Emerging business models of electric vehicle charging

Emerging business models

of EV chargingJarmo Tuisk

Director, electric mobility solutions

NOW! Innovation

July, 2013

Understanding the customer

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 90percent reported they had access to free charging

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

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

BackgroundThere 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

User profile: Estonia

All

Public sector users

Commercial users

Private users

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

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

Understanding the technology options and implications

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-

stre

eton

-str

eet

Hig

hway

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

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

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.

1 2 3 4 5 6 70.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

Data courtesy of KredEx, usage of quick charging network, January-July 2013

Months: January – July 2013

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.

2 3 4 5 610.00

15.00

20.00

25.00

30.00

35.00

40.00

Months: February – June 2013

Examples of early business models in the EV charging

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

Urban network provider model

Focus customer segmentValue proposition

Key resources and costs Revenue models

Charge everywhereCompetitive pricing

On-street parking EV owners

Subscriptions/Pay-as-you-goRevenue sharing/fixed fee with charge point owner

(Low-cost) charging equipment Parking placesAccess to (the existing) electricity distribution

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

Smart home charging solution model

Focus customer segmentValue proposition

Key resources and costs Revenue model

Convenient set-up of home chargerControllable, competitive rates

Off-street parking EV owners

Premium electricity tariffsSubscriptions

Smart home charging equipmentAccess to the customer(s or their data)

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.

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

Mobility insurance model

Focus customer segmentValue proposition

Key resources and costs Revenue model

Avoid range anxietyEverywhere on the road

CommutersLong-range EV drivers

SubscriptionsPremium charging ratesRoaming feesOEM-financing

Quick chargers/battery swap stationsHigh-power electricity connectionsRoaming partnershipsCharging stations

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.

PricingMonthly fees from 0-30 EURPay-per-charge from 1,2EUR to 5EUR

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.

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/travellersOEMs

Pay-per-call“Insurance subscriptions”OEM insurance payments

Mobile quick charging equipment24/7 customer help desk/operation center

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.

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.

Mr. Jarmo Tuisk

Director, electric mobility solutions

Mob: +372 52 01443

Office: +372 6 023 046

www.nowinnovations.com

[email protected]

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