3 reasons why the energy sector should invest in EV charging

EV charging services bring added value to energy companies’ service portfolio and makes them future-proof - also in terms of the Smart Grid.

Across Europe, the breakthrough of electric vehicles is approaching fast. Incentives for EVs are being introduced all over the continent and car manufacturers keep releasing exciting news about new EV models.

As a consequence, the demand for EV charging infrastructure and services will boom. Chances are that energy companies will become the winners of this shift, since they enjoy many competitive advantages: Solid background competence of the area, an existing infrastructure which serves as a basis for the charging network  as well as an existing customer base.

From electricity distributors to service providers

What is perhaps still needed is a change of mindset, because the servitization trend affects energy utilities just like any business.

It is important to perceive that providing EV charging service is not about distributing electricity to EV drivers. Regardless of whether the charging takes place in homes, real estate or in public, it is a premium added value service for this specific, yet still limited customer group.

Especially when it comes to residential charging, EV drivers are likely your existing customers. By providing this service, you can strengthen and deepen your customer relationships, because it supports your core business.

Making a mark on employment stats

Electrification will have a clear positive impact on employment. Giving up oil increases self-sufficiency and creates hundreds of thousands new jobs in Europe.

Jobs in fossil fuel industry are declining. This is mostly due to automatization, industry consolidations and regional shifts, and has so far affected for instance China, India, US and Germany. 

Yet, at the same time new jobs are popping up at clean energy sector - and these will be multiple compared to jobs in dirty fuels. For instance the solar energy sector workers are already twice as numerous in the US than coal industry workers, since fossil fuel sector has been widely automated.

In 2016, there were 9.8 million direct or indirect jobs in the renewable energy sector.

3.4 million Americans were directly employed by the clean energy industry. By comparison, less than 3 million Americans were directly employed by the fossil fuel industry.

Electrification will have a clear impact on employment in Europe. The two ongoing shifts, from ICE cars to electric ones and from transported fossil fuels to locally produced clean energy, gives Europe a chance to be more self-sufficient and not so dependent on oil. 

The net effect of electrification on the EU economy is seen very positive: jobs increase in research and development, and infrastructure investments. Electric vehicles and charging infrastructure also create new business opportunities. Large efforts are needed in education and training, since different skills and experts are needed in different phases of value-chain.

Renewable energy sector jobs are estimated to rise to 24 million in 2030.

An instrument for demand response in the Smart Grid

Getting involved with EV charging makes energy businesses future proof and especially Smart Grid proof. Sooner than we imagine, EVs will function as one of the instruments for demand response in the Smart Grid ecosystems.

Electric vehicles are packed with power. While they are parked, around 95% percent of the time, they can be connected to the grid. If and when necessary, energy loaded in their batteries can be transferred to help the grid maintain its balance.

Any energy company must be prepared for Smart Grid. Meanwhile, there’s an opportunity to open a new area of business with huge future prospects. So, dear energy company, what could possibly be your excuse not to jump into the EV charging business train?

Learn more about the EV charging business by downloading our free guide for energy utilities.