The adoption of electric vehicles and plug-in hybrids in the U.S. is likely to be a win-win scenario for carmakers and utilities if the latter were to expand their range of services and increase their revenue streams.
As per the results of a study released on Tuesday, an increase in demand for electric vehicles in the United States over the next decade is likely to create revenue opportunities for electric utilities that invest in greater grid capacity and offer EV charging and related services.
The study, conducted by the Boston Consulting Group (BCG), underscores a significant leap in consumer demand for electric vehicles.
According to BCG’s estimate, 20% to 30% of all U.S. new car sales by 2030 will be electric or hybrid gasoline-electric vehicles. This is a significant rise given that in 2018, plug-in hybrids and pure EVs accounted for just 2% of all U.S. car sales, according to InsideEVs.com.
As per BCG’s forecast, nearly 12% of all vehicles on U.S. roads will be either plug-in hybrid or pure electric by 2030; this will stretch “the capacity of the current grid” when charging in certain locations or at certain times of day.
The scenario provides utilities revenue opportunities if they were to expand their range of services and explore such options as subscription services that impose a flat EV charging fee while providing customers with a free home charger that automatically charges a vehicle overnight and during periods of off-peak demand.
Utilities could also consider expanding into consulting services, and provide software solutions to both consumer and commercial customers for energy and fleet management.