Vision 2020: 15% EVs in Switzerland. How to foster this development ?

INFOVEL Mendrisio 2010, April 23rd 2010

Dr Philippe Méan , Head of R&D,

Alpiq Business Development

• Present in 29 european countries

• Cumulated turnover CHF 16 billions

• Workforce of more than 10,000 (Switzerland > 5,000)

• Number one on the Swiss electric market

• Number 6 in Europe

Alpiq Number 1 in Switzerland

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1. Switzerland as a show case in Europe for EVs2. Vision 20203. Recharging infrastructure for Vision 2020

Index

1. Switzerland as a showcase in Europe for EVs

Swiss electricity generation mix

• Swiss electric generation mix is practically free of CO2

• 57% of the Swiss electricity is produced from hydro resources, while the remaining 38% comes from nuclear plants

• The Swiss generation mix will remain CO2 free since additional capacity will be:

• Renewable (hydro, wind solar)

• CCGT (with an obligation to offset 100% CO2 emissions)

• Nuclear

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Swiss EVs have a tremendous comparative advantage on ICEs

• With the low carbon Swiss electricity, a typical EV emits less than:• 7 gCO2/km (generation mix)

• respectively 23 gCO2/km (consumption mix)

• The reduction reaches:• 160 gCO2/km, compared to

Swiss fleet average

• more than 100 gCO2/km compared to EU-target 2015

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2. Vision 2020

Vision 2020

• 15 % of EVs (BEVs and PHEVs ) in the Swiss car fleet by 2020

• About 720’000 EVs

• An additional reduction of CO2 emissions of private traffic by 10% in 2020, (that is 1.2 million tCO2/year)

• Low increase in electricity demand about 1.2 -1.7 TWh (+1.8-2.6%)

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The 2020 Vision is not a forecast but a strategic scenario depending on 3 conditions :

Condition 1OEMs

Attractive and competitive EVs supplied in sufficient volumes on the Swiss market

Condition 2Govermental incentives.

Meeting the Climate challenge, reducing pollutants from transport , reducing oil dependency, reducing noise in cities :• societal choices expressed by political decisions• intrisinc value for the society • this value has to be translated in Gov. Incentives

Condition 3Infrastructure Adequate recharging infrastructure

Vision 2020

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Planning

2009 2010 2011

Constructor (OEMs)

Political incentives

Recharge infrastructure

Mar

ket

res

posn

e

11

4. Constructeurs automobiles(OEMs)

Roadmap towards OEMS:Switzerland as showroom

Convince OEMs that Switzerland could play a pioneering role in the development of electric individual mobility for the following reasons:

• quality of swiss electricity• density of its car fleet and territorial organization• willingness-to-pay for new and clean car• strengh of its transport and distribution network

Participate to EVs fleet experimentations in real life conditions in 2010-2011

Pooling of fleet tests to get more visibility (e.g. coalition of cities)

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5. Political support

Meeting the Swiss Climate Challenge implies a significant reduction of CO2 in the transport sector

uilding Improvement

uration:

010-2020

éduction CO2:

t/an per housing

oal 2020:

lectric mobility

BEVs & PHEVs)

uration:

010-2020

éduction CO2:

.7 t/an per EVs

oal 2020: IAMF 2010 P.Méan 14

Political federal roadmap

10%

No additional fiscal charge on EV’s till 2020 No new mobility tax to replace the

mineral oil tax

Fiscal income from mineral oils is hardly impacted till 2020 by the massive uptake of EVs of Vision 2020:• négligible 2010-2015, 1% in average• weak 2016-2020, 10 % in average

Foreseen increase of fiscal burden necessary for infrastructure improvement tax differential in favor of Evs

Introduce a bonus system for clean vehicle (e.g under 95 gCO2/km or less )

1%

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• Lower or suppress Canton matriculation tax for EVs (e.g Total exemption of VEs, like the model of Canton of Zürich)

• Standardize Canton EVs incentives program

• Total revision of the environmental tag for new cars (the present project of Umwelt Etiquette discriminates VEs)

• Promotion of VEs by fleet public entities (Cantons, communes)

• Promotion of public recharging stations by public entities (Cantons, communes)

Political roadmap

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6. Recharge infrastructure

Role of Alpiq

• The Swiss electric branch (and specially the 800 distributors) has a major role to play for supplying the electricity for the EVs recharge.

• The recharge infrastructure must be optimally integrated in theexisting electricity infrastructure . Unnecessary investments on the grid must be avoided

• Alpiq sees its role as a national EV facilitator, contributing to the design and promotion of the necessary recharging infrastructure, that is:

• Private slow charging (at home)

• Public slow charging (open to third party customers)

• Public Quick charging stations

• Given the great number of players involved, a common framework for strategic planning is needed.

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Optimization needed for global system grid-infrastructure-EVs

Retroaction

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2010 2015 2020

Activists

Doers

Money savers

COST of EVs

ECONOMY OF SCALEMass production of EVs

63

%

Potential customer segments for EVs penetration in CH

Who are potential EV first adopters?

Source: customer segmentation, CH energy market survey Alpiq mai 2009,

Sleep & Charge , the most convenient and cheapest charge mode, as the base solution for Switzerland Oviously, an EV adopter:• is a buyer of a new car

In Switzerland, male 3 times on for, 50 years old, with an income higher than average, owning on average 1.47 cars

• has a direct access to a plug

The target of EV first adopters are Swiss households :

• buying new cars

• with an income higner than average

• Owning more than one car

• Living in an individual house

• with a private parking place

650’000 Swiss households (21%)

have a direct access to a near plugINFOVEL MobiliTI 2010 21

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Roadmap: infrastructure for Vision 2020

Type Caracteristics Fonction 2020

720’000 VE

Home charge Device

Slow chargeAC 16 A x1 3,5 kW, 8h during the night

SLEEP & CHARGE

650’000

Public stations• Companies

• Shops• On the curb

Accelerated chargeAC 32 A x1 16Ax2 ou x3 7 kW-12 kW, <4h during office hours

WORK &CHARGE

SHOP &CHARGE

80’000

23’000

Fast Charge station

Emergency rechargeDC 55 kW(or AC 63Ax3 , 44 kW)15-20’ pour 80 %

COFFEE & CHARGE

150

Hypothesis : 20 kWh battery

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Sleep & ChargeHome Charge Device (HCD)

The Alpiq Home Charge Device (HCD)

• Designed as a household appliance: a standard plug with sufficient power is all you need

• It is MODE 3 compliant and offers following advantages:

• For the EV userSafe and comfortable operation of the charging process (no adapters, compliant with all safety standards)

• For the grid operator Peak shaving and load leveling for the grid operator, load interruptibility

• For the car manufacturer/importer

Charging process complies with all legislations

Device branding reinforces long term brand loyalty

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Spatial distribution of Sleep & Charge points

Zurich Bâle Berne Genève Lausanne Solde

Solde91%

Sleep & Charge points are mostly located in small cities and villages, not in large cities

Work & Charge, Shop & ChargePublic recharge stations

Public charging stations in Switzerland

• The parking fee is usually 4 times greater than the electricity recharging cost

• Simple solution for electricity billing must be preferred.

• Electricity paiement:Included in emploiement contract (Work& Charge)

For free or by duration for public restricted access poles(Shop & Charge )

Access right for public unresticted poles on the curb (e.g Park& Ride annual lump sum)

• Avoid complex systems for billing

(e.g roaming)

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Localisation of public charging stations

• 26 % of full time motorised employees have a parking place on their working place

• Work & Charge stations in cities will be found in areas where the number of employees is larger than the number of residents

• Public parking lots are a good target for Shop & Charge stations

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Source: TEPCO

Fast charge stations ( Coffee and Charge)

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Preliminary localisation of fast charge stations ( Coffee & Charge)

Conclusions

• Given the great number of players involved, a common basis for strategic planning is needed to forster EVs in Switzerland

• The Vision 2020 and the corresponding description of the Recharge infrastructure for Vision 2020 provide this general framework

• Both are meant to be preliminary tools for a common analysis of an uncertain future.

• Alpiq hopes to have already contributed to a cleaner mobility future for Switzerland with this contribution.

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Thank you for your attention.

Dr Philippe Méan , Head of R&D, Alpiq Business Development

phone +41 (0) 21 341 22 00philippe.mean@alpiq.com