U.S. Electric Vehicle Market Share Dips in Q1 2024


U.S. Electric Vehicle Market Share Dips in Q1 2024

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U.S. EV Market Share Dip Q1 2024 reflects slower BEV adoption, rising PHEV demand, affordability concerns, charging infrastructure gaps, tax credit shifts, range anxiety, and automaker strategy adjustments across the electric vehicle market.

 

Key Points

Q1 2024 EV and hybrid share slipped as BEV sales lag, PHEVs rise, and affordability and charging concerns temper demand.

✅ BEV share fell to 7.0% as affordable models remain limited

✅ PHEV sales rose 50% YoY, easing range anxiety concerns

✅ Policy shifts and charging gaps weigh on consumer adoption

 

The U.S. electric vehicle (EV) market, once a beacon of unbridled growth, appears to be experiencing a course correction. Data from the U.S. Energy Information Administration (EIA) reveals that the combined market share of electric vehicles (battery electric vehicles, or BEVs) and hybrids dipped slightly in the first quarter of 2024, marking the first decline since the onset of the COVID-19 pandemic, even as EU EV share rose during lockdowns in 2020.

This news comes as a surprise to many analysts who predicted continued exponential growth for the EV market. While overall sales of electric vehicles surged into 2024 and did increase by 7% compared to Q1 2023, this growth wasn't enough to keep pace with the overall rise in vehicle sales. The result: a decline in market share from 18.8% in Q4 2023 to 18.0% in Q1 2024.

Several factors may be contributing to this shift. One potential culprit is a slowdown in battery electric vehicle sales. BEVs saw their share of the market dip from 8.1% to 7.0% in the same period. This could be attributed to a lack of readily available affordable options, with many popular EV models still commanding premium prices and concerns that EV supply may miss demand in the near term.

Another factor could be the rising interest in plug-in hybrid electric vehicles (PHEVs). PHEV sales witnessed a significant jump of 50% year-over-year, reflecting how gas-electric hybrids are getting a boost from major automakers, potentially indicating a consumer preference for vehicles that offer both electric and gasoline powertrain options, addressing concerns about range anxiety often associated with BEVs.

Industry experts offer mixed interpretations of this data. Some downplay the significance of the dip, attributing it to a temporary blip, even though EVs remain behind gas cars in total sales. They point to the ongoing commitment from major automakers to invest in EV production and the potential for new, more affordable models to hit the market soon.

Others express more concern, citing Europe's recent EV slump and suggesting this might be a sign of maturing consumer preferences. They argue that simply increasing the number of EVs on the market might not be enough. Automakers need to address issues like affordability, charging infrastructure, and range anxiety to maintain momentum.

The role of government incentives also remains a question mark. The federal tax credit for electric vehicles is currently set to phase out gradually, potentially impacting consumer purchasing decisions in the future. Continued government support, through incentives or infrastructure development, could be crucial in maintaining consumer interest.

The coming quarters will be crucial in determining the long-term trajectory of the U.S. EV market, especially after the global electric car market's rapid expansion in recent years. Whether this is a temporary setback or a more lasting trend remains to be seen. Addressing consumer concerns, ensuring a diverse range of affordable EV options, and continued government support will all be essential in ensuring the continued growth of this critical sector.

This development also presents an opportunity for traditional automakers. By capitalizing on the growing PHEV market and addressing consumer concerns about affordability and range anxiety, they can carve out a strong position in the evolving automotive landscape.

 

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Egypt Plans Power Link to Saudis in $1.6 Billion Project

Egypt-Saudi Electricity Interconnection enables cross-border power trading, 3,000 MW capacity, and peak-demand balancing across the Middle East, boosting grid stability, reliability, and energy security through an advanced electricity network, interconnector infrastructure, and GCC grid integration.

 

Key Points

A 3,000 MW grid link letting Egypt and Saudi Arabia trade power, balance peak demand, and boost regional reliability.

✅ $1.6B project; Egypt invests ~$600M; 2-year construction timeline

✅ 3,000 MW capacity; peak-load shifting; cross-border reliability

✅ Links GCC grid; complements Jordan and Libya interconnectors

 

Egypt will connect its electricity network to Saudi Arabia, joining a system in the Middle East that has allowed neighbors to share power, similar to the Scotland-England subsea project that will bring renewable power south.

The link will cost about $1.6 billion, with Egypt paying about $600 million, Egypt’s Electricity Minister Mohamed Shaker said Monday at a conference in Cairo, as the country pursues a smart grid transformation to modernize its network. Contracts to build the network will be signed in March or April, and construction is expected to take about two years, he said. In times of surplus, Egypt can export electricity and then import power during shortages.

"It will enable us to benefit from the difference in peak consumption,” Shaker said. “The reliability of the network will also increase.”

Transmissions of electricity across borders in the Gulf became possible in 2009, when a power grid connected Qatar, Kuwait, Saudi Arabia and Bahrain, a dynamic also seen when Ukraine joined Europe's grid under emergency conditions. The aim of the grid is to ensure that member countries of the Gulf Cooperation Council can import power in an emergency. Egypt, which is not in the GCC, may have been able to avert an electricity shortage it suffered in 2014 if the link with Saudi Arabia existed at the time, Shaker said.

The link with Saudi Arabia should have a capacity of 3,000 megawatts, he said. Egypt has a 450-megawatt link with Jordan and one with Libya at 200 megawatts, the minister said. Egypt will seek to use its strategic location to connect power grids in Asia, where the Philippines power grid efforts are raising standards, and elsewhere in Africa, he said.

In 2009, a power grid linked Qatar, Kuwait, Saudi Arabia and Bahrain, allowing the GCC states to transmit electricity across borders, much like proposals for a western Canadian grid that aim to improve regional reliability. 

 

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Two new electricity interconnectors planned for UK

Ofgem UK Electricity Interconnectors will channel subsea cables, linking Europe, enabling energy import/export, integrating offshore wind via multiple-purpose interconnectors, boosting grid stability, capacity, and investment under National Grid analysis to 2030 targets.

 

Key Points

Subsea links between the UK and Europe that trade power, integrate offshore wind, and reinforce grid capacity.

✅ Two new subsea interconnector bids open in 2025

✅ Pilot for multiple-purpose links to offshore wind clusters

✅ National Grid to assess optimal routes, capacity, and locations

 

Ofgem has opened bids to build two electricity interconnectors between the UK and continental Europe as part of the broader UK grid transformation now underway.

The energy regulator said this would “bring forward billions of pounds of investment” in the subsea cables, such as the Lake Erie Connector, which can import cheaper energy when needed and export surplus power from the UK when it is available.

Developers will be invited to submit bids to build the interconnectors next year. Ofgem will additionally run a pilot scheme for ‘multiple-purpose interconnectors’, which are used to link clusters of offshore wind farms and related innovations like an offshore vessel chargepoint to an interconnector.

This forms part of the UK Government drive to more than double capacity by 2030, and to manage rising electric-vehicle demand, as discussed in EV grid impacts, in support of its target of quadrupling offshore wind capacity by the same date.

Interconnectors provide some 7 per cent of UK electricity demand. The UK so far has seven electricity interconnectors linked to Ireland, France, Belgium, the Netherlands and Norway, while projects like the Ireland-France connection illustrate broader European grid integration.

Balfour Beatty won a £90m contract for onshore civil engineering works on the Viking Link Norway interconnector, which is due to come into operation in 2023, while London Gateway's all-electric berth highlights related port electrification.

It said that interconnector developers have in the past been allowed to propose their preferred design, connection location and sea route to the connecting country. Ofgem has now said it may decide to consider only those projects that meet its requirements based on an analysis of location and capacity needs by National Grid.

Ofgem has not specified that the new interconnectors must link to any specific place or country, but may do so later, as priorities like the Cyprus electricity highway illustrate emerging directions.

 

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Westinghouse AP1000 Nuclear Plant Breaks A First Refueling Outage Record

AP1000 Refueling Outage Record showcases Westinghouse nuclear power excellence as Sanmen Unit 2 completes its first reactor refueling in 28.14 days, highlighting safety, reliability, outage optimization, and economic efficiency in China.

 

Key Points

It is the 28.14-day initial refueling at Sanmen Unit 2, a global benchmark achieved with Westinghouse AP1000 technology.

✅ 28.14-day first refueling at Sanmen Unit 2 sets global benchmark

✅ AP1000 design simplifies systems, improves safety and reliability

✅ Outage optimization by Westinghouse and CNNC accelerates schedules

 

Westinghouse Electric Company China operations today announced that Sanmen Unit 2, one of the world's first AP1000® nuclear power plants, has set a new refueling outage record in the global nuclear power industry, completing its initial outage in 28.14 days.

"Our innovative AP1000 technology allows for simplified systems and significantly reduces the amount of equipment, while improving the safety, reliability and economic efficiency of this nuclear power plant, reflecting global nuclear milestones reached recently," said Gavin Liu, president of the Westinghouse Asia Operating Plant Services Business. "We are delighted to see the first refueling outage for Sanmen Unit 2 was completed in less than 30 days. This is a great achievement for Sanmen Nuclear Power Company and further demonstrates the outstanding performance of AP1000 design."

All four units of the AP1000 nuclear power plants in China have completed their first refueling outages in the past 18 months, aligning with China's nuclear energy development momentum across the sector.  The duration of each subsequent outage has fallen significantly - from 46.66 days on the first outage to 28.14 days on Sanmen Unit 2.

"During the first AP1000 refueling outage at the Sanmen site in December 2019, a Westinghouse team of experts worked side-by-side with the Sanmen outage team to partner on outage optimization, and immediately set a new standard for a first-of-a-kind outage, while major refurbishments like the Bruce refurbishment moved forward elsewhere," said Miao Yamin, chairman of CNNC Sanmen Nuclear Power Company Limited. "Lessons learned were openly exchanged between our teams on each subsequent outage, which has built to this impressive achievement."

Westinghouse provided urgent technical support on critical issues during the outage, as international programs such as Barakah Unit 1 achieved key milestones, to help ensure that work was carried out on schedule with no impact to critical path.

In addition to the four AP1000 units in China, two units are under construction at the Vogtle expansion near Waynesboro, Georgia, USA.

Separately, in the United States, a new reactor startup underscored renewed momentum in nuclear generation this year.

 

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Global CO2 emissions 'flatlined' in 2019, says IEA

2019 Global CO2 Emissions stayed flat, IEA reports, as renewable energy growth, wind and solar deployment, nuclear output, and coal-to-gas switching in advanced economies offset increases elsewhere, supporting climate goals and clean energy transitions.

 

Key Points

33 gigatonnes, unchanged YoY, as advanced economies cut power emissions via renewables, gas, and nuclear.

✅ IEA reports emissions flat at 33 Gt despite 2.9% GDP growth

✅ Advanced economies cut power-sector CO2 via wind, solar, gas

✅ Nuclear restarts and mild weather aided reductions

 

Despite widespread expectations of another increase, global energy-related CO2 emissions stopped growing in 2019, according to International Energy Agency (IEA) data released today. After two years of growth, global emissions were unchanged at 33 gigatonnes in 2019, a notable marker in the global energy transition narrative even as the world economy expanded by 2.9%.

This was primarily due to declining emissions from electricity generation in advanced economies, thanks to the expanding role of renewable sources (mainly wind and solar across many markets), fuel switching from coal to natural gas, and higher nuclear power generation, the Paris-based organisation says in the report.

"We now need to work hard to make sure that 2019 is remembered as a definitive peak in global emissions, not just another pause in growth," said Fatih Birol, the IEA's executive director. "We have the energy technologies to do this, and we have to make use of them all."

Higher nuclear power generation in advanced economies, particularly in Japan and South Korea, avoided over 50 Mt of CO2 emissions. Other factors included milder weather in several countries, and slower economic growth in some emerging markets. In China, emissions rose but were tempered by slower economic growth and higher output from low-carbon sources of electricity. Renewables continued to expand in China, and 2019 was also the first full year of operation for seven large-scale nuclear reactors in the country.

A significant decrease in emissions in advanced economies in 2019 offset continued growth elsewhere. The USA recorded the largest emissions decline on a country basis, with a fall of 140 million tonnes, or 2.9%. US emissions are now down by almost 1 gigatonne from their peak in 2000. Emissions in the European Union fell by 160 million tonnes, or 5%, in 2019 driven by reductions in the power sector as electricity producers move away from coal in the generation mix. Japan’s emissions fell by 45 million tonnes, or around 4%, the fastest pace of decline since 2009, as output from recently restarted nuclear reactors increased.

Emissions in the rest of the world grew by close to 400 million tonnes in 2019, with almost 80% of the increase coming from countries in Asia where coal-fired power generation continued to rise, and in Australia emissions rose 2% due to electricity and transport. Coal-fired power generation in advanced economies declined by nearly 15%, reflecting a sharp fall in coal-fired electricity across multiple markets, as a result of growth in renewables, coal-to-gas switching, a rise in nuclear power and weaker electricity demand.

The IEA will publish a World Energy Outlook Special Report in June that will map out how to cut global energy-related carbon emissions by one-third by 2030 and put the world on track for longer-term climate goals, a pathway that, in Canada, will require more electricity to hit net-zero. It will also hold an IEA Clean Energy Transitions Summit in Paris on 9 July, bringing together key government ministers, CEOs, investors and other major stakeholders.

Birol will discuss the results published today tomorrow at an IEA Speaker Series event at its headquarters with energy and climate ministers from Poland, which hosted COP24 in Katowice; Spain, which hosted COP25 in Madrid; and the UK, which will host COP26 in Glasgow this year, as greenhouse gas concentrations continue to break records worldwide.

 

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Germany extends nuclear power amid energy crisis

Germany Nuclear Power Extension keeps Isar 2, Neckarwestheim 2, and Emsland running as Olaf Scholz tackles the energy crisis, soaring gas prices, and EU winter demand, prioritizing grid stability amid the Ukraine war.

 

Key Points

A temporary policy keeping three German reactors online to enhance grid stability and national energy security.

✅ Extends Isar 2, Neckarwestheim 2, and Emsland operations

✅ Addresses EU energy crisis and soaring gas prices

✅ Prioritizes grid stability while coal phase-out advances

 

German Chancellor Olaf Scholz has ordered the country's three remaining nuclear power stations to keep operating until mid-April, signalling a nuclear U-turn as the energy crisis sparked by Russia's invasion of Ukraine hurts the economy.

Originally Germany planned to phase out all three by the end of this year, continuing its nuclear phaseout policy at the time.

Mr Scholz's order overruled the Greens in his coalition, who wanted two plants kept on standby, to be used if needed.

Nuclear power provides 6% of Germany's electricity.

The decision to phase it out was taken by former chancellor Angela Merkel after Japan's Fukushima nuclear disaster in 2011.

But gas prices have soared since Russia's invasion of Ukraine in February, which disrupted Russia's huge oil and gas exports to the EU, though some officials argue that nuclear would do little to solve the gas issue in the short term. In August Russia turned off the gas flowing to Germany via the Nord Stream 1 undersea pipeline.

After relying so heavily on Russian gas Germany is now scrambling to maintain sufficient reserves for the winter. The crisis has also prompted it to restart mothballed coal-fired power stations, with coal generating about a third of its electricity currently, though the plan is to phase out coal in the drive for green energy.

Last year Germany got 55% of its gas from Russia, but in the summer that dropped to 35% and it is declining further.

EU leaders consider how to cap gas prices
France sends Germany gas for first time amid crisis
Chancellor Scholz's third coalition partner, the liberal Free Democrats (FDP), welcomed his move to keep nuclear power as part of the mix. The three remaining nuclear plants are Isar 2, Neckarwestheim 2 and Emsland, which were ultimately shut down after the extension.

The Social Democrat (SPD) chancellor also called for ministries to present an "ambitious" law to boost energy efficiency and to put into law a phase-out of coal by 2030, aiming for a coal- and nuclear-free economy among major industrial nations.

Last week climate activist Greta Thunberg said it was a "mistake" for Germany to press on with nuclear decommissioning while resorting to coal again, intensifying debate over a nuclear option for climate goals nationwide.

 

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What's at stake if Davis-Besse and other nuclear plants close early?

FirstEnergy Nuclear Plant Closures threaten Ohio and Pennsylvania jobs, tax revenue, and grid stability, as Nuclear Matters and Brattle Group warn of higher carbon emissions and market pressures from PJM and cheap natural gas.

 

Key Points

Planned shutdowns of Davis-Besse, Perry, and Beaver Valley, with regional economic and carbon impacts.

✅ Over 3,000 direct jobs and local tax revenue at risk

✅ Emissions may rise until renewables scale, possibly into 2034

✅ Debate over subsidies, market design, and PJM capacity rules

 

A national nuclear lobby wants to remind people what's at stake for Ohio and Pennsylvania if FirstEnergy Solutions follows through with plans to shut down three nuclear plants over the next three years, including its Davis-Besse nuclear plant east of Toledo.

A report issued Monday by Nuclear Matters largely echoes concerns raised by FES, a subsidiary of FirstEnergy Corp., and other supporters of nuclear power about economic and environmental hardships and brownout risks that will likely result from the planned closures.

Along with Davis-Besse, Perry nuclear plant east of Cleveland and the twin-reactor Beaver Valley nuclear complex west of Pittsburgh are slated to close.

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"If these plants close, the livelihoods of thousands of Ohio and Pennsylvania residents will disappear. The over 3,000 highly skilled individuals directly employed by these sites will leave to seek employment at other facilities still operating around the country," Lonnie Stephenson, International Brotherhood of Electrical Workers president, said in a statement distributed by Nuclear Matters. Mr. Stephenson also serves on the Nuclear Matters advocacy council.

This new report and others like it are part of an extensive campaign by nuclear energy advocates to court state and federal legislators one more time for tens of millions of dollars of financial support or at least legislation that better suits the nuclear industry. Critics allege such pleas amount to a request for massive government bailouts, arguing that deregulated electricity markets should not subsidize nuclear.

The latest report was prepared for Nuclear Matters by the Brattle Group, a firm that specializes in analyzing economic, finance, and regulatory issues for corporations, law firms, and governments.

"These announced retirements create a real urgency to learn what would happen if these plants are lost," Dean Murphy, the Brattle report's lead author, said.

More than 3,000 jobs would be lost, as would millions of dollars in tax revenue. It also could take as long as 2034 for the region's climate-altering carbon emissions to be brought back down to existing levels, based on current growth projections for solar- and wind-powered projects, and initiatives such as ending coal by 2032 by some utilities, Mr. Murphy said.

His group's report only takes into account nuclear plant operations, though. Many of those who oppose nuclear power have long pointed out that mining uranium for nuclear plant fuel generates substantial emissions, as does the process of producing steel cladding for fuel bundles and the enrichment-production of that fuel. Still, nuclear has ranked among the better performers in reports that have taken such a broader look at overall emissions.

FES has accused the regional grid operator, PJM Interconnection, of creating market conditions that favor natural gas and, thus, make it almost impossible for nuclear to compete throughout its 13-state region, a debate intensified by proposed electricity pricing changes at the federal level.

PJM has strongly denied those accusations, and has said it anticipates no shortfalls in energy distribution if those nuclear plants close prematurely, even as a recent FERC decision on grid policy drew industry criticism.

FES, citing massive losses, has filed for Chapter 11 bankruptcy. The target dates for closures of the FES properties are May 31, 2020 for Davis-Besse; May 31, 2021 for Perry and Beaver Valley Unit 1, and Oct. 31, 2021 for Beaver Valley Unit 2.

In addition to the three FES sites, the report includes information about the Three Mile Island Unit 1 plant near Harrisburg, Pa., which Chicago-based Exelon Generation Corp. has previously announced will be shut down in 2019. That plant and others are experiencing similar difficulties the FES plants face by competing in a market radically changed by record-low natural gas prices.

 

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