The solution for electric vehicles in commercial fleets

Transcription

1 As of November 2012 The solution for electric vehicles in commercial fleets Bosch Software Innovations In cooperation with Americas: Bosch Software Innovations Corp. 161 N. Clark Street Suite 3550 Chicago, Illinois 60601/USA Tel Asia: Bosch Software Innovations c/o Robert Bosch (SEA) Pte Ltd 11 Bishan Street 21 Singapore Tel Europe: Bosch Software Innovations GmbH Ziegelei Immenstaad GERMANY Tel info-de@bosch-si.com

2 The solution for electric vehicles in commercial fleets Introduction We are at the beginning of major technological changes. In a few years time, billions of systems and devices will exchange data and enable completely new services. In the development of these new smart services, it is essential to combine expertise in transferring data and networking with systems and software knowhow and with domain knowledge and creativity. emobility (electric vehicle charging and monitoring) is one of the rapidly emerging smart technologies. Managing the machine-to-machine (M2M) communications for the emobility infrastructure is a critical success factor in providing clean, sustainable transportation on a national and even global basis. It enables efficient electric vehicle charging across communities, regions, and countries, and ensures that utilities can support vehicle charging while maintaining balance in the local energy grids. Bosch Software Innovations and Vodafone Global Enterprise are committed to providing easy-to-use electric vehicle charging and monitoring capabilities required by electric vehicle owners and fleets. In this white paper we present how our combined expertise enables new emobility business models and how electric vehicles are becoming a commercially attractive option for established fleet operators. This area of joint innovation utilised the strengths and global leadership of both companies. A full review of this emerging technology, and the emobility initiative by Bosch and Vodafone, are covered in this white paper. We encourage you to review the white paper and we would welcome the opportunity to discuss emobility with you. Dr. Heinz Derenbach CEO Bosch Software Innovations Jan Geldmacher CEO Vodafone Global Enterprise Bosch Software Innovations GmbH 2/9

3 Vision and change The objective of this paper is to demistify the elements driving emobility, demonstrate that the infrastructure, technology and services are ready to enable businesses to adopt this as a viable strategy and to highlight the business benefits that can be gained today. Some basic premises for this are: 1. Existing reliance upon fossil fuels as the mainstay of vehicular transport will become progressively expensive, and will be less available in the future. 2. emobility exists now with sufficient evidence that it works very effectively in many applications, and 3. Bosch Software Innovations GmbH and its partners have a solution that will place operators of fleet vehicles in an advantageous position with substantial benefits now, without having to wait for largescale infrastructural investment from government entities. Why this is important There is an increasing level of risk in the availability of petroleum-based fuels. Geopolitical issues can threaten or limit availability from some of the world s largest oil producers and exporters. Costs can vary greatly and increase dramatically in a short period of time and, just as troubling, those increasing costs are unpredictable and inconsistent. Earlier in 2012 a barrel of Brent Crude oil was trading at an all-time high of $ , pushing the price of petrol and diesel fuel at the pumps to exceptionally high levels with some very serious consequences for businesses and individuals alike. Motorists, however, can have short memories and become immune to what they believe to be fluctuating costs driven simply by geopolitics and the ebb and flow of OPEC supply. Equally, and selectively, they point to a track record of inventiveness by the oil and gas industry in its ability to constantly discover and extract energy from new sources. The true picture is, however, quite different with spiralling costs of production from mostly known, mature sources that have hitherto been deemed uneconomic. This, together with a massive increase in demand for fossil fuels from the economies of Brazil, Russia, India and China (BRIC) and requirements of price inflation by some of the major oil producers, paints a pessimistic picture for the future. Whilst sales of motor vehicles in Europe have reached a plateau, demand from the major developing BRIC economies is very different. During 2011 there were 16 million new petrol and diesel engine powered vehicles registered in China alone. In 2012, that number of new and additional vehicles in China is expected to grow by a further 23 million and, consistent with that growth, China is on a massive spending spree to acquire oil extraction interests worldwide. Why now? Availability is no longer the main issue. There is already a choice of EVs with many major vehicle manufacturers in the world either having currently for sale, or about to launch, some form of EV or plug-in hybrid onto the emobility market. All motorists are well aware of the many elements that add to the final cost of motoring and the impact they have upon budgets. These include the costs of acquiring vehicles, be that some form of financing or lease hire and, if the vehicle is purchased, there will be the depreciation of value as the vehicle ages. In addition, there are the overheads of taxation, insurance, maintenance and running costs related to usage such as repairs, road tolls, parking and, of course, the ever escalating cost of the petrol or diesel fuel put in the tank. It s very much the same for commercial fleets of vehicles, be they large or small, with companies struggling to maximise value from their investment in transport and keep costs down. They will certainly have to keep a close eye on an even greater number of elements that affect how well that fleet operates and how it contributes to the economic success of the organisation. Their managers will have lots of experience and some very clear views on what works and what does not work and will know how benefits and costs are affected by aspects such as fuel, capacity, utilisation, reliability and customer perception of the service provided, drivers and other employees job satisfaction. The challenges to adoption There can be many reasons why the adoption of new innovative technology can be slow, erratic or fail especially at an early stage. Usually this is due to the presence of uncertainties and associated anxieties about commercial robustness and risk with many remembering well some of the high profile and relatively recent examples of marketplace winners and losers especially in the audio visual market and where a development has been dependent upon some complementary component that has not materialised. Despite the commitment by vehicle manufacturers and availability of a wide range of EVs, anxieties remain over, for example, the limited range from batteries, long charging cycles, lack of infrastructure, high startup costs, an uncertainty about what users have to do to make it all work and whether their investment would be future-proofed. All these negative associations are dated and can now be addressed and resolved with the latest generation of emobility solutions and are described below. Bosch Software Innovations GmbH 3/9

4 Of these associations, however, the one that features large is that of the seeming lack of a supportive infrastructure for charging and the unworkable situation this could create. In relatively small-scale applications, solutions are fairly straightforward and have been readily provided by governments and utilities but general opinion is that the scale of investment necessary to provide a network to support wide-scale adoption of emobility is far too political and large and hence highly unlikely to be met by government or any single investor in the foreseeable future. The approach taken by Bosch Software Innovations and its partners accepts the unlikely event of any government or other single investor providing an early solution. Instead, it assumes each business user of emobility will readily provide charging points for its own needs. This relatively small investment, together with differentiated user authentification and billing and standardised connectivity, enables collaborative and reciprocal arrangements between companies operating emobility fleets in a region to create collaborative communities. This approach multiplies access to charge points by enabling the merging of smaller networks into larger ones. This approach creates a win, win solution for commercial users without having to wait for large-scale investments. With the benefit of hind-sight and looking back across previous product culture lifestyle changes, such as with the mobile phone market, there is always a consumer tipping point. This is where a new innovative technology becomes economically and practically attractive, critically more competitive, viable and advantageous to sufficient consumers than what they are currently using not just because the technology is novel, fascinating and being promoted by the scientists, engineers and designers that produced it. Proof of concept Part of the progress made in the field of emobility is the very solid and positive experience acquired from successful and practical pilots completed and currently in progress across the world. For example Ford has accumulated over 80 million miles of experience from using a fleet of Focus EV taxis in San Francisco. Since 2008, the Move About car sharing scheme in Oslo has been providing drivers with access to EVs for short journeys with Statoil, Norway s state oil company, installing 3,500 free EV charging outlets as part of a national infrastructure. The UK Automotive Council is providing funding for a charging infrastructure to support the introduction of the Nissan Leaf in the north-east of England and BMW Mini EVs were used to transport athletes to and from venues at the 2012 Olympic Games in London. Daimler SMART Fortwo EVs are being used in Amsterdam alongside Renault and Nissan EVs within an 80 km zone with 250 charging points located in car parks and supermarkets. E-mobility Berlin aims to be the world s largest joint project for environmentally friendly electric cars. Daimler AG is providing around 1,000 EVs and the utility RWE installing and operating 500 charging points in homes, workplaces, parking areas and in shopping centres. This is being supported by the German Federal Government. These pilots have been carried out in close collaboration with customers and between vehicle manufacturers, component manufacturers, utility companies and with varying degrees of central and local government support to ensure users of EVs have easy access across multiple charge point options in a manner similar to the access they currently have with existing stations offering petrol and diesel for their ICEpowered vehicles. A viable fleet alternative Benefits Fleet managers will probably have a wish list. They may even dream of alternatives but still may not have considered the prospect of operating a fleet comprising EVs possibly assuming these to be overly complex, expensive and insufficiently developed to present a viable solution for their needs. Equally they may have never been presented an assessment of the actual benefits their organisation could derive from an emobility solution in a number of significant areas both tangible and intangible. For example: Low overheads In many areas there are substantial savings as a consequence of government incentives for reduced carbon emissions from vehicles comprising grants, reduced and, in some circumstances, zero taxation. This can include purchase and import taxes, capital concessions and the avoidance of road and fuel taxes and concessions relating to parking, congestion charging and other road use especially in city centres. In the UK, the first government review of its Plug-in Car Grant carried out in January 2012 resulted in an extension of the grant to vans. Low operating costs Low energy consumption, low maintenance costs from fewer moving parts in electric drive trains compared to internal combustion (IC) engines and more efficient operations. Avoidance of punitive spiralling costs of using fossil fuels and associated disincentives to using them. Bosch Software Innovations GmbH 4/9

5 Cost stability and improved planning Electric energy prices have proved to be more stable in the past and certainly not as volatile as prices for petrol and diesel. Hence it is easier to plan with transportation costs based on stable energy prices than with those based on volatile gas prices. New working models New engagement models improve customer collaboration and loyalty. Shared access and services and new opportunities for collaborative marketing and advertising. An enhanced corporate image Early EV adoption will be perceived as cool, pioneering, progressive, and as caring for the environment and the well-being and quality of life for people in the community. ECO branding EVs are clean. They have a reduced carbon footprint as emissions are virtually non-existent, making for cleaner air in the communities where the vehicles are driven. Many EV charging station networks can also be associated with renewable energy generation sources. EVs ensure compliance with increasing legal requirements for reduced exhaust emissions. More and more cities across the world will continue to set up environmental zones requiring increasingly stringent reductions in exhaust emissions leading eventually to zero emissions. The complete EV solution from Bosch Software Innovations Bosch Bosch is an emobility pioneer with very substantial technical know-how, in-depth experience, and a proven partnership approach. Bosch is paving the way for emobility by taking an integrated approach. This is reflected in their development of innovative drive systems for hybrid and electric vehicles, as well as in their activities in the areas of renewable energy and charging infrastructure. The emobility product portfolio ranges from gearwheels for wind turbines, smart solutions for distribution and storage technology to the powertrain. Bosch is also working in partnership with third parties to create a nationwide uniform charging infrastructure that can be accessed by users securely, easily and without barriers independent of what proprietary systems are in place. Innovative IT-based solutions emobility fleet operations provide possibilities for interaction with existing business IT systems and offer opportunities for new business models. Being quiet EVs are low-noise emission vehicles supporting a higher quality of life especially in high-density living areas. They do not violate quiet zones in and around hospitals, for example, and provide an attractive solution for more efficient, higher vehicle utilisation, quiet deliveries and other road usage during the night. An enhanced staff feel good factor Pride, commitment, job satisfaction, EVs encourage a shift in spending to local and domestic sources of energy and the use of company infrastructure to charge personal EVs. EVs are also generally considered to be extremely pleasant to drive. They are quiet, smooth and relaxing as, for instance, they don t require gear changing and commonly win over drivers from conventional ICE-powered vehicles. Compliance The Hubject project Following an announcement in January 2012, the vehicle manufacturers BMW and Daimler, component manufacturers Bosch and Siemens and the two utilities EnBW and RWE have formed the joint venture Hubject GmbH to act as a nationwide pioneer of emobility with the specific purpose of expanding emobility by improving user confidence and convenience. Besides the development of the technical platform, Hubject plans the introduction of a distinctive compatibility logo to show customers that a charging point belongs to the partner network. The aim of the logo is to create a high recognition value that stands for process and billing security, as well as signifying trustworthiness and comfort for the end customer. All this is ensured by roaming and clearing services that run as a background process and are based on an interconnected software platform. So while being invoiced by just one individual contract partner, emobility customers will be able to use different operators charging infrastructures. This new enterprise aims for a deliberately open platform involving as many other potential partners as possible including organisations from outside Germany. Consolidating success A lot of development can also be witnessed in the components that make up the necessary charging infrastructure for electric vehicles, e.g. charging points Bosch Software Innovations GmbH 5/9

6 or man-machine-interfaces. Knowing how to bring all these pieces together and for them to work successfully in an environment that is complex and largely unregulated is precisely what Bosch Software Innovations and its partners have concentrated upon and tested in the many pilots in which they have participated. The EV trial in Singapore, for example, focused especially upon those areas likely to be of concern to new EV users in the early phases of adoption. It included the provision of a local infrastructure of charging points and the development of web-based software that did not only help drivers find available charge points but also enabled them to reserve charging points in advance. This was deemed to be especially important in high-density city areas, where parking spaces and thus options for charging spots are limited. An integreated solution for EVs in commercial fleets Bosch Software Innovations has learned from its experience in Singapore and other trials what does and what does not work and has now teamed up with different partners to bring that knowledge and experience to the market as an integrated and complete solution, tailored to the needs of commercial fleet vehicle operators, especially if those operators: Are large enterprises with distributed operations. Need mobility between those distributed operations. Currently have fleets of vehicles with the potential to convert more than 10 of those vehicles to EVs by Have drivers and other staff that can be trained to operate the charging infrastructure on their own. Have large parking spaces for vehicles with room for charging stations. Are small to medium enterprises that are part of, or can form, a business community with some interdependence and the potential to share services a supply chain for example. In particular, Bosch Software Innovations integrated and complete solution includes the benefits of: Charging infrastructure Bosch Software Innovations and its partners are working together to provide an effective network of fast and normal charge points that are standardised for connectivity via a common communications system. Typically this comprises working with operators and advising on locations; the installation of dedicated and suitable operator charge points on company parking lots; whether these should be public access or constrained; providing support to ensure compliance with regulatory standards, procedures and the authorisation of processes for connection to the electrical supply grid; securing communications; monitoring and maintenance; and enabling participants to deliver third party access conditions. Collaborative communities With individual user authentification and billing and standardised connectivity, access to charge points multiplies and becomes seamless where collaborative and reciprocal arrangements exist between companies operating emobility fleets in a region. This kind of intercompany collaboration for opportunity charging on route provides for significant flexibility and range when required. For most practical purposes, and especially where local networks have merged, range becomes unlimited by opportunity charging. Typically, drivers would plan their routes to include charging at partner sites where appropriate. For some companies, the level of collaboration could readily extend to the interchangeability of vehicles and levels of sharing to an extent that parts of the fleet become virtual. Another benefit of these inter-company services is the possibility to bill other users for these charging operations. This leads to better utilisation rates and hence to a better profitability of the investments in charging infrastructure. Flexibility and choice Through existing partnership arrangements, operators will be able to choose from a wide range of supportive fleet services. These include assistance with the choice of EVs across a range of different vehicles to match patterns of user duty cycle needs and vehicle whole life cycle value for money analyses and levels of service, leasing options and flexibility much the same as they have at present with their conventional ICEengined vehicles. Typically this can also include services such as accident damage, servicing, maintenance and repair; roadside assistance; vehicle tax and fuel cards in the case of hybrids and ER-EVs. Battery leasing can also be included as an option to reduce start-up costs. Connectivity and communications Of particular significance to fleet operators are benefits from some very progressive, sophisticated but customer-friendly connectivity and communications software services from Bosch Software Innovations. This includes pre-configured SIM cards in charging stations enabling fast set-up of reliable connectivity, integration of charging stations and swift cost-effective roll-out across fleets. That same software provides a highly dynamic, emobility business environment with dynamic driver information, management information and interconnectivity with backoffice functions through a number of discrete and tailored portals. Bosch Software Innovations GmbH 6/9

7 Drivers will be able to exploit opportunity charging where extended range and inter-company arrangements have been agreed. Fleet managers will receive quality management information to enhance their own systems on, for example, fleet assignments, vehicle usage by type and availability; driver authorisation and barring, workload and availability; be able to monitor the location and progress of journeys; the provision of ECO and other data for modelling, monitoring and reporting purposes. With virtual or inter-company arrangements, new opportunities for economies from sharing EVs and services will arise. Those responsible for providing and maintaining charging and communications infrastructure services will have real-time information enabling them to operate a reliable and efficient service. In particular their operation of the system would include the remote maintenance of charge spots, alarm management, software deployment, configuration management, key management, encrypted communications and offline operation of white lists. For monitoring and reporting they will be able to receive a status display of charge spots, monitor the network and manage the server system and provision of system statistics. Customer and access rights management would also be included. The services for backoffices, both for service providers and users, will become increasingly valued and important over time in providing the connectivity necessary to identify and authenticate drivers, attribute costs, administer billing especially where virtual fleets and shared services are involved together with links to, for example, payroll. A partnership approach Bosch Software Innovations and their partners are only too aware of the concerns potential customers might have about investing in E-mobility and are therefore extending to customers the partnership approach they have themselves been using successfully. By cooperating with vehicle leasing companies, charging station vendors, installations service providers, utilities offering green energy and their very own internet services, Bosch Software Innovations offers complete solutions to integrate electric vehicles into commercial fleets. With Bosch Software Innovations acting as system integrator customers will: Make an investment that will have sustainable benefits, not just be a one-off. Enjoy a low hurdle to entry and ease of use. Benefit from appropriate technological and system updates, with data integration and Be able to draw upon a wide catalogue of modular and flexible options that are scalable to produce bespoke solutions. Be able to participate in extended EV business networks as they develop. Benefit from continued cooperation between Bosch Software Innovations and their partners in the supply of products and services that are tested to high technical standards and are compatible, including upgrades. In practice this means a high level of reassurance for customers on the future proofing of their investment. Bosch Software Innovations and Vodafone partnering to deliver enhanced emobility Vodafone An important aspect of future proofing will be a capacity to keep abreast of developments in the wider wireless communications environment as they occur. At the heart of the Bosch Software Innovations emobility solution is Vodafone s M2M capability and expertise which provides a managed global M2M platform with an available, reliable and secure network to manage the connectivity to charging stations and EV charging. Potential solutions for the future Vodafone has over 20 years experience in the global mobile environment and is able to complement Bosch Software Innovations emobility solutions with practical evolutions to create additional value for users. First insight into possibilities enables it to create a roadmap to align to an organisation s business growth strategy for emobility. Vodafone expects the market to grow and develop substantially over the next 15 years and is currently investing heavily in delivering emobility through: Accurate, real-time billing information available to the user to manage their costs, to the charging station network provider and to the electric utility for settlement. Location-based services for vehicles integrated with charging station location for drivers to easily find and use charging stations as needed; monitoring; mapping, off-line route planning with map downloading; turn by turn navigation. Enhanced security from being able to monitor the location of vehicles. The provision of real-time traffic data on densities, levels of usage and breakdowns. This information can be communicated with those responsible for roads and traffic management enabling them to take Bosch Software Innovations GmbH 7/9

8 early remedial and corrective action where necessary and provide updates to route planning for users. The integration of mobile phones to in-vehicle displays and operating systems to provide live updates to navigation data and software systems, remote information and control and the facility of hand-held near field communications (NFC) technology via smart phone apps for fast user authorisation and billing. The integration of this technology and hand-held devices with access authorisation to other non emobility services thereby reducing the number of devices required on a day-to-day basis. Global reach. With its global communications network, Vodafone can act as the single provider for cross-border or even pancontinental arrangements. Scalability the capacity to support millions of connections. A lasting investment The main conclusions to draw about the market for emobility are: Existing reliance upon fossil fuels as the mainstay of vehicular transport will become progressively expensive, difficult to manage and socially unpopular. emobility exists now with sufficient evidence that it works very effectively in many applications, and Bosch Software Innovations GmbH and their partners have a solution that will place operators of fleet vehicles in an advantageous position with substantial benefits now, without having to wait for large-scale infrastructural investment. Bosch Software Innovations understands the typical concerns of leaders and managers in companies and, has specifically addressed the classic chicken/egg dilemma often facing the introduction of new technologies especially, in this application, with regard to the provision of a supportive infrastructure of charging points. From its experience of successful EV pilots, it knows what works and what does not work, the interdependence of the different parts, how they need to fit together to operate successfully and how daunting it would be for a user to have to put together a solution itself. Through partnership working it is offering complete, integrated B2B solutions that have been proven in the field and are available now, thereby enabling progressive and innovative companies to move forward and gain an early competitive advantage. The specific advantages of the solutions for appropriate fleet applications include: Reduced operating costs from low energy consumption, lower maintenance costs and more efficient operations. Low overheads with substantial savings from government grants, tax incentives and concessions relating to road use, especially in city centres. Expected stability of energy costs compared to petrol and diesel costs with resulting improvements to planning. A partnership approach providing a high level of reassurance for customers on the future proofing of their investment. New working models for improved customer collaboration and loyalty. New opportunities for collaborative marketing and advertising. ECO branding and an enhanced corporate image of being cool, pioneering, progressive and caring of the environment and the well-being of peoples quality of life. Innovative IT-based solutions providing possibilities for interaction with existing business IT systems and the opening-up of opportunities for new business models. An enhanced staff feel good factor, pride, commitment, job satisfaction and benefits. Compliance with increasing legal requirements for reduced exhaust emissions. Appendix Phase 1 EVOLUTION now and the next 3 10 years 1. Collaborative and reciprocal arrangements deliver extended range from flexible access to charging points and vehicle and battery inter-changeability via inter-company and virtual fleets, leasing and rental arrangements. 2. emobility networks merge to create larger networks. Regions become increasingly populated by commercial fleet, public service and private use EVs. 3. Standardisation becomes established as a consequence of the enlarged networks. Customers gain access to fast and normal charging points quickly, anywhere, anytime, without hassle, irrespective of proprietary EV OEM car technology employed in their vehicle. This facilitates and acts as a multiplier in increased emobility adoption. 4. Mobile smart phone and M2M communications utilising personal navigation device apps and NFC technology continues to develop unabated and with it the emergence on the market of further highvalue, mission-critical traveller apps providing access to data, maps and even infotainment systems all flexible, portable and linked to in-vehicle systems with their larger screen displays and controls for use whilst driving. This technology and spin-offs are already overtaking dedicated portable GPS devices on price and adaptability. Bosch Software Innovations GmbH 8/9

9 5. The introduction of a clear and distinctive emobility compatibility logo, already being planned by the Hubject GmbH JV, which will show customers that the selected charge point is part of a quality and secure partner network, much like with cash-point interbank ATMs. So while being invoiced by just one individual contract partner, emobility customers will be able to use different energy utility operators charging infrastructures. 6. Government tax breaks and other incentives continue alongside increasing costs of fossil fuels. 7. Bosch and its partners are recognised as brand leaders in the EV field. 8. New batteries become readily available that are capable of very fast charging and with a range twice that of current products. 9. Next generation batteries with a substantial extension of range cascade down for use in volume EVs. Phase 2 MATURITY within years 10. EV public service buses, coaches and trams have a significant market share in city centre transport alongside electric metro systems and links to suburbs and other transport hubs such as airports. 11. Governments begin to introduce parallel systems to generate tax income as conventional fuel duties wane. This made easy by integrated and connectable M2M smart metering and mobile communications. 12. Improvements in urban safety and security due to integrated smart communications. 13. Improvements in vehicle and traffic safety arising from the capacity to interrogate onboard smart systems. 14. Next generation developments using smart mobile phone apps, onboard car navigation systems and mobile communication M2M networks accelerate the conversion of motorways and other major trunk roads into superintelligent highways with individual driver control being limited to entry, exit and off-highway local roads and traffic. Recent pilots have been undertaken successfully by BMW in Germany, the Safe Road Trains for the Environment (SARTRE) project led by Ricardo on public roads in Barcelona and by Google in California. The pilot in California necessitated changes in state legislation to permit driverless vehicles. Bosch Software Innovations GmbH 9/9