The paradox of electrification
One of the biggest problems in innovation is that the pace of certain markets is often a lot faster than that of regulation, governments and even adjacent markets. Don’t get me wrong, we need regulation, especially when it comes to mobility where the lives people are at stake. But sometimes, well-intended measures turn out to be completely counterproductive because of differences in speed.
The EU stipulates that, as of 2035, all new cars that come on the market cannot emit any CO2. The final goal is that by 2050, the transport sector can become carbon-neutral. Though some (like BMW) have invested in hydrogen technology, most other car brands bet on the electrification trend to comply to these stipulations. And that’s commendable. But there are two problems here. One is the lack of infrastructure, which results in buyers hesitating to choose for that option. I have already written about that before.
The second challenge is the answer to the question: “where does the electricity that fuels the EVs come from?” Multiple answers are possible. It could come from renewable energy like wind and solar power or from nuclear power, natural gas or coal. In fact, in 2022, 39.4% of electricity in Europe was generated from renewable energy sources, 38.7% from fossil fuels and 21.9% from nuclear power. Gas was the main fossil fuel used to generate electricity (19.6%), followed by coal (15.8%).
But there are of course very big differences between the countries. In France in 2023, nuclear energy was the biggest source, accounting for 64% of the total. In Germany, coal (26,6%) and wind energy (27%) were the biggest sources. In Norway, 89% of electricity was generated by hydro energy.
But let’s take Germany as an example of the paradox of electrification. It is heavily investing in energy transformation. The policy includes nuclear phaseout (completed in 2023) and progressive replacement of fossil fuels by renewables. The problem is that the nuclear phaseout went faster than the replacement by renewables. Which means that it was primarily replaced with coal electricity production and electricity importing. So, although Germany made a commitment to phasing out coal power by 2030, the reality is that in the coming years, their EVs will mostly be charged by environmentally damaging fossil sources (77,6%) of electricity.
The EV story is filled with paradoxes, and we need to make a lot of adjustments energy- and infrastructure-wise for it to fully fulfill its green potential. That’s probably why automotive giants like Toyota and BMW are also exploring alternatives like hydrogen.
The second challenge is the answer to the question: “where does the electricity that fuels the EVs come from?” Multiple answers are possible. It could come from renewable energy like wind and solar power or from nuclear power, natural gas or coal. In fact, in 2022, 39.4% of electricity in Europe was generated from renewable energy sources, 38.7% from fossil fuels and 21.9% from nuclear power. Gas was the main fossil fuel used to generate electricity (19.6%), followed by coal (15.8%).
But there are of course very big differences between the countries. In France in 2023, nuclear energy was the biggest source, accounting for 64% of the total. In Germany, coal (26,6%) and wind energy (27%) were the biggest sources. In Norway, 89% of electricity was generated by hydro energy.
But let’s take Germany as an example of the paradox of electrification. It is heavily investing in energy transformation. The policy includes nuclear phaseout (completed in 2023) and progressive replacement of fossil fuels by renewables. The problem is that the nuclear phaseout went faster than the replacement by renewables. Which means that it was primarily replaced with coal electricity production and electricity importing. So, although Germany made a commitment to phasing out coal power by 2030, the reality is that in the coming years, their EVs will mostly be charged by environmentally damaging fossil sources (77,6%) of electricity.
The EV story is filled with paradoxes, and we need to make a lot of adjustments energy- and infrastructure-wise for it to fully fulfill its green potential. That’s probably why automotive giants like Toyota and BMW are also exploring alternatives like hydrogen.
