EVREX - EV Conference - Hyderabad 2018

1. “Battery Charging – To Swap, or not to
Swap, that is the question”
Aspiration Cleantech Ventures
January 7, 2018
Hyderabad

2. About Aspiration Cleantech Ventures
• Solar PV
• Solar Thermal
Renewable Energy
An Asset Development and Management platform in the Clean Energy
Sector.
Founded and Managed by highly successful entrepreneurs, global business
leaders and technocrats with rich experience working in marquee firms.
Aspiration Cleantech
Ventures
• Efficient Lighting
• Drives(VFDs)
• HVAC (Heat Pumps,
Chillers)
Energy Efficiency
• E-Mobility
• Electricity and
Thermal storage for
Industries
Energy Storage

3. Asset Base
Solar PV E-Mobility Energy Efficiency
• Total Portfolio size ~ 1 MW
• Rooftop systems and Carports
• Grid-Interactive and Off-grid
• RESCO/PPA and rental models
• Multiple states(Tamil Nadu,
Telangana, Maharashtra, etc)
• Focus on 2W and 3W fleets
• Exploring innovative business
models like BaaS
• Investments planned are in B2B
segment
• ESCO Model
• Technology – Heat Pumps
• Long term contracts for Heat
Delivery ; Cash Flow from
demonstrated energy savings

4. Agenda
1
• 2017 – Pivotal Year in Transportation
2
• Electrifying Transportation
3
• Charging Infrastructure – The Key!!
4
• Charge or Swap?
5
• Takeaways

5. Agenda
1 •2017 – Pivotal Year in Transportation
2
• Electrifying Transportation
3
• Charging Infrastructure – The Key!!
4
• Charge or Swap?
5
• Takeaways

6. Cars do not need drivers anymore..
Huge amount of R&D happening
- Technology giants
- Google and Intel, through
Waymo
- Apple
- Microsoft with Renault-
Nissan for connected
vehicles
- Amazon – inhouse team
- Auto giants
- Tesla
- Ford
- GM
- Daimler

7. Cars are getting more connected..

8. Car sharing became increasingly popular..
Spectacular success of Uber, DiDi, Lyt,Grab, Ola…..
….prompted to “Wall Street Journal” to say

9. Electric – Climate Change and Paris Climate Change commitments; Tailpipe
pollution reduction
The beginning of the end…

10. CASE - Connected-Autonomous-Shared-Electric
New acronyms are gaining popularity..

11. SAEVs - Shared Autonomous Electric
Vehicles (BCG -December 2017)
Some more acronyms..

12. • BaaS – Battery-as-a-Service
• VaaS – Vehicle-as-a-Service
• TaaS – Transport-as-a-Service
And even more…

13. Agenda
1
• 2017 – Pivotal Year in Transportation
2 •Electrifying Transportation
3
• Charging Infrastructure – The Key!!
4
• Charge or Swap?
5
• Takeaways

14. The Future of Transportation - Electric
2 Million – 2016
(Source:IEA)
1 Billion – 2050
(Source : Morgan Stanley)
EVs on Road
• By 2025, about 16% of all new cars sold globally will be EV(UBS)

15. 1. Government Mandates
2. Tesla Effect on Wall Street
3. Battery Cost reduction
Drivers

16. 1. Government Targets..
India - All new vehicles sold after 2030 should only be electric
France - Ban on all ICEs by 2040
Norway – Only Zero emission vehicles by 2025. (EV market
share – 29% in 2016(Source: IEA)
China - Intention to ban all ICEs(timeline not set)
Germany – Intention to ban all ICEs(timeline not set)
UK – Ban on all ICEs by 2040

17. 2. Tesla Effect.. (or Wall Street Pressure)
Investors rewarding TESLA for
creating the future
TESLA – Loss of $773 Million and 76k cars
sold in 2016
GM – Profit of ~ $9 Billion and 10 Million
cars sold in 2016
April 2017
October 2017
“General Motors stock surged to an
all-time high, as its plan to launch 20
new electric cars fuelled a wave of
bullishness on Wall Street.” -
Fortune

18. • Fall from $273 / kWh in 2017 to $73 / kWh by 2030 (Bloomberg - Nov 2017)
3. Battery Cost reduction..
Source : McKinsey(Jan 2017)

19. Challenges to Electrifying Transportation
1. Commercial – High Upfront Cost
2. Infrastructural - Range Anxiety
3. Technical - Long recharge times

20. 1. Price still too high..
As of July 2017

21. 2. Range Anxiety
Source : Energy.gov (August 2016)
EV Vehicles’ range has a lot of catching up with ICE Vehicles

22. • ICE Vehicles – Maximum 10 Minutes
• EVs – Depends..
3. Long recharge times..
Source : chargepoint.com

23. Agenda
1
• 2017 – Pivotal Year in Transportation
2
• Electrifying Transportation
3 •Charging Infrastructure – The Key!!
4
• Charge or Swap?
5
• Takeaways

24. Massive Investments required..

25. • Total number of registered vehicles in India
~250 Million (as of 31.03.2017)
• Number of Petro - Fuelling stations > 60,000
• Total EVs on Road in India < 1 Million
• Number of Public charging stations <100
India – ICE Vs EV

26. Agenda
1
• 2017 – Pivotal Year in Transportation
2
• Electrifying Transportation
3
• Charging Infrastructure – The Key!!
4 •Charge or Swap?
5
• Takeaways

27. ICE Vs EV comparison
• Mumbai to Delhi Road
Distance– 1420 KM
• Average Travel Time -
18 Hrs(@ 80 KMPH)

28. Mahindra Renault Logan 1.4 GLX Petrol
• Tank Capacity – 50 Ltrs
• Mileage – 15.7 Km/L(ARAI)
• Re-fuelling time - ~ 10 Minutes
• Petrol Cost – Rs. 75/Ltr
ICE Vs EV – A Road Trip Comparison
Mahindra e-Verito
• Mileage(Full Charge) – 100 Km
• Recharge time ~ 1 Hr 45 Minutes
• Electrity Cost – Rs. 10/kWh
Vs

29. Comparison ICE EV
1Number of Recharges 1 14
2Total Charging Time 10 Mins 26 Hrs
3
Total Travel Time(including
Charging Time) 18.08 Hrs 44.92 Hrs
4Total Cost of Trip Rs.6783 Rs. 2556
5Unit Cost Rs. 4.78/Km Rs. 1.80/Km
Travel Time
Till Fast DC Chargers can charge the EVs in minutes,
Swapping is the interim solution

30. • Global scenario
– “Better Place”- An Israeli startup by Shai Agassi was a
pioneer, but went bankrupt after raising almost $1 Billion
in 2012(too early to market)
https://www.youtube.com/watch?v=qd0WPw3p2MQ
– Tesla’s Swapping pilots not very encouraging
– Gogoro, Taiwan based 2W EV, has Battery swap as business
model
Swapping – A few pointers

31. • India scenario
– EV penetration already started in 3
Wheelers(especially E-Rikshaws)
– Battery Swapping can be a very good interim
solution for Indian market unlike US and Europe
which is predominately 4 Wheeler based
– Pilot Swapping stations by ACME and Ola in
Nagpur
Swapping – A few pointers

32. Charging
• Personal Vehicles that have
low utilization(eg. Home to
office, Home to Shops) and
have slow AC home
charging and office charging
Swapping
• Commercial Vehicles that
rely on high capacity
utilization and with
predefine routes
– 3 Wheeler Fleets
– 2/3 Delivery Vehicles
– Bus Fleets
Suitability of Charging and Swapping

33. Charge Vs Swap
Source : Atherenergy.com

34. • Interchangeability/Interoperability
• Infrastructure
• Battery Degradation
• Battery Ownership
Challenges to Swap

35. Battery Owner
Vehicle Driver
(End User)
OperatorO&M PAYMENTS
O&M CONTRACT
35
Typical BaaS Structure (Swapping Model)

36. • How many Kms can the vehicle cover on the available batteries?
• When on batteries, what is the maximum speed it can travel at?
• On an average how often in a day will the driver swap the batteries? (2 times , 3 times?)
• On an average how many Kms will the e-vehicle travel in one hour given the traffic
density?
• How much will the driver charge the passenger for one km of travel?
• If the driver confesses to having the battery charged through a non-authorized source,
what tools do we have at our disposal to recover the lost revenue? Is it wise/ethical to
penalize a daily wage worker?
• What if the driver sells off the battery in a secondary market and flees away? Can we really
afford to spend resources on recovering the lost batteries?
Commercial Issues to be addressed..

37. • What is the weight of the vehicle(With and Without Payload)?
• What type of motor ( in terms of horsepower) will the e-vehicle use?
• What are the accessories associated with the batteries which consume
power ( Fan, charging-points, etc.)
• Where are we going to install the GPS system, batteries or vehicles?
• How much time will it take to charge the entire battery?
• And more…
Technical Issues to be addressed..

38. Agenda
1
• 2017 – Pivotal Year in Transportation
2
• Electrifying Transportation
3
• Charging Infrastructure – The Key!!
4
• Charge or Swap?
5 •Takeaways

39. Takeaways
Electrification of Transportation is unstoppable
Cost, Range Anxiety and Charging Times major barriers
Charging vs Swapping is not yet fully settled
For India, Swapping will be an interim solution
Business Model innovations possible in Battery Swapping

40. Thank You!!
Madhavan Nampoothiri
Aspiration Cleantech Ventures
madhavan@aspcv.com
www.aspcv.com