In brief

•There is tremendous value potential in eMobility. In Europe and North America alone, the eMobility market is expected to top US$2 trillion by 2040.

•Utilities are positioned to capture value in commodity sales, charging stations, eMobility-related services and grid flexibility.

•Leading utilities will charge ahead by investing smartly, tapping their trusted customer relationships and partnering to provide bundled experiences.

Utilities can pursue four distinct opportunities across the eMobility value chain.

  1. Commodity sales: Selling kilowatt-hours in the EV market represents a potential US$1.7 trillion market in Europe and North America by 2040. However, because such sales generate little margin, utilities should think of electricity sales as one component of a bundled set of services.

  2. Charging stations: The value potential of home and public charging stations is estimated to be US$400 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 key in determining the highest value locations.

  3. eMobility-related services: A US$250 billion opportunity exists for utilities 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.

  4. 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 better manage network congestion, reduce grid stabilization costs and optimize wholesale/retail portfolio spend. The value potential of grid flexibility is estimated to be US$100 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 designed to improve the ownership experience, and the grid flexibility to drive cost and network optimization.

Cruising to value

Leading utilities will thrive in the eMobility market by taking actions that will bend the EV adoption curve upward. They will maximize the size of the eMobility opportunity for all invested parties by:

•Putting the customer in the driver’s seat. Utilities are well positioned to help consumers make the right choices as they navigate the complex EV ownership journey. Leading utilities will double down on understanding the motivations for—and barriers to—EV adoption. They will crack the code on EV consumer behaviors and drive the EV customer experience.

•Mapping the journey to hyper-relevance. Leading utilities will leverage a platform approach, selecting partners from different industries that are committed and able to boost the customer value proposition—from car manufacturers and dealers to fleet operators, charge point operators, parking space owners and many others. They will appropriately incent their ecosystem partners and architect collaborations to ensure that joint offerings benefit EV owners and multiply value to all ecosystem players.

•Outmaneuvering the competition. Drawing on their vast amounts of consumer data, forward-thinking utilities will invest strategically in a portfolio of services aimed at simplifying the EV ownership experience and removing barriers to adoption. Importantly, they will see EVs not in isolation, but as part of a broader set of emerging growth opportunities such as distributed energy and the connected home—and focus on further integration of services. The eMobility race will be won through a combination of speed and value.

With these actions, utilities will ensure their relevance and drive sustainable profitability through the opportunities eMobility presents. Click here for report