page 20 • The least-cost, high-electrification pathway in this analysis relies on expanded renewables for low- carbon electricity and targeted clean fuels to achieve economy wide net-zero emissions in CA by 2045. • With annual electricity demand more than doubling in CA by 2045, the base scenario relies on renewables for energy production and a mix of gas power plants with clean fuels, storage and large-scale flexible loads to maintain reliability • Enabling 50% V1G in the base scenario reduces energy system costs by $4 billion per year in 2045 (over $500 per vehicle), representing a 1.7% reduction of California’s total energy system cost • The scenario with 50% V2G offers even greater savings, lowering system costs by $11 billion per year, which equates to nearly $1,200 per vehicle in 2045 • V2G enables higher savings by occasionally discharging from vehicles to support system reliability and avoiding reliability-related costs • While V2G does avoid some battery storage investments, V2G has a limited roll in shifting solar production from the middle of the day to the evening, it principally creates value by avoiding electric delivery related costs and supporting reliability for the bulk system • While all levels of VGI provide savings by avoiding distribution costs associated with higher peak demand and reducing capacity build, higher shares of V2G than V1G generate larger savings Summary of modeling insights