August 19, 2022

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Cómo las utilities pueden impulsar la revolución de los vehículos eléctricos

How Utilities Can Lead the Electric Vehicle Revolution with Investing.com

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Investing.com – The electric vehicle market is experiencing strong momentum that is just the beginning of massive growth in the coming years. Electric vehicle registrations in Europe increased by 31.6% in the first half of the year compared to the same period in 2021, according to the latest data published by the European Association of Automobile Manufacturers ( ACEA (a little:)). Spain was the second country on the Old Continent to grow the most, specifically 54.9%, after only the United Kingdom (56%). According to the International Energy Agency (IEA), there could be as many as 230 million electric cars on the roads around the world in 2030, which means doubling the number at the end of 2021 by 14.

Increased affordability, increased awareness of their environmental benefits, and favorable economic incentives are some of the main factors driving the growth of electric vehicles. Progress will also be marked by approval of laws. In this sense, the European Union’s decision to ban the marketing of passenger cars and vans that are not electric or with a hydrogen fuel cell in 2035 awaits final approval.

Luis Ramirez, Senior Crypto Account Manager and Spokesperson for eToro in Spain, makes the following analysis:

The key to universal certification of electric vehicles

Despite this strong growth, there are some aspects that have slowed the sector. In 2021, electric cars accounted for 9% of total car sales in Europe and 3% in the United States, while in Spain, the figure is lower than the average on the Old Continent, at 2.76%. One of the problems affecting its growth is the lack of existing charging infrastructure and the “range concerns” that come with it.

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The current ratio between electric cars and charging stations is not enough. For the technology to be widely adopted, it is necessary to deploy charging infrastructure on a large scale, as well as to improve the electricity grid infrastructure. This is where utilities can have a huge impact. These companies, along with other companies from electric vehicle charging networks, car manufacturers and energy companies, will be responsible for deploying charging stations and home chargers around the world.

To reinforce these developments, governments have approved aid plans, such as, in the case of Spain, the Strategic Project for the Recovery and Economic Transformation of Electric and Connected Vehicles (Perte VEC), worth €2975 million.

The utilities sector must be proactive

Adequate infrastructure will be critical to avoid unnecessary delays in projects and reduce costs. Companies in the utilities sector will need to ensure that public charging stations are affordable, attractive, reasonably distributed, and connected to a robust power grid.

To develop strategies to support the growth of electric vehicles, utilities will need to assess the needs of all market segments and customer types, taking into account the requirements of a diverse range of residential, commercial and public customers. With the increase in the number of electric vehicles on the roads, the world will need an increasing number of multi-megawatt charging points.

However, if implemented well, the utilities could support one of the largest energy and automotive transformations ever. By rolling out electric vehicle charging infrastructure, these companies can play an important role in the electric vehicle revolution by being the driving force for mass adoption. Ultimately, this should bring many benefits to these companies, including increased revenue across the industry. This should lead to attractive long-term opportunities for investors in both the utility space and the electric vehicle industry.

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How to invest in the utilities sector

To invest in this growth in electric car adoption, one option is to include companies that produce electric cars in their investment portfolios. For example, some of the most popular assets among eToro investors at the end of the second quarter are Tesla (NASDAQ 🙂 and NIO (NYSE:).

However, you can also invest in the long-term in smart wallets, such as those in eToro, which help this transformation in all its aspects. This applies not only to sectors that include utilities, but also to infrastructure, clean energy, batteries, and much more. This is the first time that investors can benefit from the chain effect where if one sector grows, others continue to innovate.