Utilities: Lead the charge in eMobility
April 2, 2019
April 2, 2019
With the total cost of ownership for electric vehicles (EVs) continuing to decrease, exponential growth is expected in major markets around the world. Two-thirds of future EV owners Accenture Strategy surveyed say “saving money over the longer term” is one of their top reasons for making the switch. By 2025, Europe and the United States will have 10 million EVs on the road, compared to 2.5 million today. As the market takes shape, utilities are actively exploring their potential roles in the value chain.
Accenture Strategy estimates that by 2040 the eMobility market in Europe and North America will be worth more than US$2 trillion.
While EV sales are accelerating, EV owners still face a series of obstacles. For example, EV owners looking to charge their vehicles from their homes will need to ensure their domestic energy systems are up to the task. They will also need to schedule the installation of the home charging infrastructure and determine maintenance requirements. Similarly, owners who opt for public charging must check public charging options and their availability, choose the right tariff/payment options, and map out their charging routines according to their travel needs.
For these reasons, 39 percent of conventional car owners currently believe they will never buy an electric car. That percentage is likely to come down if companies can help make EV ownership as easy as owning any other type of vehicle. By bending the adoption curve upward, utilities can further accelerate the transition to eMobility.
Utilities are uniquely positioned to play a pivotal role in the customer EV journey and stake their claim in the US$2 trillion eMobility market. They deeply understand customers as energy consumers. They know how to navigate the energy market, its rules and regulations. And they enjoy strong customer relationships and are perceived as trusted suppliers.
Armed with these advantages, utilities can pursue four distinct opportunities across the eMobility value chain.
Leading utilities will generate additional value by combining solutions in a bundled service, comprising the electricity EV owners need to power their vehicles, new services integrated on a single platform designed to improve the ownership experience, and the grid flexibility to drive cost and network optimization.
Leading utilities will thrive in the eMobility market by taking actions that will bend the EV adoption curve upward. They will maximize the size of the eMobility opportunity for all invested parties by:
With these actions, utilities will ensure their relevance and drive sustainable profitability through the opportunities eMobility presents.
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