Electric vehicles (EVs) are becoming more popular as a way to reduce greenhouse gas emissions and save money on fuel. However, the rise in EV sales also represents a potential danger to unsustainable energy ecosystems, which are already struggling to cope with the increasing demand and variability of electricity. In a report by the IEA, they expect to see 14 million in sales by the end of 2023, representing a 35% year-on-year increase, with new purchases accelerating in the second half of this year.[1] Therefore, it is important to improve the resilience and efficiency of unsustainable energy grids by investing in new technologies, policies, and practices that can enhance the grid’s flexibility, reliability, and sustainability.
EVs require a lot of power to charge their batteries, especially during peak hours when the grid is most congested. If the energy grid is not upgraded and modernized, it could face frequent blackouts, voltage fluctuations, and power quality issues. This could impact electric vehicle owners and other electricity consumers, potentially affecting the stability of an already unstable energy ecosystem. According to a study by MIT researchers, the evening peaks in uncontrolled EV charging demand could require installing upwards of 20 percent more power-generation capacity. This trend could reduce the cost savings and environmental benefits of switching to EVs and offset a negative impact on our environment. Moreover, an increase in EV charging could also interfere with the integration of renewable energy sources, such as wind and solar, which are intermittent and variable. Grid instability is a serious issue that affects the quality of life, the economy, and the environment.
In 2022, 25% of electric car purchases in India were by fleet operators, such as for taxis. In early 2023, Tata secured a large order from Uber for 25 000 electric cars. Furthermore, while 55% of three-wheelers sold were electric, fewer than 2% of cars sold were EVs. Ola, India’s top EV company by revenue, does not yet offer electric cars. Ola is instead concentrating on smaller mobility and aims to double its electric two-wheeler manufacturing capacity to 2 million by the end of 2023, and to reach an annual production capacity of 10 million between 2025 and 2028. The company also seeks to build lithium-ion battery manufacturing facilities, initially at 5 GWh capacity, scaling up to 100 GWh by 2030. Ola aims to start marketing electric cars for its taxi business by 2024 and to make its fleet of taxis fully electric by 2029, while launching its own electric car business for both the high-end and mass markets. It announced over USD 900 million of investments for battery and EV manufacturing in Southern India, and an increase in annual production from 100 000 to 140 000 vehicles. [2]
A technology organization relies on electricity for its core business operations, and it could face disruptions or interruptions due to grid instability caused by uncontrolled EV charging in an unsustainable energy ecosystem. This could result in data loss, downtime, security risks, or reduced performance. To avoid this, a business owner who is connected to an unsustainable energy ecosystem should invest in backup power sources, such as batteries, generators, or microgrids, that can provide reliable and resilient electricity in case of grid failures. A better option for them would be to switch to renewable energy providers that are self-sufficient. Many businesses that are reliant on this unsustainable energy ecosystem could face higher electricity bills due to the increased demand and congestion on the grid. EVs play an important role in reducing our environmental impact, but being plugged into an unsustainable energy ecosystem could lead to dire negative offsets for the environment and the economy.
As a business owner, you should not expect to see a decline in this trend, especially if there are restrictive policies and laws preventing energy generation from renewable sources. If your tech company depends on electric vehicles that run on an unsustainable energy ecosystem, it’s wise to explore new opportunities for innovation and develop solutions to charge EVs in a crowded grid ecosystem. Market leaders need to monitor and prepare to adapt to changing regulatory environments, engage with policymakers and stakeholders, and advocate for harmonized and supportive regulations that enable fair competition and innovation in the renewable power generation market. There is a new wave of innovation in the renewable power generation market. The “EV Uber Market” is rapidly approaching, and while it may seem daunting, it has the potential to shine a spotlight on unsustainable energy practices and encourage change. Hopefully, this measure will be able to incite positive change and redirect unsustainable laggards toward more sustainable practices. Don’t expect restrictive policies to remain intact, especially when there are huge crises with energy supply and demand in an area or region. If you’re interested in gaining more insight on this topic, I recommend reading these two blog posts:
- The Future of Energy Independence: How New Technologies Are Making It Possible
- 22 Million Cars Off The Road A Year By Migrating To Cloud Computing
I hope you enjoyed reading this blog post about the trend of the “EV Uber Market” and grid congestion and learned something new and useful. Electric vehicles are a great way to reduce greenhouse gas emissions and save money on fuel, but they also pose challenges and opportunities for the power grid and the technology sector.
