At Fortum, we believe that e-mobility can deliver a whole range of benefits, from cleaner air and less pollution to better energy usage. Electric vehicles (EVs) also support the market for renewable energy sources (RES), with car batteries offering new opportunities for grid-connected storage and bringing prosumers into the electricity market.
E-mobility is growing in the EU and its progress in Europe is expected to keep up with the global pace. A few key figures paint a clearer picture of the evolution of electric transportation:
According to BNEF, by 2040, 54% of new car sales and 33% of the global car fleet will be electric. Falling battery prices will bring price-competitive electric vehicles to all major light-duty vehicle segments before 2030, showing a dramatic shift towards electric transportation – and growth could take place at an even faster rate.
Around 100,000 electric cars were sold in Europe last year, compared to 150,000 in the US, based on industry estimates. However, carmakers in Europe will be compelled to increase marketing of electric vehicles in order to meet the stricter rules with regard to emissions that will come into force in 2021. Several automakers, from Volkswagen to Aston Martin, have predicted that by 2025, a quarter of all the vehicles they produce will be electric. Volvo has gone as far as announcing that all of their new car models will feature electric motors by 2019.
The needed charging infrastructure must be in place before all these EVs hit the roads. At the moment, the limited availability of charging infrastructure – partly due to a lack of adequate business and financing models – is considered one of the biggest obstacles to the widespread adoption of EVs. Drivers still suffer from so-called range anxiety. It’s a classic chicken-and-egg problem.
Fortum aims to contribute to the discussion on the development of electromobility, addressing both challenges and opportunities. We share our insights, present case studies, and pinpoint key aspects that should be improved to enable the swift uptake of EVs and consequently facilitate the decarbonisation of the transport sector. We hope readers find the review interesting and informative. Furthermore, we hope that it encourages active dialogue among our customers, car manufacturers, energy companies, service providers, and authorities, thereby helping stimulate progress for a cleaner world.