EY: How EVs & Electrification Change the Energy Landscape
According to EY, 70% of business customers are now placing more emphasis on energy priorities as EVs and electrification become a central component of their strategic objectives.
With the rise of EV fleet adoption, paired with increased demands from data centres and artificial intelligence, there is a marked increase in electricity demand for businesses.
EY has detailed actions that energy providers can take to turn growing business energy demand into prosperity.
“The opportunity to support this soaring demand is a golden one for energy providers and the entire energy ecosystem, but they may not be ready,” writes Greg Guthridge, Global Energy & Resources Customer Experience Transformation Leader at EY, in the report.
“Years of stagnant growth and a focus on residential consumers mean many providers have become complacent, losing the capabilities to serve increasingly demanding business needs.
“Now is the time for providers to step up to help businesses realise their energy ambitions.”
Business challenges with energy providers
EY’s survey indicates that seven out of ten businesses have formulated comprehensive energy strategies with defined actions and investments.
Despite this, they face core challenges: financing, regulatory complexity and interactions with energy providers.
A critical focus is on the stability of energy supply, with 64% of businesses fearing that fluctuating energy costs may weaken their profitability.
The report further reveals that about a third of businesses are doubtful about the value added by their current providers and 74% find traditional customer service offered by these providers to be inadequate.
Greg writes: “It’s time for providers to rethink the service they offer – and to whom it is offered. In today’s businesses, energy is everybody’s business.”
Sustainable energy requirements
Businesses are prioritising reliability and affordability alongside sustainability, with EY reporting that nearly all businesses they surveyed are committed to using carbon-free energy and cutting emissions.
A considerable number of businesses are planning to adopt solutions such as large-scale generation, microgrids and on-site battery storage within the next three years.
While businesses will rely on energy providers for renewable energy and natural gas, they are inclined to seek the services of specialised solution providers and energy management companies for more innovative solutions.
Collaboration could offer a strategic approach to conquer these challenges.
“Smart alliances better support businesses to meet their energy ambitions in a sustainable way, while helping providers secure their own future,” Greg writes.
EY cites AES as an example. It has worked with different partners in different ways to meet the needs of customers, including creating battery storage for industrial applications with Siemens and partnering with Google to develop a carbon free energy data centre solution.
What businesses are looking for
When selecting energy providers, business clients consider resilience, expertise, innovation, support and energy options as top factors.
There is a strong anticipation for advanced digital tools, with the majority of businesses expecting AI to be integral in resolving issues, analysing energy usage and extracting detailed energy insights.
“With global electricity demand set to double over the next 25 years, strategic energy planning isn’t just smart, it’s mission-critical,” Steve Wanner, EY Americas Industrials and Energy Leader, says on LinkedIn.
“The successful leaders will reimagine energy from end-to-end, aligning it with both their business ambitions and the growing needs of their clients.”
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