Electric Car Market
Martino Lamacchia
Why Electric?
Electric Car Market
Current Picture
Forecasts
Outlooks
Range anxiety, a real problem?
Range: how to improve it
Batteries’ potential
Fast charging: TSO perspective
Electric car: an enabler for renewables
Agenda
Why Electric?
Electric Car Market
Current Picture
Forecasts
Outlooks
Range anxiety, a real problem?
Range: how to improve it
Batteries’ potential
Fast charging: TSO perspective
Electric car: an enabler for renewables
Agenda
Why Electric?
OEM driven: regulations
Market driven:
– Efficiency
– Green
Reasons to invest in electric vehicles
Why Electric?
OEM driven: regulations
Market driven:
– Efficiency
– Green
Reasons to invest in electric vehicles
Why Electric?
Source: McKinsey
Electric
They add a zero into emissions calculation, means
bringing average emissions down and avoiding fines.
Why Electric?
In regulation compliance perspective we can classify vehicles
«BAD»
Top performing cars – high emissions
«GOOD»
Small cars – small engines – low emissions
Why Electric?
Source: McKinsey
Why Electric?
OEM driven: regulations
Market driven:
– Efficiency
– Green
Reasons to invest in electric vehicles
“How much more
would you be willing to
pay for an electric
vehicle compared to a
similar vehicle with a
gasoline engine?”
Source: International Council for Clean Transportation
People are not
ready to spend a
fee for an electric
vehicle
Why Electric?
The need of greener ways of transport is not growing
Source: National Geographic
Why Electric?
Private owners main motivation for buying PHEV (California)
Source: Center for Sustainable Energy, 2015
Why Electric?
Internal
Combusition
Engine vehicles’
efficiency has
grown
significantly and
fuel prices have
gone down
From 9,8 l/100km
to 11,7 l/100km
Source: EPA
Why Electric?
Today Electric Vehicles are being
developed mainly to improve compliance
to regulations!
Why Electric?
Why Electric?
Electric Car Market
Current Picture
Forecasts
Outlooks
Range anxiety, a real problem?
Range: how to improve it
Batteries’ potential
Fast charging: TSO perspective
Electric car: an enabler for renewables
Agenda
Source: McKinsey
 Primary
 Secondary
EV


Categories
58,000,000.00 61,000,000.00 63,000,000.00 65,000,000.00 66,000,000.00
50,000.00
125,760.00
212,986.00
315,519.00
540,228.00
0.0%
0.1%
0.2%
0.3%
0.4%
0.5%
0.6%
0.7%
0.8%
0.9%
1.00
10.00
100.00
1,000.00
10,000.00
100,000.00
1,000,000.00
10,000,000.00
100,000,000.00
2011 2012 2013 2014 2015
Passenger Cars sales Ev sales %
EV Market
Source: DOE
EV Global Sales and Share
Total EV sales (2015):
540.228
Total car sales (2015):
66 mil
EV share: 0,8%
EV Market
Source: EV Volumes.com
Global EV sales by
model
Country EV Sales 2015
China 165153
Japan 93142
Usa 92010
Germany 75561
Others 73526
France 18671
South korea 8204
Sweden 6950
Italy 6204
Totale complessivo 539421
EV Type Sales 2015
BEV 277463
PHEV 171573
EV 73526
REEV 16859
Totale
complessivo
539421
EV Market
Global EV sales by country
Global EV sales by category
Global EV sales of light-duty plug-in electric vehicles (2011-2015)
EV Market
Source: USA Department of Energy
EV Market: forecasts
Source: Bloomberg New Energy Finance Marklines
EV Market: forecasts
Source: Bloomberg New Energy Finance Marklines
The incertain future of EV (2020)
EV Market: forecasts
Source: icct
Why Electric?
Electric Car Market
Current Picture
Forecasts
Outlooks
Range anxiety, a real problem?
Range: how to improve it
Batteries’ potential
Fast charging: TSO perspective
Electric car: an enabler for renewables
Agenda
Typical questions about petrol-engine cars
How fast does it go?
What’s the average consumption?
How big is it?
Doest it have a beautiful design?
How’s the gearbox?
Range anxiety
Range
Anxyety
Typical questions about petrol-engine cars
What is its range?
! !
Range anxiety
Is range a real problem?
Range anxiety
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
<30 km <50 km <100 km <150 km <200 km <250 km
Average daily mileage of M1 and N1 vehicles in Europe
Source: RSE
98% of daily paths in
Europe is lower than
the average
autonomy of the
electric vehicles
marketed in 2016
(27-30 kWh batteries)
Ranges available vs price
Car Range [km] Price [€]
Citroen C0 150 30,000
Bmw i3 190 (300 with range extender) 36,500
Mercedes B ED 230 41,000
Renault Zoe 240 22,000
Nissan Leaf 250 25,000
Tesla S 90 550 105,000
Range anxiety
Today, good range is available but means high price (Tesla)!
Why Electric?
Electric Car Market
Current Picture
Forecasts
Outlooks
Range anxiety, a real problem?
Range: how to improve it
Batteries’ potential
Fast charging: TSO perspective
Electric car: an enabler for renewables
Agenda
Batteries’ Potential
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Mass market EV’s
Premium EV’s
24 kWh
~ 400 km~ 250 km~ 180 km
~ 450 km
~ 140 km
>80 kWh
>70 kWh>40 kWh>30 kWh
Evolution in batteries technology
Car Battery [kWh] Estimated Battery cost Car price %
Citroen C0 16 3200 30000 11%
Bmw i3 18 3600 36500 10%
Mercedes B ED 28 5600 41000 14%
Renault Zoe 22 4400 22000 20%
Nissan Leaf 24 4800 25000 19%
Tesla S 90 90 18000 105000 17%
Medium battery price: 200€/kWh
Batteries’ Potential
Batteries’ Potential
Source: Bloomberg New Energy Finance Marklines
Why Electric?
Electric Car Market
Current Picture
Forecasts
Outlooks
Range anxiety, a real problem?
Range: how to improve it
Batteries’ potential
Fast charging: TSO perspective
Electric car: an enabler for renewables
Agenda
Fast charging implies high power
Source: Terna
Fast charging
Tesla fast charging
stations > 100 kW
Renewables will
transform
electricity fares
from energy driven
to power driven
High power is and will be expensive
Renewables make TSO life challenging
Standard deviation of the load will increase.
How to dimension the electric transportation system?
Accumulation
Slow and intermediate charging
Electric vehicles will be distributed with accumulators
Electric vehicles are a source of loading balancing for
TSO (Transmission System Operator)
Electric vehicles are an enabling factor for renewable
energies through smart grids
Slow and intermediate charging
Source: McKinsey
Slow and intermediate charging
Need of private
financing
Win for TSO
RENEWABLES
Energy standard
deviation increase
Need to adsorb peaks
EV slow charge:
accumulating
opportunity
Energy variable cost
Fares driven by power
Expensive fast charging
• At today conditions (high range costs)
regulations are the reason to invest on
electric vehicles
• EV market in 2020 will be 7x today market
• China is (and will be) main EV market
• EV will boom when range will be more
affordable
• TSO see EV as an opportunity
Conclusions
Conclusions

Electric Car Market

  • 1.
  • 2.
    Why Electric? Electric CarMarket Current Picture Forecasts Outlooks Range anxiety, a real problem? Range: how to improve it Batteries’ potential Fast charging: TSO perspective Electric car: an enabler for renewables Agenda
  • 3.
    Why Electric? Electric CarMarket Current Picture Forecasts Outlooks Range anxiety, a real problem? Range: how to improve it Batteries’ potential Fast charging: TSO perspective Electric car: an enabler for renewables Agenda
  • 4.
    Why Electric? OEM driven:regulations Market driven: – Efficiency – Green Reasons to invest in electric vehicles
  • 5.
    Why Electric? OEM driven:regulations Market driven: – Efficiency – Green Reasons to invest in electric vehicles
  • 6.
  • 7.
    Electric They add azero into emissions calculation, means bringing average emissions down and avoiding fines. Why Electric? In regulation compliance perspective we can classify vehicles «BAD» Top performing cars – high emissions «GOOD» Small cars – small engines – low emissions
  • 8.
  • 9.
    Why Electric? OEM driven:regulations Market driven: – Efficiency – Green Reasons to invest in electric vehicles
  • 10.
    “How much more wouldyou be willing to pay for an electric vehicle compared to a similar vehicle with a gasoline engine?” Source: International Council for Clean Transportation People are not ready to spend a fee for an electric vehicle Why Electric?
  • 11.
    The need ofgreener ways of transport is not growing Source: National Geographic Why Electric?
  • 12.
    Private owners mainmotivation for buying PHEV (California) Source: Center for Sustainable Energy, 2015 Why Electric?
  • 13.
    Internal Combusition Engine vehicles’ efficiency has grown significantlyand fuel prices have gone down From 9,8 l/100km to 11,7 l/100km Source: EPA Why Electric?
  • 14.
    Today Electric Vehiclesare being developed mainly to improve compliance to regulations! Why Electric?
  • 15.
    Why Electric? Electric CarMarket Current Picture Forecasts Outlooks Range anxiety, a real problem? Range: how to improve it Batteries’ potential Fast charging: TSO perspective Electric car: an enabler for renewables Agenda
  • 16.
    Source: McKinsey  Primary Secondary EV   Categories
  • 17.
    58,000,000.00 61,000,000.00 63,000,000.0065,000,000.00 66,000,000.00 50,000.00 125,760.00 212,986.00 315,519.00 540,228.00 0.0% 0.1% 0.2% 0.3% 0.4% 0.5% 0.6% 0.7% 0.8% 0.9% 1.00 10.00 100.00 1,000.00 10,000.00 100,000.00 1,000,000.00 10,000,000.00 100,000,000.00 2011 2012 2013 2014 2015 Passenger Cars sales Ev sales % EV Market Source: DOE EV Global Sales and Share
  • 18.
    Total EV sales(2015): 540.228 Total car sales (2015): 66 mil EV share: 0,8% EV Market Source: EV Volumes.com Global EV sales by model
  • 19.
    Country EV Sales2015 China 165153 Japan 93142 Usa 92010 Germany 75561 Others 73526 France 18671 South korea 8204 Sweden 6950 Italy 6204 Totale complessivo 539421 EV Type Sales 2015 BEV 277463 PHEV 171573 EV 73526 REEV 16859 Totale complessivo 539421 EV Market Global EV sales by country Global EV sales by category
  • 20.
    Global EV salesof light-duty plug-in electric vehicles (2011-2015) EV Market Source: USA Department of Energy
  • 21.
    EV Market: forecasts Source:Bloomberg New Energy Finance Marklines
  • 22.
    EV Market: forecasts Source:Bloomberg New Energy Finance Marklines
  • 23.
    The incertain futureof EV (2020) EV Market: forecasts Source: icct
  • 24.
    Why Electric? Electric CarMarket Current Picture Forecasts Outlooks Range anxiety, a real problem? Range: how to improve it Batteries’ potential Fast charging: TSO perspective Electric car: an enabler for renewables Agenda
  • 25.
    Typical questions aboutpetrol-engine cars How fast does it go? What’s the average consumption? How big is it? Doest it have a beautiful design? How’s the gearbox? Range anxiety
  • 26.
    Range Anxyety Typical questions aboutpetrol-engine cars What is its range? ! ! Range anxiety
  • 27.
    Is range areal problem? Range anxiety 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% <30 km <50 km <100 km <150 km <200 km <250 km Average daily mileage of M1 and N1 vehicles in Europe Source: RSE 98% of daily paths in Europe is lower than the average autonomy of the electric vehicles marketed in 2016 (27-30 kWh batteries)
  • 28.
    Ranges available vsprice Car Range [km] Price [€] Citroen C0 150 30,000 Bmw i3 190 (300 with range extender) 36,500 Mercedes B ED 230 41,000 Renault Zoe 240 22,000 Nissan Leaf 250 25,000 Tesla S 90 550 105,000 Range anxiety Today, good range is available but means high price (Tesla)!
  • 29.
    Why Electric? Electric CarMarket Current Picture Forecasts Outlooks Range anxiety, a real problem? Range: how to improve it Batteries’ potential Fast charging: TSO perspective Electric car: an enabler for renewables Agenda
  • 30.
    Batteries’ Potential 2011 20122013 2014 2015 2016 2017 2018 2019 2020 2021 Mass market EV’s Premium EV’s 24 kWh ~ 400 km~ 250 km~ 180 km ~ 450 km ~ 140 km >80 kWh >70 kWh>40 kWh>30 kWh Evolution in batteries technology
  • 31.
    Car Battery [kWh]Estimated Battery cost Car price % Citroen C0 16 3200 30000 11% Bmw i3 18 3600 36500 10% Mercedes B ED 28 5600 41000 14% Renault Zoe 22 4400 22000 20% Nissan Leaf 24 4800 25000 19% Tesla S 90 90 18000 105000 17% Medium battery price: 200€/kWh Batteries’ Potential
  • 32.
    Batteries’ Potential Source: BloombergNew Energy Finance Marklines
  • 33.
    Why Electric? Electric CarMarket Current Picture Forecasts Outlooks Range anxiety, a real problem? Range: how to improve it Batteries’ potential Fast charging: TSO perspective Electric car: an enabler for renewables Agenda
  • 34.
    Fast charging implieshigh power Source: Terna Fast charging Tesla fast charging stations > 100 kW Renewables will transform electricity fares from energy driven to power driven High power is and will be expensive
  • 35.
    Renewables make TSOlife challenging Standard deviation of the load will increase. How to dimension the electric transportation system? Accumulation Slow and intermediate charging
  • 36.
    Electric vehicles willbe distributed with accumulators Electric vehicles are a source of loading balancing for TSO (Transmission System Operator) Electric vehicles are an enabling factor for renewable energies through smart grids Slow and intermediate charging
  • 37.
    Source: McKinsey Slow andintermediate charging
  • 38.
    Need of private financing Winfor TSO RENEWABLES Energy standard deviation increase Need to adsorb peaks EV slow charge: accumulating opportunity Energy variable cost Fares driven by power Expensive fast charging
  • 39.
    • At todayconditions (high range costs) regulations are the reason to invest on electric vehicles • EV market in 2020 will be 7x today market • China is (and will be) main EV market • EV will boom when range will be more affordable • TSO see EV as an opportunity Conclusions Conclusions