People are starting to look at energy systems very differently

Following on from his presentation in Utility Week Live 2018’s Network Theatre session on the role of transport in the energy system, the disruption it is seeing and the outlook for businesses and consumers, we caught up with Mike Potter, managing director of Drive Electric to hear more.

People were now, he had said, starting to look at energy systems very differently and he spoke to around 200 people a week who were considering moving to a battery car.

So, if he had to choose the one most common thing that has sparked that growing interest and consumer behaviour in electric vehicles (EVs) what would it be?

“Word of mouth. Peer experience is often a tipping point but generally there is a lot of media about it overall. They definitely want to be part of a change.”

You questioned whether price really was the tipping point for people moving to EVs, instead saying that in your view it was range anxiety, some of which is actually misplaced. What will change that, and do we need a consumer awareness campaign?

“It’s really a difference between what people think they need, and what they find out they need through experience, that matters with range. Once people get an EV, after about two weeks they feel much more comfortable with a limited range as they can plan for it. To shift a lot of people into EVs, range needs to be north of 200 miles, possibly 250. We are just waiting for cars that more people can afford than the current models offering this, like the Tesla S or X.

You predicted there were some real challenges ahead for networks. What should their priorities be at this stage?

For low-voltage networks, early warning of a build-up of EV users attached to particular assets is probably the priority. I worry that if the grant for home-chargers disappears, then distribution network operators (DNOs) may lose valuable insight into this. Chargers are supposed to be notified – but this is mostly post-install and often a while afterwards. The challenges could be that a relatively low penetration of unmanaged EV charging could lead to a need for reinforcement – but with managed or smart-charging this can be reduced dramatically.

Who do you think will be the biggest winners in the market? Network operators, retailers, vehicle manufacturers or  consumers?

Energy retailers that can attract EV users (they use two-times the electricity on average).

Vehicle manufacturers who can make EVs in numbers for the right price – this could well be Chinese manufacturers.

Consumers, however, win all round – even the less affluent, once used EVs are more common. They win on motoring fuel cost, they will win on energy cost (through monetising the flexibility of their home- charging), they win on lower car maintenance bills and they win on avoiding congestion charges.

How important is the work being done on innovation in this area?

Innovation is key but it has to be aimed at real-world business models – there is a lot of money being spent by government and this can lead to inefficient development. Having said that, all help is gratefully received.

You mentioned plans to launch real smart charging / real-time tariff in October, what will that look like?

With time-of-use tariffs emerging, we will use our Crowd Charge technology and we will be able to give our customers electricity at around 30 per cent cheaper for their EV – and which is also is 20 to 30 per cent lower carbon at source, (not via carbon trading or offset).

We are aiming to launch this in the next three months. It will show a net saving after the cost of smart charging equipment, and be ready to deliver even more value in the future.