By 2030, the EU expects 35m electric vehicles to be on the road, but that transition is not a done deal — especially if potential owners think the cost will be too high. For the traditional oil majors, who are looking to accelerate their investments in the energy transition, this presents an opportunity, as they move from Big Oil to Big Energy. The ability to manage flexibility in the energy system — how electricity is stored or supplied to the power grid and how demand is shifted to times when more wind or solar power is available — will be the key to their role. Matching intermittent supply from renewables with growing demand in the ever-electrifying world is where the opportunity lies — and where the oil majors should focus. The industry’s fleet card relationships — tie-ins with companies which offer staff cars — as well as ability to trade energy and offer incentives for EV owners will give them a bigger presence in the energy transition. As soon as there are enough EVs on the road, batteries will be the best option to provide short-term flexibility to the grid.
FT 26th Oct 2020 read more »