Supported by

eMobility – Nurturing
and Growing Electric
Vehicle Adoption and
Public Charging
 Table of Contents
Introduction 3

Goals for EV Adoption, Along with Incentives,

are the Basis for Optimistic Forecasts of EV Growth. 4

Overcoming Challenges and the Way Forward 11

Conclusion 19

A challenging territory for utilities, charging

network providers, charging equipment
manufacturers, automakers, charging station
owners, municipalities and governments in
the United States and Europe.

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 2
 Introduction
The outlook for the growth of electric vehicles (EV) is bright. Electric vehicles are
being recognized as a viable, clean and cost-effective option to green-house gas
producing internal combustion vehicles. With the blossoming of the EV market,
the members of the EV ecosystem - utilities, charging network providers, charging
equipment manufacturers, automakers, charging station owners, municipalities
and governments - will all play significant roles in EV growth and sustainability
(see Figure 1). This paper looks at where the EV market is headed, essential
objectives, and how to get there.

Figure 1 – The EV Ecosystem

Manufacturers
Automakers & Electric Vehicle
Service Equipment (EVSE)

Utilities EV Service Providers

Distribution Service Operators (DSO)
Electric Vehicle Charging Network Providers &
& Transmission Service Operators (TSO) Ecosystem Charging Station Owners

Commercial Governing Bodies

Retail, Hotel & Grocery Municipals, State, Federal & Regional

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 3
Goals for EV Adoption, Along with
Incentives, are the Basis for Optimistic
Forecasts of EV Growth.
The International Energy Agency’s Global EV Outlook 2019 predicts that the
global EV stock will reach about 135 million vehicles in 2030, with a CAGR of
30%.1 In Europe, the stock of EVs sales share will reach 26% in 2030. In the
United States, stock is expected to climb to 8% of the vehicle market by 2030.

There are many drivers underlying growth forecasts: lower total cost of
ownership, declining battery cost and increased vehicle range. According
to the United States Department of Energy (DOE), median electric car
range has increased 171% in seven years, from 73 miles (117.5 kilometers)
in 2011 to 125 miles (201.2 kilometers) in 2018.2 Since that time, several
EV automakers have announced models with ranges in excess of 250 miles
(402.3 km). Although still not at a crossover point with gasoline-fueled
engines, the volume-weighted average battery pack cost fell 85% between
2010-18, reaching an average of $176/kWh.3
1
IEA (May, 2019) Global EV Outlook 2019. Forecast is based on the New Policy Scenario, excludes two and three wheelers.
2
Energy.gov (January, 2019) Median All-Electric Vehicle Range Grew from 73 Miles in Model Year 2011 to 125 Miles in Model Year 2018.
3
Goldie-Scot, Logan (March, 2019) A Behind the Scenes Take on Lithium-ion Battery Prices

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 4
Government and Business are Committed to Scaling
EVs and the EV Charging Infrastructure
The motivations are many: desire for a cleaner and more sustainable
environment, reductions in fuel costs and business opportunity creation.

Government initiatives such as zero emissions mandates, fuel economy

standards, rebates, tax credits and loans for EV purchases, and designation
of charging corridors have pushed the markets forward. For example, as part
of their national policy frameworks, the European Union (EU) Alternative
Fuels Infrastructure Directive requires countries in the EU to set deployment
targets for publicly accessible chargers by 2020, to be revisited in 2025 and
2030. Regulations requiring the installation of EV charging facilities in new
buildings are also expected to drive further adoption.

It is no surprise that automakers producing electric car and truck models are
investing in EV infrastructure. In Europe, the leaders are BMW, Daimler, and
Volkswagen. In the United States, Ford, Fiat, GM and Tesla are following suit.
In addition, many shopping centers, hotels, grocery stores, and restaurants
are adding “destination chargers.”

Utilities in the U.S. and Europe are pursuing electrification of the energy
infrastructure 4 as a means to reduce greenhouse gas (GHG) emissions
related to fossil fuel while bolstering revenues. Municipalities, utilities, retail
companies and others have already built up extensive charging networks.

The growing EV market has created opportunities for new business models.
In recent years, companies supporting ancillary services for EVs, particularly
independent EV charging network providers, have proliferated. Charging
network providers offer subscription services that provide drivers with
access to “apps” for locating available “in network” chargers and RFID for

4
Electrification initiatives include promoting electric transportation, electric heat pumps, and electric hot water, as well as energy storage.

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 5
paying for “in network” charging. For example, the company ChargePoint
operates the largest EV charging network in the U.S., with more than 58,000
charging posts as of January 2019.

Business opportunities have borne fruit with startups such as Greenlots,

U.K.-based Chargemaster, G2 mobility, Netherlands-based startups
NewMotion and EV-Box, and ChargePoint Services U.K. being acquired by
Shell, BP, Total and ENGIE.

Business opportunities are numerous in this environment. For example, a

grocery store could purchase and install chargers from a manufacturer and
have control over the rates of customers who want to charge their EVs while
shopping. A utility could buy, install, own and operate chargers at a grocery
and set the charging rates. A store owner could partner as a host with an EV
charging network provider that retains ownership and sets prices for the
public stations in its network.5

Charging Infrastructure is Essential

to Sustaining EV Adoption
The U.S. alone will need a cumulative 20 million chargers and approximately
$10 billion of investment by 2030. The European Union will need a
cumulative 25 million chargers and roughly $15 billion of investment during
the same period according to a 2018 McKinsey study.6

Public charging networks in various locations (on-street, public garages,

retailers, parking lots, charging stations, gas stations)7 reduce “range
anxiety” for consumers and commercial vehicles. According to the
Transport Environment Organization in Europe, the availability of charging

5
Thill, David (February, 2019) The Need for Charging Stations is Clear, but who Should Own Them Is Not
6
 cKinsey and Company (October, 2018) Charging Ahead: Electric Vehicle Infrastructure Demand (Page 6.) Based on charging profiles and available technologies.
M
7
Public charging is accessible 24/7 to all and may include different terms for authentication, use and payment. Semi-public charging points are not accessible
to the public 24/7.

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 6
infrastructure is well on its way. Public charging availability will keep pace
with EV penetration.8 While penetration is increasing, especially in California,
Hawaii, and Kansas, significant gaps remain in charging infrastructure,
particularly in urban areas.9

Public Charging: What's Involved

Charging Point: The electric energy is delivered through a charging point.
A charging point can have more than one connector but can only charge one
vehicle at a time.

Charging Station: A Charging Station is a physical object with one or more

charging points, sharing a common user identification interface.

Charging Pool: A charging pool consists of one or multiple charging stations

and the accommodating parking lots in one geographic location.

Charging Network Provider: Companies that operate charging stations

under a number of business models. Providers may offer memberships
with perks, such as unlimited charging or reduced pricing at pools in
their network.

Charging Station Owners: A charging station owner hosts and owns the
charging equipment in a station or pool.

The infrastructure supporting public charges include both energy delivery and
communications. According to Jean-Christoph Heyne, Head of Future Grid,
Siemens, “Charging electric vehicles is not just about AC and DC chargers. It‘s
the combination of multiple chargers with battery storage and charging and
load management. It‘s the combination of hardware, software and services
– the whole package.” Figure 2 displays the interaction of Electric Vehicle
Service Equipment (EVSE) also known as charging equipment, distribution
system operators (DSO) which are utilities, and EV service providers (EVSP)
such as charging station owners and charging network operators.

8
Transport and Environment (September, 2018) Roll-out of public charging infrastructure in the EU
9
 icholas, Hall, and Lutsey (January, 2019) Quantifying Vehicle Charging Infrastructure Gap Across US Markets,
N
The International Council on Clean Transportation

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 7
 Public Charging Fills the Gap for
Car Owners Without Private Charging.
In addition to addressing range anxiety, public charging serves the need of
EV drivers who do not have access to home or workplace charging. Currently,
the cost of multiple charging points for multi-family buildings with assigned
parking is prohibitive. And if there are multiple vehicles for each charging
point installed, it is hard to manage which vehicles get priority for charging
in the evening when most drivers want to charge their vehicles. There are
few clear guidelines on payment structure.

In high density cities, private charging options are limited. Drivers must rely
on public street charging. In Europe, 40% of drivers do not have access to

Figure 2 The European emobility: The Big Picture

Source: Green eMotion (2011 – 2015)10

10
The Green eMotion project is part of the European Green Cars Initiative (EGCI) that was launched within the context of the European Recovery Plan.

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 8
off-street charging.11 Ideally, designated on-street charging should be
available. However, the cost of building out additional electric infrastructure
to support that solution is prohibitive. One alternative is to connect to
existing street lighting to power on-street charging. Currently, this approach
is being tested in London through a partnership between German startup
ubitricity and Siemens.12

EV Fleets Will Change the Business of eMobility

It makes sense for vehicle manufacturers to target fleet customers because
fleets are typically high mileage. Also, the total cost of EV ownership is lower
than gasoline or diesel-fueled vehicles.13 That plus sustainability may have
been what DHL was thinking about when the company made a pledge to
reach 70% clean operations of last-mile pick up and deliveries by 2025.14

A growing number of utilities have pledged to electrify their service vehicles

and are pushing electric buses as well. For instance, Dominion Electric plans
to procure 1,005 electric buses for local school districts in the U.S. by 2025.
The company’s final aspiration is to fully electrify the state’s 13,000
buses by 2030.

For utilities, EV fleets provide flexibility to the grid. Charging can be

scheduled, adding a significant benefit beyond the reduction of
vehicle emissions.

Governments are also encouraging adoption of electric buses and trucks.

The European Union has established targets for member states of up to
65% (2030) for electric buses and up to 15% for trucks by 2030. Startup
companies such as chr are having success in the electric bus market,
especially with cities and towns.
11
IRENA (May, 2019) Innovation Outlook: Smart Charging for Electric Vehicles, p. 52
12
Siemens
13
Baik, Hensley, Hertzke, Knupfer (March, 2019) Making Electric Vehicles Profitable
14
DHL (February, 2019) DHL Expands Green Fleet with the Addition of New Electric Delivery Vans

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 9
The Demand for Fast Charging
Will Increase Electric Demand
Today, a significant portion of EV charging is done at home or in the
workplace, where vehicles are parked for long periods and can utilize a slow
charge. However, there are indications that as the penetration of electric
vehicles increases, demand for public fast charging will increase.

The experience in Norway, where market share of EVs is 39%, illustrates the
point. The share of drivers relying daily on public slow charging dropped
from almost 10% in 2014 to just 2% in 2017. The only charging type that has
seen increased use is fast charging along main road corridors. The reason:
improved coverage of fast charging networks along with increases in battery
capacity and EV driving ranges.15

The demand for public charging will also increase electric demand. By 2025,
public and DC fast chargers will make up 4% of all EV charging points in the
U.S., but 21% of electricity consumed by EV charging. More efficient fast
chargers will be charging more vehicles. In the U.K. scenario of 10 million
EVs by 2035, evening peak demand would increase by 3 GW with
uncontrolled charging.16

15
Transport and Environment (September, 2018) Roll-out of public charging infrastructure in the EU
16
IRENA (May, 2019) EV Smart Charging

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 10
Overcoming Challenges
and the Way Forward
Sophisticated charging technology is ready to be deployed. There will
undoubtedly be advances in both battery and charging technologies that
will increase driving ranges and reduce costs. The determination to advance
transportation electrification is there, but challenges remain in achieving the
following objectives:

• Ensuring driver access

• Balancing the grid
• Supporting public charging owners and operators
• Advancing electric fleets

Challenges are best addressed with a combination of policy, regulation,

and technology. The “keys to the kingdom” are data exchange and
interoperability.

A Common Thread:
Interoperability and Data Exchange
EV-use generates massive amounts of data that is extremely useful for
planning and day-to-day operations. Available data includes charging
patterns, driving patterns, state of charge, payment transactions, time-of-
use incentive uptake, and many more.

Data exchange depends on the willingness of the players to share data. But
more often than not, data is locked in proprietary systems. It is not available
to relevant parties in the EV ecosystem: utilities, EV operators, automakers,
and charging network operators.

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 11
Interoperability goes hand in hand with data exchange. It is critical to
achieving widespread access to EV charging network’s operational and
commercial systems (smart chargers, distribution grid systems,

Interoperability goes hand in hand with data exchange. It is critical to

achieving widespread access to EV charging network’s operational and
commercial systems (smart chargers, distribution grid systems, payment
systems, meters, sensors, telematics, etc.). For example, interoperable
communications protocols enable data sharing between charging points
and the vehicle; the manufacturer and the vehicle; charging network
providers and charging points; and charging network providers and utilities.

Standards are the foundation of interoperability. Across-the-board adoption

of standards for equipment (charging connectors, charging equipment,
batteries, communication, signage) data formats, communication protocols,
technical business processes (measurement, charging access) and
cybersecurity strengthen the EV ecosystem.

Ensuring Driver Access Depends on Interoperability

As with many new technologies, initial entrants into the market have
established proprietary hardware, software and communications to lock
in customers. This is true of EV automakers, EV charging manufacturers
and charging network providers. However, proprietary technology creates
additional burdens for drivers.

Drivers of conventional vehicles expect that fuel nozzles at every gas station
will be standard. EV drivers expect similar convenience at charging pools and
stations. However, plug connections may vary by region and model, making
it difficult for drivers to find compatible equipment. Public charging is made
easier when charging stations use standard systems and plug configurations
such as CCS and CHAdeMO and multiple plug-in connections are available.

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 12
As well, drivers of conventional vehicles are accustomed to paying for fuel
using credit/debit cards or cash. EV charging network providers currently
use a subscriber model that requires network membership. EV drivers
traveling long distances must download multiple mobile apps to find in-
network charging and carry multiple membership cards and RFID chips to
pay for charging. Interoperable e-roaming platforms could improve access
across charging networks.

Advice to the Ecosystem

• Commit to standardization of physical connections and car-to-charger

communication to improve driver access to charging.
• Facilitate information sharing between charging network operators inside
and outside their networks.

Balancing the Grid Requires Smart Charging

As mentioned above, increases in EV penetration will increase electric
demand. Not only that, but increased EV charging can negatively impact
grid stability, especially where feeder capacity is insufficient and when
uncoordinated charging adds to peak demand. For example, depot charging
often involves charging multiple vehicles over the same time period,
potentially straining local capacity.

EV charging may also have an impact on power quality.17 Several studies

have shown that EV batteries may cause harmonic noise on the grid,
especially with fast charging batteries in low temperatures.

To handle challenges, stakeholders must plan for the most suitable EV

charging locations given available grid capacity. Planning must address:
17
Power quality is the characteristics of the power supply system that enable the equipment to work properly

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 13
• Where and when will charging happen (assuming yet-to-be-determined
incentives for charging at different times during the day)?
• What vehicles will be charging (light duty, medium duty, heavy
duty, buses)?
• What type of charging (slow, accelerated, fast or ultrafast, AC or DC)
will be needed?

The question, then, is to determine the least-cost approaches to mitigate

grid impact. In some areas, it will be necessary to add physical infrastructure
to increase distribution system capacity (feeders, transformers, etc.) or
upgrade substations. For example, to reach 100% EV penetration by 2045,
European utility E.ON will need to invest a total of around €2.5 billion over
the next 25 years on physical infrastructure.18 The amount of investment
sounds rather high. However, distributed among 6.5 electric cars in the E.ON
service territory would average under €400 per car.

Alternatively, there will be some areas where controlled or “smart charging”

will reduce the need for investment in physical infrastructure. In the E.ON
example, the amount of capital investment would decrease to under €200
by introducing digital solutions and load shifting incentives for customers. In
the above-referenced U.K. scenario of 10 million EVs by 2035, evening peak
demand would increase by only 0.5 GW if charging is smart, as compared to
3 GW with “dumb” charging.19

Smart charging infrastructure combined with EV-friendly tariffs/rates will go

a long way to flatten peaks, fill valleys and support real-time balancing of the
grid. Investment in communications and control systems will be required to
automate load shifting.

Smart charging can also contribute to more efficient use of renewable

energy. For example, California has a duck curve of lower demand during the
18
Konig (May, 2019) E.on Grids will be Upgraded for 100 Percent E-mobility
19
IRENA (May, 2019) EV Smart Charging

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 14
day when solar PV is plentiful. Providing incentives for fast charging during
the day vs. the evening will help to smooth demand by encouraging a shift in
charging behavior.

Customers, knowing that it is less costly to charge their vehicles during the
day, will arrange to do so. However, the customer does not actively need
to be involved in deciding when to charge. Smart charging technology
automates the shift in response to price signals. Co-locating charging
infrastructure with battery storage and solar PV will also go a long way in
achieving clean energy goals.

Advice for Utilities

• Trusted advisors will be needed to predict the impact of EV charging on the

grid by location and time. The analysis will depend on data from external
and internal sources.
• Expertise will be needed to formulate investment strategies, set
requirements for interconnection of EV charging points, and design
communication and control infrastructure.
• Access to data from outside the organization (automaker’s telematics,
smart inverters, etc.) will help utilities to continuously update predictions
of where and when charging will occur.

Supporting Public Charging Owners and Operators

Means Facilitating Business Models
There are multiple business models envisioned for owners and operators of
public charging. Even so, owners and operators do business under the same
principles that bind companies in general - achieving a sustainable return
on investment, maximizing revenues and reducing costs.

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 15
With a dearth of dynamic rates/tariffs and high demand charges, today’s
owners and operators struggle to cover costs. Revenues are based on a
combination of the unit charge (based on how much energy is used or how
many hours the vehicle is plugged in) and high utilization rates.

Then too, public charging owners and operators need to charge more for a
“fill-up” than it costs drivers to charge at home using slow chargers. The fast
chargers and interconnection costs are higher for owners and operators.

Owners of a small number of destination chargers may not have the

bandwidth or experience to choose the best value in procuring hardware
or the services of a charging network provider. With an increase in EV
penetration, utilization will be higher, but there will also be competitive
pressure on what the provider is able to charge.

There are several strategies that owners and operators can pursue to
survive and thrive. Diversification of revenue streams, through offering grid
services such as ramping and frequency regulation, will help margins. Wood
MacKenzie estimates that by 2030, the market for grid services provided
by EVs could be $10 billion in both North America and Europe (low case) or

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 16
$15 billion for Europe and $50 billion for the U.S. (high case). An example:
Enel subsidiary eMotorWerks is mobilizing a fleet of 10,000 connected car
chargers to provide grid services to California’s day-ahead markets. In the
future, Vehicle to Grid (V2G) - feeding electricity back into the grid from the
EV battery - could also serve as a grid service with revenue potential.

Scaling up makes sense for charging network operators. Scale offers an

opportunity to provide services on top of commodity charging and reduces
operations and maintenance costs per charging point. For owners, third-
party operating center services may be the right approach.

Interoperability will benefit owners and operators in the short and long run.
“Most of the managed charging debate today is related to which messaging
protocols to use in charging equipment. Many industry stakeholders are
advocating for open, non-proprietary communications messaging protocols
to reduce the cost of managed charging implementation and prevent future
stranded assets,” according to the Smart Electric Power Alliance.20

Charging standards, such as IEC 15118 and IEEE 2030.5, support

communications between EVs and chargers. This makes it easier to
incorporate new charging technologies into the portfolio. In the long run,
standards support communications and signaling that will enable owners
and operators to participate in offering grid services.

Advice to EV Charging Owners and Operators

• Push for reduction of demand charges and adoption of dynamic prices.

• Use data and analytics to optimize charger utilization.
• Invest in e-roaming or other infrastructure needed to accept multiple
payment methods and widen your market.

20
SEPA (May, 2019) A Comprehensive Guide to Electric Vehicle Managed Charging

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 17
• Seek out providers that have committed to open standards
and interoperability.
• Explore what third parties have to offer to manage
charge points that you own.

Advancing Electric Fleets Necessitates

Multiple Charging Options.
For fleets of electric cars, buses or trucks, especially those that are involved
in long-range trips, the need for on-road charging will continue. Fleet drivers
of electric cars or light duty vehicles will face the same challenges
as personal EVs when crossing charging networks.

A 2017 review of more than 90 European cities found that about 90% of
electric buses use overnight depot charging due to lower rates at that hour
and the ability to charge over a longer period; however, almost all also use
fast charging during operating hours, mostly pantograph charging.21 Depot
charging is particularly challenging in high density areas, such as Manhattan
and Berlin, where there is also limited space for depots.

Heavy-duty trucks are typically charged at private depots mainly because

they require DC fast charging for periods of six hours or more. The heavy-
duty freight vehicles with long traveling ranges will require higher power DC
charging than what is currently available. However, the economics are good,
as there are few major travel corridors and chargers will likely have a high
utilization rate.22

Advice for the Electric Fleet Owners/Operators

• Seek out providers that can help you enroll drivers of electric car and
light-duty EVs; signal drivers to charge when rates are low; help drivers find
charging stations; and enable access to multiple charging networks.
21
Buses also use fast charging during operating hours, mostly pantograph charging.
22
IEA (May, 2019) Global EV Outlook, p. 48.

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 18
• With rapid advances in technology over the years, transportation
organizations will acquire a diverse portfolio of electric bus models and
makes. Seek out charging systems that are flexible enough to
accommodate the portfolio whether depot or on-road.

• Press utilities and regulators to revisit tariffs/rates to implement flat rates

for EV charging. With many buses charging at the same time at bus depots
or end of the line stations, demand charges may be triggered, potentially
eliminating the savings achieved by electric vs. fossil-based fueling.

• Choose depot charging systems that help you manage costs by enabling
charging when the rates are low and driving schedules will not be
adversely affected.

Conclusion
If the members of the EV ecosystem want to succeed in ensuring driver
access, balancing the grid, supporting charging owners and operators
and advancing EV fleets, they need to collaborate frequently and commit
to standards setting and interoperability. Wise companies will make
investments in R&D, forecast and plan for infrastructure, craft successful
business models and choose the “package” that will deliver reliable, clean,
safe and convenient service. They will need to rely on trusted advisors that
have the experience and expertise to help them navigate the future.

eMobility – Nurturing and Growing Electric Vehicle Adoption and Public Charging 19