The Internet of Vehicles. Building China s EV Charging Network: Creating Sustainable Value for Investors, Customers and Service Providers

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1 The Internet of Vehicles Building China s EV Charging Network: Creating Sustainable Value for Investors, Customers and Service Providers Submission for the Edison Award 2018

2 The Internet of Vehicles Building China s EV Charging Network: Creating Sustainable Value for Investors, Customers and Service Providers Environmental pollution is a major obstacle for sustainable development in all countries. Among the pollutants, air pollution is one of the most visible and critical concerns. After a long period of focused and determined effort, China has achieved noteworthy results in reducing pollution emissions, with pollutants dropping significantly since peaking in Motor vehicles are a major source of health-hazardous pollutant emissions in China. The most current assessments of emission sources, in nine Chinese megacities, attribute 15% to 50% of these particulate matter emissions (PM) to mobilesources principally motor vehicles. China s commitment to take strong measures to reduce and control transportation pollutants is unrelenting. Strenuous new regulations are being put in place, ranging from taking millions of vehicles that do not meet emission standards off the road; to setting minimum electric vehicle production levels. To both accommodate the market for more cars and reduce pollutants, China has become the world s largest supporter of electric cars. It provides various incentives to produce what in China are known as new energy vehicles (NEV). Chinese manufacturers have made massive investments into electric car production, with 163,000 new EVs registered in December 2017 alone. 1

3 Submission for the Edison Award 2018 There are currently more than 1.7 million EVs registered in China. China is committed to five million battery-electric and plug-in hybrid vehicles on the road by Additionally, it will produce one million such vehicles annually by Four Challenges Unless there is a national, smart, efficient, flexible and sustainable electric vehicle charging network, that makes it possible to fully utilize China s current and growing EV fleet, its carbon reduction goals cannot be achieved. Moreover, the network of charging stations cannot be a social program. It must generate sustainable value for the investor, customer and service provider. State Grid Corporation of China (SGCC) faced four overriding challenges in providing the foundation for China s EV market: 2

4 The Results Early as in 2006, SGCC began to assume the responsibility to design, develope and build a nation-wide EV charging network. To overcome the double challenges of both designing and building an integrated nation-wide network while insuring it be economically sustainable, State Grid Electric Vehicle Service Company (SGEVS), a wholly owned subsidiary, was established by SGCC Since 2010 SGCC has invested US$3.5 billion to design and construct an 8,700 mile 9 East West-Highways, 9 North-South Highways, Two Beltways EV charging network with 5,526 stations,as shown in Figure 1. To provide perspective, were this network in the continental United States, As shown in Figure 2, it would stretch from Oklahoma to New York, and from Wisconsin to Florida. 3

5 Submission for the Edison Award 2018 In 2010, following four years of research and planning, SGCC launched its charging network program. At that time there were only 1,122 charging piles without unified charging standards. After many years great effort, SGCC currently built and owns 55,800 piles and operates a smart IOV management system, which integrates information from more than 147,000 charging piles owned by other service providers. By the end of 2018, there will be over 225,000 charging piles in China SGCC 55, Other providers 147, SGCC s IOV also integrates big data derived from multiple charging facility manufacturers. Additionally, it aggregates all market facility vendors and integrates upstream and downstream industrial chains. SGCC broke new ground and created a network that: 4

6 Submission for the Edison Award 2018 Provides an innovative, integrated, proven and whole solution that establishes a network incorporating numerous market players. It both efficiently and safely services customer needs and offers the customer choice in their service provider. The daily and monthly charging electricity and charging cycles can be seen from its IVO management system as below: Creates opportunities for utilities to deliver revenue-generating products and services that contribute to the network s sustainability, enhances customer relationships and builds customer loyalty. Equips EV owners with tools that enhance overall system efficiency and the option of purchasing non-charging products and services. SGCC s IOV engages with 1,000,000 registered EV customers, both in charging their cars and in delivering value-added products and services. SGCC provides more than 1 million kwh daily to service the network; projected to increase dramatically by SGCC s charging network has an electric charging capacity of 4.4 million kw with both AC and DC chargers, single charger power ranges from 3.5kW to 300+kW. The newly developed faster-charging technology will reach 350kW. 5

7 Creation of Common Charging Standards for EV and Pile Manufacturers There were no common charging standards for either EVs or pile manufacturers prior to 2010 in China. Without such standards the network s efficiency and flexibility would be drastically limited. Consumer confidence in purchasing an EV would be hampered and the country s EV fleet would not be fully utilized. When SGCC assumed responsibility to build the nation s EV network, it launched four initiatives to overcome that barrier: Partnerships with domestic and international EV manufacturers, including Ford, VW, Nissan, BMW and Tesla. 6 Established and promoted the standard development, carry-out interactive charging test, and improved charging compatibility. Took the lead in formulating and revising 22 national standards, 2 industry standards, 61 corporate standards, as well as unified China EV charging standards. Initiated four new standard proposals to the International Electrotechnical Commission (IEC), of which three have been approved and released, and the proposal process approved on the fourth. IEC TS : Electric Vehicle Battery Swap System Released Part 1: General and Guidance IEC :2016 Electric Vehicle Battery Swap System Part 2: Safety Requirements IEC TS 63066:2017 Low-Voltage Docking Connectors for Removable Energy Storage Units IEC Information Exchange for Electric Vehicle Charging Roaming Service Part 1: General Released Rele ased New Proposal Approved

8 Smart EV Charging Management System Solution National EV Charging Network SGCC EV & Changing Fast Charging Community Charging 1,566 k EVs 205 k CSG k EVs Others 40 k Te Lai Dian k EVs Xing Xing 106 k Individual Pu Tian k EVs 22 k Long Cheng Wan Bang Operators Electricity Tesla Others Network Construction Annual Charging Electricity & Cycles Electricity Cycles Monthly Charging Electricity Community Charging (10,000 kwh) (10,000 Cycles) (10,000 kwh) Total 223,330 MWh Fast Charging Others 184,430 MWh SGCC 38,900 MWh Customer Service EV charging management system is essential and critical for operating a charging network. The integration of a large amount of complex information lays an important foundation for tapping the potential value of the charging network. The Smart EV Charging Monitoring System developed by SGCC: 7

9 Submission for the Edison Award 2018 Enables data acquisition of real-time charging information for power grid management. Integrates the geographic information system (GIS) to build a foundation for each of SGCC s customer-based apps. Integrates billing systems and creates payment options. Improves efficiency of operations through monitoring the operating status of all charging piles and stations and identifying faults; making quick-response pile repair and restoration possible. Enables data exchange with other service operators that effectively promotes sharing of charging pile information and payment interoperability; essential to providing more flexibility to the EV customer. A digital board example of SGCC s monitoring system homepage, below, illustrates the range of the on-going monitoring and information functions. 8

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11 Submission for the Edison Award 2018 A Sustainable Business Model that Promotes the EV Network In creating and deploying a business model that promotes the development of charging stations, while ensuring an attractive and sustainable return on investment, SGCC focused on redefining the EV owner s charging experience. Making the connection convenient, safe, reliable and offering choice of service providers was one key element of the model. Equipping the customer with tools (apps) that create a positive and beneficial experience, that generates revenue and strengthens their relationship with SGCC, was as important and strategic as the actual charging. 10

12 SGCC evaluated a full suite of apps that are both directly and indirectly related to the actual vehicle charging. As illustrated in the chart below, SGCC has deployed three successful apps. Their functionality includes: a range of payment options, roadside service (generally EV issues are resolved and the driver back on the road within two hours), purchasing EV insurance, navigation (locating the nearest charging station and avoiding traffic congestion), Didi (China s Uber) and renting or purchasing a new or used EV. To keep pace with its customers interests and needs, SGCC continually evaluates its apps to both strengthen and enhance its existing functions and to identify products and services for new apps. e-charging Recharge Accoun Two-Dimensional Codes Scan Pay Customized Preferred Charging Plans e-ride Sharing On-line Ride-share EV Reservations Didi (China's Uber) EV Timeshare Rental Find/be a car pool passenger e-riding EV Rental, Purchase and Swap Trip Navigation/Avoid Traffic Customer Service/Emergency Repair Purchase EV Insurance 11

13 Submission for the Edison Award 2018 Summary In less than a decade SGCC built, maintains and continues to expand the world's largest and most integrated electric vehicle charging network. SGCC s current and expanding 8,700 mile network, with 5,526 charging stations, equips China with the capacity to insure maximum utilization of its current and future EV fleet. The development of the nation-wide network has met the projected and growing charging demands of China s EVs. Transportation pollution is being reduced, contributing to improvement in air quality, and economic development has been facilitated. Innovative responses to significant challenges have resulted in national and international standards that normalize EV deployment by automotive and charging pile manufacturers. A safe and reliable network where any EV can be recharged at any station now exists. Charging Information-sharing between different charging equipment operators has been made possible utilizing an Internet of Vehicles network platform, created and managed by SGCC. The network operates in a highly efficient, safe and flexible manner that assures reliable service for all EV owners. The Internet of Vehicles delivers app-driven, revenue-generating products and services that create value and solidify customer loyalty. The reduction of transportation pollution is a global challenge. SGCC would be proud and honored to share is experience and lessons-learned with energy companies in the United States and internationally. 12

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