Emerging business models of electric vehicle charging


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Emerging business models of electric vehicle charging

  1. 1. Jarmo Tuisk Director, electric mobility solutions NOW! Innovation July, 2013
  2. 2. Understanding the customer
  3. 3. Among other EV related issues the participants were asked whether or not they had access to workplace and public charging and whether or not they currently pay for charging. User profile: California Access to the EV charging infrastructure Source: California Plug-in Vehicle Owner Survey, California Center for Sustainable Energy, 2012 PEV owners access to free or paid chargingAbout 70% of respondents reported having access to either workplace or public charging or both). Of these, about 90 percent reported they had access to free charging
  4. 4. They were then asked how much they would be willing to pay. Specifically, PEV owners were asked — for charging at Level 2 and DC fast charging — how much they would pay to charge their PEV under the following “charging needs scenarios”. User profile: California Willingness to pay for charging Source: California Plug-in Vehicle Owner Survey, California Center for Sustainable Energy, 2012 Stated willingness to pay for Level 2 and DC fast charging under three “charging needs scenarios” Users are ready to pay significantly more for DC fast charging, especially under critical circumstances
  5. 5. User profile: Estonia 62% 21% 16%Over night at home On a day in working place I do not plan ahead Other Data: KredEx, survey of Estonian EV users, 427 respondents, May 2013 Background There is extensive quick charging network with over 160 charging points, over 500 commercial dedicated chargers and over 150 dedicated home EVSEs. Estonian electromobility program provided over 500 EV’s for public services (social workers) and more than 160 purchase grants for private and commercial EV buyers. When do you charge your EV? 62% of respondents charge their car over night at home. The survey was commissioned two months after the nation-wide quick charging network was launched. That may explain why 16% of users do not plan their charging ahead. Map of Estonian Quick Chargers
  6. 6. User profile: Estonia 0% 20% 40% 60% 80% 100% All Public sector users Commercial users Private users 4% 3% 5% 5% 13% 8% 9% 76% 78% 83% 82% 19% 5% 6% 5% 0 Quick charger Slow charger at home Slow charger at work Other Where do you charge your EV most often? Data: KredEx, survey of Estonian EV users, 427 respondents, May 2013 Majority of EV owners charge their cars at home or at office. 5% of private EV owners said that they mostly use public quick chargers to re-charge their EV. Electric taxi in Tartu, Estonia
  7. 7. Understanding the technology options and implications
  8. 8. When, where and how? Depending on the duration of charging session and location there’s multitude of technology choices available Overnight charging 1-4h stop Quick stop Off-streeton-streetHighway Dedicated slow charging solutions Quick charging solutions Battery swapping solutions Shared street charging solutions Dedicated semi-fast charging solutions Users’ willingness to pay extra for charging the EV
  9. 9. If speed is the key – what is the solution? Slow charging Semi-fast charging Quick charging Battery swap 3kW 6kW 22kW 50kW X kW 8 hours 4 hours 1 hour 30 minutes 5 minutes Theoretical speed of charging of average EV with 24Wh battery
  10. 10. Speed of charging in real life Average speed of charging in DC quick chargers in Estonia kWh/min (JAN-JULY 2013) The actual speed of quick charging is between 0,27- 0,4 kWh per minute. Compare it to the 0,05kWh per minute in slow charging. During spring-summer period the speed of charging is faster. The average speed is influenced mainly by the battery temperature and start and end SOC’s. 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 1 2 3 4 5 6 7 Data courtesy of KredEx, usage of quick charging network, January-July 2013 Months: January – July 2013
  11. 11. How long people stay in quick charging points? Average duration of charging sessions per month, Estonia minutes (FEB-JUN 2013) People do not want full charge from the quick chargers, just enough to reach their destination. In summer time it just takes less energy to reach the destination. 10.00 15.00 20.00 25.00 30.00 35.00 40.00 2 3 4 5 6 Months: February – June 2013
  12. 12. Examples of early business models in the EV charging
  13. 13. EV charging service provider strategies Mobility insurance Smart home charging solutions Focus on energy delivery Focus on mobility Shared infrastructure Private infrastructure Urban network provider Mobile emergency charging solutions
  14. 14. Urban network provider model Focus customer segmentValue proposition Key resources and costs Revenue models Charge everywhere Competitive pricing On-street parking EV owners Subscriptions/Pay-as-you-go Revenue sharing/fixed fee with charge point owner (Low-cost) charging equipment Parking places Access to (the existing) electricity distribution
  15. 15. UK: Charge your car Charge Your Car was launched in 2010 in the North East of England. Enables drivers of plug-in electric vehicles to roam across the UK and recharge on a pay-as-you- go basis. Pricing: some points are free-of- charge, some are pay-to-use (4-6 EUR per charge). Revenue model: annual fee per charge point from the point owner
  16. 16. Smart home charging solution model Focus customer segmentValue proposition Key resources and costs Revenue model Convenient set-up of home charger Controllable, competitive rates Off-street parking EV owners Premium electricity tariffs Subscriptions Smart home charging equipment Access to the customer(s or their data)
  17. 17. UK: British Gas British Gas offers free electric vehicle charging equipment for EV owners across UK. The revenue is expected to come from special EV charging tariff.
  18. 18. Denmark: Clever home charging Clever provides smart home charging equipment for its customers on subscription base or for sale. With Danish government incentives you’ll receive 0,13 EU per kWh back, if you subscribe to service. Pricing of subscription: 40 EUR per month
  19. 19. Mobility insurance model Focus customer segmentValue proposition Key resources and costs Revenue model Avoid range anxiety Everywhere on the road Commuters Long-range EV drivers Subscriptions Premium charging rates Roaming fees OEM-financing Quick chargers/battery swap stations High-power electricity connections Roaming partnerships Charging stations
  20. 20. Estonia: ELMO network ELMO operates nation wide quick charging network with 163 quick chargers. Owned by the government, it operates as a business entity. It’s mission is to provide “safety network” to drive long- distances around Estonia. Pricing Monthly fees from 0-30 EUR Pay-per-charge from 1,2EUR to 5EUR
  21. 21. US: Tesla Supercharger network The luxury-EV manufacturer Tesla is building it’s own supercharger network across the USA to provide the opportunity to charge on the road. Charging for Tesla Model S owners is free.
  22. 22. Mobile emergency charging model Focus customer segmentValue proposition Key resources and costs Revenue model Help on the road, no matter where Long-range EV drivers/travellers OEMs Pay-per-call “Insurance subscriptions” OEM insurance payments Mobile quick charging equipment 24/7 customer help desk/operation center
  23. 23. Japan: mobile quick charging Nissan and the Japan Automobile Federation (JAF) developed a joint trial operation of a roadside service vehicle equipped with a charger to assist electric vehicles (EVs) which run out of battery power. The project is sponsored by Nissan.
  24. 24. NOW! Smart business solutions for EV charging NOW! Innovations provides software solutions for EV charging network management, including customer relationship management, flexible user interfaces and interoperability, business logic and billing and payment.
  25. 25. Mr. Jarmo Tuisk Director, electric mobility solutions Mob: +372 52 01443 Office: +372 6 023 046 www.nowinnovations.com jarmo.tuisk@nowinnovations.com Contacts