Ban of Fossil Fuel Vehicle Sales in the UK 2030: How will this affect energy companies?

    By Joshua Devenport, Junior Content Creator at BJSS

    Joshua Devenport

    Electric cars used to be the future. Now, they’re very much the present. The ‘Ten Point Climate Change Plan’ that was recently announced by the UK Government is set to accelerate the shift to zero-emission vehicles. The introduction of this plan has brought forward the sales ban of fossil fuel vehicles from 2040 to 2030, which will lead to the reduction, and eventually cease production of these vehicles.

    Although the recent announcement is nothing new to energy companies, it could present a significant challenge to them. By bringing the ban of fossil-fuel vehicle sales forward by ten years, energy companies will need to meet the demand of the electric vehicle age. From our experience of working with some of the world’s leading energy companies, we believe they can transform at the pace required to meet the demands of the future. This blog aims to uncover our learnings which can be applied to your business.

    But firstly, a bit more on who this affects. The ban on fossil fuel vehicles affects energy companies of different calibres. Oil refining companies and distributors will see a gradual decrease in demand over the coming years as electric cars begin to take over the automobile industry. No longer will customers visit petrol or gas stations, as we start to see a rise in demand for electric vehicle charging facilities.

    Although this is mostly positive news for most renewable energy providers, it still introduces some challenges for the companies that may not have been expecting a plan of this magnitude so soon.

    Energy companies, in particular, could be left behind if they do not adapt to the new policies and meet the demands for electric vehicle charging. We are already seeing organisations such as BP and Shell, the two oil and gas giants of the UK, invest heavily into renewables and electrification infrastructure. But do they have the operating model, technologies and processes to accelerate the introduction of renewable energy facilities and electrification infrastructure?

    Today there are around 317,000 electric vehicles on the road in the UK. Going forward, projections by National Grid suggest that the UK stock of EVs could reach between 2.7 and 10.6 million by 2030 and could rise as high as 36 million by 2040. This considerable rise means that energy companies will need to accelerate the delivery of new electric vehicle services and energy generation facilities from renewable sources.

    Despite this significant increase, we believe that energy companies can evolve at the pace required. Since working with one of the world’s largest oil and gas companies, BJSS’ digital design brand – SPARCK – has helped it become a leading electric vehicle charging provider. How did we do this? Through experimentation, which any energy provider can adopt.

    The proven experimentation approach that we offer is designed to deliver rapid time to value, encourage collaboration and knowledge transfer, save costs and enable the effective transition of digital services to offshore teams. Here’s how:

    Idea: 2 hours – 5 days: This is where the process starts as an idea which can take as little as two hours and take as long as five days, our framework takes any hunch or idea and provides a structure to create a series of tests to validate the idea in a way that is efficient. This is achieved while reducing the risk of sunk investment and increasing confidence in the resulting solution.

    Experimentation: 1 day – 2 weeks: We then validate your idea by developing a set of testable hypotheses. They are validated through rapid experimentation, assessing the idea against the criteria of feasibility, viability and desirability.

    Proof of Concept: 4 – 6 weeks: Successful experiments are then developed into PoCs using an agile delivery approach. The resulting PoC is then tested for viability.

    Minimum Viable Product: 4 – 6 weeks: Viable PoCs are then scaled and launched as MVPs, with the appropriate service delivery controls in place. More research and experimentation can be conducted at this stage to ensure continuous improvement.

    Offshore: Offshore teams can be involved and upskilled throughout the process, allowing for a seamless service transition.

    We take this approach because it will support your investment process by providing tangible evidence through visualising the art of the possible, while also experimenting within the right parameters to understand the art of the feasible, viable, and desirable for your business. It also provides many benefits such as increased time to value and a highly collaborative process that is designed for collaboration and knowledge transfer. There is less commitment for the client, fewer risks and reduced risk of sunk investments. Importantly, it helps to increase confidence in any resulting solution, ensuring you end up with something that is aligned to your strategic goals, risk appetite and needs.

    The fossil fuel vehicle sales ban in 2030 is set to cause a dramatic shift towards electric vehicle use. While most energy companies are preparing for this shift already, many of them do not have the necessary processes and operating models in place to reinvent their businesses to accommodate the rapid growth of electric vehicle use. However, our proven experimentation approach combined with our experience of working within large, siloed organisations means that we can break down the barriers to rapid transformation and help you evolve at the pace required to meet the demands of the electric vehicle age.

    Contact us today for a free initial discussion about how we can help you prepare for the upcoming challenges in 2030.