BAKU, Azerbaijan, May 23. Expanding the electric vehicle (EV) stock reduces oil use, which today accounts for over 90 percent of total final consumption in the transport sector and is a critical energy security consideration, Trend reports with reference to the International Energy Agency (IEA).
IEA report reveals that globally, the projected EV fleet (excluding two and three wheelers) in 2030 displaces about 3.4 million barrels per day (mb/d) of diesel and gasoline in the Stated Policies Scenario and about 4.6 mb/d in the Announced Pledges Scenario, up from about 0.3 mb/d in 2021. For context, Germany consumed around 2 mb/d of oil products across all sectors in 2020. However, the recent price spikes for critical minerals that are important inputs to battery manufacturing, and the tense market situation for key materials such as steel, are a stark reminder that energy security considerations evolve in the transition to electromobility and require regular reconsideration.
The sale of oil products for road transport is currently a business worth more than USD 1.4 trillion each year.26 As EVs become more widespread, the demand for charging will increase, opening new market opportunities for utilities and charging station operators. Residential charging is a retail business opportunity for utilities, while charging station operators will draw revenue from public charging. Investments are needed now in order to develop adequate charging networks.
China remains the largest consumer of electricity for EVs in 2030, although its share in global EV electricity demand decreases significantly (from 60 percent in 2021 to around 35 percent in the Stated Policies Scenario and 30 percent in the Announced Pledges Scenario). This reflects wider adoption of electromobility across other countries in the period to 2030.
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