Devan McKay | May 22, 2023 | 0 Comments

EV Adoption and Why Proactivity is Critical

EV Adoption and Why Proactivity is Critical

There are many different opinions out there concerning the environmental impact of fossil fuel 
emissions and the need to transition to Electric Vehicles. However, the fact is, the US and Canadian Governments are committed to a significant reduction in emissions by 2035 and Net Zero emissions by 2050 via the Paris Agreement.

There are already a number of programs in place to incentivize the transition from fossil fuel to 
electric vehicles. As we approach 2035, the governments will de-incentivize the purchase and use of gas vehicles. They will accomplish this through the application of financial penalties to our vehicle insurance premiums as they have in Northern Europe where this model has already successfully achieved adoption levels close to 100%.

Currently, our EV charging infrastructure is lacking and the problem will compound as we 
approach the critical 2035 deadline. As the public becomes aware of the situation and individuals scramble to install their own chargers, two bottlenecks will occur. 

The first involves the availability of EV charging equipment. Some commuters will hold onto 
their gas vehicles until they realize the change is inevitable. At this time, we will see panic-buying that will put massive demand on the suppliers. Consequently, equipment prices will be driven to values that are unaffordable for the average person.

The second bottleneck will occur on our power grids. This will primarily impact businesses and 
stratas. In this case, the late adopters will shoulder the costs to upgrade the circuits feeding their buildings. This will reach a critical point where the power utilities will need to perform some major, multi-year power grid upgrades. Proactivity is key and the late-adopters will inevitably shoulder the costs required to meet the ambitious targets that are currently in front of us.

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