Transportation-to-grid platforms represent $200 billion opportunity

01 August 2019 Consulting.us

Transportation electrification and grid integration will revolutionize the energy and transportation industries, and unlock opportunities of $150 billion to $200 billion in annual revenue by 2028, according to a report from consulting firm Navigant.

At the core of the energy revolution is a sustainable and dynamic energy system Navigant refers to as the “Energy Cloud.” Two-way power flows on an increasingly renewable, distributed, smart, and digitized grid will hit multiple areas, including building-to-grid (B2G), smart cities, and transportation-to-grid (T2G).

The latter area of the Energy Cloud will occur as transport shifts to electric instead of internal combustion – representing a huge source of growth for utilities. Mobility services (rideshare, etc.) and autonomous vehicles will further define this shift in urban transportation.

According to Navigant, T2G will incorporate two-way energy flows, along with greater customer choice, clean energy, innovation, and agility – all centred on the electrification of vehicles and their integration with the grid.

Transportation-to-grid platforms represent $200 billion opportunity

T2G will drive four key business models as it gathers steam. One will be infrastructure development to provide charging points, while another will be charging service provision – selling recharging to electric vehicle owners. Load orchestrators, meanwhile, will leverage electric vehicles as “batteries on wheels” to balance load, while mobility providers will deliver mobility-as-a-service (automated rideshare, etc.) to customers.

“As decarbonization of transportation becomes a top priority globally, the market players in energy and transportation are looking at emerging T2G platforms to unlock new value streams, accelerate new product and service offerings, and maximize the opportunities for success,” Jan Vrins, leader of Navigant’s global energy practice, said.

Built on the back of autonomous, connected, electric, and shared vehicles, Navigant expects T2G to disrupt long-held industry approaches. This will include oil & gas firms rethinking retail fueling businesses (more charging ports), OEMs putting a greater emphasis on mobility versus ownership (rideshare fleets), and governments transforming transportation concepts and promoting electrification (smart cities, infrastructure support, vehicle subsidies).

“To remain competitive in tomorrow’s transportation and energy landscapes, market players must embrace new business models and assess their organization’s unique strengths for delivering mobility products and services,” Ted Walker, managing director at Navigant, said. “Companies can stay ahead of the curve by identifying synergistic go-to-market partnerships and looking toward service-based business models.”


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