Electricnick, The EV Revolution

Fisker Karma

If a little while ago we looked at the fundamental changes for car companies that are going from full control to working with a broader level of suppliers, each with more say, the other affect EVs have on many industries is redefining energy and the electronics industry.

The gist is that traditional utilities built power plants and delivered electricity to homes.  Considering the growing world climate problems and the fact that much of the electricity is created with polluting sources, utilities have to face a two-fold horizon, alternative clean energy and that of becoming a transportation manager of energy.

From Coal To Renewables.  No one said it would easy, or painless.  Switching from firing up dirty coal stations to investing in solar panel and wind farms takes time, energy and finances.  Add to the scenario  geo-thermal and hydro-electric solution and we see an industry growing in size and intellectual property.  Utilities are finally learning that the new business model applies to them.  They must learn to work with customers and use their resources to balance the overall load on the grid.

Smart Grids And Clean Energy.  EVs will never deliver their full potential until we have smart grids powered with clean, renewable energy.  Smart grids mean utilities must turn to how the Internet evolved and how the telecom world went from copper wire to information transportation.  That means utilities have to shift away from being energy producers to energy and efficient transportation managers.

Add to this that little of heard companies that offer electronic components are now becoming extremely important since they play a growing role in the car industry.  Car makers having spent little time with the electric drive, preferring to extend the life of internal combustion engines, ICE are now forced to turn to smaller manufacturers and work together in a more open source community fashion.

All in all, we are witnessing the breakdown of a traditional system that relied on holding tight the reigns of power, rarely sharing anything with other companies, treating consumers as cash cows and having the ultimate say in the final design.  Car companies do not have that luxury anymore, even by partnering with electronic companies, they have to share more and more.  Same thing applies for utilities that now have to work with individuals and small companies that offer that much needed extra energy.

The best part about it is that everyone needs what the other has and the incentives are on working together sharing technologies and assembling products that meet demands, instead of forcing consumers to solutions that are ill-adapted.  So far, no one is on top but watch for some clever companies to leverage their positions at some point.