Growth Opportunity for Electric Utilities Seen in Electric Vehicles
In the US, the use of energy is divided into 2 categories: the use of energy through electricity used in homes, in businesses, in industries. The second use of energy would be for vehicles where the original source of power is taken from fuel: gasoline and diesel.
More than $1 billion is spent on energy uses by American consumers on a daily basis. In the past, electric utilities did not really focus its effort in the transportation industry. These days though, it is a different story, with the latest technology of auto manufacturers building electric cars and plug-in hybrid vehicles.
There is possible revenue to be taken from the transportation energy market. Based on a report made by the United Nations, it shows that vehicle sales for Electric Vehicles could see an increase of a hundred percent within fifteen years. The development of a greener country where people see the potential of using electric vehicles is moving fast-forward. Then again, such technology still needs to have the support of the right agencies.
Like any endeavor, there are certainly challenges, trials, and even adversities. The most common challenges include the inadequate number of charging stations, range anxiety of consumers, affordability of better car batteries, and possibly consumer confidence with this type of vehicle.
With proper positioning for electric utilities, infrastructure needs as well as EV technology can be met and accomplished with these great recommendations:
- Long Term financing for At-Home Charging for Free when the consumer purchases EV.
- EV Manufacturer and Utility Company Partnership which could actually open up a lot of options, which would include financing schemes. Best of all, not only will this target the financial part, there would be better dissemination of knowledge and information about EV.
- Exelon, another high profile utility company, would be able to create a program that would help in absorbing power from its excess production from its nuclear fleet.
- EV buyers receiving rebates upon purchase of electric vehicles.
While many would think that electric utilities would only benefit in terms of money on the movement towards electric vehicles, there are 3 more good reasons why the shift should be towards EV:
- Fuel will always be a need, hence, it will be a given that its price would either steady or go up. It is a commodity so the US will always have use for it.
- While the US may see possibilities of having its own fuel output, the US will always import billions of dollars in oil.
- Lastly, a greener US would definitely help in global warming. In fact, coal plants have been given a closer look and slowly being phased out as the government sees more potential in renewable energy increase.
There are several factors in determining the ways to be able to benefit from electric vehicles. What’s more, the future sees a positive movement and a brighter potential in the use of EV in relation to electric utilities. The big question though, is when the US utilities would be able to make that move to grab such opportunity in front of them?