Challenges & opportunities
What the EV boom means for energy utilities
For those yet to confront the EV charging boom, upgrading the charging infrastructure and grid to meet future demand is an urgent matter. The same goes for establishing a niche: utilities need to move fast if they want to play a bigger role than simply supplying power for charging. Partnerships, collaborations with specialists, as well as white label solutions, can be a game-changer here.
Upgrading grid infrastructure is inevitably expensive, particularly given the need to incorporate cleaner power sources whilst also meeting increased demand. Moreover, it’s not just a case of raising capacity across the board. As the International Energy Agency points out…
European regulations such as the Alternative Fuels Infrastructure Regulation (AFIR) and Energy Performance of Buildings Directive, both of which require member states to build more charging stations and make more power available, ultimately mean more business for those selling charging and electricity.
But increased levels of regulation can also mean extra considerations for utilities and other stakeholders. Germany, for example, has led the way on standardised calibration, with its Eichrecht law coming into effect in 2015. And countries across the continent are implementing the EU’s European Renewable Energy Directive (RED II), which governs emissions trading. Europe’s General Data Protection Regulation is always a consideration for anyone doing business on the continent too.
Quality software solutions provide a simple way to handle such challenges, however. It’s important to look for one that takes care of reporting, customer data and emissions trading records on a compliant, automated basis. It should also be built in a way that allows it to adapt to the future regulatory challenges guaranteed to come.
Not so long ago, only oil and gas companies and their partners could make profits from ‘refuelling’ vehicles. Petrol stations are rolling out EV charging stations, but the e-mobility revolution means opportunities for others too. Retailers and car dealers, for example, are supplementing their core income or simply increasing customer footfall by installing charging stations in their parking lots.
This competition and activity can only benefit utilities.
There are opportunities all along the supply chain, from the manufacture and installation of charging stations to power grid upgrades and maintenance to the software needed for smooth charging and load management. And, of course, selling the electricity.
Utilities are at the core of the clean energy value chain and are well-positioned to own and optimise key parts of the energy transition.
An early trend in funding the e-mobility revolution was the range of subsidies set up to encourage buyers to purchase an EV. These are slowly being phased out in favour of supporting the infrastructure needed to keep those cars running. And that’s good news for stakeholders such as utilities.
Both national governments and European Union are offering support for charging infrastructure development. At continental level, the Connecting Europe Facility Transport scheme has a clear focus on achieving the AFIR targets mentioned above.
Nationally, the German government’s Climate Action Programme 2030 commits to a million charging stations by 2030. The associated Energy and Climate Fund sees it providing a sum in the ‘triple-digit billion range’ to achieve that goal.
Networked charging broadly refers to the capacity for vehicle, grid and charger to communicate to achieve the most efficient charging, with both grid requirements and billing costs taken into account.
Instead of simply plugging in an EV and extracting maximum charge right away, networked charging enables a more flexible approach that reduces loads and costs for all concerned. The International Energy Agency sums up the benefits for utilities:
— International Energy Agency, 2022
Closely tied to networked charging, this technology allows vehicles to return power to the grid. The benefit is that charged cars can help tide the grid over in times of high demand or stretched supply. In the context of new energy technologies, that can mean when the sun isn’t shining or the wind isn’t blowing — making these energy sources more viable for utilities. The vehicle, meanwhile, can be recharged at a time when there’s less strain on the system.
V2G is theoretically an excellent way to take advantage of the energy stored in batteries parked in garages, but implementation is only realistic when there’s an incentive for the vehicle owner and a software option that can manage the complexities of supply, demand and load distribution — whilst ensuring that the end user doesn’t find their EV ‘flat’ when they need to drive.
Major utilities have a particular opportunity when it comes to domestic chargers. The number of home chargers is expected to skyrocket over the next couple of decades, accounting for around 35% of the total number of chargers by 2040 (Source: BNEF). Utilities already have a huge base of existing domestic electricity clients — all they need to do is provide attractive packages that include EV charging.
If utilities handle sourcing and installation of the units, existing customers will need a good reason to look elsewhere for their home EV charging needs. And when they choose to trust their existing power supplier with this, the supplier may sell more electricity than it otherwise would.
From property developers to retailers, businesses everywhere are looking for EV charging solutions. Not only due to a growing number of regulations requiring charging ports, but also because of the opportunity for profit. All-in-one packages from known brands such as local energy utilities have great potential here.
And then there are petrol stations. Having previously had a virtual monopoly on supplying fuel for vehicles, they’re now facing competition from stores, malls, municipalities and utilities offering up home charging alternatives.
Most are in a hurry to equip their forecourts with EV charging stations — and will be open to proposals.
Premium EV charging for customers and employees.
Discover Our Solution
