Electric utilities that invest in grid infrastructure and offer electric vehicle-related services will benefit over the next decade due to increased demand for electric vehicles, according to a new study.
The study, conducted by Boston Consulting Group (BCG), estimates that the rise in demand for electric vehicles could create between $3 and $10 billion of new revenue over the next decade for the average utility.
The study is based on the assumption approximately one-quarter of all cars and trucks will be electric, including hybrids and fully electric vehicle vehicles, by 2030.
In order to capitalize on that revenue, utilities must make investments to increase capacity of grid infrastructure. “Significant increases in demand in certain locations or at certain times of the day will stretch the capacity of the current grid,” the study says.
Growth in the electric vehicle industry does not merely depend on more consumers purchasing electric vehicles. All aspects of the electric vehicle supply chain must keep pace to support the industry.
Cost might be a huge factor when consumers are debating whether to purchase an electric vehicle or not, but so is convenience. If consumers can’t charge their cars when or where they want, that will be a huge deterrence.
Utilities have a big role to play in helping electric vehicle demand grow and doing so will create enormous revenue opportunities for them.