The Hidden Cost of Utility Delays: How to Bypass Years of Waiting and Power Up Your EV Charging Projects Now
Kevin Kostiner
October 10, 2024
The electrification of fleets, business, and public infrastructure is being significantly hampered by utility interconnection delays across the U.S., leaving projects in limbo and businesses grappling with substantial costs. The process of getting grid connections and upgrades for EV charging projects, solar installations, and other electrification efforts is proving to be a bottleneck that threatens to derail national goals for emissions reductions and fleet electrification. Let's examine the scope of the problem, specific examples of delays, and how ClimaFi’s microgrid solutions offer a timely and impactful solution.
Utility interconnection delays have become a prominent challenge for the clean energy and electrification industries. Projects involving EV charging stations, solar power, and battery storage are facing lengthy queues for grid interconnection approvals, with some regions reporting delays that extend up to five years. These delays occur for several reasons, including an outdated grid infrastructure that isn’t equipped to handle the new demands, limited utility resources, and complex regulatory requirements.
In fact, a 2022 survey of renewable energy developers conducted by the American Clean Power Association revealed that over 80% of respondents identified interconnection delays as the single largest obstacle to project completion. According to PJM Interconnection, a major grid operator in the U.S. Midwest and East Coast, there were over 2,000 renewable energy projects awaiting interconnection approvals in 2023, and many of these included EV charging infrastructure components(
One of the most striking examples of the severe consequences of these delays can be seen at Hertz, the global car rental giant. In 2022, Hertz made a massive commitment to electrify its rental car fleet by purchasing 100,000 Tesla vehicles. However, Hertz soon encountered issues with the charging infrastructure required to support these vehicles. Delays in receiving utility interconnections at key airport locations forced Hertz to delay its full EV rollout, incurring millions of dollars in additional costs as the company was forced to rely on temporary and costly solutions, including mobile chargers and diesel-powered generators. Of course Hertz did an about face when the resale value of those same EVs plummeted resulting in Hertz selling off many of them less than 2 years later.
Similarly, the city of Los Angeles has been experiencing challenges with interconnection delays as it works to meet its ambitious EV infrastructure goals. In 2023, Los Angeles initiated a program to deploy 10,000 public EV chargers across the city to support its growing fleet of EVs. However, due to bottlenecks in utility interconnection approvals, the city reported that only 3,000 chargers had been installed by mid-2024. These delays have pushed back the city’s electrification plans and left EV drivers without sufficient charging options, hinderig EV adoption(
Another high-profile example is the Port of Long Beach, one of the largest shipping hubs in the United States, which has been working to electrify its fleet and install EV chargers for its port operations. The port’s electrification efforts have been impacted by a dated infrastructure where power to the port comes from overhead power lines. Inadequate capacity to handle the growing load, equipment failure, bad weather, and even birds hitting those power lines have resulted in consistent power failures and outages. According to port officials, these delays have pushed back key milestones and increased costs as they wait for the utility to complete a major infrastructure upgrade that’s not expected to be completed until 2029!
The financial impact of these delays on businesses is enormous. In addition to the direct costs of waiting for grid upgrades—such as the cost of idle equipment and lost productivity—there are also significant indirect costs, including penalties for missing decarbonization targets, increased operational expenses from temporary solutions, and reputational damage as companies struggle to meet their public commitments to electrification.
One study from the National Renewable Energy Laboratory found that the cost of delays can add anywhere from 20% to 50% to the overall project budget due to the rising cost of materials, labor, and temporary energy solutions. For EV fleet operators, this can mean millions of dollars in additional costs over the lifetime of a project.
Moreover, utilities themselves are often financially strained, unable to make the necessary grid upgrades at the pace required to support the growing demand for electrification. This creates a vicious cycle where businesses are stuck waiting for years for the necessary interconnection, while utilities struggle to keep up with the volume of requests.
ClimaFi offers a powerful solution to this growing problem through its innovative Bridge Microgrids. These microgrids allow businesses to bypass lengthy utility interconnection delays by enabling critical infrastructure to operate off-grid until a formal connection to the utility can be made. This means that EV charging stations can be brought online in months, not years!
Once the utility interconnection is established, ClimaFi’s microgrids offer further benefits by engaging in energy arbitrage, where excess energy generated by the microgrid is sold back to the grid. This creates a new revenue stream for businesses, turning what would traditionally be a cost center into a financial asset. Additionally, by utilizing ClimaFi’s fully funded OpEx model, businesses can implement these solutions with no upfront capital investment, freeing up financial resources for other projects.
In today’s world of mounting utility interconnection delays, businesses can’t afford to rely on outdated energy models. Microgrids offer a faster, more resilient path forward, ensuring uninterrupted operations and the power to achieve your electrification goals now.
With ClimaFi, you don’t need to sit idly by, waiting on the grid. We help businesses bypass delays, bringing your EV charging stations and other critical infrastructure online in months, not years. Plus, our solutions turn energy infrastructure into a financial asset, driving new revenue streams through energy arbitrage.
Don’t let your projects stall—take control of your energy future today. Reach out to ClimaFi now, and let us power your success while keeping you on the path to electrification!
