Expansion of electric vehicle infrastructure is imperative to the success of EV adoption. While demand remains unknown, many experts have forecasted over a million EVs will enter the US market in the next decade (Levin, 2010). If hybrid adoption rates are an indicator of EV adoption, then the City of Berkeley (CoB) can expect to have one of the highest EV adoption rates in the country. While CoB is interested in investing in EV infrastructure, this does create financial risk. In order to maximize citizen benefit while minimizing the city’s financial risk, Team dEVA recommends the following three high level strategies (see presentation)

1. Developing Electric
Value Added
December 17, 2010
Justin Bean Obrie Hostetter
Katie Dunn Tim McLaughlin
Rudi Halbright

2. Developing Electric Value Added

3. Developing Electric Value Added

4. Developing Electric Value Added

5. Developing Electric Value Added

6. Outline
Developing Electric Value Added

7. Berkeley’s Climate Action Plan
• 80% Reduction by 2050 and 33% Reduction by 2020
• Potential to Save to 140,000 Metric Tons of CO2
Developing Electric Value Added

8. Who is Berkel
ey?
• Population 107,000
• 67% have bachelors degree+
• Berkeley FIRST
• PACE
Developing Electric Value Added

9. Technology O verview
EV Vs PHEV
Charging
Level 1 120 Volts 8 to 20 hours
Level 2 220 to 240 Volts 4 to 6 hours
Faster Charger (DC) 480 Volts 10 to 30 Minutes
Developing Electric Value Added

10. M a r k e t O v e r v ie w
• 841,000 EV & PHEV’s by 2015
• Favorable Federal and State Policies
• 14.4B – ARRA
• Consumer Tax Credits
 $7,500 fed tax credit
 $5,000 CA tax credit
 $2,000 fed tax credit for charging
Developing Electric Value Added

11. M arket O verview- Hybrid s are a pred ictor of EV sales
Developing Electric Value Added

12. M arket O verview- EV D em and in Berkeley
• 2.8% of vehicle registrations are Hybrids
• Toyota - 500 PHEV’s on waiting list
• Nissan – Sold out!
Developing Electric Value Added

13. Focus of other cities
Portland New York San Francisco
Key Focus Key Focus Key Focus
All car commuters Early adopters only Long-term integrated
transportation plan
Key Strategies Key Strategies
Easy access to charging Commercial parking Key Strategies
stations and permitting garages Public parking in dense
Developing Electric Value Added
Leverage municipal EV fleet Not offering incentives, only areas

14. Strategy C anvas
Developing Electric Value Added

15. SWO T Highlights
Strengths Weaknesses
•Progressive Berkeley •Barriers to residential
residents charging
•CAP goals •Late for grants
•Measure R •Funding
•Small city: minimal EV
infrastructure big impact
Opportunities Threats
•2nd mover to learn from •Other alternative fuel
other cities vehicles might prevail
•Can be leading city for •CoB disconnected from
range of options Bay Area corridor
•Funding available •Charging technology not
•Bay area network completely standardized
Developing Electric Value Added

16. Future Scenarios
Developing Electric Value Added

17. Within 3 months
Recom m end ations
Facilitate EV usage for early adopters
• Charging strategies for EV-driver profiles
• Fast-track permitting
• Carshare and commercial parking lot charging
• Secure grant monies and incentives ASAP
Developing Electric Value Added

18. Within 3 to 6 months
Recom m end ations
• Monitor Station usage for
future siting
• Install opportunity
charging stations in
shopping districts and
high-traffic areas
• Develop transportation
integration strategies
• Encourage use of the
entire transportation
system
Developing Electric Value Added

19. Within 18 months and on-going
Recom m end ations
Evaluate & Educate
• Move 2nd: reduce risks and
costly mistakes Move 2nd
• Monitor other cities’
solutions
• Disseminate information
online and through
community
• Showcase innovative pilot
projects, including
educational components
for the community
Developing Electric Value Added

20. Resid ential C urbsid e C harging
Not recommended at this time
Challenges:
•Uncertain commitment
to charging technology
•Permitting issues
•No clear solutions in other
cities
•Large, complicated
investment
•Lack of data
Developing Electric Value Added

21. Resid ential C urbsid e C harging
Short-term recommendations
•Push EV parking & charging policies
•Provide information about other charging
options
•Encourage communities to install
charging stations on private property
•Encourage permittable owner-initiated
solutions
•Facilitate relationships between private
owners of charging stations and EV
owners
Developing Electric Value Added

22. Financial Analysis: C harging Station Network
Our Task
Build low-risk model that is
financially and environmentally
sustainable.
Four Model
A. Grid Powered
B. ClimateSmart
C. PV Purchase
D. PV Lease
Constraints
• Lack of data
• Limited budget
Developing Electric Value Added

23. Finding WACC
WACC = [ D/V * (1-T) * Rd ] + [ E/V * Re ]
Developing Electric Value Added

24. Finding WACC
Municipal Bonds
•10 yr
•AA
•Callable
•Revenue
Developing Electric Value Added

25. The Tool
3 Steps:
2. Input assumptions
3. Compare scenarios
 NPV
 IRR
 Payback
 Capital Outlay
4. Make conclusion
Developing Electric Value Added

26. The Tool
X 4 Steps:
3
2. Input assumptions
3. Compare scenarios
 NPV
 IRR
 Payback
 Capital Outlay
4. Make conclusion
5. Monitor, reassess
assumptions
Developing Electric Value Added

27. Our Calculations
C a p it a l
NPV P a yb a c k
IR R In v e s t m e
(tho us a nd P e r io d
s ) nt ( ye a r s )
( tho u s a nd s )
A: Grid Energy $490 103% $49 1.2
B: ClimateSmart $486 102% $49 1.1
C: PV Purchase $190 5% $1,120 10.0
D: PV Lease $593 79% $80 1.4
Developing Electric Value Added

28. A Visual Comparison
Developing Electric Value Added

29. A Visual Comparison: Flipped
Developing Electric Value Added

30. Sensitivity Analysis: IRR
Variables
• daily demand
• charging price
Developing Electric Value Added

31. Financial Analysis Summary
Our Task
Build low risk model that is
financially and
environmentally sustainable.
Recommended Scenario
A. Baseline
B. ClimateSmart
C. PV Purchase
D. PV Lease*
*Invest in charging stations,
monitor real demand, then
move forward.
Developing Electric Value Added

32. In Sum
Start now
•Grant money for stations
•Appease early adopters
Emergent Strategy
•Monitor other cities
•Monitor local demand
Systems Approach
EVs are not THE answer
but a part of it
Developing Electric Value Added