It will cost the same to self-generate and store power as it will to buy from an energy provider by 2022 in Europe, Ernst and Young have said in a new report.
The firm also predicted that electric vehicles would become a mainstream option around the globe by 2025, when the technology will reach cost and performance parity with combustion engine vehicles.
Benoit Laclau, EY’s global power and utilities leader, said: “Maturing renewable energy technologies, the falling cost of battery storage and more empowered consumer behaviour have long pointed toward the emergence of a radical new energy system. While the trends and timelines vary between markets and geographies, the research clearly shows that the countdown to a new energy future is accelerating faster than most expected.”
EY said the the cost of delivering electricity will not exceed the cost of self-generated and stored electricity in Europe until 2040.
The company said that energy companies looking to survive beyond these three “tipping points” should consider:
- Microgrids: Energy companies can help build community microgrids, connecting and managing the energy inputs from many different self-generating households.
- EVs: Utilities could take a bigger role in the EV industry, investing in infrastructure that allows EV batteries to help stabilise the grid.
- Emerging technologies: Energy companies could develop new digital applications that create virtual marketplaces to trade energy in new ways.
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