Dieter Sebastian Krefft
York University- Schulich School of Business
Charles Cho
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EV Energy Solutions is a Peruvian consulting firm established in 2018 by Omar Afa. The main focus of the company is to help private consumers, as well as other businesses and government entities, with the transition from fossil fuel vehicles to the more sustainable electric vehicles as a mean of transportation. This way, EV Energy Solutions helps in achieving the following United Nations (UN) Sustainable Development Goals (SDGs): Affordable and Clean Energy (#7), Sustainable Cities and Communities (#11), Responsible Consumption and Production (#12) and Climate Action (#13) (UN, 2022).
Due to the Paris Agreement on climate change, which was signed in 2016 by Perú, the Peruvian government started to search for people who know about this specific topic and with that, began to invite specialized persons to different seminars and workshops to develop the new regulations of electric vehicles adoption in Perú. EV Energy Solutions found out about this and, as they were very well positioned from beginning due to the previous experience and wide network the founder Omar Afa had already established (over 10,000 connections in LinkedIn), they knew exactly how to assist with creating these new laws and regulations. That way, it was possible to design a new legal framework for the government, private sector, and other stakeholders that are interested in investing in this new industry of electric transportation, which is also one of the main polluters in the world.
EV Energy Solutions is very proud to have been a part of this development and is proud to have done their bit to contribute to a worthy cause. Specifically, they helped with the electric vehicles regulations and with the charging infrastructure regulations in Perú. They also push and accelerate the transition to a more sustainable transportation system. However, the company does not stop there because they also utilize their expertise to help different students in the new UTEC University, who are part of the KON Team and must develop a car from scratch to reach the greatest possible distance while consuming the least amount of energy possible. EV Energy Solutions is just getting started and is eager to further encourage the transition to more sustainable transportation means. Since the country’s current view of electric vehicles is still very narrow, the company will help guide the thinking towards the right direction and will help broaden the horizon.
Omar Afa, founder of EV Energy Solutions, is a car passionate person with a very rich experience in the Peruvian automotive market. Back in 2012, when he was the Key Account Manager of Kia in Perú, he started to develop his interest in the 100% electric vehicles into the Kia Soul EV at that time. “After the motor show and having learned all the benefits and technical specs about this car, I requested to use it as my daily driver, and it was awesome.” (Afa, 2022). Since that moment, his obsession with the 100% electric vehicles began. Because of his obsession, he was able to collect lots of information, connections, and experience regarding this specific topic.
Additionally, Omar’s other inspiration are his 2 little daughters whom he loves very much and is eager to leave them with a better future. “Most people think that electric vehicles are just vehicles that don’t pollute but it is much more than that. It is energy on wheels, you can take that energy wherever you want, and it is a way to develop our country.” (Afa, 2022). Omar’s forward thinking from 10 years ago brought him to the position he is in right now. He uses his company EV Energy Solutions to promote his mission to keep pushing more sustainable transportation means, and to help the development of Perú.
In 2018, only 2 electric vehicles were sold in Perú. At the end of last year, in 2021, almost 100 vehicles were sold. The country is still in the sensibilization stage of the massive adoption of electric vehicles. This is partly due to the help of EV Energy Solutions, who contributed to the development of the new legal framework, and who constantly gave their expertise to different entities in Perú. The imports of electric cars have risen each year and the overall awareness of these vehicles has increased in the country as well.
EV Energy Solutions actions overall help accelerate the modern renewable energy in the transport sector in Perú. Specifically, the UN SDGs that this innovation pursues are:
- Goal #7: Affordable and Clean Energy
o Particularly, the company helps increase the proportion of population with primary reliance on clean fuels and technology (Target 7.1 with indicator 7.1.2; UN, 2022).
o Additionally, Omar Afa’s company also contributes with his actions by increasing the renewable energy share in the total energy consumption (Target 7.2 with indicator 7.2.1; UN, 2022).
- Goal #11: Sustainable Cities and Communities
o EV Energy Solutions contributes to having a more sustainable transport system for all by increasing the proportion of population that has a convenient access to public transport (Target 11.2 with indicator 11.2.1; UN, 2022).
- Goal #12: Responsible Consumption and Production
o Omar Afa’s company promotes public procurement practices that are sustainable in the transportation sector (Target 12.7 with indicator 12.7.1; UN, 2022).
o EV Energy Solutions also helps with the rationalization of the amount of inefficient fossil-fuel subsidies (Target 12.c with indicator 12.c.1; UN, 2022).
- Goal #13: Climate Action
o EV Energy Solutions also improves education and raises the awareness when assessing students of the UTEC University (Target 13.3 with indicator 13.3.1; UN, 2022).
The forward thinking of EV Energy Solutions founder made them to be one of the first consulting firms that specialized in the topic of electric vehicles in the country. Because they were the first, they were able to position themselves very well in the national market since the beginning of the transition from fossil fuel vehicles to electric vehicles. Therefore, any public or private entity in Perú that is looking for information in this specific subject nowadays, will be more likely to come to the company for assistance. Furthermore, as the sales of the 100% electric vehicles were steadily rising in the last couple of years in Perú, the revenue of the company was also growing accordingly and, as it is estimated that electric cars sales will continue to grow in the coming years, the company sees the future positively.
Additionally, as the Peruvian population gained further interest and awareness in this more sustainable transportation mean, the media attention and coverage also raised. This extra media coverage benefited EV Energy Solutions as well. For this reason, the company was able to further expand their specialized network by establishing new contacts not only from the region but also from the rest of the world. These connections led to different experiences being shared which allowed the consulting services for their clients to improve.
It is important to mention here that the total impact will depend in how a country produces energy. In Perú, around 50% of the electricity is produced by hydroelectric energy and the other 50% by natural gas. So, even though Lima is one of the most polluted cities in Latin America, the impact in Perú by changing to electric vehicles might have a lower overall impact than in other countries where they still use coal to produce electricity. However, it is not only about the pollution but also about the climate change and in Perú. There are 90 different microclimates which include 30 of the 32 world climates and make it one of the most diverse countries in the world regarding microclimates (Alternative Perú, 2016). Therefore, the transition from fossil fuel vehicles to electric vehicles will still have a massive impact in the country since transportation is one of the main polluters in the world.
Additionally, studies reveal that around 5,600 people die every year in Perú due to the polluted air (Tiseo, 2022). By pushing this change, the company will help to reduce this cause of death in the country. The Peruvian government invests approximately US $7,000 Million per year trying to help in respiratory diseases. However, this money could be used more wisely. For example, the government could be using a part of this budget for government incentives (tax reduction, subsidiaries, etc.) to further accelerate the usage of electric vehicles. Ultimately, this would benefit society in the long-term due lower spending on treatments for respiratory diseases.
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EV Energy Solutions gives professional feedback and expert advice to different public and private entities in the transportation sector in Perú. This way, the company promotes the transition to a more sustainable transportation mean and helps others to implement it in a more efficient and effective way.
