Electric Vehicle Business Models (eBook)

Preface 6
Contents 8
Part I Industry Perspectives 10
1 EV Business Models in a Wider Context: Balancing Change and Continuity in the Automotive Industry 11
Abstract 11
1 Introduction 11
2 Business Model Innovation and EVs: The Search for the Right Formula 12
2.1 The Tesla Case 14
2.2 The Autolib Case 16
3 Constraints on Innovation: Continuity in the Automotive Industry 18
4 Countervailing Pressures for Change in the Automotive Industry 19
5 Market Incentives or a New State-Business Relationship? 20
6 Conclusions 22
References 22
2 Four Business Models for a Fast Commercialization of Plug-in Cars 25
Abstract 25
1 Introduction 25
2 Terminology 26
3 What Is a Business Model? 26
4 Why the Current Business Model for Cars Doesn't Work for Plug-in Cars 27
5 Issues to Address for a Successful Diffusion of Plug-in Cars 28
5.1 Social Dilemma Problems 28
5.2 Diffusion of Innovations 28
6 The Business Model Generation Process 29
7 Business Model Descriptions 30
7.1 Conditions 30
8 Four Alternative Business Models 31
8.1 BM1: Free-Floating All-Electric City Cars 31
8.1.1 The Initial Idea 31
8.1.2 How It Works 31
8.1.3 Diffusion Strengths 32
8.1.4 Viability Factors 33
8.2 BM2: Plug-in Cars as Company Cars 33
8.2.1 The Initial Idea 33
8.2.2 How It Works 33
8.2.3 Diffusion Strengths 34
8.2.4 Viability Factors 35
8.3 BM3: All-Electric Car Subscription 35
8.3.1 The Initial Idea 35
8.3.2 How It Works 35
8.3.3 Diffusion Strengths 36
8.3.4 Viability Factors 37
8.4 BM4: Leasing Chain for All-Electric Cars 37
8.4.1 The Initial Idea 37
8.4.2 How It Works 38
8.4.3 Diffusion Strengths 38
8.4.4 Viability Factors 39
9 Social Dilemma Problems Revisited 39
10 Conclusion 40
10.1 Limitations 41
Acknowledgments 41
References 42
3 Electrification of the Powertrain in Automotive Applications: ``Technology Push'' or ``Market Pull''? 43
Abstract 43
1 Introduction 44
1.1 Problem and Motivation 44
1.2 Automotive Industry's Current Situation and Future 45
2 Barriers in the Powertrain Electrification 46
2.1 Lack of Infrastructure 46
2.2 Poor Performances of the Battery 47
2.3 Eternal Comeback of the Fuel Cell 48
3 Disruptive Technologies 50
3.1 Introduction of a New Technology 50
3.2 Market Pull Versus Technology Push 51
3.3 Regulatory Push 52
3.4 Market for the Electric Vehicles 53
4 Key Enablers for the Future Mass Market: The ``3C'' 54
4.1 No Loss of Comfort 54
4.2 Low Climatic Dependency 55
4.3 Lower Costs 55
4.4 Enablers and Vision 56
5 Conclusion 57
Acknowledgments 59
References 59
Part II Recharging 60
4 Identification of Market Models and Associated Billing Strategies for the Provision of EV Charging Services 61
Abstract 61
1 Introduction 61
2 Market Models 62
2.1 Charging Infrastructure in the Public Domain 62
2.2 Private Charging Infrastructure 64
2.3 Home Charging Infrastructure 65
3 Billing Structures 66
3.1 Payment Method 66
3.1.1 Prepaid Methods 67
3.1.2 Postpaid Methods 68
3.1.3 Combined Billing Structures 69
3.2 Billing Rate 69
4 Correlated Factors 70
4.1 Location of Charging 70
4.2 Parking and Mobility Policies 70
4.3 Type of End User 71
5 Conclusions 72
References 72
5 Business Case for EV Charging on the Motorway Network in Denmark 73
Abstract 73
1 Background 73
2 EV Charging Solutions Applied in Denmark 74
3 The Danish EV Recharging Market 76
4 Charging Specifications of EVs on the Danish Market 2013--2014 78
5 Duration of Charging Sessions 79
6 Distribution of EV Charging According to Location of Charging Station 81
7 Market Uptake of EVs in Denmark 82
8 EV Charging Station Located on the Motorway Network 83
9 Provision of Power to Charging Stations on the Motorway Network 85
10 Business Case for Establishing EV Recharging Station on the Danish Motorway Network 85
11 Conclusion 91
A.x(118). Appendix 92
References 92
6 Pricing Plug-in Electric Vehicle Recharging in Multi-unit Dwellings: Financial Viability and Fueling Costs 94
Abstract 94
1 Introduction 94
1.1 Background, Objectives, and Article Structure 94
2 Methods and Assumptions 95
2.1 MUD Recharging Facility Financial Model Elements 95
2.1.1 Costs 96
2.1.2 Financial Assumptions 97
2.1.3 Facility Utilization Assumptions 98
2.2 Fueling Costs Calculations for Resident Drivers: Additional Inputs 98
3 Results and Discussion 99
3.1 MUD Recharging Facility Financial Viability and Pricing Options 99
3.1.1 Residential Recharging Facility Financial Viability 99
3.1.2 Sensitivity and Uncertainty Analysis of Financial Viability 101
Summary and Comparison of Uncertainty Across Fee Structures 104
3.1.3 Revenue Scenarios: Increasing Utilization to Improve Cost Recovery 104
3.2 Fueling-Cost Benchmarks: MUD Charging and Gasoline Equivalents 107
3.2.1 Sensitivity and Uncertainty Analysis of Driver Cost Calculations 109
4 Conclusions 110
Acknowledgments 111
References 111
7 Solutions and Business Models for Wireless Charging of Electric Vehicles 113
Abstract 113
1 Introduction to Wireless Technology 113
2 Wireless Vehicle Features 115
3 Toward a Wireless City: Vision of the Future 117
3.1 Static Wireless City 117
3.2 Static En-route Wireless City 119
3.2.1 Case Study of Static En-route Charging for a Bus Service 119
3.2.2 Taxi Cabs 124
3.3 Dynamic Wireless City 125
4 Available Service for Users 126
5 Conclusions 127
References 128
Part III Energy Systems 130
8 Electric Vehicles as Grid Support 131
Abstract 131
1 Introduction 131
2 How Do Electricity Grids Work? 132
3 What Are the Characteristics of Electric Vehicles Relevant to Grid Support? 133
4 How Could EVs Provide Grid Support? 137
4.1 Off-peak Charging 137
4.2 Optimized Charging 138
4.3 Grid Storage for Emergency Back-up 139
4.4 General Grid Storage 140
4.5 Grid Storage for Renewables Integration 141
4.6 Grid Storage for Ancillary Services 142
5 The Path Forwards 143
6 Conclusion 145
References 145
9 Energy Efficiency in Electric and Plug-in Hybrid Electric Vehicles and Its Impact on Total Cost of Ownership 149
Abstract 149
1 Introduction 149
2 EV/PHEV Design to Reduce Energy Demand During Driving Conditions 150
2.1 EV/PHEV Body Aerodynamics 150
2.2 EV/PHEV Kerb Weight 151
2.3 EV/PHEV On-Board or Off-Board Charging 153
3 Demand from Auxiliary (Non Power Train) Loads/Functions 154
4 Battery Cycle Life and State of Health 155
5 Smart Battery Charging 156
6 Total Cost of Ownership (TCO) of EV/PHEV 157
7 EV/PHEV CO2 Impact and Production Costs 159
8 EV/PHEV New Business Models and TCO Reduction Contributions Across Industries and Regulatory Context 161
9 Conclusions 162
References 163
Part IV Fleets 168
10 Evolution of E-Mobility in Carsharing Business Models 169
Abstract 169
1 Introduction 169
2 Electric Vehicles in Carsharing 170
2.1 Station Car Programmes 170
2.2 Roundtrip Carsharing 171
2.3 Hybrid Station Car/Carsharing Models 172
2.4 One-Way Carsharing 172
2.5 Lessons Learned 173
3 Current and Projected Growth of EV Carsharing 174
3.1 E-Mobility Systems by Automakers 174
3.2 Re-Emergence into Existing Carsharing Fleets 175
4 Conclusion 176
References 176
11 Personalized Total Cost of Ownership and Range-Capability Assessment as an EV Sales Accelerator 179
Abstract 179
1 Why Does Personalization Matter? 180
2 How Does It Work? 182
2.1 Introduction 182
2.1.1 Model-Based Design 182
2.1.2 Model Library Generation 183
2.1.3 Electric Vehicle Suitability and Costing 184
2.1.4 Electric Vehicle Monitoring 184
2.2 Methodology 185
2.2.1 Electric Vehicle Modelling and Simulation Process 185
2.2.2 Electric Vehicle Monitoring Process 185
2.3 Accuracy 186
3 Results 186
3.1 A City in Eastern Canada 186
3.2 A University in Western Canada 189
3.3 A Town in Eastern Canada 190
3.4 MyCarma for Personal Use 191
4 General Conclusions 192
References 193
Part V Case Studies 194
12 Business Models for Electric Vehicles: Lessons from the Japanese EV Ecosystem 195
Abstract 195
1 Introduction 195
2 Case Study Data 196
3 The Development of a Charging Network 197
4 Mobility-as-a-Service Business Models 200
4.1 Case 1: Okinawa Electric Vehicle Rental Service 200
4.1.1 Challenges of the Okinawa EV Rental Service 202
4.1.2 Outcomes of the Okinawa EV Rental Service 203
4.1.3 Lessons for EV Mobility Services 203
4.2 Case 2: E-Mobility Services in Smart City Projects (Kashiwa and Toyota-City Trials) 204
5 Energy Service Business Models 206
6 Conclusions 209
References 210
13 Orchestrating Ecosystem Co-opetition: Case Studies on the Business Models of the EV Demonstration Programme in China 212
Abstract 212
1 Introduction 212
2 The Business Ecosystem Framework 213
2.1 Business Ecosystem Review 213
2.2 EV Business Ecosystem Structure 214
3 The Chinese Electric Vehicle Demonstration Programme 216
3.1 Demonstration Programme Overview 216
3.2 Demonstration Programme: Hangzhou's Battery Swapping Model 217
3.3 Demonstration Programme: Shenzhen's Battery Charging Model 218
4 Competing and Co-existing Business Models 219
4.1 Business Model Review 219
4.2 Competing and Co-existing EV Business Models in China 220
5 Findings 222
6 Conclusion 223
References 223
14 EVs to Reduce Dependence on Imported Oil: Challenges and Lessons from Maui 225
Abstract 225
1 Why Hawaii Needs EVs 226
2 Hawaii: The State, The Counties, The Islands 227
3 State Policies and Incentives for Early Adopters 230
4 Maui as a Test-Bed for EVs 232
5 Maui Electric Vehicle Alliance 234
6 Residents to Prepare for Visitors 236
7 Lessons Learned from Maui EVA 238
7.1 Planning and Coordination to Avoid Inconvenience 239
7.2 The PV to EV Link: The Key to Greater EV Adoption 240
7.3 Incentives and Penalties for Charging Infrastructure Deployment 240
References 242
15 Charging up Chile: Enabling Shared, Electric Mobility in an Emerging Market 244
Abstract 244
1 Introduction: Chilean Context, Demographics, Existing EVs, and Charging Infrastructure 245
1.1 Jurisdictional Structure 246
1.2 Chilean Vehicle Ownership Trends 247
1.3 Energy Production Portfolio and Pricing in Chile 248
1.4 Existing Electric Vehicles, Charging Stations, and E-Mobility Policy in Chile 249
1.5 Electric Charging Infrastructure in Santiago de Chile 250
2 Vehicle Sharing as a Cost Reduction Measure for Enabling Electric Mobility 252
2.1 Colectivo Scenario (Dedicated Driver, Payment Per Trip) 252
2.2 Traditional Vehicle Sharing Scenario (User-Driven, Payment by Rental Time or Mileage) 253
3 EV Charging Station and Metro Station Accessibility Analysis 255
3.1 Metro Station Location and Household Income 256
3.2 Metro Station Pedestrian Accessibility (5, 10, 15 min) and Household Income 256
3.3 EV Charging Station Driving Accessibility (5, 10, 15 min) and Household Income 258
3.4 Holistic Urban Accessibility and Future Charging Station Opportunities Analysis 259
4 Lithium Production and Electric Mobility 260
5 Conclusions and Extension to Other Latin American Markets 264
Acknowledgments 265
References 265