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Unit 4: How and why to create a business model

Unit 4: How and why to create a business model

by Bonnie Fenton -
Number of replies: 15

Please share your responses to the unit 4 questions here.

In reply to Bonnie Fenton

Re: Unit 4: How and why to create a business model

by Deleted user -

1. The local municipal authority has taken on the lead role of developing a reasonable network of charging posts (50), which are available for public access.  Sunderland Council has also purchased two Nissan LEAFs and leased a Peugeot iOn to help provide a visible presence on the roads.  A number of larger businesses, mainly manufacturing based, have already installed charging points in premises and also purchased or leased electric cars.

 

The existing stakeholders who could benefit from an integrated EV solution are the health and education sectors who both employ large numbers of staff.  This is an area where a big difference could be made in terms of journey planning and reducing traffic emissions.  However, this opportunity is reliant on significant funding investment.  Car pooling opportunities for residential and businesses using electric cars is an area which should be further investigated.

 

2. As mentioned above, the local municipal authority has already arranged for the installation of a network of slow and fast chargers funded part by the government and part by the local authority.  There are two of the main energy suppliers with offices based within the city, but so far they appear to be reluctant to invest in electric vehicles or infrastructure.

 

The main opportunity, which is so far missing, is a network of rapid chargers (22/50 kWh) located in retail shopping areas.  Rapid charging allows for EV recharging during a short period of time, while visiting shops (or even just to have a cup of coffee).  The rapid charging option over a short charging period (1 to 1½ hours for example) would allow a greater number of EV drivers to charge their car, and could be beneficial means of attracting customers to a location they wouldn’t normally visit. 

 

Paul from Sunderland

 

In reply to Deleted user

Re: Unit 4: How and why to create a business model

by Deleted user -

Dear Paul,

You mention health sector as an interesting sector for EV. I have talked about such a proposal to a health care organisation to provide their helpers with an EV, but they told me that the payment for the driven kilometers is regarded as some kind of second income, as the real income is not very high. So they thought the people would not be to positive about the idea. Nevertheless w still find it an interesting sector for EV.

In reply to Deleted user

Re: Unit 4: How and why to create a business model

by Deleted user -

Hello Bert,

Thanks for your comments.  I mentioned the health and education sectors as they generally have a greater amount of employees than other work areas.  So basically more people requiring to travel between home and the workplace, but this applies to all modes of transport and not just EV's.

Regards,

Paul

 

 

In reply to Deleted user

Re: Unit 4: How and why to create a business model

by Deleted user -

Hello Paul,

Thank you for your reply. I also think that the sectors you mention are interesting for sustainable mobility, as it is a special type of person who works in these sectors. They have a kind of 'social' DNA to work with other people.I think they are more willing to look for a socially acceptable means of transport. 

 

regards,

Bert

In reply to Deleted user

Re: Unit 4: How and why to create a business model

by Deleted user -

Hi Paul and Bert,

thank you very much for your evaluation of possible EV-industrial sectors. Studies have found, that in Germany especially the commercial sectors public administration, building industry, energy industry as well as human health and social service have a high potential for electric vehicles. The study "Elektromobilität im Personenwirtschaftsverkehr" from Fraunhofer ISI deals with EV-potential in commercial transport.

Michael

In reply to Deleted user

Re: Unit 4: How and why to create a business model

by Deleted user -

Hi Bert,

are you talking about people who are using their private car as an asset for their employer? So they will get paid a cost lump sum per travelled km?

Michael

 

 

In reply to Deleted user

Re: Unit 4: How and why to create a business model

by Deleted user -

Hi Michael,

Sorry for this late response. Indeed I mean people who use heir private car for work. They get payed per travelled kilometer and see that as a kind of income (forgetting their car costs probably more than they get payed for their travelled kilometers).

Bert

In reply to Bonnie Fenton

Re: Unit 4: How and why to create a business model

by Deleted user -

The current lack of funds available for council led projects in Rotherham means that we have had to look a method of providing charging infrastructure that does not require council funding. Fortunately South Yorkshire has been able to secure central government funding to provide both chargers and subsidies for SMEs that wish to lease an electric vehicle. In order that the money is best used, a contract for provision of the entire project was let via competitive tender that will see a network of public charge points and 80 EVs in place within the year in South Yorkshire (of which Rotherham is a part).
The contracted operator is npower (a subsidiary of the German company UWE). They have the relevant business knowledge and will provide the back-office solution for collecting any revenue. Each of South Yorkshire’s four constituent authorities will decide on charges for parking whilst charging in public car parks.
As part of the town planning process in Rotherham I have been making it a condition of planning permission that large supermarket or public buildings provide charging infrastructure that is available to the public.
As most people will be able to charge vehicles at home, the provision of publicly available rapid and fast chargers in a limited number of clusters should provide sufficient charging opportunities to cope with what will probably be a limited demand in the short term. In the longer term improvements in battery technology should render public charging infrastructure virtually redundant except for providing facilities for people undertaking longer journeys.
Whilst we recognise that it is the council’s role to lead developments in the field of sustainable transport, there is clearly a role for the private sector to take over provision of charging infrastructure once the demand has been created. If the take-up of hybrid vehicles is used as a guide it will probably be 10 years before EVs have substantial market penetration, by that stage it is probable that battery technology will have made extensive public charging infrastructure redundant.
As the market place matures there will be an opportunity to formulate an appropriate business model, we hope that this will evolve from our first tentative approach to the issue and the feedback that we get.

In reply to Bonnie Fenton

Re: Unit 4: How and why to create a business model

by Deleted user -

Due to our peculiarities, in Mancomunidad del Sureste de Gran Canaria, our plan focuses on sustainable mobility combined with renewable energy. Therefore, amongst the existing stakeholders that could benefit of an integrated solution, we consider:

 

•             Local and regional public authorities

•             Electric Vehicles manufacturers

•             Recharging Infrastructures’ providers

•             Consultancy experts in mobility and energy

•             Universities and Research Centres.

•             Renewable Energy Utilities’ Providers

•             EVs users

•             Citizens

  

Moreover, since tourism plays a major role in the Islands economy and visitors -especially North-Europeans - could demand a more environmentally friendly mobility, we consider the tourism sector companies, together with public services - could act as a primer to initiate a change into electric urban mobility. Thus we add:

 

•             Car Rentals

•             Tour-operators

•             Hotels and Resorts groups

 

The involvement of the tourism sector, due to the enormous weight it has on the Islands, its profile (major groups involved but plenty of small  companies too; rapid turnover of vehicles; most of the visitors coming from Central-North Europe), we believe could play a crucial role at attracting an operator for charging infrastructure to act in our area.

In reply to Deleted user

Re: Unit 4: How and why to create a business model

by Deleted user -

Hi Josefa,

thank you very much for your report of the potential EV-stakeholder in Gran Canaria.

It does make sense to introduce electric mobility in terms of sustainable tourism (even due to its foot print on the island). What's interesting is that people tend to try new things (and even technologies) when they are not in their usual surrounding and therefore in holidays. Electric car rentals, tour-operators and carpooling can play an important role in the transition towards sustainable mobility.

Michael

In reply to Bonnie Fenton

Re: Unit 4: How and why to create a business model

by Deleted user -

As for which of the business model(s) we think suitable for our city,

As previously said, at first we are launching a demonstration project, thus charge will be offered in public space, open to all and for free.

In the future, I consider the business model concept presented by Ubitricity (Berlin) will be establishing. It certainly changes the whole perspective and introduces enormous advantages: management system focused on the client (EV user), interoperability, important reduction in cost of installation of charging infrastructure, which in turn would allow having a wider network and a rapid introduction of electromobility, etc.
Just, as of now, and being a pioneering technology, there are certainly many doubts not only about actual capacity of deploying it in other countries, but also a bit on regulation, the free competition contemplated in tenders, etc..

The traditional business model will therefore be used for some years.

So far, vehicle manufactures –and as a special offer- have provided the charging point for every vehicle purchased (only a few, as I have mentioned before), but with the peculiarity that this charging spot can exclusively be used by those specific cars. Certainly this will not be the case in our demonstration projects, but also will be something we will try to prevent in later stages.
Our premises would be: preferably in public parking space, not excluding specific benefits on parking or others, but paying for electricity, and if possible, with cheaper rates for the greener, the more renewable origin.

 

In reply to Bonnie Fenton

Re: Unit 4: How and why to create a business model

by Jelena Nikolić -

As I already mentioned in city Kruševac is no EV, neither charging infrastructure nor bussines model for it.

Potential stakeholders for using EV and EV charging infrastructure will be:

-local authorities and PE

-PE for power distribution (because of using existing electrical network)

-PE Directorate for urban planning and construction (as a manager of public lightning network)

-PE "Bussines center" ( performs parking charges)

-taxi operators

-public transport company

-owners of MSE for RES (great potential of useing solar energy in Kruševac)

-citizens

Because of poorly developed public transport, citizens use a taxi a lot. For that reason it will be usefull for using EV as taxi and instaling EV chargers on taxi stations.

Frankfurt model- parking and charging will be possible to implement in the city. Given that the parking tickets are paying via sms, it will be necessery to improve that system by adding that option.

 

Jelena

In reply to Jelena Nikolić

Re: Unit 4: How and why to create a business model

by Deleted user -

Hello Jelena,

I like the idea of promoting electric vehicles for use by taxi operators, as these vehicles tend to operate on standard routes in a city centre, and can be a quick win with efforts to reduce carbon emissions.

In Kruševac are the taxis owned and operated by a single company as a fleet?  It’s a bit different here in Sunderland as most taxis are owned by the driver, so influencing the change from diesel / petrol to electric is much more difficult.

Regards,

Paul from Sunderland

 

 

In reply to Deleted user

Re: Unit 4: How and why to create a business model

by Jelena Nikolić -

Hello Paul,

Thank you for your comment. As I mentioned, because of poorly developed bus public transport, citizens use a taxi a lot.

There are several companies that offers a taxi service ( with many cars). So in my opinion it will not be so difficult to use EV (if it is affordable and with some subsidies). The taxi cars mostly use LPG as a fuel now.

Regards, 

Jelena

In reply to Bonnie Fenton

Re: Unit 4: How and why to create a business model

by Deleted user -

In 2009 a not-for-profit-organisation (e-laad) is established by the energy network operators, with the goal to install maximum 10.000 charging units; at first the goal was to install 2000 units in public places and 8000 on private territories, but later on only public units were installed. The installation was free as was the energy (which was guaranteed to be green). At the end of 2012 around 2,500 units have been installed and no money remains for any more charging units. this year the organisation has split into two parts: a centre of knowledge and innovation and an exploitation department for the public charging units (at least until 2014).

An integrated solution can benefit users of electric vehicles, installators of charging units, energy companies and society as a whole (less polution).

At the end of 2012 an association of charging units operators and charging service providers has been established to work on interoperability of charging units in the Netherlands.

As e-laad payed for installation and maintenance of the charging units, the municipality had relatively few costs per unit (only for signs and reservation of parkings).

The requirements and subsidies for installation of charging units on private territory depend on the city you live in. The bigger cities in the Netherlands have their own regulations. Smaller cities sometimes lack knowledge how to deal with the units. Several commercial parties are involved in helping you to realise a charging unit on your own territory, but they only provide detailed information when you contact them for installation..