Smart Utilities Scandinavia March 2012, Estonian Electromobility Program

Be the firston the road to the future

ELMO - Estonian Electromobility program 2011-2013

By Jarmo TuiskDirector of innovation divisionMinistry of Economic Affairs and Communications for Estonia

BACKGROUNDAbout Estonia and its way to smart society

ESTONIA

Estonia

1,3M inhabitants, largest city. Tallinn 0,4M inhabitantsGDP per capita $19,375 (PPP), GDP total $25,7BIndependent since 1918, occupied by Soviet Union 1941-1991

Member of EU2004

Member of NATO2004

Member of OECD2010

Member of EURO2011

Disruptive history

Disruptive technologies

Estonian way to smart society

1991 1997 1998-2000 2001 2003 2005 2007 2009 2011

Independence

from the USSR

Electronic

passports:

„ID cards“

1st elections

in the Internet

Electromobility

program ELMO

European

IT agency

NATO Cyber

Defence

Centre

Program

“Tiger leap”:

heavy investment

to ICT infrastructure

PCs to every school

Cyber Defence

League

Economic situationGDP per capita, PPP (current international $)

ca 4x increase in 20 years

Low government dept, as % of GDP

More wealth More cars

Number of cars doubled Cost of transportation doubled

Data: Estonian statistics

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070%

2%

4%

6%

8%

10%

12%

14%Share of transportation costs in househould monthly expenditures, %

The issues related to the personal cars

National health

Energy security

Climate issues

Economic issues

The role of the electric car

No tail-pipe emissions, silent

Runs on local renewable

energy

Running costs 1/5 of ICE vehicle

National health

Energy security

Climate issues

Econo-mic issues

Estonian Green Transportation Plan

Goal

10% of energy consumption in transportation from renewable sources

Measures• Blending biofuels

5-7% of liquid fuels from renewables by 2015

• Green Public transportation 50% of public transportation to 100% biofuels/biogas by 2020

• Electromobility 1% of transport energy consumption from renewable electricity by 2020

• Eco-driving awareness Reduction of fuel consumption by 10%

ELMOESTONIAN ELECTROMOBILITY PROGRAMME

Short overview

Our partner in EV program: Mitsubishi Corporation

Global emission trade to support the eco-innovation

Estonia sells 10m AAUs of CO2 emission quota to Mitsubishi Corp to finance electromobility program

Demoproject

Infra-structureIncentives

Fitting the pieces together

for the future ofelectric

cars

1. DEMO PROJECT

507 xFOR SOCIAL WORKERS AROUND ESTONIA

Mitsubishi iMievs in action

Photos: Bianca Mikovitš, Maaleht

2. INCENTIVES

-50%

Max 18 000 EUR PER CAR, NO BRAND RESTRICTIONS, FOR PRIVATE AND COMMERCIAL BUYERS, UNTIL THE END OF 2012+ 1000EUR FOR MODE3 HOME CHARGER

Green certificates

• With each grant comes the obligation to use only renewable energy in your electric car for 5 years

• This will be ensured by using green certificates (certificates of origin)

• EV owner has to report the milage annually to KredEx and submits the equal amount of green certificates

3. FAST CHARGING INFRASTRUCTURE

The single biggest problem of EVs

The rangeWithout countrywide open infrastructure people can drive max 50km from their home.

Our strategy

Prioritydeal with range anxiety of the first users

Solution• Country wide network of ultra fast quick chargers (ca

200 DC chargers)• 24/7 world class and innovative service• Standards: follow the first cars (CHAdeMO)

Why ultra fast quick charging?

Estonian quick charger network

Nobody wants to wait hours to charge a car

Less locations less costs, less problems

More cars per charger per day than any other solution

Innovations in execution

1.Government procures full infrastructure solution at once- Assets: chargers and operating system - Services for 5 years: maintenance, business,

customer support

2. Government negotiates locations and high power connections at once and centrally

– Easier to plan and execute

Private operator, selected by KredEx for 5 years

Owned by the government agency KredEx

Operating modelA

sset

sS

ervi

ces

Quick chargers

Network management

system

Locations for chargers

High power grid

connections

Intellectual property

Charger control and

maintenance

Business services

Customer support

Security services

Asset management

KredEx selects private operator to run the charging network for 5 years.Operator will receive a service fee for the operation. No profit from energy sales during initial 5 years.

The winning solution

Consortium of world class infrastructure solutions, services and innovative mobile business software platform developed in

Estonia.

More about Estonia: www.estonia.eu

CONCLUSION

Estonia as a role model

• We are supporting the early adopters, creating a market demand

• We provide large scale demonstration of EVs• Estonia made a bold choice to build up ultra

fast charging network• Single operator single network management

system – new business model test, possible exit through privatization in 7-10 years

Challenges so far

• Extreme timescale: everything must be completed by the end of 2012

• We have to be robust and decisive• How to get big car manufaturers to bring EVs to

market?• How to gain a public support in these conditions?• Mixed public opinion about EVs: lot of discussion

about EVs in cold climate, range/price seen as a main problem

Myths about...Electric cars• Too small to be the real cars• You can’t use them because

there is no infrastructure• You can’t drive them,

because they don’t drive more than 120km per charge

• They are too expensive!

Smart phones• They are too big to be

convenient• You can’t use them, because

they don’t have buttons• They are unreliable,

because the battery last only for 24h hours

• They are too expensive!

And you know the story...

And you know what happened

And we have not finished yet...

Future developmentscountrywide open battery platform for 2nd life of EV batteries and smart gridEV infrastructure and business model competence center in Tallinn University of TechnologyEV car sharing and mini-rentalproject

If you are

interested –

Welcome to

Estonia!

THANK YOU!JARMO.TUISK@MKM.EE

Questions and answers

www.estonia.eu

www.kredex.eewww.mitsubishicorp.com

www.abb.eenowinnovations.com

www.g4s.ee

Credits: