Through this article, Daniel Carr, Head of Smart Cities at Alectra, emphasizes the urgency of the energy transition and its impact on society. He argues that while technological solutions exist, their successful deployment depends on consumer adoption, particularly in the electric vehicle market. Carr suggests that making electric vehicles affordable, easy to use and desirable is key to accelerating the transition and achieving a sustainable energy future.
A recent article in The Atlantic magazine pointed out an idea that I’ve felt intuitively, but hadn’t been able to articulate in words nearly so well. The article was about scientific discovery and the impact that it has on societies.
While we praise the scientist who makes the discovery, it is often years before that discovery is made useful. While the researcher is essential to the process of bringing innovation to life, it is insufficient; there is substantial effort and often transformational change required for an insight to be turned into technology, and from there into a product that can be deployed at scale. It is only at this latter stage, once the technology is stable and reliable and there is a broad ecosystem to support its use, that it can bring its promise into reality and, in so doing, shape societies and the economies that power them.
I believe this line of reasoning is particularly important for those of us lucky enough to work on the energy transition because the results of our work matter. Global greenhouse gas emissions targets have been set because the negative impacts of climate change grow stronger the further we deviate from the historical temperature patterns in which our societies developed. Keeping to timelines matters.
“When it comes down to influencing purchase decisions, we need to show customers that buying an EV is affordable, easy and popular.”
It is more than the fate of a company or an industry that is affected by how effectively the energy transition is managed; all of us, and our future generations, will be affected in many aspects of our lives, from health, to financial, to security considerations. It is of critical importance that we deploy the technologies of the energy transition effectively as soon and as broadly as possible.
Many analyses have been done to demonstrate that we have the technology today to solve the challenges of the energy transition. Some even argue that the energy transition demands somewhat less attention from political leaders in favor of other priorities, because the solutions to the energy transition are already available, and progress in commercialization is being made in major markets around the world, although at different rates. The facts used to support these arguments are heartening, and certainly we can all see and take satisfaction from the regular statistics published about the pace of EV adoption, charging network deployment, renewable energy generation and energy efficiency. The question remains: will this process be fast and deep enough to help us avoid the drastic impacts of climate change? Will it actually help us into a new era of energy security and sustainable prosperity?
A key consideration for those of us working in this field is that, in many respects, the energy transition is about consumer preferences. Customers choose the technology that they use in their daily lives and elect the members of the government to make laws and set policies that influence the pace of technology deployment. As it relates to transportation, the 2nd largest source of GHG emissions, individuals can choose whether they purchase an electric vehicle or not.
While in the longer term there may be mandates that set a target for making all vehicle sales electric, there is no guarantee that these long-term targets will be maintained or supported; many events could derail them. The best assurance of progress is strong consumer demand, so that industry, consumers, government and voters all see the benefit of pulling in the same direction and making change work together. When it comes down to influencing purchase decisions, we need to show customers that buying an EV is affordable, easy and popular.
Affordability means that customers who switch to electric are not making personal financial sacrifices. They want benefits they can feel. Easy means that drivers don’t encounter barriers that prevent them from making a change they wish to do; instead, the simplest path for them is to switch. Finally, popularity means that individuals feel a desire towards making this change; there’s an attraction to being part of something meaningful and desirable.
We all have different roles within our organizations, industries and different avenues to help make the customer experience for EV adoption affordable, easy and popular. While the actions we take may be different, I think keeping this trio of guiding lights in mind will help us make more insightful decisions as we engage with consumers and collaborate with them to realize the energy transition.
