Nearly everything we do at work, at school, and at home ultimately traces back to electricity. From lighting, to our computers, phones, and many other tools, we are constantly plugged in — but can electricity go further than this? The short answer is yes — electricity is an avenue for cost-reduction, improved product quality and performance, and achieving sustainability goals. This is where the concept of beneficial electrification comes in. Beneficial electrification refers to the replacement of direct fossil fuel use (e.g., propane, heating oil, gasoline) with electricity in a way that reduces overall emissions and energy costs.

This is a win-win for all involved — electric utilities, consumers, and the environment!

Electrification of factory equipment, water-heating, building heating and cooling, engines, kitchen appliances, and of course, electric vehicles (EVs), will help us on our way to a more sustainable future.

Consider a few of these options:

Electric Equipment:

Electric forklifts are a great example of a successfully electrified type of equipment. They are more efficient, cost less to maintain, and are much less noisy than traditional fossil-fuel powered forklifts. eTRUS, or Electric Transportation Refrigeration Units, are becoming more widely-utilized as well, especially now, when the demand for food delivery is higher than ever.

Electric Transportation:

Electric cars, buses, and work trucks can help pave the way to a world with carbon-free transportation. Although vehicles have become much more efficient in recent years, the transportation sector can only be fully carbon-free if it is electrified. Although, this still depends on how the electricity is generated. Despite this, EVs powered by coal-fired electricity still emit less carbon than a gasoline-powered vehicle, according to a 2016 study by the National Renewable Energy Laboratory. Beyond the customer, electric utilities have a large role to play in the electrification of transportation: EV charging infrastructure. Some utilities are already offering incentives to customers who make the switch, including charging station rebates and discounted billing rates for EV charging, to help prepare for the EV’s power demand.

Electric Heating:

Both hot water heaters and building heating systems are less costly and emit less carbon when powered by electricity rather than oil or gas. Electric water heaters, specifically, are also more efficient, safer for building occupants, and are more flexible and less expensive to install. Some additional perks of electric heating include reduced maintenance cost, longer heater lifespan, and improved indoor air quality.

This electrification can be beneficial in several different ways. If the main points of consideration are the environment, cost, product quality, and the electrical grid, any switch can be considered beneficial if it has positive effects in at least one category, and neutral effects in the rest. For example, if switching to electricity improves environmental friendliness without increasing cost, it is beneficial. Or, if switching saves the consumer money without stressing the environment, compromising product quality, or negatively impacting the grid, that can be considered beneficial electrification as well!

AEP has adopted the beneficial electrification framework and offers free assistance to customers interested in electrifying their facilities, old and new.  They help educate customers on the benefits of electrification and calculate how electrifying infrastructure may look in terms of both cost and emissions, specific to the customer’s situation. Additionally, AEP assists customers with funding and financing opportunities, and helps direct them to local providers to find the best solution. While the road to electrification may be winding, the ultimate benefits for both our society and the environment are worthwhile!

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