2. Who is the Electrification Coalition
The Electrification Coalition (EC) is a nonpartisan, non-for-profit group of
business leaders committed to promoting policies and actions that facilitate
the deployment of electric vehicles on a mass scale in order to combat the
economic, environmental, and national security dangers caused by our
nation’s dependence on oil.
3. The Problem - U.S. Oil Dependence
Petroleum fuels account for approximately 40 percent of U.S. primary
energy demand, more than any other fuel.
› Approximately 70 percent of U.S. oil consumption occurs in the transportation sector, with
40 percent in light-duty vehicles.
› Transportation is 94 percent reliant on oil-based fuel for energy.
U.S. PRIMARY ENERGY DEMAND, 2009
PETROLEUM FUEL DEMAND BY SECTOR, 2009
39% Oil
20% Autos
24% Light-trucks
27% Natural Gas
28% Other Transport
23% Coal
9% Nuclear Energy
3% Hydro electric
22% Industrial
2% Commercial
4% Residential
1% Electric Power
Source: BP, plc., Statistical Review of World Energy 2010
4. U.S. Oil Dependence: Household Impact
The average U.S. household spent a record $4,000 on gasoline in 2011.
Since 2000, the increase in spending has offset numerous stimulus efforts.
›
3.75
Household spending on
gasoline increased by
$2,008 dollars between
2001 and 2008.
›
AVG. HOUSEHOLD SPENDING ON GASOLINE (2000-2011)
Income tax cuts over the
same period increased
household income by
$1,900. Thus, rising fuel
prices fully offset the benefit
of tax cuts.
›
We saw the same effect in
2011 with the payroll tax
cut, which increased
Americans income by $110
billion while spending on
gasoline increased by $104
billion.
5,000
Gas Spending/Household
Gasoline Price (Lhs)
3.00
4,000
1.50
2,000
Increased
gas spending
$/gal
3,000
0.75
0.00
1,000
2000 01
02
03
04
05
06
07
08
09
10 2011
Source: DOE, EIA, Annual Energy Review 2010; ORNL, Transportation Energy Data Book; SAFE Analysis
Dollars (Nominal)
2.25
5. Electrification Overview
Electrification of transportation offers one of the best solutions for reducing
U.S. oil dependence, insulating consumers and businesses from oil price
volatility.
› Electricity is generated from a diverse portfolio of domestic fuels.
› The power sector has substantial spare capacity.
› Electricity prices are stable.
› The network of infrastructure already exists.
U.S. ELECTRICITY GENERATION BY FUEL, 2010
U.S. ELECTRICITY DEMAND BY SECTOR, 2010
49% COAL
38% RESIDENTIAL
22% NUCLEAR
37% COMMERCIAL/OTHER
17% NATURAL GAS
24% INDUSTRIAL
11% RENEWABLES
1% TRANSPORTATION
1% PETROLEUM
Source: EIA, AEO 2010
4
6. Electricity Prices are Stable Compared to Oil
The volatility of oil and other liquid fuels threatens U.S. and household
economic security. This volatility is driven by events beyond our control.
FUEL VOLATILITY INDEX (HISTORICAL)
5.0
Crude Oil - WTI
Diesel
4.0
Gasoline
Ethanol (Nebraska Rack)
Electricity
3.0
Index: Jan 2000 = 1
2.0
› Oil price volatility is
driven by events in the
global oil market.
› In 2012, the average U.S.
household spent a record
$2,912 on gasoline.
› Even with greater oil
production, the U.S.
cannot avoid price
volatility.
› In
comparison, electricity
prices remain relatively
flat and predictable.
1.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
5
Source: DOE, EIA
7. Electrification Overview: Power Sector
A 2007 DOE study found that existing offpeak electrical generating capacity
could power 158 million vehicles for up to 33 miles of driving per day.
›
PJM Interconnect: The 61 gWh of excess
available capacity in a typical summer week
could charge 62 million Nissan Leafs each night.
PJM CAPACITY AND LOAD (7-1, 7-2, 2009)
140
Wholesale Real Time Price
Installed Capacity
Available Capacity
Load
140
100
Gigawatts
80
60
60
40
40
20
0
Source: PJM
6:00
AM
12:00
PM
6:00
PM
12:00
AM
6:00
AM
12:00
PM
6:00
PM
$ Per Megawatt Hour
80
0
Crude Oil - WTI
Diesel
Gasoline
Ethanol (Nebraska Rack)
Electricity
4.0
100
20
5.0
120
120
12:00
AM
Petroleum prices have exhibited significant
volatility for the past several years. In
contrast, retail electricity prices have been
stable.
CHANGE IN RETAIL ENERGY PRICES (2000-PRESENT)
180
160
›
3.0
Index: Jan 2000 = 1
2.0
1.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: DOE, EIA
8. The Electric Car: An Overview
With almost 1,000 less moving parts than a gasoline powered
vehicle, electric cars are simplistic in design and affordable to operate.
› On average, an
electric car has ¼ the
operational costs of a
gasoline powered
vehicle. .
› A battery pack
replaces the internal
combustion engine as
the primary source of
power.
› Electric cars can be
charged by plugging
into a standard outlet
or using a charging
station.
9. How Do Electric Cars Compare in Price?
Though the upfront cost of electric cars can be more than gasoline powered
cars, their lower operating costs make up the difference over time.
TOTAL COST OF OWNERSHIP (INCLUDES FEDERAL TAX CREDIT)
$10,000
[SERIES NAME] (BEV)
$15,000
Honda Civic EX (ICE)
Chevy Volt (PHEV)
Ford Focus (BEV)
$20,000
Ford Focus SE (ICE)
$25,000
includes both purchase cost
and operating costs.
› Over a five year period, electric
$35,000
$30,000
› The Total Cost of Ownership
$5,000
$0
5-Year Ownership Cost
Note: Based on 12,000 miles annually. Gasoline at $3.50 per gallon and electricity at 11
cents per kWh. Includes costs for home refueling and repair and maintenance. No
assumption is made regarding resale value, and purchase is assumed to be cash.
vehicles cost the same as or less
than an internal combustion
engine vehicle for most
consumers (with federal tax
incentives).
› On a per mile basis, an electric
car costs 3 cents to
drive, whereas a gasoline
powered vehicle costs 12 cents
to drive.
› A BEV owner who drives
14,000 miles a year will save
approximately $1,256 in fuel8
costs.
10. Are Evs Good Cars? Awards Through 2013
Chevy Volt
Nissan Leaf
Tesla Model S
2012 European Car of the Year
2011-2013 IIHS Top Safety Pick
2013 Consumer Reports best car ever
tested; earned a score of 99 out of a
possible 100 in the magazine's tests.
2011 Car and Driver Best 10 Cars
2011 European Car of the Year
2013 Motor Trend Magazine “Car of the
Year”
2011 North American Car of the Year
2011 World Car of the Year
2013 Automobile Magazine “Automobile
of the Year”
2011 Automobile Magazine “Automobile
of the Year”
Ward’s Auto 10 Best Engines of 2011
2013 World Green Car of
the Year.
2011 Motor Trend Magazine “Car of the
Year”
2011 Top Crash Safety Rating
Time Magazine Best 25 Inventions of
the Year 2012 award
2011 & 2012 Consumer Reports rated it
first in “owner satisfaction”
2010 Popular Mechanic’s Top /
Breakthrough Products
2013 Green Car Reports' Best Car To
Buy
2011 Edison Award - Gold in Personal
Transportation
Time Magazine’s 50 Best Inventions of
2009
2012 CNET Tech Car of the Year for
9
11. Electric Vehicles Models and Monthly Sales
Every major automaker has produced an electric vehicle and many plan to
produce more models as well.
› There are currently 14
Monthly PEV Sales
Chevy Spark
8,000
6,000
RAV4 EV
Ford C-MAX Energi
Ford Focus Electric
Honda Fit EV
Prius PHV
BMW Active E
Mitsubishi i
10,000
Honda Accord
Tesla Model S
12,000
Ford Fusion Energi
Smart ED
Nissan Leaf
Chevrolet Volt
4,000
2,000
0
PEV models available
from eight automotive
manufacturers.
› In the first 6 months of
2013, the Tesla Model S
captured 8.4% of the
luxury vehicle market;
the Nissan Leaf was
3.3% of the subcompact
market.
› The electric vehicle
market is seeing 200%
year over year growth.
Source: hybridcars.com
10
12. Electric Vehicle Sales
Electric vehicles have seen healthy sales since their introduction to the
market. Electric vehicle sales are exceeding the initial sales of hybrids.
› Compared to hybrids’
US PEV vs. HEV SALES BY YEAR ON MARKET
first years on the U.S.
market - twice as many
plug-in electric vehicles
have been sold.
100,000
› PEVs have sold at a rate
Units Sold
80,000
that is nearly three times
the rate for hybrids in
their first 3 years on the
market.
60,000
40,000
› PwC Autofacts predicts
20,000
0
Year 1
PEV (2011-2013)
Year 2
HEV (2000-2002)
Year 3
PEV
HEV
that, by 2020, PEVs will
be 2.8 percent of U.S.
auto sales - nearing the
percentage of the current
hybrid market.
Source: hybridcars.com
11
13. The Deployment Community Concept:
To facilitate nationwide commercialization of plug-in electric
vehicle (PEV) technology, the engagement and cooperation of a broad
group of stakeholders is required. These stakeholders include state
and city governments, infrastructure providers, utilities, automakers
and other firms, service providers, and regulators. If the necessary
ecosystem is not created, commercialization of this technology will
proceed far more slowly.
The Electrification Coalition will work with the public and private
sector leaders of Fort Collins and Loveland to help identify and
implement specific deployment opportunities.
14. Drive Electric Northern
Colorado:
The Electrification Coalition (EC), The
City of Fort Collins, the City of
Loveland, and Colorado State University
have partnered together to create Drive
Electric Northern Colorado (DENC) a
first-of-its-kind, community-wide
initiative
The effort will serve as a “living
laboratory,” and will create a scalable and
replicable model for implementing
deployment communities in other areas
of the country.
15. General Core Strategy Concepts:
EV Readiness
• Charging infrastructure, codes, regulations, support
services, time of use.
EV Education
• Existing networks, events, institutional
opportunities, speakers panel, cost/ROI
EV Experience
Fleet
Consumer Purchase
• Car library, car share, rental cars, ride along, corporate
educational events, campus programs.
• State, city, medium duty, light duty, big and small.
• OEM priority, best pricing, dealer
coordination, incentives, dealer training.
16. Loveland and Fort Collins:
Why Participate in DENC?
• Green fleet transition: cost savings, environmental benefits
• Economic development
• Create interest and national recognition
• Fort Collins and Loveland partnership
• Meeting other policy goals
• Increased energy and renewables sales
• “Get ahead of the curve”
– EV grid impacts
– Infrastructure planning
– Best practices
17. Fleet Transition Case Study:
Loveland, Colorado
Purchase
•The City of Loveland has purchased 5
Nissan LEAFs, which use 3 charging
stations at its utilities office.
Financing
•The city used a municipal leasing
purchase plan to acquire the
vehicles, with a full payout (amortization
to $1) over two years.
Integration
•The city estimates that, if driven over
6,000 miles per year, the total costs of
owning and operating the LEAFs will
result in a 41-percent reduction in cost.
Experience
•Vehicle reliability, performance, and
range have exceeded initial expectations.
Employees have warmed to technology.
18. Key First Year Results for
Fleet Transition
• 1st year’s utilization of one EV was
approximately 4,000 miles (other one 2,000
mi)
• 1st year’s mileage reimbursement after the EV’s
were put into service for whole City dropped by
$8,106
• 1st year’s vehicle O&M cost was reduced
$160,000 (10-yr projected savings @2.7M)
• Cost f each EV was $355 = $.10/mi. compared
to $2.04 for ICE.
20. The Electrification Coalition
Revolutionizing Transportation and Achieving Energy Security
›
Online
www.electrificationcoalition.org
www.driveelectricnoco.org
›
Download the Roadmaps
www.electrificationcoalition.org/policy
›
Contacts:
Colorado
Ben Prochazka 303-717-3657
1111 19th Street, NW Suite 406
Washington, DC 20036
202.461.2360
