Electric cars are hitting a responsive chord with consumers. But the environmental and economic benefits of these cars will be stunted if their cords don’t plug into a smarter electrical grid.

Auto manufacturers are currently producing plug-in electric vehicles that are safe, affordable and fun to drive. State and federal governments are encouraging consumer adoption of EVs through generous tax rebates. Additionally, the Obama administration has earmarked $400 million in grants to electrify the transportation sector. One goal is to get 20,000 charging stations up and running by the end of 2013.

However, the development and consumer adoption of a smarter electrical grid remains a significant roadblock. Without the addition of advanced communication, automation and information technologies, our current electrical infrastructure can’t optimally support the burden that EVs will bring from a power demand, billing or even cost perspective.

Charging infrastructure is in early development. The novelty of a few electric cars can be absorbed by the current power system. But as more EVs appear, they could overburden the current power grid if they don’t charge at off-peak times. During peak periods – the time when most people are either getting ready for work or coming home and turning on their biggest appliances – utilities are forced to activate additional, more expensive “peaker plants” to meet demand spikes and deliver the power levels we’ve come to expect. Add in EV charging to peak periods, and it’s possible the existing grid won’t be able to handle the overwhelming demand.

With a smart grid and “time of use” pricing in place, plug-in owners will have incentive to charge car batteries during off-peak hours, when there is more power available and when power is cheaper. It’s more economical for EV drivers to recharge when the power is “on sale” during off-peak periods – as defined by “time-of-use” pricing models, which are enabled by regulation and powered by smart meters.

If 10,000 gas-powered passenger vehicles were switched to electric vehicles, more than 33,000 metric tons of CO2 emissions could be avoided annually, according to GE research.

Electric cars can provide a jolt as America explores a new energy strategy – but infrastructure investment is critical. Americans need to support the development of a smarter grid and understand its environmental and economic benefits. Only then will we get the most out of an electrified transportation network.