Published on 05/30/2017 | Technology
Economic, security, and environmental pressures are driving countries around the world to electrify transportation, which currently accounts for nearly 72 percent of global oil demand. Electric vehicles (EVs)will fundamentally change how electric utilities do business and strain their existing infrastructure. Those utilities that are proactive and develop an integrated solution for their customers will be in the best position to take advantage of the opportunities that transportation electri cation presents, while minimizing the potential risks.
Interest and investment in EVs are already signi cant. Beginning in late 2010 and continuing through 2011, more than 20 automakers will introduce battery-powered EVs or plug-in hybrid EVs. Within the United States, utilities are launching pilot EV programs, and over $30 billion dollars of both public and private investments have been made in EV-related products and projects.
Despite this momentum, a variety of business, technical, and regulatory issues must be addressed if the electri cation of transportation is to succeed. Charging systems and related infrastructure must be deployed in advance of customer adoption of EVs or adoption will stall. Building out this infrastructure will take signi cant time, so utilities, regulators, providers of EV charging stations (also known as EV supply equipment or EVSE), and other parties must work together to streamline permitting processes, establish business and billing models, and tackle regulatory issues.
The EV community must also overcome barriers to adoption. Consumers for example, are concerned about
the limited range of some EVs, potentially long charging times, the high cost of EVs and EVSEs, and the long permitting process to install an EVSE. For utilities, transportation electri cation presents numerous challenges. Business models for utilities providing charging services have yet to be worked out, and will depend on how actively a utility wants to participate in the market, on their technology infrastructure, and on whether they’re in a regulated or deregulated market. Three approaches are: 1) the utility owns the EVSE; 2) the utility subsidizes EVSE; or 3) EVSE as an appliance.
You can read and download the full report on Silver Spring Networks here
