Friday, 29 May 2020
Electric Utilities to thrive in the Electric Vehicle revolution!
There is a global shift taking place towards the choice of fuel for automobiles. From fossil fuels, the choice is shifting to electricity. A strong public sentiment and government initiatives are supporting this shift. All major car makers are coming up with their EV models. Government’s initiatives of Transport Electrification (TE) and infrastructure development is fueling the growth of EVs and made it as one of the fastest growing business segments.
The Automobile Battery is the major contributor to the cost of ownership of an EV. The major focus is on the optimizing the battery cost and charging time. With technological advancement, the cost of the batteries are decreasing steadily. The cost per kWh of an EV battery was $150 to $175 in 2017. It is expected to decline further to $80 to $105 by 2025 and $70 to $90 by 2030. With declining battery cost and increased capacity, the economics of buying an EV becomes more favorable.
To harness business opportunities from this buzzing EV market and the growing TE market, the electric utility companies are busier than ever.
The power demand for charging the EV's are negligible. But the charging grids will face challenges like:
§ Peak hour load management.
§ Discover nearby charging stations.
§ Offer attractive rate plans and offers to customers.
Opportunities lie on the smart and intelligent solution to address the challenges mentioned above. There is also a promising market for infrastructure development to support the government’s plan for Transport Electrification.
Electric Buses, fleets of shared mobility EV's will require highly efficient and professional support for charging and maintenance.
There will be increasing demand for a smart solution for home charging in residential complexes with slow charging during the night and fast charging option in the daytime.
Some innovative concepts like Shared Charging or charging via appointment can be worked upon. Dynamic pricing can encourage customers to charge their EV's during off-peak hours and reduce load during peak hours.
Electric utilities will immensely benefit from the growing EV market. They will play a major role as service providers and will be partners in building a greener future.