May 17, 2023

Electric Transportation and Its Impact on the Energy Industry

Electric Transportation has grown crazy amounts over the past few years, and we still have a long way to go!

Electric Transportation and Its Impact on the Energy Industry

As the world faces the challenge of climate change, one of the biggest contributors to greenhouse gas emissions is the transportation sector. However, with advancements in technology, the future of transportation seems to be electric. This shift towards electric transportation has the potential to not only reduce emissions but also impact the energy industry in significant ways. In this article, we will explore the future of electric transportation and its impact on the energy industry.

The transportation industry is in a state of transition for the past 5-10 years. With huge amounts of development with electric vehicles, there is an imminent shift towards an EV-dominated transportation industry within the next few decades.

As the transportation industry released 7.3 metric tonnes of CO2 (carbon dioxide) in 2020, and this number shows no signs of dropping to any respectable level, there is an extreme need for some change within the industry, and fast.

As we grow more and more aware of the impact the vehicles, we use in our day-to-day lives impact the environment, we seem to be pushing forward the EV industry, and the dismantlement of the petroleum industry. While these may not be the opinions or actions of everybody, it seems to be the more popular viewpoint across many developed countries.

The Rise of Electric Transportation

Robert Anderson who was born and raised in Scotland was the man who created the first ever electric vehicle sometime between 1832 and ’39.The batteries used for his vehicles were not yet rechargeable, so it was more of a parlour trick than an actual car which gets you from A to B. A larger and better version was created in ’41, it could travel 1.5 miles at around4mphtowing 6 tonnes, but once it did this, it needed new batteries, sort of like a toy car. This car was unfortunately destroyed by rail workers who thought of it as a threat to their work, this marked the end of the Galvani. They made a return in the 70s and 2003 and a long hiatus and petrol/diesel cars taking over for a while. Then the boom of electric cars happened shortly after this with new tech coming into play.

Advantages of electric transportation over traditional fossil-fuel-powered vehicles.

There are many advantages to using electrical transport, as well as being more sustainable, they come with many more benefits which can appeal to a wide audience.

  • Environmental Benefits: Electric vehicles (EVs)have significantly lower carbon emissions compared to traditional fossil-fuel-powered vehicles. This is because EVs do not produce tailpipe emissions, which are harmful to the environment and contribute to air pollution and climate change.
  • Lower Operating Costs: EVs have lower operating costs compared to traditional vehicles because they require less maintenance, have fewer moving parts, and use less fuel. In addition, the cost of electricity is generally lower than the cost of gasoline, which makes EVs more cost-effective in the long run.
  • Energy Security: EVs can reduce dependence on imported oil and increase energy security, especially in countries that rely heavily on imported oil. This is because electricity can be generated from a variety of domestic sources, such as renewable energy sources like solar and wind power.
  • Improved Performance: EVs have instant torque and can accelerate faster than traditional vehicles. They are also quieter and smoother, providing a more comfortable driving experience.
  • Reduced Noise Pollution: EVs produce significantly less noise than traditional vehicles, which can help reduce noise pollution in cities and urban areas.
  • Tax Credits and Incentives: Many countries offer tax credits and incentives for purchasing electric vehicles, making them more affordable for consumers.

Examples of successful electric transportation initiatives.

There have been many counties and individual cities that have taken on large electric transportation projects. Some of these focus on public transport, some passenger vehicles and others can even be water-inhabiting vehicles.

  • China's electric bus fleet: China has the largest electric bus fleet in the world, with over 400,000 electric buses in operation. This initiative has significantly reduced air pollution in Chinese cities and has helped to address the country's dependence on imported oil.
  • Norway's electric vehicle adoption: Norway has the highest per capita adoption of electric vehicles in the world, with EVs accounting for over 50% of all new car sales in the country. This has been achieved through a combination of government incentives and tax exemptions for EVs.
  • London's electric taxi fleet: London has introduced an all-electric taxi fleet, with the iconic black cabs now being replaced by the new TX electric taxi. This initiative is part of London's plan to reduce air pollution and improve air quality in the city.
  • California's zero-emissions vehicle mandate: California has introduced a zero-emissions vehicle mandate, which requires automakers to produce a certain number of electric vehicles each year. This initiative has helped to increase the availability of EVs in California and has encouraged other states to introduce similar mandates.
  • Amsterdam's electric boats: Amsterdam has introduced electric boats for use on the city's canals. These boats are powered by electricity and produce zero emissions, helping to reduce air pollution and noise pollution in the city.

These are just a few examples of successful electric transportation initiatives that have been created all over the world. As governments and cities around the world look to reduce their carbon emissions and improve air quality, we can expect to see more and more initiatives focused on electric transportation.

Challenges to the Adoption of Electric Transportation

High cost of electric vehicles

With new innovations and products, there is usually a general expectation of a higher cost for these products. Of course, this is expected because of the availability of recourses, factories, and cheaper ways to create these new products. This has, with so surprise, affected the price of electric vehicles and other forms of transportation, as the recourses and viable/mass production is limited, they are usually much more expensive than more common petrol or diesel vehicles.

With this higher cost, there will be an understandable lack of interest or availability to the regular person or smaller companies. Therefore, they will use pre-established vehicles or transportation until they become more readily available.

There is also a similar situation within poorer counties when it comes to the installation and introduction of more sustainable public transport in and around cities. For example, China has huge fleets of electric buses which lessen the environmental impact of people’s daily journeys without adding large costs to their commute. Whereas in a poorer country, there may be simple bus routes, small amounts of trains available, or no public transport at all, so, these counties will not be able to afford to install brand new electrical transport, leaving them behind until the new innovations are available at a much lower cost.

Limited charging infrastructure

When you are driving around a city, town, or down a motorway on a long journey, you will undoubtedly see many more petrol stations than charging hubs for electric vehicles. This makes sense and mostly should be the way it is at this moment in time. However, the electric vehicle industry is such a fast-growing industry, there is always a need for more charging hubs. With these being limited, especially in more developed and sparse parts of the world/the UK (for example, the countryside) it may be hard for some people to find a way to charge their car, meaning they have to plan routes and charging points ahead of time, whereas petrol car users would not need to make these plans as they are much more likely to stumble across a way to fuel their car. This results in many people being reluctant to buy electric vehicles, as the charging infrastructure is undeveloped. This anxiety is very understandable and waiting until more charging points are available across the entire county.

Range anxiety

Range anxiety is a term used to describe the fear or concern that electric vehicle (EV) drivers may experience when they are worried that they will not be able to reach their destination due to the limited range of their EV's battery. This anxiety arises from the fact that most electric cars have a limited range on a single charge, and the availability of charging infrastructure is not as widespread as traditional petrol stations. As a result, drivers may feel uncertain about whether they will be able to reach their destination or find a charging station before running out of battery. Range anxiety is seen as a major barrier to the widespread adoption of electric vehicles and efforts are being made to address this issue by improving the range of EVs and increasing the availability of charging infrastructure.

The Impact of Electric Transportation on the Energy Industry

Reduced Demand for Fossil Fuels

Electric vehicles are powered by electricity, and this reduces the demand for fossil fuels. As more people switch to EVs, the demand for gasoline and diesel-powered vehicles will decrease. This will lead to a reduction in greenhouse gas emissions, which is good news for the environment.

Increased Demand for Clean Energy

The shift towards electric transportation will increase the demand for clean and renewable energy sources. Renewable energy sources such as solar, wind, and hydroelectric power will become more important as the demand for electricity grows. This will drive the development of new technologies to generate, store, and distribute clean energy.

Disruption in the Oil and Gas Industry

The shift towards electric transportation will disrupt the oil and gas industry. The industry will face a reduction in demand for its products, and this will lead to a decline in profits. As a result, the industry will need to adapt and diversify its operations to remain competitive.

Job Creation

The transition towards electric transportation will create new job opportunities in the energy sector. The development of new technologies and the need for infrastructure to support electric vehicles will drive job creation in fields such as renewable energy, energy storage, and electric vehicle manufacturing.

Subsidies and Incentives

Governments around the world are offering subsidies and incentives to promote the adoption of electric vehicles. These incentives are driving the demand for EVs and helping to accelerate the transition towards electric transportation.

The Role of Government in Promoting Electric Transportation

The UK Government has committed to investing heavily in electric transportation, with the aim of achieving net-zero emissions by 2050. Some of the key funding initiatives for electric transportation include:

  • The Plug-In Car Grant: This grant provides up to £2,500 towards the cost of a new electric car, making them more affordable for consumers.
  • The Electric Vehicle HomeCharge Scheme: This scheme provides up to 75% off the cost of installing a home charging point for EV owners.
  • The On-Street Residential ChargePoint Scheme: This scheme provides funding for local authorities to install EV charging points on residential streets.
  • The Rapid Charging Fund: This fund aims to increase the number of rapid charging points in the UK, making it easier for EV owners to travel long distances.

Regulatory Changes to Encourage EV Adoption:

  • In addition to funding initiatives, the UK Government has also introduced regulatory changes to encourage the adoption of electric transportation. Some of these changes include:
  • The 2030 Ban on Petrol and Diesel Cars: In November 2020, the UK Government announced that the sale of new petrol and diesel cars would be banned from 2030, with hybrids banned from 2035. This sends a strong signal to car manufacturers that they need to transition to producing electric cars.
  • Benefit-in-Kind (BIK) Tax Incentives: The UK Government has introduced a reduced BIK tax rate for electric company cars, making them more attractive to businesses.
  • Zero-Emissions Zones: The UK Government is working with local authorities to introduce zero-emissions zones in cities across the country, which will restrict the use of petrol and diesel cars in certain areas.

Support for Charging Infrastructure

One of the biggest barriers to the adoption of electric transportation is the lack of charging infrastructure. The UK Government is taking steps to address this issue by providing support for the development of charging infrastructure. Some of the measures being taken include:

  • The Electric Vehicle HomeCharge Scheme: As mentioned earlier, this scheme provides funding for the installation of home charging points for EV owners.
  • The On-Street Residential ChargePoint Scheme: This scheme also provides funding for the installation of charging points, but on residential streets.
  • The Workplace Charging Scheme: This scheme provides funding for businesses to install EV charging points at their premises.



The future of transportation seems to be electric, and this shift towards electric transportation has the potential to reduce emissions significantly and impact the energy industry in various ways. There are several advantages to using electric transportation, including lower operating costs, improved performance, and environmental benefits. Many countries and cities have taken on large electrical transportation projects, such as China's electric bus fleet and Amsterdam's electric boats, and we can expect to see more of such initiatives as governments and cities around the world look to reduce their carbon emissions and improve air quality. However, challenges such as the high cost of electric vehicles, limited charging infrastructure, and range anxiety need to be addressed to ensure the widespread adoption of electric transportation. Nonetheless, the transition towards electric transportation is a positive step towards a more sustainable future, and it is encouraging to see the efforts being made towards this goal.

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