Category Archives: Electric Vehicles

EV Charging: an Enabler for Utility Customer Engagement

EV charging is a new type of load for electric utilities – probably the first new type of large electrical load since air conditioning over 50 years ago. A lot is being written about the perils that charging a large number of EV batteries could bring to the grid, but also how shifting EV charging off peak could offset decline in utility revenues. 

However, filling up a car with energy is not new for utility customers. In fact, they are already quite passionate about it. They’ll drive out of their ways to pay less, fueling up on days when price is lower, or driving some distance to get to a cheaper gas station. Multiple apps allow motorists to share tips. Gas station chains offer loyalty program and grocery coupons. Gas stations have become minimarts. Clearly, motorists are deeply engaged with those providers. 

Electric utilities are trying really hard to get their customers to be more engaged. They rightfully see customer engagement as the key to entice customers to participate in energy efficiency and demand management (or response) programs. The problem is that customers generally have no idea how much electricity they use for lighting, entertaining, cooling, heating, cooking, showering, cleaning dishes… This makes customers little responsive and unengaged, especially since these activities have very low emotional appeal for electricity (unless there is an outage during a hockey game). To tell you how bad the situation is, utilities regularly go to conferences presenting EE or DM/DR programs considered to be highly successful with only single-digit percentage of the customer base participating… 

With EV charging, utilities have the opportunity to reset customer engagement – especially as owning and driving a car has much more emotional appeal than, say, cleaning dishes. This is especially true since drivers are used to see how much fuel they use at the pump – there is a direct feedback every few days. We also know that drivers are responding strongly to fuel price signals. 

While much of the discussion on EV charging has revolved around grid-centric issues like peak management and electricity sales, EV charging is also a time-limited opportunity to get their customer more engaged. If electricity distributors are not seizing the opportunity, other players will, and they will fall back to being what they have traditionally been – utility service providers serving passive subscribers. 

I think that electricity distributors can be much, much more, especially in the context of the energy industry transition that we are going through.

The Sun for a Penny

I recently presented at the Canadian Electricity Association (CEA) on the future of the industry. What would happen to the power industry if the cost to generate solar electricity reached 1¢/kWh? What could be the impact of a carbon tax? What are the business opportunities arising from the need for reliable power? While electric utilities have seen tremendous transitions during the 125-year history of the CEA, the current rate of development is unprecedented. To paraphrase a famous quote by Wayne Gretzky, utilities need to “skate to where the puck is going to be, not where it has been.” This presentation tried to provide power utilities with some insights into the future direction of the puck! See the presentation here: The Sun for a Penny 20170225a