City of Berkeley Electric Vehicle Infrastructure Strategy


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Expansion of electric vehicle infrastructure is imperative to the success of EV adoption. While demand remains unknown, many experts have forecasted over a million EVs will enter the US market in the next decade (Levin, 2010). If hybrid adoption rates are an indicator of EV adoption, then the City of Berkeley (CoB) can expect to have one of the highest EV adoption rates in the country.

While CoB is interested in investing in EV infrastructure, this does create financial risk. In order to maximize citizen benefit while minimizing the city’s financial risk, Team dEVA recommends the following three high level strategies (see presentation)

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  • Threats:
  • City of Berkeley Electric Vehicle Infrastructure Strategy

    1. 1. Developing ElectricValue AddedDecember 17, 2010Justin Bean Obrie HostetterKatie Dunn Tim McLaughlinRudi Halbright
    2. 2. Developing Electric Value Added
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    6. 6. OutlineDeveloping Electric Value Added
    7. 7. Berkeley’s Climate Action Plan• 80% Reduction by 2050 and 33% Reduction by 2020• Potential to Save to 140,000 Metric Tons of CO2 Developing Electric Value Added
    8. 8. Who is Berkel ey?• Population 107,000• 67% have bachelors degree+• Berkeley FIRST• PACE Developing Electric Value Added
    9. 9. Technology O verview EV Vs PHEV ChargingLevel 1 120 Volts 8 to 20 hoursLevel 2 220 to 240 Volts 4 to 6 hoursFaster Charger (DC) 480 Volts 10 to 30 Minutes Developing Electric Value Added
    10. 10. M a r k e t O v e r v ie w • 841,000 EV & PHEV’s by 2015 • Favorable Federal and State Policies • 14.4B – ARRA • Consumer Tax Credits  $7,500 fed tax credit  $5,000 CA tax credit  $2,000 fed tax credit for chargingDeveloping Electric Value Added
    11. 11. M arket O verview- Hybrid s are a pred ictor of EV sales Developing Electric Value Added
    12. 12. M arket O verview- EV D em and in Berkeley • 2.8% of vehicle registrations are Hybrids • Toyota - 500 PHEV’s on waiting list • Nissan – Sold out! Developing Electric Value Added
    13. 13. Focus of other cities Portland New York San FranciscoKey Focus Key Focus Key FocusAll car commuters Early adopters only Long-term integrated transportation planKey Strategies Key StrategiesEasy access to charging Commercial parking Key Strategiesstations and permitting garages Public parking in dense Developing Electric Value AddedLeverage municipal EV fleet Not offering incentives, only areas
    14. 14. Strategy C anvas Developing Electric Value Added
    15. 15. SWO T Highlights Strengths Weaknesses •Progressive Berkeley •Barriers to residential residents charging •CAP goals •Late for grants •Measure R •Funding •Small city: minimal EV infrastructure big impact Opportunities Threats •2nd mover to learn from •Other alternative fuel other cities vehicles might prevail •Can be leading city for •CoB disconnected from range of options Bay Area corridor •Funding available •Charging technology not •Bay area network completely standardized Developing Electric Value Added
    16. 16. Future ScenariosDeveloping Electric Value Added
    17. 17. Within 3 monthsRecom m end ations Facilitate EV usage for early adopters • Charging strategies for EV-driver profiles • Fast-track permitting • Carshare and commercial parking lot charging • Secure grant monies and incentives ASAP Developing Electric Value Added
    18. 18. Within 3 to 6 monthsRecom m end ations • Monitor Station usage for future siting • Install opportunity charging stations in shopping districts and high-traffic areas • Develop transportation integration strategies • Encourage use of the entire transportation system Developing Electric Value Added
    19. 19. Within 18 months and on-goingRecom m end ations Evaluate & Educate • Move 2nd: reduce risks and costly mistakes Move 2nd • Monitor other cities’ solutions • Disseminate information online and through community • Showcase innovative pilot projects, including educational components for the community Developing Electric Value Added
    20. 20. Resid ential C urbsid e C harging Not recommended at this time Challenges: •Uncertain commitment to charging technology •Permitting issues •No clear solutions in other cities •Large, complicated investment •Lack of data Developing Electric Value Added
    21. 21. Resid ential C urbsid e C hargingShort-term recommendations•Push EV parking & charging policies•Provide information about other chargingoptions•Encourage communities to installcharging stations on private property•Encourage permittable owner-initiatedsolutions•Facilitate relationships between privateowners of charging stations and EVowners Developing Electric Value Added
    22. 22. Financial Analysis: C harging Station Network Our Task Build low-risk model that is financially and environmentally sustainable. Four Model A. Grid Powered B. ClimateSmart C. PV Purchase D. PV Lease Constraints • Lack of data • Limited budget Developing Electric Value Added
    23. 23. Finding WACC WACC = [ D/V * (1-T) * Rd ] + [ E/V * Re ] Developing Electric Value Added
    24. 24. Finding WACC Municipal Bonds •10 yr •AA •Callable •Revenue Developing Electric Value Added
    25. 25. The Tool 3 Steps: 2. Input assumptions 3. Compare scenarios  NPV  IRR  Payback  Capital Outlay 4. Make conclusion Developing Electric Value Added
    26. 26. The Tool X 4 Steps: 3 2. Input assumptions 3. Compare scenarios  NPV  IRR  Payback  Capital Outlay 4. Make conclusion 5. Monitor, reassess assumptions Developing Electric Value Added
    27. 27. Our Calculations C a p it a l NPV P a yb a c k IR R In v e s t m e (tho us a nd P e r io d s ) nt ( ye a r s ) ( tho u s a nd s )A: Grid Energy $490 103% $49 1.2B: ClimateSmart $486 102% $49 1.1C: PV Purchase $190 5% $1,120 10.0D: PV Lease $593 79% $80 1.4 Developing Electric Value Added
    28. 28. A Visual Comparison Developing Electric Value Added
    29. 29. A Visual Comparison: Flipped Developing Electric Value Added
    30. 30. Sensitivity Analysis: IRR Variables • daily demand • charging price Developing Electric Value Added
    31. 31. Financial Analysis Summary Our Task Build low risk model that is financially and environmentally sustainable. Recommended Scenario A. Baseline B. ClimateSmart C. PV Purchase D. PV Lease* *Invest in charging stations, monitor real demand, then move forward. Developing Electric Value Added
    32. 32. In SumStart now•Grant money for stations•Appease early adoptersEmergent Strategy•Monitor other cities•Monitor local demandSystems ApproachEVs are not THE answerbut a part of it Developing Electric Value Added