Transportation And Renewables Meet The Smart Grid To Reduce Carbon Emission

To dramatically reduce the world’s CO2 footprint fast, we are about to experience industry transformations in the energy and transportation sector that will rival the Internet revolution.

These transformations are driven by powerful technology forces, but mainly by the potential risk of dramatic irreversible climate change. There is an urgent and recognized need to reduce the world’s carbon emission, using market mechanisms to spur competition and create an incentives for new profitable business opportunities.

However, this can only be done by electrifying the transport sector (e-mobility)  and “fuel” it with renewable energy since it contributes largely to the carbon emission in most countries. It is not uncommon in countries that the transportation CO2 emission constitutes between 25% to 40% of total CO2 emission.

The car manufacturers are now gearing up in large scale to migrate from internal combustion engine (ICE) vehicles to electric vehicles (EV) and it is anticipated that the cost parity between ICEs and EVs will be reached in 2025 (Morgan Stanley) or even before (Nissan).

These millions of EVs must be integrated intelligently into the electric grid (VGI – Vehicle-Grid-Integration) with smart-grid software technology to limit costly upgrades to the electric grid. Further contributing to the transformation is the rapid deployment of renewable energy resources that must also be integrated.

In this challenging eco-system we need to move to the next dimension to simplify and focus on the key elements that are driving the transformation to really understand the challenges and opportunities.

The International Energy Agency (IEA) is forecasting that the EV market will explode from around 4 million EVs 2019 to between 120 million (conservative estimate)  and 220 million (aggressive estimate) by 2030. 



The integration of millions of EVs into the electric grids, that were designed decades ago to support residential consumers, business and the public, will pose a monumental challenge and lead to transformational changes.

This development will fundamentally disrupt existing multi-billion-dollar industries and create disruptive new products, services, supply chains and required skillsets to compete in the new market place. But, it will also present huge opportunities.

The best-informed companies or startups, with insight and the ability to act boldly will make the transition successfully.