The Transportation Sector Meets The Electric Grid
The Energy and Transportation Sector Transformation
We are about to experience industry transformations in the energy and transportation sector that will rival the Internet revolution.
These transformations are driven by powerful technology forces, but mainly by the potential risk of dramatic irreversible climate change. There is an urgent and recognized need to reduce the world’s carbon emission.
However, this can only be done by electrifying the transport sector since it contributes largely to the carbon emission. For example, in California the transport section accounts for ~37% of the CO2 emission and a similar percentage can be found in Denmark.
The car OEMs are now gearing up in large scale to migrate from internal combustion engine (ICE) vehicles to electric vehicles (e-Mobility) and it is anticipated that the cost parity between ICEs and EVs will be reached in 2025. These millions of electric vehicles must be integrated intelligently into the electric grid (VGI* – Vehicle-Grid-Integration) with smart software technology to avoid costly upgrades to the electric grid. Further contributing to the transformation is the rapid deployment of distributed renewable energy resources (DER).
The International Energy Agency (IEA) is forecasting that the electric vehicles (EV) market will explode from around 4 million EVs 2019 to between 120 million (conservative estimate) and 220 million (aggressive estimate) by 2030.
International Energy Agency Electric Vehicle Forecast
The integration of millions of Electric Vehicles (EV) into the electric grids, that were designed decades ago to support residential consumers, business and the public, will pose a monumental challenge and lead to transformational changes.
This development will fundamentally disrupt existing multi-billion-dollar industries and create disruptive new products, services, supply chains and required skillsets to compete in the new market place.
The best-informed companies or startups, with insight and the ability to act boldly will make the transition successfully.