A country that is all-electric. From Oslo to the North Cape, e-mobility is everywhere in Norway. The Innovation Magazine by Daimler January 11th 2018

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1 daimler.com/next The Innovation Magazine by Daimler January 11th 2018 A country that is all-electric From Oslo to the North Cape, e-mobility is everywhere in Norway

2 Myth: Electro mobility only works in an urban setting. Reality: Electric pioneer Norway shows how a whole country can be electrified. Text: Walther Wuttke Illustration: Andy Potts

3 If people are willing to pay an equivalent of 2,000 euros in advance, without knowing what they are actually going to get (including a waiting period of at least 18 months), it must be a very special product. In this case, the object of desire is an electrically driven Mercedes EQC, which will be released on the market in about one and a half years. In Norway, it can already be pre-ordered. The potential and obviously very patient customers placed more than 1,000 reservations in the first half-hour after the car was made available for ordering. And the number continues to rise, according to a spokesperson from Mercedes-Benz Norway. In order to be put on the waiting list, a minimum of 20,000 Norwegian krone had to be paid as down payment (the final price is as yet unknown). The fully electric B-Class, which combines a Mercedes vehicle with an electric drive system, seems to have paved the way; in the first half of last year, this model was among the top-ten best-selling electric vehicles in the country. At least 4,000 have been added to Norway s roads to date. Where e-mobility is mainstream In Norway, unlike anywhere else in the world, e-mobility has become a normal part of the mobile society. While people in other parts of the world are still debating about the pros and cons of electric transportation (with sceptics maintaining that electro mobility could only work in an urban setting, if at all), Norwegians are well on their way to achieving a CO2- free mobility. When the last power station powered by fossil fuels shuts down, which is due to happen soon, the electricity between Oslo and the North Cape will come exclusively from renewable sources. 'Electro mobility has become a mass market phenomenon here.' Christina Bu, Managing Director of the Norwegian Electromobile Association In recent years, the kingdom has become a prime example for electro mobility and is already demonstrating how, in the future, it can be smoothly integrated into everyday life with a Scandinavian calm. The electric grid never broke down in the past years, in spite of a growing number of e-mobiles, and rarely were electric vehicles forced to come to a stop due to a flat battery. In the months to come, the number of electric vehicles (including plug-in models) will pass the 200,000 mark, which translates to a market share of 19 percent for fully electric models and 15 percent for plug-in vehicles. Electro mobility

4 outgrew its status as a pioneer technology long ago and has since become a mass market phenomenon, Christina Bu explains. She is the Managing Director of the Norwegian Electromobile Association, which numbers around 50,000 electro mobile drivers as members. From 2022 onwards, only emission-free taxis will be allowed to drive in the Norwegian capital. Driving a smart ed in Oslo (smart is the first fully electric brand in Norway), you can quickly experience the upside and downside of electro mobility in Norway s capital. What probably pleases most drivers of electric vehicles is the toll-free access to the city. Whereas combustion engines are required to pay at least 35 Norwegian krone (about 3,50 euros) to enter the city, the two-seater can pass through the electronic barriers free of charge. And instead of congestion, the electro-smart, like all other EVs, can pass through the city without many hindrances; much to the display of some bus and taxi drivers, electric vehicles may use the appropriate lanes to whiz by their combustion engine counterparts. Electric drive means saving money These two benefits are among the important factors driving electric vehicle sales, a survey found. As a result, the regions of Oslo and Bergen, with their many stretches of toll roads, have become the two heartlands of Norwegian electro mobility. However, the success of e-mobility in Norway also has a downside, Christian Bu explained. If you drive through Oslo, she says, you ll find that most of the charging stations are occupied. And, indeed, it is not easy to find a vacant slot at a charging station. The city council has recognised this issue and has now provided more funds for additional charging stations. However, most people driving EVs in Norway use their own private charging stations, for which there will likely also be subsidies in the future. Additionally, building regulations are due to change so that owners associations cannot block the installation of private charging stations, Petter Haugneland, spokesperson for the association, explains. A look at Oslo s streets shows to what extent electro mobility has become part of everyday life; it seems the entire range of electro-models available in Europe is on the road here. Even in the Norwegian province of Finmarken, the coldest place in the kingdom, electric vehicles have a market share of at least five percent. A visit to Oslo, however, also shows that Oslo s guild of taxis has yet to act upon the signals being sent from city hall. Most taxis still rely on diesel engines (no trace of electro mobility here). This will have to change in the upcoming years; from 2022 onwards, only emission-free taxis will be allowed to drive in the Norwegian capital. The necessary infrastructure is currently being prepared. There are already four hydrogen fuel stations and 16 rapid-charging stations reserved exclusively for taxis, with more currently underway. With the public transport system, Oslo will also rely on electric energy in the future and launch a pilot project for autonomously driven small buses. In the years to come, the rapid-charging network will be expanded, so that on motorways and main roads there will be a place to hurtigladere (quick-charge) every 50 kilometres. Altogether, there are 9,692 public charging stations in Norway, of which 2,200 are rapid-charging stations that are compatible with all systems. In the years to come, the rapid-charging network will be expanded. On motorways and main roads, there will be a place to hurtigladere (rapid-charge) every 50 kilometres. At these stations, besides two rapid-charging stations, there will also be two 22 kw chargers. Also, super-

5 market chains will offer facilities for charging batteries while shopping. In terms of payment, Norway also offers innovative solutions. We ve developed an RFID stick for our members, which they can use to pay at different stations, Bu explains. Payment is also possible via text message. With the advancement of electro mobility in Norway, there has been a noticeable shift in people s attitudes towards electric vehicles. At first, the Norwegian electro pioneers were concerned that the range would not be sufficient. This is no longer an issue. Instead, people are now concerned about not being able to find a free charging station. However, when deciding in favour of electro mobility, Norwegians were driven less by thoughts about the environment than by concrete material advantages which is quite understandable. The upswing in e-mobility began when the first financial benefits were introduced for electro mobiles in Electro-models are exempt from all taxes, which effectively make conventionally driven vehicles twice as expensive as initially priced. This is why many EVs are cheaper than conventionally driven models. Also, local tolls are waived, so that in boroughs with toll roads, the percentage of electric vehicles is very high, Christina Bu says, which is why electro mobility has received so much support. If you pollute, you pay; if you drive pollution-free, you don t pay. The reasoning behind the segmented price scheme may be summed up as follows, If you pollute, you pay; if you drive pollution-free, you don t pay. Thus, the combustion-vehicle drivers are currently subsidising the electro mobiles. As of next spring, EVs will also have to pay some toll fees, but, according to Norway s financial politicians, the drivers of these models will only have to pay a maximum of half the costs levied on conventionally-powered vehicles. This regulation will also apply to state-run ferries and car parks, Christina Bu explains. In 2025, the epoch of combustion models will come to an end in Norway. In this regard, all the political parties, from the right to the left, are in agreement. Satisfied users Surveys have shown that anyone who owns an electric vehicle turns into an ambassador for electro mobility. According to the survey, 91 percent are positively surprised by the electro mobile and only two percent are not happy at all. Moreover, a third of all respondents were convinced that electric vehicles had completely replaced combustion engine models. In 2025, the era of combustion models will come to an end in Norway. In this regard, Bu says, all political parties, from the right to the left, are in agreement. But what will happen to the electric power grid if simultaneously all Norwegians require significantly more electricity? For example, on the weekend, to drive to their holiday cottages in the mountains? We re going to use new, intelligent and flexible solutions in the future, and they re already being tested. If, for example, there are 50 charging points available in a garage, the first ten cars will be recharged more quickly than the others. But ultimately, all the batteries will be fully charged, Christina Bu prognosticates. After all, the electricity network was able to cope with the growing number of e-mobiles until now. And where does the road for electro mobility lead next, Ms Bu? Christina Bu smiles and draws a comparison to digital photography. At first, the analogue manufacturers did not take it seriously, but we all know how that race ended.

6 State funding supports the e-mobility boom Related articles: The first subsidisation of electro mobility in Norway was approved in 1990, when the registration tax (calculated based on the weight, CO2 and NOx emissions) was waived. In the following years, from 1996 to 2009, the car tax for fully electric vehicles was reduced (1996), toll fees were waived (1997), VAT on fully electric models was removed, electric vehicles have been permitted to use the bus lanes (since 2003), and use state ferries free of charge (since 2009). The future is electric Experts agree: In the upcoming years, electro mobility will gain further traction and eventually replace combustion engine vehicles. Follow our stories and other daimler.com/next