E-Mobility – Energy Sector Internalizes Service Platforms

Dr. Thomas Gabelmann, Partner

Several M&A transactions in recent months reveal an interesting trend: the energy industry is increasingly positioning itself as a service and solution provider for integrated charging infrastructure. Between March 2017 and March 2018 alone, a series of high-profile acquisitions underlined this development: ENGIE and Shell acquired Dutch charging infrastructure specialists EV-Box and NewMotion respectively, Enel took over EMotorWerks, and Fortum secured full ownership of PlugSurfing. In Germany, leading charging service provider smartlab expanded its shareholder base to include Erdgas Schwaben, Thüga, and Stadtwerke Düsseldorf.

This trend is expected to continue as more and more utilities seek to establish strategic positions around access to and interoperability of both their own and third-party charging infrastructure.

Utilities are thus becoming key contact points for multiple roles in the e-mobility ecosystem. For the Charge Point Operator (CPO), they provide services that facilitate the commercialization of charging capacity, including visibility, access, payment, and billing. For the E-Mobility Provider (EMP), they offer the end-user charging experience, ideally with broad regional or even nationwide coverage. Notably, these roles are not mutually exclusive—utilities can simultaneously act as both CPO and EMP. Given the dynamic market development, this dual strategy appears well justified. According to the 2017 BDEW Charging Infrastructure Survey, the number of electric vehicles (EVs) and public charging points in Germany rose significantly year-over-year by 29% and 47% respectively. Future projections are similarly optimistic: the Center of Automotive Management (Bergisch Gladbach) estimates EV registrations in the EU to reach 2.4 million in 2025 (Germany: 500,000), and 4.3 million by 2030 (Germany: 900,000), under a moderate growth scenario. These forecasts take into account key success factors such as infrastructure expansion, vehicle availability, and perceived customer value.

The integration of charging points via interconnected services—and the resulting accessibility for end users—is of central importance. In this context, roaming providers now play a critical role in ensuring that networks are as open and widely accessible as possible. While the market will likely see a proliferation of EMPs, a consolidation of roaming concepts appears more probable in our view.

Utilities are likely to encounter a highly diverse range of EMPs. Notably, EMPs are already emerging in sectors such as automotive, fleet management, car sharing, and real estate. Each brings different requirements—particularly in the operation of charging infrastructure—which must be factored into the design of a service offering. Targeted joint ventures, similar to those seen in decentralized energy generation between energy and real estate players, offer a promising way to test cooperation models early and build relevant expertise.

We therefore expect the market environment for e-mobility services and infrastructure operations to continue to be shaped significantly by partnerships, joint ventures, and acquisitions.

Published in: con | energy newsletter, April 17, 2018