimizing duck curves. thanks to an aging infrastructure, utilities must also check out upgrading actual physical infrastructure also and can need to happen in parallel to adopting DMS. this may be within the sort of digital substations, digital relays, and upgrading to smart transformers.
Replacing the whole infrastructure is clearly fairly cost prohibitive and would require a reasonably strategic approach to avoid disruptions and compromises. Therefore utilities will need to search for answers within the sort of more localized power like micro grids, evaluating how blockchain can ease transactive energy. Future technologies like 5G, V2G, and blockchain are all getting to play an instrument going forward.