The continued convergence of energy and transportation is creating tremendous opportunity for new business models, even as it stacks the odds against traditional electric utilities.
News of Renault-Nissan developing plans to build a 100 MWh grid battery with used EV/Hybrid batteries is big. The dawn of super cheap batteries is here, just not in the way we thought. No doubt battery technology will continue to progress, but the simple economics of repurposing are sure to shake things up. A secondary benefit is an increase in the value of a used EV.
These new models are driving down the cost of energy, among other things. Free fuel, low maintenance, private ownership, and super-cheap storage are going to have a profound effect on incumbent roles. Ratepayer-supported utilities need to enact aggressive strategies to position themselves to drive markets, not chase them; failure to do so creates the very real risk of becoming irrelevant.
A thoughtful vision that is inclusive of all players will provide the direction needed. ProtoGen has developed a 15-step process to help utilities define their vision. Contact us today and we will walk you through it.
“What will end up happening is that BMW and Daimler will … become utilities themselves,” said Gerard Reid, founder of Alexa Capital LLP, a corporate advisor in the energy, power infrastructure and technology sectors.