Electric vehicles (EV) have transformed the transportation sector. Rising oil prices, changing policy incentives, and energy security has led the transition to EVs sooner than expected by governments and oil companies.
Growth of Electric Vehicles
EVs have seen a huge growth in the last decade. More specifically, EVs increased to 1.6 million in 2018 from a few hundred in 2014. The sale of EVs is expected to increase from a record of 1.1 million worldwide in 2017 to 11 million in 2025; then surging to 30 million in 2030. EVs are more cost effective than the internal combustion engine (ICE) cars. China is leading the EV adoption game, closely followed by Europe and the U.S. China will have global EV sales of 39% by 2030, followed by Europe at 26% and then the U.S at 20% per Bloomberg New Energy Finance.
The latest research by Bloomberg New Energy Finance, states EVs and E-buses will displace 7.3 million barrels per day of fuel by 2040. This shifts the demand from oil to electricity and this new demand has ushered new revenue opportunities into the existing market. Utilities not only provide the electricity to power this new market, they play a major role helping adoption of EVs. First, utilities have an opportunity to educate their consumers about EVs and EV technology through their website, informative blogs and incentive EV purchases through different rate scenarios with virtual rate calculators. And second, utilities can offer rebates for EV purchases or the installation of an EV charger. In addition, EV adoption has the promise of helping utilities work with customers to increase or reduce demand on the grid at beneficial times of the day. One challenge for utilities is ensuring the infrastructure is built and maintained to handle the new market.
EVs are revolutionizing the future of mobility. In the digital world, information gets transferred like a ripple in water. Utilities can increase this ripple by educating their customers about EVs and building awareness around the effective utilization of energy. This is an opportunity for utilities to engage their customers and build good will locally while benefiting the country with the electrification of the transportation system.