Utilities in the United States are uniquely positioned to play a pivotal role in the customer EV journey and stake their claim in the US$700 billion eMobility markets. 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 mobility value chain.
Commodity sales: Selling kilowatt-hours in the EV market represents a potential US$600 billion market in the United States by 2040. However, because such sales generate little margin, utilities should think of electricity sales as one component of a bundled set of services.
Charging stations: The value potential of a home and public charging stations in the United States is estimated to be US$100 billion. Utilities are best equipped to address at-home charging requirements, but as with commodity sales, margins may be limited. Public charging requires substantial investments. In such a heavily contended space―with several oil and gas players exploiting this opportunity as well―data will be vital in determining the highest value locations.
eMobility-related services: A US$70 billion possibility exists for utilities in the United States that can orchestrate services across the customer journey—from facilitating charging station installation and maintenance services to offering platforms that support the delivery of seamless, more satisfying customer experiences.
Grid flexibility: Utilities can use EV charging to balance supply and demand—and optimize grid performance—much as they do to accommodate wind or solar energy sources. Alternatively, focusing on creating a more flexible grid for eMobility would enable utilities to manage network congestion better, reduce grid stabilization costs, and optimize wholesale/retail portfolio spend. The value potential in the United States of grid flexibility is estimated to be US$30 billion.
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 and designed to improve the ownership experience, and the grid flexibility to drive cost and network optimization.