Electric vehicles
Electric vehicles
California is leading the electric vehicle revolution. Ambitious state regulation combined with an extensive charging infrastructure make California and the Bay Area an ideal place for switching the gasoline car to a zero-emission car. As Denmark is looking to accelerate its adoption of electric vehicles, there may be inspiration to draw from California.
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With more than 700,000 electric vehicles (EVs) in California, they are hard to miss when driving through the landscape on highway 1 or any other routes through the Golden State. Over the past decades, California has become the leader in electric vehicles adoption and innovation, and zero-emission vehicles (ZEVs) are now California’s second-largest global export market. As Denmark also has ambitions to increase the number of EVs by incentivizing drivers to switch out the old fuel cars, California can be a good place to look for inspiration on how to optimize the consumer journey.
In California, consumers are already enjoying the benefits of driving electric. In 2014 the then Governor Brown set the goal of having at least 1 million ZEV and near-ZEVs on the road in California by January 1st, 2023. Since then California has experienced a fast uptake of these green vehicles that help Californians get cleaner air. The State of California has set a goal to have 5 million ZEVs on the roads by 2030 - and just this summer, the state goal related to charging infrastructure was increased to 1 million EV charging stations by 2030.
In an effort to boost California’s climate action even further, Governor Gavin Newsom recently signed an order to ban sales of new gasoline cars by 2035. To date, the most ambitious and aggressive clean air policy in the United States. But what is it like to be an EV driver in California, the state with the highest percentage of EVs in the US at more than 5 percent?
Like every other weekday, Emma Jane wakes up to the penetrating sound of her alarm clock at 5:30 AM. Emma has a 1.5 hour drive in front of her from her townhouse in San Francisco to her workplace in Sunnyvale. Emma is one of the 700,000+ people in California, who owns an electric vehicle, a Peugeot e-208 to be exact, which she bought last year. She decided to buy a smart and environmentally friendly car a year ago and was extremely surprised by the wide range of EV’s to choose from. Luckily, a friend recommended her the app MyGreenCar which uses her driving data to choose the best model for her.
(*Emma Jane is a fictional character used to showcase the life of an EV driver in California and the tools available for EV drivers)
Consumers who want to trade in their traditional internal combustion engine (ICE) vehicle for an electric model now has a lot more cars to choose from. Automakers launched 143 new EVs in 2019 alone. And even though most of the traditional car-giants have entered the EV market, and new innovative players are popping up frequently, it is almost impossible to talk about the EV industry without mentioning the Silicon Valley giant Tesla. The EV frontrunner Tesla was founded in 2003 and launched its IPO in 2010. Only ten years later, Tesla replaced Toyota as the world’s most valuable automaker, estimated to be worth more than both Ford and GM combined.
Today in 2020, there is an electric vehicle for every consumer’s needs. The newest gamechanger is thought to be the launch of electric SUVs. EV manufacturers, among others Rivian and Tesla both based in the Bay Area, have recently presented larger vehicle models with the Cybertruck and R1T truck.
Fisker Inc is a luxury EV car brand that aims to have the world’s most sustainable car with its newest Fisker Ocean SUV model, launching in 2022. Following the notion that it is what’s inside that counts, the Ocean model’s interior is created from recycled, abandoned fishing nets and plastics from the ocean. The Ocean model is supposed to take you between 400-480 kilometers per full charge, and you get the option to add a full-length solar roof to the car.
The California-based manufacturer has a strong Danish connection; Fisker was co-founded by the Danish-American automotive designer and entrepreneur Henrik Fisker.
The growing selection of EVs inspired the Lawrence Berkeley National Lab to develop an app to make it easier for consumers to find the EV model that best fits their needs. The consumers just have to download the app, MyGreenCar, and then drive their normal routes. After a while, the app will present the driver with a couple of EV models that best fit their needs based on their unique driving data.
In 2018, Palo Alto topped the list of cities at the forefront of EV adoption, with almost every third sale of a new car being an electric vehicle – while the number was between 11 and 24 pct. for the nearby cities. Outside the San Francisco Bay Area, especially cities like Los Angeles and San Diego have also seen a great uptake in electric vehicles. In the second quarter of 2020, the total market share of plugin hybrids and battery electric vehicles was around 8 pct. in California.
Somewhere on Highway 101 between San Francisco and Sunnyvale, Emma realizes that she should probably fast charge her car. A free parking spot right in front of her house was too tempting last night, so she did not park at the designated EV parking spot on the neighboring street. Living in a greater city, finding overnight charging spots can be difficult at times, but Emma is not too worried because she knows that there are charging stations throughout her entire route to work. She quickly opens an app to find the nearest available charging station.
The lack of charging points is one of the key reasons that customers do not make the switch to an electric car. Matching the charging infrastructure and EV adoption is a classic chicken and the egg-challenge, which is also highly debated in Denmark: Consumers will only invest in an EV if there is sufficient charging infrastructure, however, the infrastructure providers do not have the incentive to build more chargers until there are enough EVs on the road to make it a viable business case.
How much and which infrastructure is needed for it to be sufficient depends on the available range of vehicles on the market - that is, how far can the average EV drive per charge. In the past year, vehicle range has improved, especially due to increased battery performance. The Bay Area-based EV manufacturer, Lucid Motors, just recently announced that they have built a new EV with a range of 775 km per charging. For comparison, the drive from Skagen to the German border is 394 kilometers. Despite the fact that the daily needs for the majority of Danes are far less - only about 50 kilometers - EVs with these much longer ranges are still very likely to be a game changer as it removes any ‘range anxiety’.
The California-based app Plugshare is one of the most popular apps for EV owners in America. The app makes it easy for EV owners to always find the nearest charging station on their route, provides navigation, and lets you pay through the app. Plugshare is community-based and not only finds the closest but also the best charging station based on more than 2,500,000 user reviews. The app offers live availability data so that you do not drive to a station in vain, and it also alerts users when new public charging stations are installed nearby.
To make sure that the needed infrastructure is available to deliver ‘range confidence’ for EV drivers, it has been a key priority for the California Energy Commission (CEC) and the California Air Resources Board (CARB) to ensure that infrastructure of charging points was built out across California. Support is found in various incentive schemes both at the state level and the local level. For instance, the West Coast Electric Highway was initiated across the states of California, Washington, and Oregon. This green electric highway has DC fast charging points for every 40 to 80 kilometers along the central highway route that runs from the Canadian to the Mexican border. The project is funded by private-public partnerships as well as vehicle registration services and fuel fees.
The Plugshare app navigates Emma off the exit at San Mateo where she quickly finds a neat charging station close to her. It’s outside a middle-sized office building, and four of the employees' cars are already plugged-in to the standard Level 2 chargers for a charge while they are working. Luckily, an additional fast charger is available so Emma is still able to fast charge her car for 5 minutes due to smart charging technology. When she is done charging, Emma’s app automatically pays for the fast-charge service.
While fast charging is convenient, it is expensive and can pose challenges to the electric grid in many areas. To meet the latter challenge, the company FreeWire recently launched its Boost Charger charging point that has an integrated battery that can act as a buffer to take the stress off the grid when needed. This solution enables that fast chargers can be installed in places that would not otherwise have the opportunity to meet the fast charging high-power demand.
The San Francisco-based company Volta Charging has created a unique business model to ensure not only more charging stations but also free-of-charge charging stations. Volta collaborates with real estate and business owners to install EV chargers in high-traffic areas and provides free power to drivers through the revenue from outdoor advertising on the chargers. By the end of July 2020, Volta had already provided American EV drivers with more than 75 million free miles through their 1,260 chargers.
Another area with an abundance of innovation is within ‘smart charging’ to optimize the way charging stations consume electricity while also benefiting the consumers. Alameda County near San Francisco added more than 100 charging station ports to their infrastructure without major upgrades to its electrical infrastructure through smart charging. They implemented a smart charging program where chargers are controlling energy use and reducing expensive spikes by optimizing the way a building’s chargers communicate. The fast charger overrides the ‘fleet Level 2’ chargers aka ‘leaving my car charging while working’ chargers. It prolongs the charging time for Level 2 chargers just a little while creating a spot for cars that need to charge immediately.
Emma drives back onto the highway after her quick detour. It’s 7:45 AM now and the traffic is getting denser. Emma swings out to the outer carpool lane to pass the worse traffic. The carpool lane is exclusive to EV drivers and people carpooling (2+ passengers) in order to decrease the number of traditional cars on the road polluting the air. Just one of the many advantages Emma gets in California for being an EV driver.
California is backing up its ambitious EV goals with incentive structures. First of all, there are several financial incentives to buy an EV. A federal tax credit of up to $7,500 is available for newly purchased qualified all-electric and plug-in hybrid cars. The State of California also provides a rebate of $1,000 to $4,500 for the purchase or lease of new qualified EVs, and some low-income households may receive an additional $2,500 rebate as well. Last but not least, there are also programs at the local level, e.g. The Bay Area Air Quality Management District's Clean Cars for All program that provides incentives of up to $9,500 for low-income Bay Area residents to replace their old cars with a hybrid or an EV.
Besides financial incentives, California has made an effort to also improve the everyday life of EV owners. In San Francisco, all public and private parking lots and garages with more than 100 parking spaces must install charging stations in at least 10 pct. of their spaces by 2023. Just one of the few ways California is securing the first-rate infrastructure for EVs – also in the bigger cities – to help California reach its goal of having 5 million zero-emission vehicles on the road by 2030.
The Silicon Valley ecosystem of green mobility is thriving with its world-class research into new technologies, entrepreneurs focused on challenges across energy and mobility, investors with venture capital to invest, and the traditional car manufactures’ innovation centers such as Ford Greenfield Labs and Volkswagen’s Innovation Center.
Please reach out to Stephanie Kristiansen, Senior Commercial Advisor ([email protected]), to discuss how insights from California and getting connected to innovation stakeholders, potentially future partners, could create value for your company or organization.
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