Electric Transportation for personal, industrial, and public transportation is the largest investment that will prepare for the future financial stability of any utility company. Many utility companies across the globe have already begun the transition and many more will follow. Now is the time to get in on this new technology that is assuredly bound for complete integration into society during this century. The United States has been a leading nation in many technologies, now is the time to lead with electric transportation and the American utility companies can be that leader.
Everyone knows that the fossil fuel industry makes its money off the transportation industry. However, the new and emerging electric vehicles that have begun to enter the market are efficient and rely on the availability of charging stations to recharge the batteries in the vehicle. Why wouldn’t it be time to invest in the future of electric powered vehicles?
There are many reasons why the transition from fossil fuel to electric powered transportation makes good business sense. One of the largest areas for concern is that companies who invest in the future of electric transportation will have the leading edge on this market. Investing in this future transportation method now will ensure a good foundation for future investors and the future of the electric industry.
Currently, some utility companies are investing in the process of installing charging stations in strategic areas. For example, in Portland, Oregon charging stations are set up near popular tourist attractions and family fun establishments such as the Oregon Museum of Science and Industry (OMSI) and the Oregon Zoo, in Portland, Oregon, in the United States, as well as the waterfront and festival grounds. Just about any place that people gather, charging stations are installed. Truck stops along the Interstate 5 in Washington, Oregon, and California, are now installing charging stations.
The liquid fuel industry makes its money by encouraging customers to continue destroying the environment and although their investment is based on the present, the future of providing a clean alternative is based on a future without adding to greenhouse gases. Investing in the electric vehicle industry now means that there will be a solid financial foundation for generations to come.
Some of the ways that the utility companies can invest in the electric transportation industry are to invest in the batteries that are needed to run these vehicles. There is new technology that has been introduced to the public and will continue. This is one way that the electric utility industry can begin the process of taking investments away from the liquid fossil fuel industry. (The Transportation Grid: How Utilities Can Drive The Future Of Transport.)
Consumers are motivated by lower bills, that is not a secret. Consumer habits show that the use of utilities is decreasing. It is understandable that this makes the utility companies and the investors nervous, especially when it comes to the new electric vehicles. However, because of this knowledge, the utility companies can create a new way to continue making money by building on the electric vehicle industry. Instead of spending money on gasoline to fuel the transportation of people, goods, and services, consumers will pay money to charge their vehicles and the utility companies win.
In 2014, the Sustainable Development Solutions Network (SDSN) and the Institute for Sustainable Development and International Relations (IDDRI) jointly published a report that explains how countries can transition into low-carbon use economy. This report is very influential at outlining the topic of encouraging consumers, businesses, and governments to ditch their use of fossil fuel energy and switch to electric powered transportation. The Deep Decarbonization Pathway Report on this issue is a long but informative study that includes information about the climate change and how everyone, especially the utility industry can do something about it. For example, the report states that: “The world is not on track to stay within the 2°C limit. While awareness of climate change is rising, and a large and growing number of countries, cities, and corporations have pledged to reduce their GHG emissions, these pledges taken together are not sufficient to stay within the 2°C limit.” ("Deep Decarbonization Pathways Project") However, utility companies can take a stand to be part of the change that is needed.
The electricity utility industry is perfectly set up to manage the infrastructure needed to support the transition to electric transportation. Power grids are already in place, so installation of private recharging stations at customer homes would be easily set up by each utility company. A few ways this could be more attractive for consumers would be: 1) To offer easy long-term financing without a finance charge to customers who set up an account for the purpose of charging individual transportation. 2) Utility companies could set up a partnership with Electric Vehicle manufacturers to allow for easy financing and to help consumers take advantage of tax breaks. 3) Offer rebates to consumers who purchase an electric vehicle and the home charging system. 4) Offer special warranties to consumers that would help cover any electrical problems that occur within the grid. 5) Create special rebates for customers who purchase batteries from the utility company. ("Electric Transportation | What We're Doing | Southern Company") All of these costs could be recovered over time as consumers continue to power electric vehicles with energy that is used from the recharging stations. If consumer concerns are addressed by the utility companies before they are problems, the consumers will continue to build the overall confidence in the utility industry.
Accelerating this kind of transition to electric transportation investments will be a good investment for the planet and the world economy far beyond just the shareholders because the world liquid fuel industry is making the money right now. Hundreds of billions of US dollars are spent on oil and gas for transportation. This money could be spent on electric transportation instead. If there is a change in the supply and demand process, electric utilities would benefit greatly. ("Forget The Death Spiral: Electric Vehicles Offer A Major Growth Opportunity For Utilities")
Irrespective of the geographical position of the oil source, the price will continue to rise steadily because it is a commodity that is used worldwide. The worldwide utility industry can make an impact on that commodity if an investment is made into alternative sources for the world’s thirst for power to generate industry. This switch would have an impact on the global economy and perhaps stop wars in the east that are over oil reserves.
The transitioin to electric transportation could significantly support the fight against global warming and climate change. Although there is no way to immediately stop it from occurring, a change in significantly reducing the carbon footprint in industry and consumer practice will eventually reverse the global warming crisis. This type of strategy worked to close the hole in the ozone, now it is time to work on reversing the global climate problem. The solution starts with switching to electricity for transportation of all types. (Transportation)
Because power generation through the use of coal has already begun its phase out process and transitions to solar and wind power production has made an impressive start in the utility industry, it only makes good business sense to continue the forward momentum. The importance of using electricity over fossil fuel has been established in the United Nations, and now is the time that the utility industry grabs hold of that momentum and run with it. Could you imagine what a wonderful world it will be when everyone uses quieter sources of power for transportation?
In addition to the information already contained in this memo, one thing that needs mentioning is that a full conversion plan needs to be completed soon. The sustainability for the utility companies depends on the ability to be at the forefront of the battle to reverse global climate change. The social, economic, and environmental risks that are at stake threaten to reverse decades of hard work in development, growth, and it will diminish prosperity as well as put each country on this planet in jeopardy of socio-economic crisis. A strong world economy keeps all stakeholders happy and prosperous.
Electric Vehicles are the innovative future of the planet. Now is the time for utility companies to jump on board while they can get a foothold in the future global economy. Here in the United States leaders in the utility industry are already discussing and trying new policy changes and incentives for electric vehicles on the large scale consumer market. The preliminary findings are that electric vehicles are reshaping the way consumers live. The change also affects the relationships that utility companies have with customers. No longer is electricity just for lighting, power for entertainment and power for necessary appliances, it is also essential for transportation.
If the utility and the manufacturers make a partnership and agree to build charging stations for electric transportation, they will lead the world in reversing climate change. Utility companies are already in a position to lead the transition because they know how to create energy networks that are efficient, reliable, and profitable.
The utility companies are in a position to oversee and manage the growing number of power stations already in place across the United States and Europe. Utility companies have what it takes to set industry standards on pricing, new technologies, and policy creation.
Sources:
"Electric Transportation | What We're Doing | Southern Company". Southerncompany.com. N.p., 2016. Web. 13 Apr. 2016.
Electric Vehicle Grid Integration In The U.S., Europe, And China. 1st ed. The International Council on Clean Transportation, et al., 2013. Print.
"Forget The Death Spiral: Electric Vehicles Offer A Major Growth Opportunity For Utilities". Greentechmedia.com. N.p., 2016. Web. 13 Apr. 2016.
Pathways To Deep Decarbonization 2014 Report. 1st ed. Members of the 15 DDPP Country Research Partners, 2014. Web. 13 Apr. 2016.
"The Transportation Grid: How Utilities Can Drive The Future Of Transport". Utility Dive. N.p., 2016. Web. 13 Apr. 2016.
