Electric vehicle challengeNorway Netherlands Estonia Finland Russia

Mariia Kreposna

EVs…

ZERO EMISSIONS

to replace internal combustion engines

EV challenges

Cooperation, motivation, feedback

Complicated procurement procedures

Mixed public opinion about EVs

Congestion of conventional vehicles

Service life of batteries

Infrastructure

Target groups development

Crucial

• Energy storage for batteries

• Battery materials/technology

• Benefits for public / private

businesses

• Aftermath on transportation system

!conditions

Upcoming customer trends

Luxurious EV vehicles (TESLA motors)

EV as an alternative Second – hand EV market EV fleets

Business Model

(Part 1)

Key Partners

Government Organizations who launch nation-wide projects

Key Activities

Multi-standard fast charging

CE marking for EV DC multi-standard solutions

Key customer segments

• Risk taking, young, educated• High level education • Employed, 30-35

years, second vehicle - EV

Key Resources

•Talented workforce •R&D•Wind and solar power•Technologists

Key Channels

Direct salesPartners Authorized channels

Business Model

(Part 2)

Value proposition

•charging stations sales•Products = common standards / extreme conditional / locations •Corporate social and environmental responsibility•Health and safety employee policies• Corporate governance guidelines•Business ethics

Customer relationships

•From smart charge to smart grids (B2B)

•States (all-nation projects)

Cost structure

Concentrate on:•R&D•community projects

Data collection

Common purposeDifferent approaches &ways of achievements

Projects

Spectrum of all factors

Norway Netherlands Estonia Finland Russia

PESTEL5 FORCES

Political / legal factorsNorway Netherlands Estonia

Financial

Exemption from taxes

Social infrastructure

Access to bus lanes

No road tolls

Free parking

Charging infrastructure

Network

Free charging

Environmental Factors…

…at the core

Bring up renewable resources

Reduction of fuel consumption

Green public transportations

Reduce omissions

Customer profile

30-35 yearsFull employment

High income Multi-vehicle

owners85%

Risk / innovation takingYoung

EducatedHigh income

2-3%

YoungHigh status

Well educatedHigh income

Opinion leaders Cautious about

technology 13%

Rivalry

Holland (Medium -)Norway (Medium)Finland (Medium -- )Russia (Low + )Estonia ( Medium -)Global and National

CompetitorsHigh/Medium(Finland)/

Low (Russia) industry growth

Low barriers to exitPartly read each other’s

signals Limited product

differentiationMedium expanded

Capacity in large increments for efficiency

Power of Buyers (Medium)

Few buyers (government, corporations)

Products not fully standardized/undifferentiated

No switching costsNo backward integrationNeutral price sensitive

buyer groups

5 competitive

forces(part 1)

Threat of Substitutes

(Low)

[For fast chargers and grids]HEV: Gasoline stationsEV: no substitute

Barriers to Entry (Medium)

Supply-side economies of scale

Low Demand-side benefits of scale

No Customer switching costs

High Capital requirements Threat from other industryNo Restrictive

government policy (Holland i.e. provides additionally subsidies for further facilitation)

High Incumbency advantages of size

Power of Suppliers

(High or Low depending on the nature of the materials)

5 competitive

forces(part 2)

High EV purchase price:

Subsidies only for companies: leasing, charging spot investments

Tax reductions: Registration/ vehicle/ fuel

475electric cars

261public charging spots

9 fast-charging spots

100.000 electric cars

2020

Finland

+ 1,5 million engine block heaters:

Distances range

Extreme temperatures

Conditions affecting EVs in Finland

Possible modification to home charge EVs, public perception to plug in cars on daily basis in winter

Liikennevirta OY: Nationwide uniform charging network, mobile app

Electric Vehicle Systems programme (EVE): 5 projects 2011-2015, €100 million budget

WintEVE (Arctic Testing)

Eco Urban Living (Electric Traffic Helsinki test bed)

Projects

Russia

Removal of 41,6% of import duties for 2 years for electric cars

G8G7 due to involvement in Crimea crisis

Lower levels of FDI, volatile currency

Large petroleum industry = no governmental incentives

Corruption – 127/177 ranking (2013)

Growing GDP per capita Inflation – 7.3% (April 2014) Change in consumer behavior Poor infrastructure Highly skilled workforce 60% of jobs are created by FDI

(2013) Unequal distribution of income –

35% of household wealth is owned by 110 people (2013)

Low awareness of ecological issues State System for Regulation of Use of

Ozone-Depleting Substances High air pollution Extreme temperatures

Age distribution: 25-52 years (45.9%)55-64 years (13.5%)

200 electric cars Federal Grid company Revolta MOESK-EV project Lada El model (joint venture between

Avtovaz, Renault and Nissan) Yo-mobile

Future opportunities

Concentrating solar power (CSP)

Solar photovoltaic (PV)

STRENGTHS OPPORTUNITIES

Renewable and sustainable energy sourceEnvironmentally friendly Low system maintenance is lowEasy to operate

Decreasing PV manufacturing costs = availability to low-income segmentCombination with a wind power systemCombination with fuel cells  

WEAKNESSES THREATS

Problem of storageDependency on season and weatherHigh Initial installing investment Infrastructure problem

Strong oil, coal groups of interestDependency on season or weather = discouraged customers

SOLAR POWER

Wind Power

Advantages DisadvantagesFree, renewable, non-pollutingMinimal operating costNo fuel neededShortest payback time

High initial investmentsThread for birds

Wind strength => electricity not constant

Financial risk –not enough energy from wind to replace traditional

resourcesLifetime of turbines is 20 years

Hard to estimate wind power

RisksOpportunitiesChoice of remote locationWind Power plants available in Scandinavia

Hydrogen

Makes electricity on the flyRenewable GreenWorld class R&D facilities Highly efficient No impact of weather

Use of BiomassExpensive technology

Poor acceptance by customers

Disadvantages

Launch of FCEV by major automotive leaders by 2015Projection of 144-347 million FCEV by 2050

Opportunities Threats

AdvantagesStorage

ExpensiveInfrastructure

No EU-wide incentive for H2Scarcity of Suppliers

Highly Flammable

Physical energy storage

“Cash-back car” On-board energy storage

Surplus energy to be used when demanded

The car’s body panels serve as a battery

Generation of energy

Before storage

Power generators on the car

Antimatter & MatterHydrodynamic energy Ions in water =>

energy

Storing Surplus Energy

Repeatable Mechanic deformation

Electrolysis Energy grids

Alternative Energy

Storages

Recommendations

Products and

services

Innovation

Key partners

Privatization of fast charging services

Complementary mobile services/applications

Hydrogen fuel cells stations

Easily relocated EV charging stations

Co-opetition within the market (Tesla)

Involvement in infra-projects

Power and productivity

for a better

world