PPL to Join Electric Highway Coalition, Expand in EV Market
PPL's units are going to join the Electric Highway Coalition to further accelerate its efforts to meet its clean energy plans.
PPL Corporation PPL recently pledged to join the Electric Highway Coalition, a partnership of 17 U.S. utilities. Three of its units, namely Louisville Gas and Electric Company, Kentucky Utilities Company and PPL Electric Utilities Corporation will collaborate with other coalition utilities.
The company’s current decision will help it establish efficient, fast electric vehicle (EV) charging stations to broaden the charging infrastructure network. This shall surely expand its footprint in the rapidly-expanding EV market.
Details of the Partnership
Following the closure of the utility’s pending deal to acquire The Narragansett Electric Company, operations of the newly formed company will also be included in this coalition membership.
The above-mentioned subsidiaries of PPL Corp. already deployed nearly two dozen charging stations and launched a related program to provide business customers with an affordable option. Further, the utility plans to add fast-charging stations along the major Kentucky highway corridors. PPL Electric Utilities is using data analytics for expanding EV’s fast charging in Pennsylvania and locating the most advantageous locations.
About the Electric Highway Coalition
The partnership was forged in March 2021 to create a network of effective electric vehicle charging stations along the highways stretching from the Atlantic Coast through the Midwest and South and into the Gulf and Central Plains regions. Its work includes the placement of infrastructure and complementing existing travel corridor fast-charging sites.
PPL Corp.’s Other Clean Energy Efforts
The company consistently makes investments to expand its renewable generation capacity as well as deepen its focus on new technology to serve customers more efficiently. It is taking initiatives to electrify its fleet of vehicles along with seeking opportunities to reduce carbon footprint. Moreover, the utility’s carbon emission reduction target is set to touch the below two-degree Celsius scenario.
PPL Corp. updated its mission to curb carbon emission by 70% within 2035 instead of 2040 and 80% by 2040 instead of 2050 through the introduction of carbon capture technology and addition of renewable sources to its generation portfolio. It also aims to become carbon neutral by 2050. As of 2020, it achieved nearly 60% emission reduction from the 2010 levels. We believe, the company’s latest strategy to join the Electric Highway Coalition took it a step closer to its long-term carbon reduction target.
Per the Edison Electric Institute, 18.7 million EVs will run on the U.S. roads by 2030, indicating 7% growth from the 2018 levels, and to realize this objective, 9.6 million charge ports will be required. Within the same time frame, annual sales of EVs are expected to exceed $3.5 million.
To reap benefits from the expanding EV market opportunities, other utilities including FirstEnergy FE, Xcel Energy XEL and Duke Energy DUK are also making efforts to electrify their vehicle fleets.
In the past three months, shares of PPL Corp. have gained 2.2% compared with the industry’s growth of 0.3%.
Three Months Price Performance
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PPL Corp. currently carries a Zacks Rank #5 (Strong Sell).
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