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WEF - 2018 - Electric - For - Smarter - Cities PDF
WEF - 2018 - Electric - For - Smarter - Cities PDF
4 Preface
5 Overview
7 The vision
22 Conclusions
23 Appendix
27 References
29 Acknowledgements
Electric Vehicles for Smarter Cities: The Future of Energy and Mobility 3
Preface
By 2050, about 70% of the world’s population will live, commute and work in
urban areas. Between now and then, cities and suburbs will undergo significant
transformations to create sustainable living conditions for their residents. Mobility
and energy are the twin pillars of these transformations, and both will require
radical adaptation to meet demographic and economic growth without increasing
congestion and pollution. Cities will require mobility and energy solutions that are
sustainable, affordable, secure and inclusive, and integrated with customer-centric
infrastructure and services. Thus, the convergence of energy and mobility is critical.
Cheryl Martin These are exciting times in which new technologies allow people to rethink the way
Head of Industries
they live in a more sustainable and efficient manner. Smart mobility. Smart water.
Member of the
Smart grid. Smart integration. These are the foundations of tomorrow’s cities,
Managing Board
World Economic
which are being realized today.
Forum
Following the World Economic Forum’s previous work on the future of electricity
and the digital transformation of industries, this report examines the major trends
affecting the transformation of energy and mobility systems, with a special focus on
cities: electrification, decentralization and digitalization of the energy system, along
with the shift towards shared mobility and autonomous driving.
Jean-Pascal Tricoire
Chairman and Chief
Executive Officer
Schneider Electric
4 Electric Vehicles for Smarter Cities: The Future of Energy and Mobility
Overview
Mobility is going to change rapidly in the coming years as elec- The investment and infrastructure to support electric mobility
tric vehicles (EV) proliferate, ride sharing continues to grow, and will vary significantly from one place to another, thus any
eventually autonomous vehicles (AV) enter urban fleets. This is approach needs to be market specific. Local stakeholders
especially true in cities where new forms of mobility are concen- should plan for electrification while taking into account local
trated and where investment in supporting infrastructure is need- characteristics, especially: urban infrastructure and design,
ed to accommodate this growth. These changes coincide with the energy system and the culture and patterns of mobility.
the evolution towards cleaner, more decentralized and digitalized
energy systems and services, and increasing electrification. 2. Prioritize high-use vehicles. The focus should be on
electrifying fleets, taxis, mobility-as-a-service vehicles and
Today, public- and private-sector stakeholders deploy public transport, which will have a greater impact as these
policy, infrastructure and business models based largely represent a higher volume of miles travelled. Although
on current patterns of mobility and vehicle ownership. The personal-use vehicles will likely remain a significant portion of
uptake of privately owned EVs is encouraged, while business the vehicle stock for many years, they are on the road less
models for charging stations vary, as they are deployed than 5% of the time, representing a low volume of overall
or operated by a range of players – public agencies, car miles driven.
manufacturers, energy companies and pure players. Limited
interoperability and digitalization of infrastructure can make 3. Deploy critical charging infrastructure today while
broad customer engagement challenging. Outside the energy anticipating the transformation of mobility. To keep pace
sector, awareness of energy-related issues is low. Mobility with growing demand and to address range-anxiety issues,
integration with electricity system and grid edge technologies charging infrastructure is needed, especially along highways,
is emerging. As a consequence, EV charging could create at destination points, and close to public transport hubs. To
local constraints and stability problems on power networks minimize the risk of stranded investments, future mobility and
and reduce the environmental benefits of electrification. vehicle ownership patterns should be considered, as some
current charging locations (i.e. in apartment buildings, at
There is an opportunity to design a different future, and reap parking meters along city streets) may not be needed in the
both environmental and economic benefits with a call to future. The infrastructure should be deployed in combination
action around the following three principles to be acted upon: with grid edge technologies – such as decentralized
generation, storage, microgrids and smart buildings – and
1. Take a multistakeholder and market-specific approach: integrated into smart grids, to fully exploit the flexibility of EVs
First and foremost, a market-specific approach that considers while enabling the stability of the energy system. Digitalization
all relevant stakeholders should be applied to new mobility would help simplify and enhance the customer experience,
patterns with smarter and cleaner energy systems (see Figure support efficient infrastructure deployment and management
1). Energy, mobility and infrastructure enterprises, along with as well as enable new services associated with electric,
policy-makers, regulators and urban planners, can collectively shared and autonomous mobility. Charging stations can
define a new paradigm for cities. The paradigm would go become hubs for smart-city services.
beyond today’s industry divisions in search of complementary
municipal, regional and national policies.
Figure 1: The
Figure 1: The convergence convergence
of mobility andofenergy
mobilityfutures
and energy futures
System takes
Makes customers active
over driving completely for
parts of the system,
all street types, speed
though requires significant zones and environment
coordination conditions
Electric Vehicles for Smarter Cities: The Future of Energy and Mobility 5
Figure 2: Three principles for action on energy and mobility
Figure 2: Three principles for action on electric mobility
2 3
Deploy critical charging
Prioritize
infrastructure today while
high-use vehicles
anticipating mobility transformation
Note to Design Team: The third principle should not be on more than 3 lines.
These recommendations (see Figure 2) will create value in –– Mobility. EVs will become more affordable than vehicles
three dimensions: powered by internal combustion engines (ICEs) as the
cost of batteries declines. Smart-charging services will
–– Environment. As the share of miles driven by EVs reduce charging costs (for example, by charging when
increases, urban mobility emissions will decrease energy prices are low, if dynamic pricing is implemented),
progressively; electrification combined with a clean energy and new revenue streams for fleet operators, who will be
mix and optimized charging patterns will further reduce able to provide ancillary services to energy markets. In the
emissions, improving air quality and benefiting human future, AVs will also cost significantly less per mile than
health, with a much-decreased ecological footprint. personal-use ICEs, by as much as 40% (see Figure 13)
and could also reduce congestion and traffic incidents.
–– Energy. EVs are a relevant decentralized energy resource
(DER), providing a new controllable electricity demand, This report provides recommendations based on case studies
storage capacity and electricity supply when fully and interviews with a wide range of leaders and experts from
integrated with grid edge technologies and smart grids. energy and mobility industries, civil society, academia, city
Smart charging will create more flexibility in the energy councils and national governments.
system, improving stability and optimizing peak-capacity
investments. Fleets of electric and, later, AVs can amplify Working together, public and private stakeholders can
the potential of smart charging, through the aggregation adapt these principles to optimally converge mobility and
of multiple vehicles and higher control of load profiles. energy, and to enable cities to better meet climate goals,
This will also open the door to broader energy efficiency support energy efficiency, foster innovation of services and
services. infrastructure, and generate economic growth, ultimately
providing great benefits to citizens.
6 Electric Vehicles for Smarter Cities: The Future of Energy and Mobility
The vision
Policy approach to Driven by national and local objectives for cleaner mobility, Driven by local objectives to achieve smarter cities
electrification through substitution of personal use ICEs with EVs and broader economic development
Electric Vehicles for Smarter Cities: The Future of Energy and Mobility 7
Figure 4: European emission regulations are set to become stricter through 2025
Stricter emission regulations set towards 2025
Passenger vehicles Light Commercial Vehicles
2016 avg.
• • :
8 Electric Vehicles for Smarter Cities: The Future of Energy and Mobility
c. Charging infrastructure development Slow charging outside the home is often associated with
offers of free electricity to attract customers (a model used by
Status quo – proliferation many retailers) or as part of a subscription service. Networks
of fast and ultra-fast charging stations become more
Charging infrastructure is mainly deployed to meet the needs profitable as customers show a willingness to pay a premium
of personal-use vehicles. Customers charge their vehicles for rapid charging – such as along highways connecting
when it is most convenient, either at home in the evening or cities.
in business districts during the working day, at destination
points such as car parks, shopping centres or hotels, as well However, limited interoperability and weak digitalization of the
as in public parking spaces.
systems – which could make customer access easier and
Business models for charging stations vary widely, with provide useful data to relevant stakeholders – put customer
stations owned and operated by a range of players including engagement at risk by complicating their experience.
public agencies, car manufacturers, energy companies and
pure charging infrastructure players. They are deployed Outside the energy sector, awareness of energy-related
under three main schemes: either as a marketing investment issues is low and, as a consequence, integration of the
(for example, by car manufacturers to support sales of charging infrastructure with the energy system and other
EVs), through public-private partnerships (such as a free grid edge technologies is nascent. A common question
concession of public land or cost and revenue sharing) or raised by the public sector and other stakeholders is: can
as part of the regulated asset base of electricity network the electricity system handle the future growth of EVs? The
operators. answer to this question varies by market, depending on the
evolution of regulatory standards as described in the Grid
Edge Transformation framework (see Figure 15), and levels
Charging station business models of digitalization. These factors contribute to a market’s ability
to optimally manage additional peak electricity demand from
The municipality of Oslo (Norway) owns and operates a EVs and could lead to local capacity constraints and grid
charging infrastructure on public land and also supports stability issues.
publicly accessible, privately owned and operated infra-
structures in partnership with private real-estate entities. The opportunity – transformation
The city rents out the parking slots at night and offers free
charging to EV owners. As the energy system gets cleaner and increasingly
In Hong Kong SAR, the local government encourages digitalized, accommodating a move to decentralized energy
developers to scale up the EV charging infrastructure, generation, storage and smart buildings (see Figure 6), several
including solutions integrated with the smart payment new energy related services will become possible due to the
system Octopus, which is also used to access the public charging infrastructure. As shown in the box “Integration with
transport network. grid edge technologies and smart grids”, these services will
In Stockholm (Sweden), energy technology and energy create new sources of value for the customers as well as for
utility companies own and operate charging stations, energy and mobility service providers.
while the city provides public land as a free concession
for a certain number of years and under specific service
level agreements.
In 2011, the state of California (USA) restricted utilities
from investing in public EV charging due to concerns that
it could limit the participation of other players. In 2014, the
ban was lifted to encourage investments where the busi-
ness case is uncertain, such as in low-income communi-
ties, resulting in about $500 million invested from major
utilities. Utility-funded programmes help reduce the costs
of expansion while improving the market perspectives.
Some car manufacturers have deployed fast-charging
networks, with a focus on highways and points of interest
such as hotels and malls.
Oil and gas companies are also entering the fast-charging
market to attract and retain customers to their existing
service stations.
Pure charging infrastructure players sell charging stations,
as well as charging, financing services and maintenance
services.
Battery swapping is another potential model. In India,
Sun Mobility is developing a service for swapping electric
bus batteries, as well as smaller two- and three-wheel
vehicles. In China, the province of Zhejiang is developing
a network of fast-charging and battery-swapping
stations.
Electric Vehicles for Smarter Cities: The Future of Energy and Mobility 9
Figure 6: Three trends of the grid edge transformation
DECENTRALIZATION
Makes customers active
elements of the system, though
ELECTRIFICATION requires significant coordination
Critical to long-term carbon Key technologies:
goals and will be a relevant energy efficiencies,
decentralized energy resource decentralized storage,
microgrids, demand
response
Grid Edge
Key technologies: Transformation
Electric vehicles,
vehicle to grid/home,
smart charging, heat
pumps
Key technologies:
Network technologies (smart
metering, remote control and
automation systems, smart
sensors, optimization and
aggregation platforms) and
DIGITALIZATION customer technologies (smart
appliances and devices,
Allows for open, real-time, Internet-of-Things)
automated communication and
World Economic Forum operation of the system
Electrification, decentralization and digitalization act in a virtuous cycle, enabling, amplifying and reinforcing developments
beyond their individual contribution. Their integrated deployment could generate more than $2.4 trillion of value globally for
society and industry by 2025 by increasing the efficiency of the overall system, optimizing capital allocation and creating
new services for customers. (For more, read The Future of Electricity: New Technologies Transforming the Grid Edge,
published by the World Economic Forum in March 2017.)
At the same time, as mobility patterns and culture evolve may become stranded assets (see Figure 7). Business
towards increased shared and automated vehicles, and the models will still vary in different markets and cities, as no
performance of batteries improves, the optimal location for single solution will work everywhere.
the charging infrastructure will change.
10 Electric Vehicles for Smarter Cities: The Future of Energy and Mobility
Integration with grid edge technologies and –– V2x. EV owners, especially EV fleet operators with
smart grids predictable capacity, could provide ancillary services
by supplying the excess electricity stored in the EV
The rapid growth of renewable energy sources, especially batteries to buildings or the electricity grid. Vehicle-to-
solar and wind power, introduces increasing amounts of grid (V2G) trials are ongoing, with encouraging results.
non-dispatchable (sources that can be turned on and off For example, in Denmark, V2G provides frequency
or can adjust their power output on demand) sources regulation services to the electricity grid and generates
of power generation into the energy system. Renewable revenues. However, in most countries, regulation and
energy introduces more intermittency to the electricity energy markets are not yet ready for this service and
grid. Electricity system operators will need to build greater the commercial and technical feasibility is being tested.
flexibility into the electricity system to maintain a constant The support of the automotive industry is required for
frequency, through the digital management of demand, both, and in particular to design and commercialize V2x
supply and storage. EVs could be used as decentralized batteries.
energy resources (DERs), given their controllable electricity –– Integration with decentralized storage. EV charging
demand (through smart charging), capabilities for hubs would benefit from the integration with
decentralized energy storage (batteries) and potential as decentralized generation and storage to reduce the
a source of power, such as vehicle to everything (V2x) - impact on the local network, optimizing the load profile.
relevant sources of flexibility for energy systems. Use of second-life batteries in decentralized storage
systems could reduce the cost of decentralized storage
–– Smart charging. Smart charging is controlling the power and contribute to circular economy objectives.
of charge to match with network capacity (avoiding
–– Integration with smart buildings. A smart building’s
peak demand), renewable energy (maximizing use of
digitalized microgrid could incorporate charging
renewable power) and customer’s needs (time and
stations, along with renewable energy sources such
costs). Dynamic electricity prices and integration with
as rooftop solar panels, to improve a building’s energy
smart grids are necessary to manage and control this
efficiency. For instance, in a supermarket, assuming
process. Integration with other grid edge technologies
the power generated by rooftop panels would be used
(such as solar panels) will offer more flexibility.
primarily for the store’s cooling systems, any surplus
Digitalization supports customer interactions, such
power could be used to charge customers’ vehicles
as their participation to the programme and charging
onsite. With a digitalized energy management system,
preferences. Customers, including fleet operators,
the store would be able to optimize its energy use
can benefit from such programmes through reduced
based on real-time energy prices, external temperatures
costs by charging at the best price or other additional
and electricity grid demands.
revenues from energy services.
Figure 7: Current deployment strategies for charging stations may leave some as stranded assets
Electric Vehicles for Smarter Cities: The Future of Energy and Mobility 11
The value of the
transformation
Both the proliferation and transformation models of EV adoption The opportunity – transformation
provide positive impacts for environment, energy and mobility
systems and create value for industries and society. However, The transformation would instead focus on electrifying high-
moving from the proliferation to the transformation approach will use vehicles, such as shared AVs, public transport and
prompt a significant increase in the value generated. For commercial fleets. Instead of relying on individual customers
example, in the US, a full transformation generates nearly four to replace their ICE with EVs, the transformation relies on
times the value of the proliferation (see Figure 8). companies making capital investment decisions based on a
compelling business case for EVs that operate at a lower cost
A key reason for the value generation is that more miles would per mile than ICEs at a high rate of use.
be driven by EVs, as shown in the sidebar (see Figure 9).
More miles powered by electricity, combined with smart
charging in a clean energy system based on renewable or
a. Environment other carbon-free energy sources, would bring full-cycle
emissions down to 24 CO2 grams per mile and marginal
Status quo – proliferation emissions close to zero (see Figure 10).
The proliferation of EVs, with their more efficient engines, This transformation would increase the positive impacts of
certainly contributes to a limit in urban mobility emissions, EVs on the environment compared to the current model,
along with stricter emissions regulations on ICEs. However, representing up to $60 billion by 2030 for the US alone (see
focusing strictly on personal-use EVs will not help to achieve Figure 8).
the current climate goals. For example, in the US, cutting
vehicle emissions by half would require 40% of light-duty
vehicle stock1 to be electrified, or 95 million vehicles. Current
forecasts predict this percentage will not be reached until
2042.
• Transformation
• Transformation leads to leads to an increase
an increase
in the share
in theofshare
miles of
driven
milesbydriven
EVs, by EVs,
quadrupling the potential value by
quadrupling the potential value by
2030 through a push for fleet and
2030 throughelectrification
mobility-as-a-service a push for fleet
as and
mobility-as-a-service
well as new forms of mobility (AV)electrification
as well as new forms of mobility
Note: Assuming all AV are EV; calculation methodology in Appendix d; rounded numbers
Source: Bain analysis
e to Design Team: Graph title + footnote only. Current design with the legend at the top is fine.
1. Assuming that 47% of the current LDV stock is vehicles for personal use, they contribute to 36% of the emissions.
12 Electric Vehicles for Smarter Cities: The Future of Energy and Mobility
Proliferation vs transformation – projection of electric miles in the US
In the US, the transformation would electrify around 35% of vehicle miles travelled by 2030, even while the vehicle
stock would remain about 85% ICE. This is compared to less than 10% of miles being electrified if public policies
keep focusing on traditional ownership models by prioritizing personal-use EVs.
Status Quo--Proliferation
Status Quo proliferation Opportunity --Transformation
Opportunity transformation
~7% ~35%
VMT VMT
• • Public
Public policies
policies continue
continue to focus
to focus on traditional
on traditional ownership
ownership • Strong
• Strong regulatory
regulatory pushpush for EVs
for EVs reduces
reduces totaltotal
costcost
of of
models, incentivizing
models, privately
incentivizing owned EVs
personal-use EVs ownership downdown
ownership and raises EV competitiveness
and raises EV competitiveness
• Limited penetration of EVs, mobility-as-a-service and AVs • EV and AV account for a growing share of miles pushed
• EV and AV account for a growing share of miles pushed by
• While the ICE stock decreases, EV and AV share of miles
• Limited penetration of EVs, mobility-as-a-service and AVs
by electrification of commercial, public and mobility-as-a-
electrification of commercial, public and mobility-as-a-service
remains limited service
fleets with fleets
higher with
rate ofhigher
use rate of use
• ICE LDVs decrease, but remain the majority of vehicles.
• While the ICE stock decreases, EV and AV share of miles • ICE LDVs decrease, but remain
Mobility-as-a-service the majority
and AVs of vehicles.
help increase the EV
remains limited Mobility-as-a-service
mileage and AVs help increase the EV mileage
Note: LDV= Light Duty Vehicle (like cars and small trucks); VMT = Vehicle Miles Traveled
Sources: Bureau of transport Statistics; IEA; Morgan Stanley; Euromonitor; Bain analysis
EVs for cleaner mobility Figure 10: Full-cycle CO2 emissions from EVs are at
least 60% lower than those from ICEs
In the US, 1,100 trillion tons of CO2 were generated by
LDVs in 2016, costing $470 billion in lost wages and
healthcare costs.2 Based on the US energy mix for
electricity generation, EVs currently release around 140
grams of CO2 per mile compared to 330 grams per mile
for an ICE, a 60%.
2. CO2 emissions are from the IEA; costs are from the World Bank and Institute for Health Metrics and Evaluation, “The Cost of Air Pollution: Strengthening the
Economic Case for Action”. Washington, DC: World Bank, 2016.
Electric Vehicles for Smarter Cities: The Future of Energy and Mobility 13
Figure 11: Forecasted EV demand as per worldwide
Environmental benefits of smart charging additional power generation
with different energy mixes
• 5% of additional demand by 2030
In cities such as Oslo and Montreal where hydropower • 1.5% of total electricity demand in 2030
generates more than 95% of the electricity, with no
emissions and no intermittency, EV charging would be 400
continuously clean. Smart charging would still be useful
to deal with any local constraints on the power grid, for
example, to reduce the need for grid reinforcements or to
shave peaks in demand.
In cities like Richmond, Virginia, in the eastern US, which
is supplied by a mix of wind and conventional coal
generation, charging could be timed to match the windiest
times.
Cities that derive an increasing share of their electricity
supply from renewable energies, for instance, San
Francisco or Houston in the US, could avoid curtailing
renewables by adjusting optimal charging times and
charging station locations.
b. Energy
Note: Excluding electricity production loss
Status quo – proliferation Sources: IEA; European Environment Agency; OECD; Bain analysis
14 Electric Vehicles for Smarter Cities: The Future of Energy and Mobility
Smart
Smart charging benefits
charging benefits forfor
thethe energy
energy system
system
InInCalifornia, where cities increasingly rely on solar generation, by 2030 there could be as many as 4 million EVs on
California, where cities increasingly rely on solar generation, by 2030 there could be as many as 4 million EVs on
the
the roads. Inthat
roads. In thatscenario,
scenario,smart
smartcharging
chargingcould
couldrepresent
representup
uptoto$700
$700million
millionsavings
savingsfor
for customers
customers ofof California
California
Independent
Independent System Operator (CAISO) by 2030. While most of the current charging patterns show that privately
System Operator (CAISO) by 2030. While most of the current charging patterns show that privately
owned
ownedEVs EVscharge
chargeininresidential
residentialareas
areaswhen
whenthe
theprices
pricesare
arehigh,
high,the
thetransformation
transformationparadigm
paradigm would
would push
push for
for
charging
chargingduring
duringthe
theday
dayororovernight
overnighttotoreduce
reducecharging
chargingcosts.
costs.
Figure
Figure
Figure12: 12: Smart
Smart
12: Smart loading
loadingvalue
loading value value
potential
potential potential
for CAISO from CAISO
for CAISO
Under
Undercurrent chargingpatterns,
current charging patterns, most
most EVsEVs
will will Smart chargingadditional
Smart charging additionalEVEV demand
demand could
could lead lead
charge at
UNDER night
CURRENT CHARGING PATTERNS, MOST EVS WILL
charge at night to up
SMARTto $700m value
CHARGING
to up to $700m value ADDITIONAL EV DEMAND COULD LEAD
CHARGE AT NIGHT TO UP TO $700M VALUE
CAISO Electricity Demand CAISO Electricity Demand
(MW, August 2030)* Peak demand in (MW, August 2030)
residential area
60,000 60,000
Instead of curtailing solar, use
Solar curtailment energy for EVs in business areas
50,000 50,000
40,000 40,000
30,000 30,000
Flatten peak demand, more affordable
charging
20,000 20,000
Wind curtailment
10,000 10,000
0 0
02 0
03 0
04 0
05 0
06 0
07 0
08 0
09 0
10 0
11 0
12 0
13 0
14 0
15 0
16 0
17 0
18 0
19 0
20 0
21 0
22 0
23 0
00 0
0
02 0
03 0
04 0
05 0
06 0
07 0
08 0
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10 0
11 0
12 0
13 0
14 0
15 0
16 0
17 0
18 0
19 0
20 0
21 0
22 0
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00 0
0
:0
:0
:0
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:0
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:0
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:0
:0
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:0
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01
01
AM PM AM PM
2030 Demand 2030 Demand w/EV 2030 Demand w/EV optimized based on value
Sources: CAISO Renewables Watch; NREL; Californian Energy Commission; RMI; EIA; Bain analysis
Sources: CAISO Renewables Watch; NREL; Californian Energy Commission; RMI; EIA; Bain analysis
Sources: CAISO Renewables Watch; NREL; Californian Energy Commission; RMI; EIA; Bain analysis
Influence of new mobility patterns on cost Figure 13: Mobility-as-a-service AVs are set to
per mile revolutionize LDV costs per mile
Public and private fleets, mobility-as-a-service and later LDV cost per mile
Influence of new mobility patterns on cost Figure 13: Mobility-as-a-service AVs are set to
($/mile - excluding upfront cost – 2017 vs 2030)
AVs will exhibit a decreasing cost per mile when going revolutionize LDV costs per mile
per mile
electric. Driving down the cost to around $0.40 per mile by
2030, AVs will be the real breakthrough for urban mobility LDV cost per mile
Public and private fleets, mobility-as-a-service and later
patterns. This new mobility cost benchmark will challenge ($/mile - excluding upfront cost – 2017 vs 2030)
AVs will exhibit a decreasing cost per mile when going
traditional self-ownership models and will affect customers’
electric. Driving down the cost to around $0.40 per mile by
choices.
2030, AVs will be the real breakthrough for urban mobility
patterns. This new mobility cost benchmark will challenge
traditional self-ownership models and will affect customers’
choices.
2017 2030
Cost per mile (excl. driver) Driver net earnings
Note: Cost per mile comparison based on compact car ICE and compact car
EV in the US; Cost2017
varies by vehicle, market2030
and use
Source: Bain
Costanalysis
per mile (excl. driver) Driver net earnings
Note: Cost per mile comparison based on compact car ICE and compact car
BEV in the US; Cost varies by vehicle, market and use
Source: Bain analysis
ElectricVehicles
Electric Vehiclesfor
forSmarter
SmarterCities:
Cities: The
The Future
Future of
of Energy
Energy and
and Mobility
Mobility 15
15
Recommendations for action
The recommendations below are derived from research into Develop a multistakeholder approach in electrification
practical examples and case studies, as well as interviews strategy
and workshops with experts and leaders from the private and
public sectors, academia and civil society. –– Design internal organizations to ensure convergence of
energy, urban and mobility planning objectives
They are compiled into a framework structured into three
The energy, mobility and infrastructure sectors, along
main principles. This framework complements the national-
with policy-makers, regulators and urban planners, can
level recommendations in the World Economic Forum’s “The
collectively define a new paradigm for cities. For example,
Future of Electricity: New Technologies Transforming the
at a practical level, an electric mobility programme can bring
Grid Edge” to accelerate electrification, decentralization and
together human and financial resources from urban energy
digitalization.
and mobility planning departments to ensure adoption of a
comprehensive approach to the electrification of mobility.
Principle 1 – Take multistakeholder and market- Ensure city, regional, national policies support and
specific approach reinforce each other
A comprehensive approach to electrification of transport will –– Build a national platform for electric mobility with city
require engagement of stakeholders from different industries representation
and sectors and may vary significantly across different
markets. Coordination among the local, regional and national levels
will be necessary to anticipate and enable the integration
The key recommendations are the following: of the grid edge and mobility transformations. For example,
public bus systems can be operated by federal or provincial
–– Develop a multistakeholder approach in electrification governments, depending on circumstance. Certain policies
strategy and regulations, for example, dynamic pricing, may fall under
the domain of national policy-makers. A national platform
–– Ensure city, regional, and national policies support and for electric mobility with city representation can facilitate
reinforce each other cooperation among different regulatory and policy-based
–– Figure 14:
Assess local World Economic
characteristics to inform actionForum's recommendations
entities. for
electrifying mobility
Figure 14: Recommendations for electrifying mobility
16 Electric Vehicles for Smarter Cities: The Future of Energy and Mobility
To gain a better understanding of how these local factors
Integrated approaches for electric mobility would affect a city’s priorities in terms of the electrification
with city, national and regional cooperation of transport, some examples of assessing local factors
and defining tailored recommendations are provided in
The city of Montreal (Canada) has created a multi- the appendix. These examples are demonstrated by three
disciplinary internal committee for electrification of representative urban areas: Paris, San Francisco Bay Area
transport with the directorates of environment, transport, and Mexico City.
urban planning, economic development, municipal
properties and rolling stock management and the
Montréal Transit Authority. Principle 2 – Prioritize high-use vehicles
The German National Platform for Electric Mobility
platform was created in 2010 and led to the introduction Transform the approach to transport electrification, advancing
of legislation meant to support electric mobility in cities, and reforming regulation, prioritizing high-use vehicles. The
such as the authorization of free parking, use of bus goal is to accelerate the electrification of miles to maximize
lanes and special access rights for EVs. However, only a value creation.
few cities adopted these policies due to the lack of city
Important dimensions to be addressed when encouraging
representation in the national platform. The platform is
mobility electrification:
currently integrating cities in the working groups and in
the law-making process.
–– Focus on electrifying public and private fleets, including
mobility-as-a-service
Assess local characteristics to inform action
–– Complete electrification of the public transport system
Assess current and projected local characteristics in terms –– Enable the integration of AVs
of city infrastructure and design, energy system, and mobility
culture and patterns. Focus on electrifying public and private fleets, including
mobility-as-a-service
The investment and infrastructure necessary to support
electric mobility will vary significantly from one place to –– Introduce financial and/or non-financial incentives for high-
another, so any approach needs to be market specific. City use vehicles
infrastructure and design, energy systems, mobility culture
and patterns were identified as the critical factors to consider This approach will accelerate the benefits of electrification,
when prioritizing actions: maximizing the amount of miles that will be run on electricity,
and eventually reducing congestion.
–– City infrastructure and design. Advanced critical
infrastructures, like electricity and telecommunication Local authorities could take the responsibility to lead this
networks, as well as the digitalization of city information change through financial and non-financial incentives that
services define the potential for innovative mobility target public and private fleets, taxis, mobility-as-a-service
and energy services such as smart charging. In dense operators or logistics companies. Bonus-malus systems
cities, congestion and limited available space call for the to redirect investments from ICEs to EVs, granting shared
deprioritization of personal-use vehicles. electric vehicles access to selected areas of the cities or to
high-occupancy lanes exclusively, are examples of policies to
–– Energy system. The carbon intensity of the energy consider.
generation mix correlates to the potential emissions of
electrified mobility. The prevalence of non-dispatchable
energy sources, such as solar and wind, can determine Examples of financial and non-financial
optimal charging locations and timeframes. The level of incentives in the transformation approach
decentralization of the energy system affects the level of
autonomy the city has in designing regulatory frameworks –– Oslo is gradually introducing restrictions on cars
for the supply of energy to charging stations. Cities should entering its city center. It also grants access to priority
also assess their regulatory readiness to adopt electrification, lanes for shared EVs only. Initially, access was granted
digitalization and decentralization (see Figure 15). to any EV, but this resulted in congestion of priority
lanes as soon as EVs proliferated.
–– Mobility culture and patterns. Vehicle-ownership
culture influences the potential penetration of mobility- –– The Massachusetts Electric Vehicle Incentive Program
as-a-service. The AV penetration potential indicates the incentivizes (up to $ 7,500 for purchase and $ 5,000
city’s level of AV adoption maturity. Finally, the public for lease) municipalities, universities, colleges and
transport system’s coverage is a vital indicator of its state agencies to electrify their fleets and deploy
actual contribution to mobility patterns. These factors are charging stations.
all relevant to defining the best strategy and priorities to
accelerate and maximize the electrification of travelled Public agencies could also partner with private companies to
miles – for example, the relevance of electrification of electrify alternative urban mobility, such as car sharing. Fleet
personal-use vehicles in regards to other mobility services. operators should be encouraged to electrify their fleets to
benefit from reduced operating costs.
Electric Vehicles for Smarter Cities: The Future of Energy and Mobility 17
Complete electrification of the public transport system
Examples of efforts to encourage electrifying
fleets, car sharing and other mobility services –– Secure funding for electric buses and infrastructure, and
renew the fleet gradually through public procurement
Public fleets: Stockholm is progressively renewing public
–– Collaborate with public transport operator(s) to define fleet
fleet vehicles with EVs. Oslo (Norway) plans to have all
electrification targets
1,200 public vehicles using electricity by 2020, and to
increase their usage by sharing them between city-hall –– Involve electricity network operators and electricity
employees and citizens. suppliers to enable smart charging and ancillary services
at bus depots
Police fleets: As part of a sustainability plan, the Los
Local authorities should complement the electrification of
Angeles Police Department (LAPD) decided to switch 260
LDV miles by focusing on the electrification of public transport
fleet vehicles of its fleet to EVs. Charging infrastructure
systems, especially in large cities with fully developed rail and
development is also under way and being integrated with
bus networks.
decentralized solar power generation. By leasing rather than
buying vehicles, the LAPD can invest in charging stations,
The electrification of public transport systems should be
including fast-charging stations in city-centre car parks.
undertaken systematically with the renewal of bus fleets.
Authorities should collaborate with public transport operators
Taxis: In London (UK), the Transport for London office
to define a target for the completion of fleet electrification. The
will require all new black cabs to be electric or emission
involvement of local electricity network operators is critical to
free by January 2018, and diesel vehicles will not be
enable smart charging and ancillary services, optimizing the
permitted in London by 2032. Eighty charging points will
charging profile of bus fleets at depots.
be dedicated to black cabs, with plans to implement 150
by the end of 2018 and 300 by 2020.
Car sharing: In Paris (France), the region of Ile-de-France Electrification of public transport systems
and Bolloré Group, a transport company, developed
Autolib, an electric car sharing service with 4,000 EVs In the Ile-de-France region around Paris, RATP, the main
and 1,100 charging stations with more than 6,200 public transport operator, wants to electrify up to 80% of
charging points across the region, accessible to service its bus fleet (around 3,600 units) by 2025, with a public
users and other EV owners. In Bangkok (Thailand), a investment of around €2 billion, which will also stimulate
consortium of companies, including BMW and Schneider bus manufacturers to develop new solutions.
Electric, is collaborating with the King Mongkut’s
University of Technology Thonburi to encourage EV Buenos Aires (Argentina), Montreal, Oslo, Stockholm and
use across Thailand, initially through car sharing and a Santiago (Chile) also prioritize the electrification of public
campus-based electric bus. transport through public procurement of electric buses.
Mobility-as-a-service: Lyft, a mobility-as-a-service China has prioritized the electrification of city public
operator, offers incentives to drive EVs. DiDi Chuxing, the transport. According to the International Energy Agency,
main Chinese mobility-as-a-service operator, operates China’s stock of electric buses exceeds 300,000 units.
the largest fleet of EVs (about 260,000 with a target of Shenzhen is one of the most ambitious cities, with
a million by 2020). With Global Energy Interconnection hundreds of electric buses already in operation and a
Development and Cooperation Organization, DiDi is goal of having a completely electric bus fleet. Guangzhou
building its own charging station network primarily for its Municipal Government, for example, plans to speed up
drivers before making them publicly available. bus electrification and aims to reach 200,000 new units
by 2018.
Last-mile delivery services: The city of Dortmund
(Germany) is developing non-financial incentives for last-
Enable the integration of AVs
mile delivery companies to electrify their fleets: EVs receive
permission for extended access to the city centre. DHL, a –– Develop national regulatory frameworks that allow regions
logistics operator, designed and manufactured an electric and cities to begin testing and introducing AVs
delivery van to electrify its last-mile delivery vehicle fleet.
–– Investigate the impact of AVs on urban spatial and
infrastructure planning
AVs can play a major role in the future of urban mobility by
reducing congestion in city centres, decreasing the number of
accidents and significantly reducing mobility costs. Electrified
and shared AVs could represent a significant portion of
travelled miles since they could be on the road almost all the
time. Their charging patterns are also controllable and provide
additional flexibility to the electricity network.
18 Electric Vehicles for Smarter Cities: The Future of Energy and Mobility
National
Nationalregulatory
regulatoryframeworks
frameworkscan canenable
enableregions
regions and
and cit-
cit- Principle
Principle 3 – Deploy critical charging
ies
ies to begin their own local trials with AVs in partnership with
to begin their own local trials with AVs in partnership infrastructure
with infrastructure today while anticipating the
private
privatecompanies.
companies.InInmost mostEuropean
Europeancountries,
countries, regulations
regulations transformation
transformation of mobility
currently
currentlyrequire
requireaadriver
drivertotobe
beinincontrol
controlofofany
any moving
moving vehi-
vehi-
cle:
cle: such rules may have to be modified to accommodate AV
such rules may have to be modified to accommodate AV In
In the
the context
context ofof mobility and energy systems transformation,
trials.
trials.Moreover,
Moreover,increasing
increasingthethenumber
numberof ofAVs
AVs onon city
city streets
streets planning
planning charging infrastructures is critical in order to cope
charging
will
willrequire
requirechanges
changesininthethedesign
designof ofthe
theurban
urban environment
environment as as with
with the
the risk
risk of
of stranded assets.
well
well as in customers’ mobility behaviour. Pilots should include
as in customers’ mobility behaviour. Pilots should include
investigations
investigationsinto intohow
howAVs AVscould
couldbe beintegrated
integrated into
into traditional
traditional Recommendations
Recommendations to optimize investments in charging
urban
urban spatial planning and what influence their use will
spatial planning and what influence their use will have
have infrastructures
infrastructures include:
on
onurban
urbaninfrastructures;
infrastructures;3D 3Dmodels
modelsof ofurban
urban development
development
may
maybe
sign regulatory be considered
consideredto
paradigm tosupport
supportthis
thisanalysis.
analysis. ––– Focus
Focus on
on reducing
reducing range anxiety and promoting
e the rules of the game, enabling new roles interoperability
interoperability
work operators, innovation and full integration
entralized energy resources ––– Prioritize
Prioritize energy-efficient
energy-efficient charging hubs with grid edge
Examples
Examplesof
ofefforts
effortsto
to integrate
integrate AVs
AVs technologies
technologies and smart charging
e the revenue model
mote innovationIn early
early2018,
Inefficiency
& 2018,
throughthe
the city
cityofofRouen,
outcome-basedRouen, Region
Regionof
regulation of Normandie
Normandie ––– Develop
Develop digitalized
digitalized end-to-end customer experience to
move bias towards and
and Renault
Renault
capital (France)
(France)
expenditures plan
planto
by allowing launch
launchaamobility-as-a-
tonon-wire mobility-as-a- improve
improve access
access to charging services
service
natives to competeservicepilotpiloton onopenopenroads
roadswith withfive
fiveAVs
AVsforfor public
public use.
use.
ate DERs into Initially
markets and
withmonetize
Initiallywith humantheir
human services
drivers’
drivers’ supervision,
supervision,they they have
have the
the
arly define role, asset type, and ownership of DERs
potential
potential totoallowing
bebedriverless
driverless once
once the
thetechnology
technology has has been
been Figure
Figure 15:
15: Redesigning
Redesigning the regulatory paradigm
ble adequate market design, independent aggregation
location-basedproven
proven
valuing ofand
DERsregulations
and regulationspermit. permit.
rnize system planning Redesign regulatory paradigm
t from distribution network operators to distribution service
orm providers
GeneralMotors
General Motorsisisdeveloping
developingaa24/7 24/7freefreeAVAV mobility
mobility Change the rules of the game, enabling new roles
service,
service,
ak regulatory silos initially
initially
(geographies, fortheir
for their
industries, employees
employees
sectors) through in inthe
theUS.
US. for network operators, innovation and full integration
grated plans of decentralized energy resources
ssure investors by clarifying the transition path and regulatory
ine Volkswagenand
Volkswagen andthe thecity
cityof ofHamburg
Hamburg(Germany)
are working are
• Evolve the revenue model
together
working to
togetherpromote
rice signals by redesigning rate structures to autonomous
promote driving
autonomous as part
driving of
as part - Promote innovation & efficiency through outcome-based regulation
ofthe
oduce dynamic prices thecity’s
andcity’s intermodal,
assess efficacy of traffic
intermodal, traffic
flexible management,
management,
demand congestion
congestion - Remove bias towards capital expenditures by allowing non-wire
ges and air-quality strategies. Projects include experimental
and air-quality strategies. Projects include experimental alternatives to compete
applicationsofofAVs
applications AVsfor
forpassengers
passengersandandcity
city freight,
freight, along
along • Integrate DERs into markets and monetize their services
- Clearly define role, asset type, and ownership of DERs
withthe
with theexpansion
expansionof ofelectric
electricmobility.
mobility. - Enable adequate market design, allowing independent aggregation
and location-based valuing of DERs
CaliforniaDepartment
California DepartmentofofMotor
MotorVehicles
Vehiclesprovides
provides licences
licences • Modernize system planning
- Shift from distribution network operators to distribution service
to test driverless cars on public roads in the Silicon Valley
to test driverless cars on public roads in the Silicon Valley platform providers
as part of an experimental programme.
as part of an experimental programme. - Break regulatory silos (geographies, industries, sectors) through
integrated plans
- Reassure investors by clarifying the transition path and regulatory
China’sgovernment
China’s governmenthashasannounced
announcedititwill
will develop
develop timeline
nationalregulations
national regulationsfor
fortesting
testingAV
AVon
onpublic
public roads
roads in
in • Use price signals by redesigning rate structures
China.
China. - Introduce dynamic prices and assess efficacy of flexible demand
charges
Singaporeand
Singapore andAnn AnnArbor
Arbor(USA)
(USA)are
arepiloting
piloting full
full
In order
In order to
to deploy
deploy critical
critical charging
charging infrastructure
infrastructure now
now
automation. A study conducted in Ann Arbor, aa mid-
automation. A study conducted in Ann Arbor, mid-
size US city, by the Columbia University Earth Institute while anticipating
while anticipating the
the future
future of
of mobility,
mobility, the
the redesign
redesign of
of
size US city, by the Columbia University Earth Institute
showedthat
that18,000
18,000shared
sharedand
anddriverless
driverless vehicles
vehicles the regulatory
the regulatory paradigm
paradigm for for the
the energy
energy system
system is
is needed.
needed.
showed
could provide the same mobility service within the city
city Also see
Also see The
The Future
Future ofof Electricity:
Electricity: New
New Technologies
Technologies
could provide the same mobility service within the
as 120,000 vehicles for personal use, at lower cost and Transforming the Grid Edge, published
Transforming the Grid Edge, published by by the
the World
World
as 120,000 vehicles for personal use, at lower cost and
higher productivity. Economic Forum.
Economic Forum.
higher productivity.
Focus on
Focus on reducing
reducing range
range anxiety
anxiety and
and promoting
promoting
interoperability
interoperability
––– Develop
Develop fast-charging
fast-charging networks
networks through
through public-private
public-private
funding to
funding to connect
connect different
different cities
cities
––– Include
Include standardization
standardization and
and interoperability
interoperability in
in minimum
minimum
requirements
requirements
Electric Vehicles for Smarter Cities: The Future of Energy and Mobility 19
Electric Vehicles for Smarter Cities: The Future of Energy and Mobility 19
Range anxiety remains a major barrier to EV adoption by Prioritize energy-efficient charging hubs with grid edge
public- and private-fleet operators as well as individuals. It technologies and smart charging
should therefore be a priority to implement a national and
transnational network of interoperable fast-charging stations at –– Locate charging hubs on the outskirts of cities, connected
highways and to provide charging services at commuting hubs. with public transport systems and alternative mobility
means
Networks of fast-charging stations could be developed
–– Support the evolution of regulatory paradigms to enable
through public-private funding to connect cities. These
new energy-related services
charging stations are not only investments for the future
but can be profitable using the correct business models. In –– Decide on the approach to charging mobility hubs: public,
the future, new services could be developed as additional private or public and private cooperation
sources of revenue.
Cities will also require networks of publicly accessible
charging stations for urban traffic. Planned as hubs, offering
Standardization and interoperability of infrastructures are
mobility and energy services, they will complement existing
critical to ensure that a variety of service providers can
private charging stations. These hubs should be designed
enter the market and customer experience is as smooth as
with the long-term transformation of mobility in mind, so they
possible. This is a specific issue where a multistakeholder
do not become stranded assets as mobility patterns change.
approach will accelerate achievement of results and help
define a minimum requirement for infrastructure development.
Located in the outskirts of the cities and connected with
the public transport system and alternative mobility means
(such as car sharing and other mobility services), they should
Focus on reducing range anxiety and accommodate enough traffic from both personal-use vehicles
encouraging interoperability and fleets to provide revenue to the operators, either directly
by selling electricity and subscriptions, or indirectly through
Enova SF, the Norwegian energy and climate change additional mobility- and energy-related services.
fund, has been investing in a network of fast-charging
stations connecting Norway’s southern main cities and The involvement of electricity network operators will facilitate
ensuring a charging station every 30 miles. the integration with the energy system. Supporting the
evolution of the regulatory paradigm (see Figure 15), for
Similar initiatives are ongoing along the main corridors in example through the introduction of dynamic pricing, will
Europe, such as the CIRVE (Iberian Corridors of Rapid enable additional energy-related services (see the text box
Recharging Infrastructure for Electric Vehicles) project titled “Integration with grid edge technologies and smart
deploying multi-standard quick-charging points on grids”).
the highways connecting France, Spain and Portugal,
supported by European Commission funds. The development of these charging mobility hubs could take
different approaches, such as using public, private or public-
private cooperation, depending on the local market maturity.
MIT is proving the value of mobile phone data records to
estimate EV mobility demand and optimize the location
of charging stations. The resulting optimized deployment Examples of smart charging hubs
could reduce the distance driven to reach the closest
charging station by more than 50%. Mobility data analysis Oslo’s Vulkan project to develop an EV charging facility
and deployment optimization can substantially improve on the city’s outskirts demonstrates a public-private
accessibility of charging stations. cooperation model between the city, a utility company and
a real-estate firm. Equipped with about 100 multi-speed
The smart charging pilot run by Southern California charging stations and offering smart charging, battery
Edison and Autogrid addressed the challenges associated reserve and vehicle-to-grid technologies, it is fully digitalized
to the proliferation of charging stations and EVs from with pre-booking for fleet operators and car sharing
several vendors, adopting a variety of technical protocols, services. Vulkan could be a model for future charging hubs.
and supporting the widest variety of use-cases. The
pilot proved the suitability of adopting a unified cloud- The EUREF Campus, in the outskirts of Berlin (Germany),
based application using open standard protocols like hosts international technology companies and research
OpenADR2.0 and SEP 2.0. In addition the pilot also institutions. It offers normal and fast-charging stations for
studied the response of EV drivers to price fluctuations and EVs and alternative mobility means, such as bikes. The
electronic requests to curtail charging (demand response), campus is also equipped with inductive charging for fleet
and the impacts of EV charging on power systems. operation. The stations are V2G-ready, integrated in the
local micro smart grid with solar and wind generation and
enabling smart charging solutions. The microgrid uses
artificial intelligence with machine-to-machine learning
capacity to optimize EV charging and send energy
surplus back to the grid, based on dynamic pricing.
20 Electric Vehicles for Smarter Cities: The Future of Energy and Mobility
Develop digitalized end-to-end customer experience to
enhance access to charging services
Electric Vehicles for Smarter Cities: The Future of Energy and Mobility 21
Conclusions
22 Electric Vehicles for Smarter Cities: The Future of Energy and Mobility
Appendix
Figure
a. 16: Synthesis of Paris’ local factors
a. Paris
Paris
Figure
Figure 16:
16: Synthesis of Paris’
Synthesis of Paris’ local
local factors
factors
Smarter cities
maturity
design
• High dispatchability due to decrease in 2030 • Develop a framework for AV integrated with
Non dispatchable Dispatchable the public transport system for outskirt
through solar and wind push
commuting
Dispatchability
• 5% of needs produced in Paris; consumption to
increase by 13% with the Greater Paris' project
(including fuel efficiency) • Build charging hubs through public and private
Centralized Decentralized
Level of partnerships with real-estate companies and
decentralization • Grid operated by regulated company Enedis with parking operators by public transport nodes in
multiple operators city outskirts
Low High
AV penetration
potential • AV experimentations authorized since 2016 and
ongoing pilots with autonomous shuttles
Limited Excellent
Public transport
• Amongst top 5 cities for its public transport system
system coverage
(46% of motorized commuting)
Buildregion
The mobility charging
should work hubs where there
with electricity is lowoperators
network demand to
during the
identify day with a low load during the day in addition
locations
to available circuit and substation capacity, to plan and
The region
deploy should
mobility hubs.work
Thesewithshould
electricity networkprimarily
be located operators at to
identify
the locations
outskirts with ina parking
of cities, low loadstations
during the day in addition
at destination points
to available
and circuit and
along highways. substation
Planning capacity,
should to plan
anticipate the and
evolution
deploy
of mobility
mobility hubs.
patterns to These should be
avoid potential locatedstations
stranded primarilyinat
the outskirts
downtown of cities,
streets, for in parking stations at destination points
instance.
and along highways. Planning should anticipate the evolution
of mobility patterns to avoid potential stranded stations in
downtown streets, for instance.
Figure 17: Synthesis of San Francisco’s Bay Area local factors
Figure 17: Synthesis
Synthesis of
of San
San Francisco
FranciscoBay
BayArea’s
Area’slocal
localfactors
factors
Low High
Infrastructure &
24 Electric Vehicles for Smarter Cities: The Future of Energy and Mobility
24 Electric Vehicles for Smarter Cities: The Future of Energy and Mobility
c.
c. Mexico
Mexico City
City, emerging megalopolis
commuting trips. Local authorities should therefore regulate
of mobility, such as colectivos and peseros – minibuses and
and encourage their replacement and electrification, as
vans that carry groups of passengers – account for nearly
Mexico City differs from Paris and San Francisco primarily by well as the electrification of the roughly 140,000 registered
half of motorized commuting trips. Local authorities should
Mexico City differs from Paris and San Francisco primarily by
the carbon intensity of its energy mix, the limited development cabs. As congestion is a major issue, local authorities should
the carbon intensity of its energy mix, the limited development therefore regulate and encourage their replacement and
of its public transport system and the prevalence of collective discourage the use of personal-use vehicles and invest in
of its public transport system and the prevalence of collective electrification, as well as the electrification of registered cabs
transport.
transport. –developing an electrified
said to be the largest fleetrapid transit
in the world,network to 140,000
at about connect the
districts of the growing city.
– and increasingly popular mobility services. As congestion
Invest is a major issue, local authorities should discourage the use
Invest inin decentralized
decentralized and clean renewables
and clean renewables to to power
powerthe the
charging ofDevelop
private publicly
vehicles accessible
and invest in developing
smart charging anstations
electrified
located
charging infrastructure
infrastructure
rapid transit network
at destination pointstoandconnect
depotsthe growing districts of the
Today,
Today, Mexico
Mexico City’s
City’s energy
energy mix mix relies
relies on
on carbon-intensive
carbon-intensive sprawling city.
sources.
sources. Combined-cycle
Combined-cycle power plants, powered
power plants, powered by by natural
natural The public and private sectors should cooperate to finance
gas,
gas, dominate
dominate the the system
system as as they
they replace
replace thermal
thermal plants
plantsthat
that and operate a network of publicly accessible, standardized
Develop publicly accessible smart charging stations located
run
run onon coal
coal and
and fuel
fuel oil.
oil. The city has
The city has prioritized
prioritized investment
investment in atsmart charging
destination stations
points to complement the points already
and depots
decentralized
in decentralized and clean,
and clean, renewable
renewable power
power generation.
generationThis to installed by the public electricity network operator. Charging
strategy
energizealigns with national
the economy targetselectricity
and provide set out infor thefuture
country’s
EV stations
The publicshould primarily
and private be located
sectors shouldat destination
cooperate points
to finance
energy
charging reforms
stations.to take full advantage
This strategy aligns of
withMexico’s
nationalpotential
targets for and
andoperate
at depots served by taxis, colectivos (collective
a network of publicly accessible, standardized mini-
renewables
set out in the and push for
country’s its uptake
energy reformsto reach
to take35% by 2024.
full advantage smart charging stations to complement the points alreadyto
bus services) and buses. They must also be accessible
Such a shift potential
of Mexico’s is critical for
for renewables
the electrification
and pushof transport
for its to have installed
personal-use
by theEVs, whose
public number
electricity grid will increase
operator. as emission
Charging
auptake
positive to effect
reach air35%quality.
by 2024. Such a shift is critical for the regulations
stations strengthen.
should primarily Their digitalization,
be located including
at destination a publicly
points
electrification of transport to have a positive effect air quality. accessible
and at depots database,
served by would
taxis,facilitate
colectivos theand
development
buses. They of
Electrify collective means of mobility and public transport services
must alsosuch
be as priority
accessible tobooking
privately for fleet
owned vehicles.
EVs, whose
while discouraging
Electrify use of of
collective means personal-use
mobility andvehicles
public transport number will increase as emission regulations strengthen. Their
while discouraging use of personal vehicles digitalization, including a publicly accessible database, would
Personal-use vehicle ownership is low and public transport facilitate the development of services such as priority booking
While
has nota kept
substantial
pace withportionthe of the expansion
rapid population of who thelive
city. for fleet vehicles.
belowcollective
Thus, poverty thresholds
motorizedcannot meansafford their own
of mobility, such vehicle,
as
development
colectivos andofpeseros
public transport
– minibuses has and
not kept
vanspace with the
that carry
rapid expansion
groups of passengersof the –city. Thus,for
account collective motorized
nearly half means
of motorized
Low High
Infrastructure &
Smarter cities
maturity • Around 80th smartest city in the world
design
Owned Shared
LDV ownership • Personal-use vehicles representing only 28% of • Develop a network of publicly-accessible smart
Mobility culture and
Electric Vehicles for Smarter Cities: The Future of Energy and Mobility 25
Electric Vehicles for Smarter Cities: The Future of Energy and Mobility 25
d. Value calculation methodology
19: Value
gure Figure calculation
19: Synthesis methodology
of value drivers
26 Electric Vehicles for Smarter Cities: The Future of Energy and Mobility
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28 Electric Vehicles for Smarter Cities: The Future of Energy and Mobility
Acknowledgements
Electric Vehicles for Smarter Cities: The Future of Energy and Mobility 29
30 Electric Vehicles for Smarter Cities: The Future of Energy and Mobility
Electric Vehicles for Smarter Cities: The Future of Energy and Mobility 31
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