Creating a Global Network of Electric Vehicle Charging Stations

Timo Tapio Ristola e0009596@u.nus.eduJoona Petteri Karjula e0014590@u.nus.eduMinja Wilhelmina Axelsson e0014448@u.nus.eduIivari Joonatan Heikkilae e0014305@u.nus.eduTommi Juho Miikkael Karjalainen e0014306@u.nus.eduThilo Marcel Braun e0009778@u.nus.edu

Introduction to Electric Vehicle (EV)

Picture: http://www.digitaltrends.com/cars/just-plug-in-that-ev-anywhere-wrong-vendor-battles-could-shaft-drivers/

Honda EV plus

Ford Ranger EV

Tesla Roadster

Mitsubishi I MiEV

Nissan Leaf

Tesla Model S P85

BMW i3

VW e-Golf

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1990 1995 2000 2005 2010 2015 2020

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Year launched

Range evolution of electric cars

Size of the ball indicates list price varying from 29 kUSD (I MiEV) 109kUSD (Tesla roadster)

In 2015 range reached over 400km (Tesla)

• Battery is one of the top priorities in development

• Battery size 16-85kWH

• Battery usage is normally

15-28kWh / 100km

EV market has been growing rapidly after 2010

Source: http://www.zsw-bw.de/en/support/news/news-detail/number-of-electric-cars-worldwide-climbs-to-13-million.html

Over 200 000 new registrations in China

In many countries government supports EV's

EV Charging

• Up to 3kWMode 1

• 3.3-10kWMode 2

• 10-50kWMode 3

• Up to 120kWMode 4

0 50 100 150 200 250 300

Mileage per hour

Mileage per hour

EV Charging cost depends how fast youwant it to be charged

Source: DOI: 10.1109/TPWRS.2010.2049133

Current state of charging points

Gasoline Battery (fast) Battery (slow)

Swapping Induction

Description Conventional refueling

Cable and plug (specialized

charging station)

Cable and plug (conventional

plug, e.g. home)

Replacing a battery for a fully charged one (special

swapping station)

Battery in the car is charged by wireless induction charging

Time needed 5 min 10-30min 4-8 hrs 5 min 2-8 hrs

Example car All ICEs Tesla Model S, Nissan Leaf

All EVs Renault Fluence Few pilot cars

Availability in Europe

Widely available

Limited: <1000

Limited:<20 000

Very limited, not growing

Not available

Payment Cash/creditcard

Credit card/ Monthlysubscription

Credit card/ Monthlysubscription

NA NA

Source: Modified from McKinsey

Introduction -> PlugSurfing -> Value Capture -> Competiton -> Future

Problem: multiple contracts

Solution: Plugsurfing

• Enter payment details once• Tap to start charging• Access 25 000 charging points

How?

Overview and History

• Initial revenue from licensing map data

• Integration into infotainment system

• Car OEM's (eg. Opel) & OEM suppliers

Database of charging point locations in Europe (2012)

• Application with charging point locations

• Capture customer details with user accounts

• Users to crowdsourcing data

• Review charging points

• Add/update information

Charging point location finder app (2013)

• Users find charging stations, start charging, pay with app (Service layered ontop of operator hardware)

• Revenue for Plugshare from each transaction

Integrated charging and payment solution (2014)

Advantages in the start– Board Members

Gregor MatthiesBain Advisory

Expertees: Energy and Automotive

Heinz DuerrEx-CEO Deutche Bhan

• Investors joined Plugsurfing board

• Contact network for fast scale-up

Current Market

Plugsurfing: Established Market

Plugsurfing: Currently Entering

PlugSurfing - Network Growth

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SIZE OF CHARGING NETWORK

PlugSurfing estimates EV charging market value to be €4Bn in 2020. Aims to take 5% cut of it (€100M).

Density of Charging Stations –Central&Suburb

Density of Charging Stations - Highway

PlugSurfing: Value Capture

Introduction -> PlugSurfing -> Value Capture -> Competiton -> Future

Value Chain

ElectricityGeneration

Electricity transfer

EV Charging

Customer running out of range

Value Propositions for Key Stakeholders

Charging point operator• Larger customer base• Less customer acquisition

costs• Bundled payment

EV owners in Europe• Single contract• Easy-to-use• Better EV

experience

EV manufacturers• Make charging

easier • Provide data about

charging point location

Value Proposition: Customer

Better EV experience• Less range anxiety• Less hassle to drive

electric vehicle

Single contract• No need for multiple

agreements• Easy access to large

number of chargers

Easy-to-use• Smartphone app to

find charging spots• Integrated billing

system

Value Proposition: Charging Point Operator

Larger customer base• More potential

customers• Higher usage and more

revenue

Less acquisition costs• No individual marketing

and introduction fees• Eliminates customer

acquisition costs

Bundled payment• Outsources payment• No need to handle

micro transactions• Reduced admin cost

Network Effect

More customers

Higher charging point usage rate

More incentive to charging operators to join

Higher charging point availability

Better EV experience

Method of Value Capture

• PlugSurfing gets 5-20% commission of final bill• Pricing power depends on number of

users ( network effects)

What PlugSurfing did well

First to recognize problem in Europe

Expanded rapidly • Gain users • More charging

stations• Minimal capital

costs (no hardware)

Easy-to-use service• Low barriers to adaption• Make service accessible

Initially built database of charging point locations• Early revenue stream

to sustain business

Network Effects

Competitors

Introduction -> PlugSurfing -> Value Capture -> Competiton -> Future

Chargepoint – Connect with users

Advantages in mobile application

http://www.chargepoint.com/mobile/

Queuing for charge points

Possibility to chat with current charger

Graphs for busy times

PlugShare – Share your home charging point

Possibility to share personal charging points

Mobile application and www-page

Main markets in USA and Canada

http://www.plugshare.com/

Individual charging point operators

No commission for 3rd party

Work as individual provider• Can be part of 3rd party mobile application same time

Small charging point networks

Nomadic – Car trailer as charger

Battery pack for a car

Charge while driving

Destination- and home-charging

http://nomadicpower.de/products/

Competitor mappingP

roce

ss In

tegr

atio

n

Availability/Density

?

Individual Charging Point Operators

Geographical overview

Plugsurfing: Established Market

Plugsurfing: Currently Entering

Other countries with EV Market Share >1%

Plugshare & Chargepoint market

Moving forward

Introduction -> PlugSurfing -> Value Capture -> Competiton -> Future

Short Term

Increase market penetration in existing markets

Push for new customer acquisition

Geographic focus on Europe

Partnerships

• Leverage existing database

• Maximize value of services for customers

Surge Pricing – solution for high demand

In high demand, costs increase

Better rates from Electricity providers

After high demand, costs decrease

Source: Energy Defence Fund

Customer Acquisition & Retention

Combine or Link to Additional Services

Targeted marketing

Bundling with car sales & services

Competition & Business Model

Focus on service, not infrastructure

Potential for subscription based model

Competitors could present opportunities

Mid & Long Term

Focus on Data

Charging as a Service

B2B Charging Subscription

Data– key to longterm success

Strategic Control

Data to deliver morevalue than

competitors

Product development

Subscription

Charging as a service

New revenuestreams

Consumer behaviour for

OEMs

Usagepatterns for

governments

Charging as a Service

• Charging Points are expensive

• Lease charging points to home owners,shops, malls, parking lots

• Secure favorable rates through cooperation with utilities

• Use data for adaptive charging

B2B Subscription Models

Commercial EV-fleets will grow rapidly Rental companies

Taxi providers

Company fleets

Economical & Easy

Conclusion

• Fast growing market

• Need to focus on market penetration across Europe to achieve network effects

• Develop new partnerships

• Maintain control of Data

• Explore ‘charging as a service’ model

Q&A