Fabrice Roudet Delphine Clement

Head of Energy Segment Leader

Storage and EV charging, Commercial and Industrial
EMEA, Eaton Buildings, EMEA, Eaton

Electric vehicle charging infrastructure

(EVCI) for commercial buildings
How onsite renewable power generation and battery storage
can mitigate the costs of EVCI for commercial buildings.
 Contents

Introduction 3

Section 1. Opportunities and challenges 4

Section 2. The EV tipping point 6

Section 3. Why is EV needed in commercial buildings? 10

Section 4. Challenges: the issues and how to overcome them 13

Section 5. Opportunities: what is the business case? 17

Section 6. Pilot projects 21

Section 7. Other options for managing EVCI 24

Section 8. Conclusions 27

Section 9. References 29

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 2
Introduction
More drivers across Europe are choosing and using electric vehicles (EVs). It is
the most logical choice for some because of incentives such as tax breaks for
company car drivers, and many more are attracted to driving a vehicle widely
regarded as less damaging to the environment. Ultimately, most drivers know
that governments are accelerating plans to phase out internal combustions
engine (ICE) vehicles, and in some countries ICE vehicles could be banned as
soon as 2030.
Whatever the impetus, demand for EV charging facilities is rising fast, putting
pressure on commercial buildings to provide EV charging infrastructure (EVCI). Everything as a Grid is our approach
to helping partners across the world
Public and private sector investment in EVCI is clearly needed, which could be embrace energy transition, on their
challenging in the post-Covid world, but the good news for property owners and terms. Today, energy flows through
the grid in more directions and through
leaseholders is that EVCI can be provided sustainably and cost effectively. more devices than ever before. And
although that decentralization creates
In this whitepaper, we assess the impact that EV growth will have on future more complexities and challenges,
power demand, both on distribution systems and ‘behind the meter’ in the it also creates new potential. By
viewing Everything as a Grid, we are
commercial buildings that will need to offer EVCI: workplaces, shopping centres, simplifying those complexities, meet-
schools and colleges, sports and leisure facilities, to name but a few. We consider ing those challenges and reinventing
the ways power is distributed, stored
various approaches to meeting power demands sustainably and explain how and consumed. The future is one
battery storage can make systems scalable. of low-carbon, renewable power.
The future is Everything as a Grid.

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 3
Opportunities and challenges

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 4
While EVs account for a relatively small share of new car sales at present, most European countries
are already committing to policies that will lead to a significant rise in numbers as part of their
efforts to reduce emissions from transport and improve air quality. However, meeting the expected
growth in EVs, means there is now pressure for public and private investment to ensure adequate charging
infrastructure in public places. If EV adoption rates are to be sustained, more chargers must be sited in key
locations to allow convenient battery top-ups, whether for long journeys or local travel.

The impact of EV charging on electricity grids, espe-
cially distribution systems, must be considered ahead
of the envisaged EV tipping point to alleviate the
need for considerable grid reinforcement that will
otherwise require billions of Euros worth of invest-
ment over the next decade. Although overall
demand increase will be manageable at the scale of
the European grid, the density of EV chargers in
some locations could mean that demand outstrips
the traditional means of upsizing the grid, making
flexible assets such as battery storage necessary to
manage the peaks. The opportunity of ‘pay to
charge’ for commercial buildings with car parks
is evident. Increasingly, these buildings will be
expected to provide public EV charging capability.
By investing in EVCI supported by renewable
energy generation - from a source such as solar
photovoltaics (PV) – the owners or managers of
such buildings create the opportunity to both save
money and earn income from their investment.
Electricity self-generation is likely to result in
reduced energy bills, while potential revenues may
come from two sources: from energy companies
in the form of subsidies for supporting the grid; and
from fees paid by car park users for being able to
top-up their EVs.

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 5
The EV tipping point

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 6
The convergence of EV-friendly policies with the increasing availability and affordability of EVs
is accelerating the growth in EV ownership. BloombergNEF, the clean energy primary research
provider, says in its Electric Vehicle Outlook 2021 report that the sales number of passenger EVs
globally is expected to jump from nearly 5 million in 2021 to 66 million in 2040.

100 100000000
Internal combustion

Hybrid
80
80000000

Fuel cell

60 Plug-in hybrid
60000000

Battery electric
40
40000000

20
20000000
Million

0
2015 2020 2025 2030 2035 2040
0

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Figure: Global passenger vehicle sales outlook by drivetrain

Source: BNEF. Note: EVs include battery electric and plug-in hybrid.

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 7
 Considerations include
Falling battery costs

This is reflected in lower EV sale prices, with the prediction being that average price of lithium-ion battery
packs to drop below $100/kWh in 2024. By 2035, average pack prices could be as low as $45/kWh.

Lithium-ion battery pack price (real 2020 $/kWh)

1200

1000
2024 implied
price $92/kWh
800
2030 implied
price $58/kWh
600

400
Observed prices

200 18% learning rate

0
2010 2015 2020 2025 2030 2035

Source: BNEF. Note: The data in this chart has been adjusted to be in real 2020 dollars.

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 8
 Policies, incentives and urban emissions regulations
Many European countries and cities have already introduced, or are considering introducing,
phase-out plans for internal combustion engine (ICE) vehicles. Most countries in Europe are
already using incentives to encourage EV purchase to help meet EU carbon reduction targets.

Positive consumer experience

The effect this can have on EV sales should not be underestimated. New EV car models can
travel further between charges and owners are widely understood to appreciate the benefits
of driving cleaner, quieter, responsive cars that cost less to run and maintain, though there
are concerns about the availability of EVCI.

Supply chain bandwidth

For very practical reasons, the global automotive industry will not be able to sustain supply
chains indefinitely for both ICE and electric vehicles. As manufacturers gradually commit to
more EV product lines and the total operating cost of EVs becomes more competitive, the
trend to choose an EV over an ICE vehicle will be reinforced and likely to accelerate.

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 9
Why is EVCI needed
in commercial buildings?

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 10
3. Why is EVCI needed in commercial buildings?
Traditionally, vehicle owners have taken for granted that a petrol station is within easy
driving distance, so when they are considering switching to an EV, the lack of fully
established EVCI can act as a deterrent.

EVCI must be extensively available for consumers to embrace the e-mobility transition, and
governments to successfully decarbonise transportation. EVCI also needs to be available for
vehicles that provide services for commercial buildings, such as goods deliveries.

Even with rapid chargers and the next generation of super-fast chargers, EVs will need to be
plugged in for many minutes to charge fully, but ‘top-up’ charging could be provided in any public
place where cars are parked for a reasonable length of time.

Obvious sites for EVCI include petrol stations and service stations that offer cafés, shops and
restaurants. Tesla has been a first mover, installing its network of Superchargers at such locations.
Charging infrastructure can also be installed at car parks serving commercial buildings:

• retail and entertainment complexes

• supermarkets
• airports and railway stations
• sports stadiums and fitness centres
• universities and government buildings
• offices
• hotels
• fleet depots

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 11
Investing in this type of infrastructure presents compelling opportunities for those who
own and run commercial buildings. Installing EVCI contributes to sustainability initiatives
and offering EVCI could open new revenue streams from ‘pay-to-charge’ schemes.

Community
parking Shopping
Home Work Parking lots leasure On the go

8 hrs 8 hrs 30 min - 8 hrs 30 min - 8 hrs < 30 min

Target charge level 100 % No target charge level Target charge level < 80 %

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 12
Challenges: the issues
and how to overcome them

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 13
 4. Challenges: the issues and how to overcome them
Demand spikes on the grid
When and how EVs are charged has an impact on the electricity grid. A much-cited 2012 study by
the UK-based Institution of Engineering and Technology (IET) into the impact of EVs on the UK’s
distribution networks estimated that as EV penetration reaches 33 % of households (around eight
million), voltage imbalances, coupled with overloaded distribution transformers, could impair power
lines unless action is taken to prevent this.
Electricity demand outlook for Europe by segment
4000

3000
2% 9%

2000

Electric vehicle
electricity demand
1000

General electricity
TWh

demand
0
2020 2025 2030 2035 2040
Source: Electric Vehicle Outlook 2020, BloombergNEF

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 14
Options that could help avoid the demand spikes caused by plugging
in EVs during the evening peak include smart charging technologies
deploying price signals that incentivise drivers to top-up when tariffs are
cheapest. This is likely to be during periods of surplus renewable energy
on the grid or at low demand times, for example during the night and at
weekends.

Power capacity ‘behind the meter’

Many stakeholders who pay for their electricity and are, therefore,
‘behind the meter’ are thinking about adding EV chargers, but they
should consider the full implications before doing so because they may
not have sufficient power capacity. Current versions of rapid chargers
typically have a power demand of 20 to 150 kW but we are now starting
to see much more powerful chargers, sized according to the building’s
needs. Careful planning and system design are essential to avoid a costly
upgrade of the site, potentially including the expensive grid upgrade fees
that can be charged for providing access to more power from the grid.

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 15
Extra power

Extra cost

Power distribution Extra demand

system in peak

An example may be helpful, here. Consider a large shopping centre with car parking spaces for a
thousand vehicles. Given that forecasts expect EVs to account for 10 % of new car sales by 2025, the
business could reasonably expect to convert 10 % or more of its parking capacity to bays with chargers.
Half could be equipped with lower power chargers, but several could have rapid chargers which need
much more power. Even if only half are used for charging at any one time, the site’s power demand can
easily grow by an extra megawatt, effectively doubling the power need for some customers.

Fleet operators, such as courier or logistics firms, will need to add significant EV charging infrastructure
in the future and they could exceed their current connection capacity, too. Upgrading grid connections
is expensive – and often results in the imposition of a higher rate tariff.

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 16
Opportunities:
what is the business case?

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 17
5. Opportunities: what is the business case?
EVCI can boost customer loyalty, deliver sustainability and cost benefits and
generate an income. Here, we explore these topics in more detail.

Gaining and retaining customer loyalty

EV drivers will consider the availability and ease of EVCI when choosing which commer-
cial outlets to visit, particularly in these early days of the switch from ICE vehicles when
there are fewer options available for EV charging. In future, the price of charging will
become an increasingly important consideration, too.

EVCI clearly presents an opportunity for business owners to develop various models
for building customer loyalty. In terms of reputation, it is widely known that custom-
ers tend to favour companies that take steps to tackle climate change, particularly
‘environmentally-aware’ EV drivers, so the sources of EVCI power matter. Choosing
to self-generate renewable power and consume it on site for EVCI is likely to prove
a marketing advantage, as well as being intrinsically beneficial.

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 18
 Sustainability and cost benefits
Investment in EV chargers can really pay off Choosing an EVCI based on self-generated renew-
in terms of sustainability, particularly when able energy and battery storage also reduces
capital expenditure because it avoids the costly
energy to power the EVCI comes mainly from
grid-upgrade fees that tend to be charged by
renewable sources, generated on site. distribution network operators for ensuring local
networks can accommodate the additional load
Installing a renewable energy generating system, involved. It also prevents those upgrades having
such as one based on solar PV panels, and con- to be made, of course.
necting it to behind-the-meter battery storage,
enables commercial buildings to reduce the costs
of powering EVCI dramatically because as well
as consuming power as it is generated, they can Solar generation
store it for use when electricity from the grid is at
its most expensive. When they don’t have enough
self-generated power for all the vehicles they need
to supply, they can buy power from the grid at off-
peak prices. The wider sustainability benefit of this
is that it enables what is known as ‘peak shaving’
- reducing the load on the grid to prevent the grid Energy
EVs
being switched to carbon-intensive, fossil-fuelled storage
power (which may be all that is available when
Buildings
demand is at its heaviest). as a Grid

Power distribution backbone

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 19
 Generating an income and scalability
There are various ways that commercial buildings can create revenue streams from EVCI. The most
obvious involves setting a fee for the service provided. For example, employees who travel to work in an
ICE vehicle expect to pay for their own petrol or diesel, so if they switch to an EV in the future they may
expect to pay an EVCI usage fee. The same is true for customers visiting shops or leisure facilities.

Other income may come from offering services to the grid: bi-directional energy flows may enable
renewable energy generators to sell their surplus to the grid, if they do not use it, and they may be
incentivised by for peak-shaving (easing pressure on the grid at peak demand).

As EV usage increases, an EVCI based on a renewable system and battery storage is scalable simply by
adding generating capacity (more PV panels, for example), and adding battery packs to increase storage
capacity.

Saving

Power distribution Grid service Extra demand

system revenue in peak

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 20
Pilot projects

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 21
6. Pilot projects
Pilot projects can provide valuable learning and demonstrate
the commercial advantages of combining EV charging with
energy storage.

In France - La Poste, the well-known postal service provider, is

trialling solar-powered vehicles to deliver mail to homes. The pilot
project involves using Eaton’s xStorage Home battery system,
based on second-life Nissan LEAF batteries, to store the power
generated by a photovoltaic shade structure on the car park of
La Poste’s site at Magny les Hameaux.

The PV panels on
the roof of the shade
structure

Power generated during the day while the postal vehicles are
making deliveries, is used at night when they are parked up. If
the entire fleet of La Poste’s 7,000 electric cars were to benefit
from a system of this kind, it would represent 5,593,000 kWh of
photovoltaic electricity produced annually for 16,954,000 solar
km travelled. This would save 112.98 tons of CO2 compared to
vehicles powered by electricity from the French electricity grid.

The energy storage system Eaton xStorage

Home includes second-life batteries
from Nissan LEAF electric vehicles

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 22
In France - The Catholic University of Lille is committed to achieving a zero-carbon campus
by 2035. Their Eaton xStorage Buildings system is essential to the transition project which is
known as ‘Live Tree’. Using the xStorage system the university can store energy from 1300 m2 of
photovoltaic (PV) panels to use whenever they choose. This gives them a great deal of flexibility
compared with traditional PV systems. Amongst other applications, the energy powers three
electric vehicle charging stations that offer six charging points which can supply up to 132 kW.
The system was chosen for its scalability as the ‘Live Tree’ project grows.

Pilots and first-mover projects demonstrate the different business cases for combining storage and
EV charging. They show how the strategy stacks up the benefits of reduced capital investment
and operational costs with new revenue opportunities and increased customer loyalty. The overall
savings from storage combined with these additional revenue streams created can support even
better business cases for implementing investment in energy storage.

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 23
Other options for managing EVCI

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 24
7. Other options for managing EVCI
As more consumers choose to drive EVs in the coming years, a big challenge will be how to
facilitate this transition without causing energy prices to go up, while at the same time ensuring
that renewables, rather than coal or other fossil fuels, provide the electricity needed for power-
ing transportation.

As well as using smart charging to balance loads (which is detailed further below), and battery storage to
flatten peaks, there are other technologies for managing and reducing the costs of EVCI that will become
increasingly common, including vehicle-to-grid (V2G) technology and DC microgrids.

Smart charging COST

The concept of ‘smart charging’ encompasses a TIME

collection of technologies and approaches that shift
PEAK
the EV load to times when energy is cheapest,
such as whenever there is surplus solar or wind SMART CHARGING
energy on the grid. For smart charging to achieve
successful outcomes, most EV drivers need some
incentive to charge their cars at the optimum time
for the grid. Price signals or special contracts are
amongst the levers that can be used to achieve
smart charging.
Saving

Extra demand
in peak

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 25
 Vehicle-to-Grid (V2G)
V2G will take smart charging to the next level in the
future: the use of bi-directional chargers will allow
the battery in a parked EV to inject electricity into
the grid, opening up more value streams by
supporting grid balancing.
Grid service revenue
DC microgrids
PV systems produce renewable energy as DC
(direct current) power which today requires a con-
version to AC (alternating current) to be useful. The
same is true for batteries, so why not use pure DC
microgrids to directly connect EVs to on-site PV
generation and batteries to avoid multiple conver-
sions to and from AC?
A DC microgrid system enables prioritisation of
power flows to minimise peak demand and
provides a simpler way to update existing local in-
frastructure to enable cost-effective EV charging.
There are currently several institutions studying
DC grids, and early pilots are up and running.
EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 26
Conclusion

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 27
8. Conclusion
Commercial buildings that are considering hosting EVCI need to think about both the
challenges and opportunities, then plan accordingly. Undertaking an initiative to install
EV charging means thinking through how to transform either existing or new car parking
space into a sustainable charging hub. Should it prove necessary to expand the grid
connection and upgrade power distribution equipment, the upfront costs of installing
EVCI can be high, though this can be mitigated by installing renewable power generation
integrated with an energy storage system.

At present, potential benefits include attracting and retaining customers; the chance to enhance
sustainability strategies; and the opportunity to create new revenue streams from ‘pay-to-charge’
schemes and possibly incentive payments from the grid, if these are offered. In future there could
be more smart charging benefits, such as the option to ‘sell back’ to the grid using vehicle-to-grid
technology and new efficiencies that could result from the introduction of DC microgrids.

Fortunately, a growing number of pilot schemes are showing how enabling technologies that
are already commercially available, such as energy storage from batteries, can be deployed to
underpin a variety of business cases for aspiring EVCI hosts and other stakeholders considering
investment in EV charging assets.

Rather than wait for competitors to capitalise on the opportunities afforded by the growth in
EV adoption, potential investors should start planning their own EVCI, right now. Engaging with
the right partner is a good first step: a partner that understands how behind-the-meter power
infrastructure integrates with site loads, as well as the grid. Designing and implementing a pilot
at one or two sites can be a good way to explore the accruable benefits, including the revenue
opportunities of operating sustainable public charging assets.

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 28
With the significant growth of EVs now assured, the requirement for EVCI will also grow fast. If done
right, it can be accomplished without unnecessary costs or delays. Early commercial adopters that
intelligently size-up EVCI and seize this opportunity will be the winners in their space, garnering more
loyal customers, and potential new revenue streams at their highest point before more players enter the
same markets.

9. References
1. Electric Vehicle Outlook 2020, BloombergNEF https://about.bnef.com/electric-vehicle-outlook/

2. Electric vehicles‘ impact on British distribution networks

September 2012, IET Electrical Systems in Transportation

3. Global RE100 initiative. http://there100.org/

EATON White paper Buildings as a Grid - Commercial buildings and EV opportunities January 2022 29
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