EV oriented PPP in KOREA
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1 Coordination and Support Action FP7-GC-SST [Implementing Public-Private Partnership in the European Green Cars Initiative] CAPIRE INTERNAL REPORT T2.2/GH/O1/2012 EV oriented PPP in KOREA Project Acronym: CAPIRE Project full title: Coordination Action on PPP Implementation for Road Transport Electrification Grant Agreement no.: Work Package & Task: WP2, Task 2.2 Main Author: Gonzalo Hennquet (Renault) Dissemination Level: CAPIRE Internal
2 Document revision history Version Date Author Summary of main changes 01 03/01/2012 Hennequet First Issue 2/14
3 Table of Contents: Document revision history Introduction KOREA Government Technology Organization KOREA Green Transportation Roadmap CONNECTIVITY ENHANCED SAFETY /14
4 1. Introduction This document aims at introducing Korean collaborative initiatives in the following perimeters: EV and green technologies. Technologies applied to automotive safety, especially those with enhancements allowed by connectivity emerging technologies. This document has been prepared with existing information available by Mr. Clement NOUVEL (Renault DELTA Korea Team Leader) and Renault s teams in RSTC (Renault-Samsung Technical Center). Due to time constraints and current maturity level RSTC, it contains some informal and unverified pieces of information. RENAULT shall not be considered as responsible in case some information are later considered as false ones. Please note also that this material is not all-comprehensive. Technology and country-level network information will be completed in the upcoming months. 2. KOREA Government Technology Organization Korea innovation system is based on a top down organization striving to structure industry and speed up technologies development. It is mainly based on following actors: Ministries In our case MKE (Ministry of Knowledge and Economics), MOE (Ministry of Environment), MEST (Ministry of Education, Science and Technology) and MOCT (Ministry Of Construction and Transportation) are in the scope of the request. Standardization institutions KATS (Korean Agency for Technology and Standards) is one of the main players in this field. Institutes and universities Most relevant are KERI, ETRI, SNU They are in charge of technology development at science & education level. Private industry We will consider car manufacturers, suppliers (tier-1, tier-2), construction industries (esp. for roads). Government s role in Korea consists in organizing innovation and technology development by stimulating these actors with public funding. Amounts of funding can be high (especially in economic crisis times) and commitment level of stakeholders are important. 2.1 Current Technology Plan Current technology plan in Korea is based on MKE (Ministry Knowledge and Economics) material translated and described below. It is called business of advanced technology development for the future industry ( 미래산업선도기술개발사업 ) In this material, some topics should be considered for CAPIRE project: IT Convergence. Communication media / Next generation communication network. RFID / USN. Cloud computing. Energy efficiency. 4/14
5 Smart Grid. Electrical vehicle. Mobile semiconductor Among the objectives of this plan, industry convergence key condition, according to government strategy, for new technologies and industries development and speed. Based on these development fields, Korean government regularly calls for project development and industry / education involvement. These projects and plans continuously evolve. Additionally, updates of this technology plan will probably become scarce due to upcoming 2012 presidential elections. 5/14
6 2.2. Relevant Programs Within the above-mentioned scope, two major programs in Korean government have to be considered: EV / Green car program Korea is highly committed to develop green technologies for car transportation (EVs and advanced thermal powertrains) energy storage (batteries) and electricity production. An EV green car program has been created to structure these technologies development. Additionally, development of a Smart Grid network is considered as a major country priority. Therefore a specific plan, coupled with Green car program, has been created and is hosted by Korean Smart Grid Association (KSGA). The most famous project in this program is Jeju Island test bed project, currently ongoing. Korea Green technologies new deal program (that includes Green Car) considers IT involvement in eco-friendly growth. This topic is called Green IT (additional references required). ITS Development of widespread connectivity and high bandwidth network in Korea has been, for already more than 10 years, a national priority receiving massive funding. This connectivity (landlines, mobile phones) is being used for various applications comprising automotive services and safety, field where Korea is seen as world most advanced country #33. An example to this involvement and application of connectivity for safety purposes is Korea Smart Highway plan aiming at securing highways and reducing traffic jams by using advanced widespread connectivity features. 3. KOREA Green Transportation Roadmap Korea identifies eco-innovation as a vector to increase economic growth and national competitiveness. The Korean Government strategy to support environment-friendly innovation within automotive industry is based on the following two axes: 1. Technology introduction (with high localization level) 2. Eco-innovation policies. We will focus in this report on technologies introduction. 3.1 Strategy Green car roadmap focuses on 4 strategic axes: 1. Mass production of Green car. 2. Core technologies development and localization (8 major parts or systems). 3. Early market creation & diffusion-based expansion. 4. Sustainable ecosystem environment Green car production roadmap The following roadmap shows introduction plan of upcoming vehicles in Korea, as requested (and funded) by government: 6/14
7 Production Plan of Green car EV Compact Car Small CUV Mid-Sedan Battery Replaceble BUS (Battery Replaceble) Mid-Sedan BLUE ON will be produced Y2011 Base on BLUE ON. Development Y2011. Mass Production Y2012. Development Y2011 ~ Y2013, Mass Production Y2013. Development Y2012 ~ 13, Mass Production Y2014. (If validated) Development Y2014, Mass Production Y2015. (If validated) Development Y2011. Mass Production Y2012. Mid-Sedan Launch New Gasoline HEV Y2011. Base on AVANTE LPLi HEV experience. Passenger Car BUS Mid-Sedan Large-Sedan BUS Mass Production Y2015. After localization and development of Fuel Cell Stack. Mass Production Y2019. After development of passenger car. Development Y2011. Mass Production Y2012. (EURO5) Development Y2012~13. Mass Production Y2014. (EURO5) Development Y2013~14. Mass Production Y2015. (EURO6) Parts localization Localization of EV parts is a key objective within this green car roadmap. Projects acceptance by government strongly depends on localization level. EV Core Technology Developments Target ('11 '15) Motor HVAC Battery Charger Weight Developments Miniaturization technology HVAC Performance Parts High performance & Low price Shorten the charging time Optimal Design of lightweight parts Target ('11 '15) Efficiency(%) Loss(%) Mileage(Km) Slow(hr)/Quick(min) 6 3 / Weight(%) Efficiency and localization Developments support for the core part Target ('11 '15) Powertrain Stack CRV Developments (P)HEV Powertrain efficiency technology FCEV Stack100% Localization CDV Core parts 100% Localization Target ('11 '15) Efficiency(%) Localization(%) Localization(%) Early market creation & Diffusion-based expansion Green car plan includes a strong involvement in standardization (via KATS association), especially for EVs on charging infrastructure and plugs. 7/14
8 Charging Infra Structure Building-up Steady growth in consumer demand and supply for the charging infrastructure-based expansion Charge installation support facilities EV charging : Promote public and private sector-specific support - Public Facilities: to consider the installation supports 2,000 according to the EV and chargers installation status and financial situation - Private facilities: Loan support for the supermarket, petrol stations, etc in commercial business (Hydrogen Charger) Byproduct hydrogen charging subsidized loans support facility installation (System Improvement) Improvement of stations for the installation-related driving ( 11) Distribution system construction support (EV hub) Efficient distribution system for building an electric car named the city first spread (FCEV hub) First byproduct of hydrogen production support metropolis CNG stations to take advantage of existing support for the local sequential (Renovation) City Bus converted vans and some of the cost of technical support and Expansion of support facilities (Charging at Station) Bus and taxi stops charging system development(~'14) (Mobile charge) Portable Emergency Charging System(~'14) (Battery leasing business) Support for EV-replaceable battery leasing business review('11~) Devise a plan to support the selection and lease operators, EV taxis and buses operating model development application Sustainable ecosystem environment Tax & incentives system is one of the major outputs of this plan, organized by government and applied afterwards during early stages of EV production. System Maintenance Tolls Parking Electricity Prices Metropolitan public parking fees and congestion charge exemption review (~ '15 year) Green car parking places in urban areas and the installation and operation, and parking areas to encourage the installation of an electric car charger (~ '15 year) EV-dedicated plan in preparation for the EV spreading ('10) Purchase obligations Sales Force Upward adjustment of public agent of SEOUL area lic authorities raised rates ( buying rate) 30% in 11 50% in 13 Upward adjustment of Auto Maker s forced sales ratio (Sales Rate) 6.6% in '10 7.5% in '11 Safety Standard Construction Equipment High-voltage devices, and so on, and hydrogen safety criteria of (~ '12) Construction equipment, Safety Evaluation Facility (~ '12) Evaluation Facility Construction: billion (Test Lab 3, advanced driving track 4, test equipment 37 kinds) 8/14
9 3.2 Smart Grid plan In addition to this Green Car plan, government is striving to develop a Smart Grid network in Korea to become a world leader in Smart Grid technologies. This vision is illustrated in below graphics: RSM is part of the Smart Transportation area of Smart Grid plan (SK Consortium) and provides EVs on Jeju island test bed for full size experimentation of Smart Grid ecosystem. During the last stages of this first phase (Smart Grid test bed), RSM will contribute by modeling Smart Grid energy eco-system and analyzing fleet monitoring data. 9/14
10 This will lead Korean government policies in terms of energy business. 3.3 Stakeholders The main stakeholders in Green transportation roadmap are detailed in the table below. MINISTRIES RESEARCH STANDARDIZATION CAR SUPPLIERS INSTITUTES ASSOCIATIONS MANUFACTURERS OTHERS MKE KERI KATS ILJIN RSM SK TELECOM MOE KIEST KOECO PNE Solution HYUNDAI SK NETWORKS MEST KDIS KIA KATECH DONGHEE Jeju Nat. Univ. CT&T 4. CONNECTIVITY ENHANCED SAFETY Development of connectivity has long been a massive investment for Korea, leading to current position of broadband access and mobile phone coverage world leader. As of 2011, Korea is implementing LTE in urban areas (today: Seoul and Gyeonggi) for private customers and will widely extend the coverage during 2012, illustrating as usual Korea involvement in overall connectivity. This broad wireless access is considered as a key lever for other fields including Green Technologies and Safety in automotive sectors, capable of generating considerable export-led economic and employment growth. However, Korea not currently note a key player in safety functions for automotive: technology development is way behind Japan and Europe and market interest is low. Up to now, connectivity has mainly been used for traffic control and audio / video applications. 4.1 Existing applications ITS is being used in automotive applications such as: Traffic information for public transports and speed regulation (ITS Model Cities). Traffic information for customers navigation. T-Money (electronic money smart card). Hi-Pass (highway toll system, that equip more 50% of highay roads). These applications are considering having an important impact on day-to-day life of Korean citizen. South Korea estimates that that the economic benefit of the country s Traffi Management System due to reduced transportation time, accidents, and environmental pollution has been billion won ($109 million) annually. 4.2 Communication network 10/14
11 Korea communication network has one of the highest density and bandwidth in the world6. But more than showing impressive performances for Korean citizen, it is widely used by Korean companies as a test-bed for future technologies. LTE (Long Term Evolution 4th mobile phone communication protocol) is under deployment in Korea as one of the leading countries in Asia (with India). This deployment will allow Korean companies develop applications and services based on this technology faster than other countries. 4.3 Strategy South Korea s strengths in several ITS application areas make it a world leader in intelligent transportation systems. These strengths include: 1. Real-time traffic information provision 2. Advanced public transportation information systems 3. Electronic fare payment and electronic toll collection These developments have been described in a global ITS Master Plan. Mainly, 2 ministries are in charge of this plan: MKE (Ministry of Knowledge and Economics), in charge of technologies development. MOCT (Ministry Of Construction and Transportation). This plan focuses on using Korea key position in connectivity features to improve traffic (public & private), payment and safety. Based on new technologies (LTE, WiBro, WiMAX, WAVE, etc) and cloud computing trend, Korean government strives to develop applications for better transportation. This position differs from other countries in the critical role of connectivity in these improvements. 4.4 Smart Highway plan This plan, managed by MOCT, fully illustrates Korea s position in terms of safety enhanced by connectivity. Using improved highway infrastructure, government intends to improve safety, mobility and reliability of highway traffic. The Smart Highway Research Project is a large-scale research project underway in South Korea. The project was launched in September 2008 and is expected to be completed by Excluding the cost of the trial construction project financed through a public private partnership, the total project cost is forecast at 100 million US dollars. A consortium of approximately 100 public institutes, universities, and privates companies is charged with implementing this project, which is composed of four research topics: development of core technologies of highway infrastructure; road communication based traffic management technologies; vehicleinfrastructure integration technologies; and design and construction of test bed and monitoring. There are three key project stages: planning and contracting; research and development of basic technologies; and application of research products to the test bed. The following views allow to better understand the technical content of this project. Firstly applied in only highways, it could be extended afterwards to small roads for a maximum country and cities coverage. 11/14
12 12/14
13 As one can see, this project is based on an extensive use of communication technologies more than development of in-car systems (not very popular in Korea these days). This project includes standardization and policy phases in which car makers should be involved, like Hyundai Motors today (to be confirmed). Today, highway civil engineering is leading the project. As RSM is not involved in this project we cannot have information about the stakeholder s structure. Nevertheless it is know that, among the 100 consortium Members, ETRI, KATECH, SK Planet and Hyundai are involved in the project. 13/14
14 I obtained some additional information from & Financing Overall 1. SMART HIGHWAY Project : 85.2 billion Won(KRW) 2. SMART HIGHWAY Yeo-Ju Testsite Programme: 2.95 billion Won (KRW) Public 1. SMART HIGHWAY Project: 60.6 billion Won(KRW) 2. SMART HIGHWAY Yeo-Ju Testsite Programme:1.95 billion Won(KRW) Private 1. SMART HIGHWAY Project: 21 billion Won(KRW) 2. SMART HIGHWAY Yeo-Ju Testsite Programme: 1 billion Won(KRW) 14/14
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