IDC Energy Insights Forecasts Electric Vehicle Market to Reach 2.7 Million Cars By 2015

FRAMINGHAM, Mass.--IDC Energy Insights announced today the availability of two new studies, Business Strategy: The Coming Electric Vehicle Rollout: Forecasting the Market (Document # EI224908) and The Coming Electric Vehicle Rollout Part 2: Challenges and Opportunities for Electric Utilities (Document # EI224910) that examine the pending roll-out of Plug-in Electric Vehicles (PEVs) worldwide. According to the research, IDC Energy Insights forecasts that PEVs will become commercially available in 2011, and by 2015 there will be more than 2.7 million PEVs plugged into the global grid, with 885,000 PEVs in North America and more than 780,000 PEVs in Europe. Unfortunately, these vehicles will cause havoc on the distribution grid if they start appearing without any preparation by grid managers. The utilities that prepare today for this new reality will be the ones that will win in the long term.

“PEVs represent a significant revenue opportunity for electric utilities”

The report, The Coming Electric Vehicle Rollout Part 2: Challenges and Opportunities for Electric Utilities, provides an overview of the challenges utilities will face, citing the likely requirement of significant upgrades in distribution equipment, from the addition of separate metering apparatus to the installation of advanced transformers that can handle the increased load on a particular line. Utilities will also need to address the creation of novel rate structures that allow the utility to control how and when the vehicles are charged.

"PEVs are coming," says IDC Energy Insights Research Manager Sam Jaffe. "Despite many doubters, this oft-promised technology is finally on the verge of becoming a reality, with more than 540,000 vehicles to be sold globally by 2012. The electric utilities industry does not have the luxury of taking a wait-and-see approach to PEVs: it must begin to prepare for their arrival now."

These cars, or "mobile appliances" as the industry should think of them, also represent a significant new source of revenue and, if handled correctly, profit, as well as the chance to run the night-time generation queue more efficiently.

"PEVs represent a significant revenue opportunity for electric utilities," continues Mr. Jaffe. "But they also bring challenges such as the potential of transformer overload due to PEV clustering and excessive energy borrowing when cars roam outside of their utility region. It is best for utilities to prepare for these potential pitfalls today, instead of waiting for when the trickle of PEVs becomes a flood. We believe the utilities that prepare for this new reality will be the ones that win in the long term."

The companion report, Business Strategy: The Coming Electric Vehicle Rollout: Forecasting the Market, forecasts the size and timing of the PEV rollout in North America, Europe, Asia, and the rest of the world. Included are forecasts of electric vehicle sales from 2011-2015 and PEV penetration scenarios from 2015-2020. The report also provides an overview of soon-to-be-launched PEV models.

About IDC Energy Insights

IDC Energy Insights provides research-based advisory and consulting services focused on market and technology developments in the energy and utility industries. Staffed by senior analysts with decades of industry experience, IDC Energy Insights covers both the utility and oil & gas segments, providing independent, timely, and relevant analysis focused on key business and technology issues. IDC Energy Insights serves a diverse and growing global client base, including electric, gas and water utilities, IT suppliers, independent power producers, retail energy providers, oil and gas companies, equipment manufacturers, government agencies, financial institutions, and professional services firms. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the worldā€™s leading technology, media, research, and events company. For more information, please visit www.idc-ei.com, email info@idc-ei.com, or call 508-935-4400. Visit the IDC Energy Insights Community at http://idc-insights-community.com/energy.