Electric Vehicles
1
September 2019 - Primer 2, Edition 1
About The goal of DecarbEurope is to engage decision-makers in policy and industry with solutions that can, in a cost-effective manner, decarbonise Europe at the scale and speed that is needed to achieve our climate goals. As an ecosystem of twenty sectors — and growing — the initiative connects technologies, policies, and markets. Partners of DecarbEurope commit themselves to common values of deep decarbonisation, cost-effectiveness, circularity, sector-coupling and consumer engagement.
2
Editorial Given the transport sector’s 25% contribution to the total greenhouse gas emissions in the EU, it urgently requires largescale, market-ready decarbonisation solutions. The rapidly developing European electric vehicle market offers exactly that. Stimulated by favourable EU policies, we are on the verge of a long-awaited breakthrough of electric vehicles. Several European automotive manufacturers have made clear commitments concerning the electrification of their fleets. Many new electric vehicle (EV) models will be entering the market in the coming years. Total cost of ownership for EV models is rapidly approaching parity with combustion engine vehicles. There is no denying that the electrification of transport is here to stay but the question remains how exactly technology and markets will evolve, how fast, and what role the EU can play on a global level. There are still a few remaining barriers such as the installation of charging points in existing residential buildings and an adequate public charging infrastructure along highways and urban areas. These need to be addressed collaboratively by policy makers and industry to evolve towards a highly electrified transport sector with the EU as a front-runner. Consumer support will also remain indispensable to ensure fast market uptake. The benefits of EV technology should be communicated effectively, and where necessary, incentives used to support the market transition.
1
Industry is a key player in delivering innovative technologies that benefit consumers, but it can only do so if supported by an appropriate legislative framework. Well-targeted public investments, the stimulation of innovative business models, and a coherent and long-term EU policy will be key to a successful market transition .
Diego Garcia Carvajal, Emobility Programme Manager – Copper Alliance (Photo: Copper Alliance)
2
Benefits beyond decarbonisation Transport is a large contributor to energy-related CO2 emissions in the EU-28 and almost three-quarters of those emissions are caused by road transport. Parallel with the need for decarbonisation, European cities are acting against road transport-related air pollution. EVs provide the solution for both issues. They have zero local emissions, and their (indirect) greenhouse gas emissions are going down together with the fast decarbonisation rate of the EU electricity sector. EVs have high energy efficiency and their economic efficiency is increasing rapidly thanks to mass production. Moreover, the emobility sector has the potential to turn some of its current market barriers into future advantages. One of those barriers is the material use in batteries and other EV components. The uptake of EVs could stimulate the development of a circular economy for batteries, promoting second life and recycling. Investing in this sector will greatly facilitate the management of strategic raw materials. A second barrier is the need to strengthen electricity grids for massive EV charging. With the right approach, the impact on the distribution grids is manageable. By incorporating systems of Demand Side Management (DSM) into EV charging systems, they could even be turned into a benefit for the grid. DSM can assist grid operators in balancing variable renewable energy input without costly upgrades to infrastructure and at the same time allow energy consumers to save money on their monthly energy bill. 3
Policy solutions
4
1.
Policy coherence between municipal, national and EU policy makers. In order to ensure a steady increase in EV uptake in the medium term, consistency of policies and incentives for emobility at multiple governance levels is needed.
2.
Support the roll-out of public charging infrastructure. To support the growth of the EV fleet, charging infrastructure should be rolled-out swiftly. Both 150 kW charging infrastructure on the TEN-T Core Network and smart charging points in urban environments that can prioritise off-peak hours will be needed.
3.
Incentivise business models that create a circular economy for EVs. Projects that enhance the recycling rates of materials used in EVs should be stimulated. In particular, the development of an industry specialized in battery reuse and recycling could provide the EU with a global competitive advantage.
4.
Create the right regulatory conditions for DSM in EV charging. This includes smart charging facilities, as well as the roll-out of vehicle-to-grid applications that make use of EV batteries as short-term storage for the grid.
5.
Support consumers through the market transition. Both potential and actual EV users can benefit from incentives (e.g. tax exemption) that will encourage them to drive electric. Limiting those incentives in time will make them more cost-effective. On top of that, clear communication to educate consumers on how to navigate in the continuously evolving market will contribute significantly to a swift transition.
5
Facts
6
1.
The cost of purchasing large electric vehicles in the EU is expected to become equal to that of traditional vehicles by 2022.
2.
Around 1,740 million barrels of oil per year could be saved by 2050 globally through the transition to a zero-emission passenger car fleet.
3.
European countries leading the transition to electrification include Norway, UK, Germany, France, and the Netherlands.
4.
More than 100 Battery Electric Vehicle (BEV) models are expected to be on the market by 2022, and 45% of lightduty vehicles are expected to be electric by 2040 in Europe (≈ 300 million units).
5.
In March 2019, more than half of the new passenger cars sold in Norway were fully electric (BEVs) – a world premiere.
6.
Currently (2019), just over 1.2 million electric and plugin hybrid vehicles are registered in Europe.
7.
Currently (2019), nine European countries have plans to increasingly restrict the use of internal combustion engine (ICE) vehicles.
8.
One of the largest EV battery recycling plants in the world is in Europe and can recycle around 35,000 EV batteries per year.
9.
From a well-to-wheel perspective, EVs emit less carbon than diesel or petrol vehicles, even with the current electricity mix in the EU.
Sources: Bloomberg, EAFO, Norsk Elbilforening, SLoCaT, Umicore, RAP.
7
Interview How can policy makers support consumers in the transition to emobility? Norway and the Netherlands are leading both in the number of electric vehicles and in the number of charging points. Norway in particular is performing well. From the very beginning they have had a strong longterm policy framework in support of electric vehicles. This stands in contrast to other European countries where policies on a shorter term have failed to provide the right market signals. In what ways can we increase the sustainability of electric car manufacturing? Switching to renewable energy to power both the production and the charging of EVs is a natural next step to increase sustainability. There is also potential to improve sustainability at the end of the life. Both the re-purposing of batteries and ensuring battery recycling make EVs more sustainable. It contributes to a reduction of their life-cycle greenhouse gas emissions and minimizes the amount of material waste stemming from scrapping cars. What is currently the largest barrier to driving an electric vehicle? And how will this change in the coming years? Simply ordering an EV is a challenge, with long waiting lists due to low production quotas in many European countries. However, much of this 8
will change now as European manufacturers have decided to invest fully in electrification, with many EV models coming on the market in the next couple of years. These recent announcements, combined with improved battery technology, ultrafast charging points and increased EV driving ranges ensure there will soon be no excuse left not to go electric. What is the most promising trend coming from the academic and research side of electromobility? When it comes to EVs and the related battery technology, the main trend used to be a focus on driving range and charging speeds. However, the most promising research in battery technology currently ongoing, namely that on the solid-state battery (which is cobalt-free), will enable car manufacturers to reduce their production cost. This translates into lower prices on the mass market and will therefore further contribute to EV uptake in Europe.
Philippe Vangeel, Secretary General, AVERE (Photo: AVERE)
9
Success stories AMSTERDAM ARENA The Netherlands The Johan Cruijff Arena hosts major sport events and concerts for up to 68,000 visitors. Thanks to the 1,128 MW of solar panels on the roof, it produces around 12% of its energy needs. This vast renewable production makes a great supply of clean energy to charge EVs, which translates into an increase in clean kilometres for visitors to the Arena. The Energy Storage System integrates bi-directional EV chargers, peak shaving and back-up services into one system. As a result, electric vehicles can both power events and be charged with clean energy through the Arena’s Energy Services.
10
WIRELESS FAST-CHARGING FOR TAXIES IN OSLO Norway The city of Oslo is building wireless fast-charging infrastructure for taxis, in a co-operation with clean-energy company Fortum and technology provider Momentum Dynamics. The system will make use of induction technology. Charging plates are installed in the ground at taxi parking places and the cars are equipped with receivers. It will be the first of this kind in the world. Up to now, a time-consuming charging procedure had been a major barrier for the electrification of taxi fleets. With wireless chargers, taxis can fast-charge at their own stands where they would be waiting for new customers anyway. From 2023 onward, all taxis in Oslo will be electric.
PHOTOS (Opposite) Johan Cruijff Arena, Amsterdam (Above) Wireless charging terminat in the city of Oslo
11
Roll-out of 150 kW charging infrastructure For EVs to become competitive in terms of functionality, a network of fast-charging points along highways is crucial. This will enable drivers to cover long distances without the need to make lengthy intermediate pauses to charge the battery. The private sector is currently reluctant to invest in such 150 kW charging points. As long as the number of EVs on the road is low, it will take years before the installation and operation will become profitable. Joint public-private partnerships are therefore indispensable to bridge the time until more EVs hit the road. National authorities should define the locations that are eligible. A good practice would be to have charging stations along the TEN-T Core Network every 60 kilometres, with access from both directions of the road. In the rollout, priority can be given to locations where there is no clear business case yet. In a first phase, every location should consist of two 150 kW charging points that can charge EVs simultaneously, making use of a CCS Combo2 connector (a Combined Charging System connector with additional contacts to allow high-power DC fast charging). Real-time charging data should be provided freely on an open platform. The incentives should preferably be organised via inverse auctions, starting from a realistic estimation of the investment cost and the operational expenses. A periodic review can ascertain whether subsidies for operational expenses are still required. If the utilisation level of the double charging point is approaching saturation, a new auction can be organised for installing additional charging points. 12
Right-to-plug Between 80 to 90% of the electricity used by the vehicle is charged from private premises, mostly at home. A European passenger car runs less than 50 km every day on average. With the performance of the latest battery electric models it is possible to replenish the energy used during the day in less than three hours with a 3.7 kW charger. According to a mobility survey conducted by the European Commission’s Joint Research Centre, 18% of European cars are parked in a shared private parking area (additional 14% on owned premises, 25% in public parking areas, 42% on the street). Right-to-plug aims at those who park in a shared garage. It means that a prior communication to the community of the residential building suffices to install a charger connected to the apartment meter at the owner’s expense. This procedure is already included in the Commission Recommendation on Building Modernisation related to the revised Energy Performance of Buildings Directive (EPBD). However, the directive’s minimum requirements for pre-equipment of new and renovated buildings with charging points are currently not satisfactory. Member States should go beyond the EPBD minimum requirements when implementing the directive.
13
Wireless charging: essential for emobility Newly introduced EVs are capable of charging wirelessly rather than tethered to a power cable. This technology can avoid that cities are invaded by charging poles and makes the experience for users more convenient. Why it matters Member States and car manufacturers need to increase the share of EVs, which implies that consumers must be convinced to buy them. Wireless EV charging is so straightforward that consumers can use it without having to think about it. How it works The system relies on resonant charging. Electricity is transferred across an air gap between two magnetic coils. Users are identified before starting the charging session and afterwards they are invoiced. All wireless. The catch Car manufacturers will have to make sure their vehicles are compliant with industry standards for interoperability, while state and local governments will need to install wireless charging infrastructure along streets and in public parking facilities. Tools to book charging places in advance should be made available. 14
Where it stands The Society of Automotive Engineers (SAE) announced a new recommended specification for wireless and plug-in electric vehicles, putting wireless charging on track for global standardisation. Various car models currently in production already include wireless charging technology. Standardisation will help manufacturers with their product design and will ensure that future charging infrastructure will support all brands.
Peter Wambsganss, Director of Business Development for Europe, WiTricity (Photo: WiTricity)
15
Low Emission Zones (LEZs) Low Emission Zones are not new. They have been implemented in many European cities for years to tackle urban air pollution. They basically restrict the access of the most polluting vehicles to the city centre by banning these vehicles or imposing a charge on them. Given that no air pollution level is safe according to the World Health Organization, LEZs already in place should gradually be improved to become Zero Emission Zones. Equally as important as the emission reductions obtained within the LEZ boundaries is the fact that LEZs work as a permanent reminder to vehicle users that other vehicle technologies exist that are cleaner and more convenient to use. Such a permanent signal will accelerate the emobility transition and improve air quality across the whole city, not just the LEZ.
16
Synergies between the transport, digital and energy sectors Emobility does not just have a direct benefit in terms of decarbonisation, but also supports the development of innovative business models, stimulating synergies between the transport, digital and energy sectors. One example is the development of smart charging technology that enables EVs to charge at off-peak hours and supports vehicle-togrid energy transfers. This highly digital technology can support grid management in a power system with increasing penetration of variable renewables. Another example is the use of blockchain solutions to create a stable and secure way to trace the use of materials on their journey throughout the lifecycle of an electric vehicle. This can ensure that materials are sustainably sourced right from the start and recycled at the end-of-life. As a part of the DecarbEurope portfolio, EVs work well together with other solutions such as demand response, electric motors, energy finance, energy management, energy storage and hydrogen. When autonomous driving becomes a reality, they can also play an increasing role in personalised public transport.
17
Further reading EAFO. The transition to a Zero Emission Vehicles fleet for cars in the EU by 2050. http://j.mp/dce_ev1 Good report on CO2 emissions and economics of ZEVs, lead by Bert Witkamp. UBS. (2019). Longer Term Investments - Smart mobility. http://j.mp/dce_ev2 Compelling analysis on the current status of emobility technology and the key factors that will shape its long term evolution. IEA. (2019). Global EV Outlook 2019. http://j.mp/dce_ev3 The annual IEA- GEVO is a must-read reference. Also worth to review issues from previous years to observe the changes in the topics covered. Its long-term conclusions are particularly noteworthy. elementenergy for BEUC. (2016). Low carbon cars in the 2020s: Consumer impacts and Eu policy implications. http://j.mp/dce_ev4 A good reference on the economics of electric vehicles with very powerful argument for consumers, especially professional users. Since the time it was written in 2016, these economics have only improved. Netherlands Enterprise Agency. (2019). Electric vehicle charging. http://j.mp/dce_ev5 Deployment of public charging infrastructure in cities and highways is critical for the emobility transition, especially the next couple of years. This ‘basic dictionary’ will be very useful to the many dialogues are taking place. Nationale Plattform Elektromobilitaet. (2017). The German Standardisation Roadmap Electric Mobility 2020. http://j.mp/dce_ev6 Excellent summary of the work ahead on standards, worth to highlight the section on wireless charging for cars, key for the mass uptake of EVs by consumers without off-street parking, and ready much sooner that many expect. 18
19
20
21
#DecarbEurope www.decarbeurope.org
22 ©DecarbEurope, 2019