Xcel Energy, a national leader in the clean energy transition, announced Wednesday its vision to drive toward powering 1.5 million electric vehicles in its service areas by 2030.

As a result of this vision, EVs would make up 20% of all vehicles on the road in those areas, more than 30 times the number today, helping save customers billions of dollars in fuel costs, while significantly cutting carbon emissions from transportation.

By making it easy for more people to use EVs through new charging infrastructure and customer programs, the company’s vision will build the future of clean, affordable transportation in the eight states it serves. As drivers, ride-share companies, public transit and other fleet operators replace vehicles with EVs, they will see substantial savings on fuel, because driving electric is equal to spending about $1 per gallon of gas and can be significantly less when charging overnight. By 2030, an EV would cost $700 less per year to fuel than a gas-powered car, saving customers $1 billion annually. To make the company’s vision a reality, it will need the support of policymakers, manufacturers and other stakeholders.

Building on the company’s vision to provide 100% carbon-free electricity by 2050, powering 1.5 million EVs would reduce carbon emissions by nearly 5 million tons annually by 2030, or about three tons of carbon reduction per vehicle. Electric vehicles charged on the increasingly clean Xcel Energy system will have about 80% lower carbon emissions than gas-powered cars by 2030. More EVs would also improve air quality in our communities by reducing other emissions, like nitrogen oxide and fine particulate matter, that have the greatest impact on public health.

The transition to more electric cars, trucks and buses will also help keep bills low for all customers, including those who don’t drive an EV. The additional electricity sales generated by EVs more than pay for the system investment required to support them. So as more vehicles transition to electric, everyone will benefit from cleaner air and lower bills.

“Transportation is currently the number one source of carbon pollution in Minnesota, the U.S., and the world,” said Margaret Anderson Kelliher, commissioner, Minnesota Department of Transportation. 

“The State of Minnesota is committed to helping lead the transition to a low carbon transportation future in a way that benefits the economy and environment for everyone, but we can’t do it alone. Our success will depend on collaboration with partners in the private sector – and the bold vision from Xcel Energy to power 20% of all vehicles in their service territory with electricity is exactly the leadership Minnesota needs to achieve our carbon reduction goals and reduce air pollution. We share this vision and goal for our state, and the Minnesota Department of Transportation is excited to work with Xcel Energy to achieve it together.”

“Xcel Energy’s commitment to advance electric vehicles in Minnesota and its service area is a smart investment in our people, environment, and climate,” said Laura Bishop, commissioner, Minnesota Pollution Control Agency.

“Xcel Energy’s bold commitment, along with the MPCA’s recently launched electric school bus pilot project and consideration of clean car standards will help ensure healthier air and significantly reduce climate impacts. To meet or exceed the state’s goal of reducing greenhouse emissions by 80% by 2050, will require collaboration and partnership between business, government, nonprofit, and research sectors. I look forward to partnering with Xcel Energy to make this bold commitment a reality.”

“Xcel Energy’s vision of a cleaner transportation sector is a commitment to reduce greenhouse gases, improve air quality, and create jobs,” said Alice Roberts-Davis, commissioner, Minnesota Department of Administration. “The department’s partnership with Xcel Energy to electrify the state vehicle fleet is an example of how such efforts reduce fuel consumption and costs. This type of innovative partnership will help us meet our greenhouse gas emission goals and expand the economy.”