The electrification of transportation is driving the automotive and energy industries together. When these industries join forces, everyone wins – automakers, energy providers, customers and the planet. The stakes are high: seamless integration means smarter energy use, lower costs and more engaged customers, while disjointed efforts could slow industry progress and jeopardise net-zero targets.
A synergistic match
Ernst & Young’s Navigating the Energy Transition Survey, found that 50% of consumers would turn to energy providers first to buy new energy solutions, however, currently only 7% of EV drivers purchase a charger from their energy provider. Automakers on the other hand, not only dominate the attention of prospective EV customers but also enjoy greater trust, making them a powerful, if not pivotal, channel for utilities seeking to expand their offerings. Automakers are on their own transformation journey too. According to Mckinsey, by 2030, 84% of auto sector revenue growth (forecasted to double) is expected to derive from disruptive new offerings such as shared mobility, connectivity and electrification. “To succeed, companies have no option but to pursue tech-enabled innovation for themselves”.
Electric vehicle (EV) customers are high-value energy customers who utilities are increasingly focused on attracting and retaining. The fight for these customers is intensifying; utilities that are digital, customer-centric and have exciting new offerings are poised to lead in this once-in-a-generation energy market transformation.
On a society level, the rise in EV adoption also demands active participation. The added charging load on the grid must be monitored and utilised efficiently, as EVs, with their flexible energy demands and storage capabilities, are pivotal to the grid’s ongoing transformation. Automakers need to work with utilities to integrate EVs harmoniously and reap the benefits of their inherent flexibility. The first step – engaging EV customers in smart EV charging programs, such that their electric load can be shifted for the good of the system.
Electric vehicles often act as a gateway into clean energy for many customers, prompting them to become more engaged with their energy use and explore additional sustainable options like solar power and heat pumps, so engaging effectively now will pay itself for years to come.
The energy retailer’s dilemma: Scaling new propositions
Scaling smart EV propositions has evolved from merely launching pilots to navigating the complex challenge of widespread visibility, reliability and smooth onboarding. The commercial viability of these programs now hinges on getting this right and scaling them into the mainstream. Strategic partnerships can make a significant dent here, particularly with automakers who serve as crucial gateways to customers.
A prime example of this synergy is OVO’s Charge Anytime, an innovative EV charging plan in the UK with tens of thousands of customers enrolled. Under this program, EVs are being actively smart charged i.e. software is constantly choosing the best half hours to charge the car to minimise cost and carbon intensity of the power they use. By partnering with automakers, OVO simplifies sign-ups and enhances benefits – like VW customers receiving 10,000 free miles at sign-up and a lower rate for EV charging. OVO is actively pursuing more automaker partnerships to expand Charge Anytime’s user base and scale the impact of smart charging – since launch, Charge Anytime has already avoided an estimated >550 tC02e in greener energy use collectively.
Software providers like Kaluza can act as a bridge between the energy and automotive industries as they are well-placed to integrate the complex technical journeys necessary for commercial smart charging propositions like Charge Anytime. As OVO’s cornerstone software partner, Kaluza is facilitating the unique journeys for users to sign up to Charge Anytime, surfacing the relevant information (e.g. energy billing and smart charging credits), not just in the utility app, but also numerous automaker apps by leveraging Kaluza’s modern API platform and UIs.
This approach not only simplifies the customer experience but also accelerates the adoption of smart charging solutions which at scale can then also help balance the grid.
Commercially-approved direct API integrations with the automaker cloud also greatly increases the reliability of smart charging, particularly important as these propositions and programs hit the mainstream.
Giving utilities easy access to automakers, and a partnership playbook for success, can significantly accelerate the utility’s ability to leverage these channels effectively as they ramp up the fight for EV customers.
Enabling stellar customer experiences
Today, the customer is not just consuming power but also generating it, placing them at the centre of the energy system. However, utilities aren’t typically equipped to facilitate this effectively, and their core software systems often fail to communicate effectively with new customer engagement offerings. This disjointed approach leaves a significant opportunity untapped.
Automakers and utilities are testing the attractiveness of numerous customer journeys, whether offboard through utility or OEM apps, or onboard via OEM infotainment systems. Success depends on ensuring interoperability and building customer trust by delivering consistent experiences, whether this be charging status updates, enrollments or savings. Software that can access and synchronise data across multiple apps plays a crucial role in simplifying this experience for drivers, who otherwise have to switch between numerous apps; one for their EV, one for their solar panels, another for their energy account – the list can go on. Getting this right off the mark and building trust is vital for utilities as they seek to cement themselves as trustworthy providers of new services beyond just selling kilowatt-hours.
By creating consistent, streamlined interactions, customers have positive experiences that build customer loyalty, which automakers and utilities can leverage to generate further as they seek to build additional revenue streams. For instance, using the vehicle’s flexible charging to get paid for other energy and grid related services, such as ancillary services and layering on bi-directional capabilities.
Forging ahead on a shared journey
Collaboration is crucial for addressing the challenges and capitalising on the opportunities presented by the energy transition. The automotive and energy sectors must recognise their shared journey with EV drivers, working together to create a seamless customer experience.
Kaluza is proud to have built one of the world’s largest ecosystems of partners in this space, proving success in connecting utilities with automakers and demonstrating that partnership is the path forward.
The future of EVs is not just about the cars we drive but how we power them and the innovative solutions we create together. By working hand in hand, the automotive and energy industries can shape a cleaner, more efficient and customer-centric future.
