2010 mid-america regulatory conference electric cars – can we charge our way
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2010 Mid-America Regulatory Conference Electric Cars – Can We Charge Our Way to a Carbon Free Future?. June 7, 2010 Nancy Homeister Sustainability and Environmental Policy. Why Electrification?. 700. 650 ppm: 2.3 - 3.7 °C. Business As Usual. 600. 550 ppm: 2.0 - 3.4 °C. 500. - PowerPoint PPT PresentationTRANSCRIPT
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2010 Mid-America Regulatory ConferenceElectric Cars – Can We Charge Our Way
to a Carbon Free Future?
June 7, 2010
Nancy HomeisterSustainability and Environmental Policy
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Why Electrification?
200
300
400
700
1900 1950 2000 2050 2100 2150 2200 2250
Atm
osph
eric
Conc
entra
tion
(ppm
)
Business
As Usu
al
500
600650 ppm: 2.3 - 3.7
°C 550 ppm: 2.0 - 3.4
°C450 ppm: 1.7 - 2.8
°C Accepted Range To Minimize
Environmental Impact
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Sustainability Strategy – Technology Migration
Near TermBegin migration to advanced technology
Mid TermFull implementation of known technology
Long TermContinue leverage of Hybrid technologies and deployment of alternative energy sources
Near Term• Significant number of vehicles
with EcoBoost engines• Electric power steering 70 –
80%• Dual clutch and 6 speed
transmissions replacing 4 and 5 speeds
• Increase Hybrid applications• Increased unibody applications• Introduction of additional small
vehicles• Battery management systems
75%• Aero improvement up to 5%
Mid Term• EcoBoost engines available in
nearly all vehicles• Electric power steering 100%• Six speed transmissions 100%• Weight reduction of 250 – 750 lbs• Engine displacement reduction
aligned with weight save• Additional Aero improvements
up to 5%• Increased use of Hybrids• Introduction of PHEV and BEV• Diesel use as market demands
Long Term• Percentage of internal
combustion dependent on renewable fuels
• Volume expansion of Hybrid technologies
• Continued leverage of PHEV, BEV
• Clean electric / hydrogen fuels
2007 2011 2020 2030
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Fusion/Milan
Escape
Announced Ford Electrification Projects:
Key is Leverage of High Volume Global Platforms
BEVBattery Electric
Vehicles
2012 CY 2018+ CY
Transit Connect(Global C-Platform)
PHEVPlug-in Hybrid
Electric Vehicles
Focus(Global C-Platform)
2010 CY
Global Platform
HEVHybrid Electric
Vehicles
2004 CY
Global C-PlatformNext Generation HEV
Global CD-PlatformNext Generation HEV
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6
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PRODUCTION PLATFORM NOT YET ANNOUNCED EARLY/DEVELOPMENT WORK WAS DONE ON THE ESCAPE
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• In the early 1900’s more than 27 companies were building electric cars
• In 1914, Henry Ford and Thomas Edison experimented with an electric car using by Edison Batteries
• In 1915 the Ward Motor Vehicle Company offered an electric wagon for $875 on an 1yr installment plan for the vehicle and a $10.50/month rental fee for the Edison Storage battery
Electrification of vehicles:Electrification of vehicles:not a new idea …..not a new idea …..
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Challenge: Moving from Niche to Mainstream
How to get electrified vehicles on “cost-parity” with traditional technology?
How will customers react to the new technology?
How will they access recharging infrastructure?
How will they know what they are paying?How will charging impact the local, region
or national power supply and distribution?
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The Key is Partnerships
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Understanding the Business of Electrification
OEM Utilities
PHEV Price
Reg. CompliancePHEV Benefit
Revenue
HEV Prod. CostOver Conv. Veh.
Warranty Cost
Production CostOver Conv. Veh.
Intangible Benefits
Battery W.S.
PHEV Life-Cycle
Characteristics &Chemistry
Charging Strategy
Pack Cost
Volume
Domestic Supplier
Consumer
PHEV TangibleValue
PHEV OtherValues
PHEV ResidualValue
PHEV Net ValueOver Conv. Veh.
PHEV Demand atPrice
Vehicle W.S.
Performance
Electrified Range
Veh/Batt Life-CycleMatch
V2G/V2HCapability
PHEV Rates/Intelligent Charging
PHEV Load (Night-Time Valley)
Profits
Low CarbonStandard
EnableRenewables
Ancillary Services
OEM Utilities
PHEV Price
Reg. CompliancePHEV Benefit
Revenue
HEV Prod. CostOver Conv. Veh.
Warranty Cost
Production CostOver Conv. Veh.
Intangible Benefits
Battery W.S.
PHEV Life-Cycle
Characteristics &Chemistry
Charging Strategy
Pack Cost
Volume
Domestic Supplier
Consumer
PHEV TangibleValue
PHEV OtherValues
PHEV ResidualValue
PHEV Net ValueOver Conv. Veh.
PHEV Demand atPrice
Vehicle W.S.
Performance
Electrified Range
Veh/Batt Life-CycleMatch
V2G/V2HCapability
PHEV Rates/Intelligent Charging
PHEV Load (Night-Time Valley)
Profits
Low CarbonStandard
EnableRenewables
Ancillary Services
One of the PHEV collaboration goals is the creation of new business models to support a sustainable business case for all PHEV stakeholders
The study started with an initial flowchart involving the following workstreams…
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With the realization that this needs to be thought about in a broader context … there are many aspects to the study that are interconnected and complex and require multiple partners to develop the solutions.
Battery W.S.
Characteristics &Chemistry
Vehicle W.S.
Performance
Electrified RangePHEV Life-cycle
Volume
Pack Cost
Charging Strategy
Domestic Supplier
Veh/Batt Life-cycleMatch
V2G/V2HCapability
PHEV Demand atPrice
Consumer
PHEVTangible
Value
PHEV OtherValues
PHEV ResidualValue
PHEV Net Valueover Conv. Veh.
OEM Utilties
Production Costover Conv. Vhe.
Warranty Cost
Reg. CompliancePHEV Benefit
HEV Prod. Costover Conv. Veh.
Revenue
PHEV Price
Intangible Benefits(Corp. Image)
PHEV Rates/Intelligent Charging
PHEV Load (Night-time Valley)
EnableRenewables
Profits
Low CarbonStandard
Ancillary Services
Stationary BatteryUsage
Regulations/Utilties
Low CarbonStandard
Renewables
Grid Stability
V2G/V2HCapability
StationaryBattery
Applications
Stationary UsesConsist w/ Mobile
RegulationsAuto
CAFE
ZEV Mandate
HOV Access
CO2/GHG
Emissions
Fleet Composition
Fleet Operator
PHEVTangible
Value
PHEV OtherValues
EnergyIndependence
Reduce GHG
Sustainabililty
Government
BatteryAggregator
Subsidies
To OEM
To Utility
To Battery Provider
To Consumer
To Fleet Operator
Auto Dealers
PHEV Sales
Geographic SalesDistribution
Warranty OtherRevenue
IncrementalCustomers for
Conv. Veh.
Leasing toConsumer (Mobile
or Stationary)
Ancillary ServicesAgregation
WarrantyFacilitation
Battery PackIntegrator
Configuation
Refurbishment
WarrantyFulfillment
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Moving Forward: Concentrate on the Customer
Educating our common customer, ensuring they: Understand EV options: HEV, PHEV, EREV, BEV Know how to pick the best technology for their
transportation needs, climate and driving style Can plan ahead to ensure access to charging Understanding the costs – purchase and operation
Making it as easy as possible to charge Residential permitting Solutions for multi-family residential Access to data on charging rates and options Seemless infrastructure from service region to
service region
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Moving Forward: Concentrate on the Customer
Address potential concerns over “range anxiety” Higher levels of electrification require more than 120V Uniform standards: SAE standards are not mandatory Encourage infrastructure proliferation by allowing 3rd
party providers to recover their investments Provide enforcement to ensure access to plugs
Provide additional value through the charging experience Rate knowledge to make the best charging decisions Assess utility revenue neutrality requirements (TOU,
etc.) Development of common communication protocols
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Conclusions
Global goals for CO2 reductions are aggressive, and will impact both to car manufacturers and utilities.
Dependence on petroleum consumption has increasingly proven to be unsustainable – socially, environmentally and economically.
Electrification in key to meeting long term goals for CO2 reduction, air quality improvement and energy security.
Niche markets will not provide a solution. Electric vehicles – in many shapes and flavors –
are coming; we need to make sure the market is ready for them.
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