Distribution Grid Electrification Model (DGEM) 2.0
(Updated on November 1, 2024: We recently completed preliminary analysis for a new Distribution Grid Electrification Model (DGEM) study, which we are referring to as DGEM 2.0. You can find the preliminary DGEM 2.0 results slide deck below. We refer to our original DGEM study including the Supplemental Analysis of March 2024 as DGEM 1.0.)
Overview
In 2023, the Public Advocates Office conducted the Distribution Grid Electrification Model (DGEM) study, to estimate the costs of upgrading the distribution grids in California’s three largest investor-owned electric utilities’ (IOUs) service territories to meet the state’s transportation electrification goals. Our study found that achieving these goals by 2035 would require approximately $26 billion in distribution grid upgrades – about half the cost projected by the Electrification Impacts Study Part 1 (EIS), conducted by Kevala, a consultant engaged by the California Public Utilities Commission. As we continue to update our analysis, we now refer to the initial August 2023 publication as DGEM 1.0 and our future update as DGEM 2.0.
DGEM 1.0 underscores the importance of thoughtful, comprehensive planning for grid upgrades, especially as California aims for all new light-duty vehicles sold be electric by 2035. The need becomes even more pressing with the push for building electrification and the electrification of medium- and heavy-duty vehicle fleets.
The forthcoming DGEM 2.0 will build upon our DGEM 1.0 analysis by updating key data inputs and estimating costs through 2040. It will also introduce new features, such as managed EV charging load profiles, granular building electrification data allocated at the feeder level, and refined cost estimates. Our preliminary results, linked below, indicate that upgrading the distribution grids of the three major IOUs through 2035 will cost an estimated $22.7 billion, rising to $37.4 billion by 2040. We look forward to continuing this analysis and providing further updates.
Download our DGEM 2.0 preliminary analysis here: DGEM 2.0 Preliminary Results (November 2024).
To learn more about our DGEM 1.0 findings, please refer to the DGEM 1.0 page here: DGEM 1.0 Study and Supplemental Documents.