Report: Electric Vehicle Adoption in Illinois Will Lead to Billions of Dollars in Benefits

CHICAGO (September 28, 2017) – Widespread electric vehicle (EV) adoption in Illinois could bring the state up to $43 billion in cumulative benefits by 2050 stemming from reduced utility bills, Illinois driver savings on fuel, vehicle expenses, and carbon pollution reduction, according to a new analysis by M.J. Bradley & Associates that was commissioned by the Charge Up Midwest coalition.

The release of the M.J. Bradley report coincides with the kickoff of “NextGrid”, the Illinois Commerce Commission’s long-term grid modernization proceeding that will examine the use of new technologies like EVs to improve the state’s electric grid. The M.J. Bradley report illustrates how electric vehicles can be a crucial part of both Illinois’ electric grid and economy.

“Illinois’ economy and grid can be transformed by electric vehicles to the benefit of all Illinoisans,” said Noah Garcia, Transportation Policy Analyst of the Natural Resources Defense Council. “The state stands to bring in billions of dollars in fuel savings, cut air pollution that negatively impacts our communities, and lower electricity rates if we proactively develop policies and programs to accelerate transportation electrification.”

The analysis includes both “moderate” and “high” EV adoption scenarios based on projections by the Midcontinent Independent System Operator, and Bloomberg New Energy Finance’s (BNEF) Electric Vehicle Outlook 2017 forecast. Since last year alone, BNEF revised its EV sales forecast up by 20 percentage points to account for rapid technology advancements and declining battery costs. The MISO and Bloomberg scenarios of total EV adoption in Illinois range from 18 percent to 56 percent of all passenger vehicles and trucks by 2050.

“Accelerating the use of electric vehicles in Illinois will not only reduce dangerous pollution, protecting our air, land and Great Lakes, but the cheaper price of electricity will help protect our wallets, too,” said Joe Halso, Associate Attorney with the Sierra Club. “Now is the time to put Illinois on the road to cleaner air, a better grid, lower electricity rates, and a stronger economy by implementing policies that will help put more Illinois drivers behind the wheels of cars powered by our cleanest and cheapest transportation fuel.”

The study outlines cumulative financial benefits from mainstream EV adoption in Illinois by 2050, including:

• Reduced electricity bills through grid improvements are $0.6 billion (moderate) and $1.8 billion (high)

• Societal benefits from reduced pollution are $1.4 billion (moderate) and $5.6 billion (high)

• Savings from ownership of an EV compared to a gasoline vehicle are $10.3 billion (moderate) and $35.2 billion (high)

Other statewide benefits include:  

• 4.5 billion (moderate) and 17 billion (high) gallons of avoided gasoline consumption by 2050

• 25 million (moderate) and 97 million (high) metric tons of reduced greenhouse gas emissions by 2050

The full report can be found here.