Presentor: Jussi Palola, CEO of Virta SWISSCHARGE SEMINAR 1/2018 Pg 1
SHORT INTRODUCTION Virta Multi-sided Platform EV charging services for the whole value chain Private Electric Charging EV Drivers Mobility Providers Point Operators Commercial Public Energy Systems Pg
We re a top European player Used in 15 countries and over 110 cities around Europe. Virta platform is central platform used in 4 countries 15.3.2018 Pg 3
AGENDA 1. 2. 3. SHARE OUR OBSERVATIONS OUR CALLS TO THESE INSPIRE YOUR ONGOING PROCESS TO ACT Pg
Global outlook - China is taking the lead - Pg 5
Evolution of the global EV stock 2010-2017 World EV stock (x 1 000) 3 000 2 500 2 000 1 500 1 000 500 Source: IEA EVI Global Outlook 2017 and EV-Volume for year 2017 stats 0 2010 2011 2012 2013 2014 2015 2016 2017 China US Japan Norway Others All
Performance indicators China has outperformed in supply and in demand as well. Source: McKinsey&Company 15.3.2018 Pg 7
In 2017, the global sales of electric cars surpassed 1 million 500 000 450 000 400 000 350 000 300 000 250 000 Global EV sales 200 000 150 000 100 000 50 000 0 China Europe US 2015 2016 2017 Source: CleanTechnica 2018 Sales statistics from automanufacturers Pg 8
China 1200 Annual EV sales in China (000s) The trend is towards pure electric. 1000 In 2017, 81 % of sales were BEVs. The BEV share is high in international comparison. 800 600 Europe and USA typically have around 50 % BEVs in their plug-in sales due to the bigger cars sold here. 400 200 0 2014 2015 2016 2017 2018 Fcst Passenger cars Commercial vehicles Source: EV volumes The EV World Sales Database 15.3.2018 Pg 9
China 90 000 Top 5 most sold electric cars in China 2017 80 000 In 2017, 600 000 EV s were sold, covering 2.1 % market share of the entire Chinese car market. 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Vehicles sold 2017 BAIC EC-Series Zhidou D2 EV BYD Song PHEV Chery eq JAC iev6s/e Pg 10
Tectonic plates of energy world are starting to move Pg 11
Energy evolution directions Strategy Key metric Energy efficiency 2014 2050 0.0 5.0 10.0 Energy intensity of GDP (GJ/$2005) Decarbonization of electricity production 2014 2050 0 200 400 600 Electricity emissions intensity (gco2/kwh) Electrification of energy consumption 2014 2050 0 % 25 % 50 % 75 % Share of electricity and electric fuels in total final energy (%) Source: Professor Jeffrey Sachs, Getting to Deep Decarbonization, Climate Action 2016 Summit Pg
World CO2 emissions from fuel combustion by sector (%) Residential 6 % Services 3 % Other 7 % 6% 7% 65 % of world CO 2 emission is related to energy and transport sector Industry 19 % 19% 42% Electricity and heat 42 % EV s is effecting both segments reducing emissions significantly. 23% Transport 23 % SOURCE: IEA - CO2 emissions from fuel combustion highlights (2016 edition) Pg
EV s are big batteries on wheels 60 50 TWh Installed battery storage capacity in the IEA B2DS scenario The vast majority of future energy storage capacity will have four wheels. 40 30 20 10 0 2015 2030 2045 2060 Other sectors EV batteries The Electric Vehicle Charging Company Source: IEA Electricity well below 2 degrees: from challenges to opportunities 15.3.2018 2017 Pg 14
The whole industry is in turmoil Traditional vehicle Electric vehicle Vehicles The split between OPEX and CAPEX of a vehicle will change drastically. 20 % VEHICLE 80 % GASOLINE 80 % VEHICLE 50 % VEHICLE 20 % ENERGY 50 % DIGITAL SERVICES (INCL ENERGY) Pg 15
Automotive and energy industries will converge Automotive Industry Transition to Automation, Servitization, Electrification Power Industry Transition to Distributed, Integrated, Renewable Future sustainable transport Mobility and energy as an embedded ecosystem Two disrupting industries reinforcing each other Pg 16
Virta Service Portfolio Support and protect the energy system with EV s Pg
Dynamic Load Management Bidirectional charging Energy Service Portfolio Virta Home - optimized charging Frequency containment reserves Energy Storages The Electric Vehicle Charging Company Pg 18
Virta Home The world s smartest home charging service for consumers Charging events are optimized based on Nord Pool Spot electricity prices and individual energy needs Optimization can also be overridden by selecting hours manually The service works as consumer-driven demand response with effective incentives Pg 19
Dynamic load management Dynamic load management ensures that the maximum available charging power of a building or a local grid area is not exceeded Charging stations are grouped together through the cloud, no physical connection required Available charging loads (excl. other loads, e.g. home appliances) are dynamically distributed to cars that are charging in the same charging station group Pg 20
Bidirectional charging The new vehicle-to-grid (V2G) standards allow us to use EV s as distributed battery energy storages In practice we connect V2G compatible charging devices and control their bidirectional charging events EV s can be used side-by-side with stationary energy storages and renewable energy production Pg 21
Frequency containment reserves Virta s system enables aggregators to use EV s as reserves for demand response Charging events can be automatically controlled with the frequency of the electrical grid When the grid overloads and the frequency drops, EV charging powers are brought down The need to adjust typically occurs a few times a day and lasts max. 1 min, so it has no practical effect on the charging experience Pg 22
Energy storages Q3/2017 Q4/2018 Integrating stationary storages to Virta s platform Enabling the plug-and-play installation of small stationary storages to buildings and bringing the aggregated storage resources to the electricity markets as reserves Pg 23
Evolution in EV Market - Adoption Realities for diffent markets Pg 24
Global sales of EV s and Plug-in Hybrids 1 200 000 1 000 000 800 000 600 000 400 000 200 000 0 2012 2013 2014 2015 2016 2017 EV's and Plug-in Hybrids Pure Evs Source: IEA EVI Global Outlook 2017 and EV-Volume for year 2017 stats
Distributed Reality of different markets Examples from Europe Tops: Norway 8 % Switzerland 0,3 % Finland 0,25 % Pg 26
Europe 40 BEV PHEV 35 30 Top 6 EV market share countries in 2017 in Europe (%) 25 Variation from: 2,5 % - 39 % 20 15 10 5 0 Norway Iceland Sweden Belgium Finland Switzerland The Electric Vehicle Charging Company Source: European Alternative Fuels Observatory EAFO 15.3.2018 Pg 27
Our target Target is to find the best partners in leading markets and grow in cooperation with high multipliers 2015 2016 2017 12/2017 Pg 28
Mission We do our part in solving the climate change through bringing electric mobility to the people s daily life and to the energy system. Vision: Leading platform in Europe Virta is the leading platform where different companies can offer state-of-the-art easy to buy, easy to sell everyday services to people and businesses. Pg 29
Mission We do our part in solving the climate change through bringing electric mobility to the people s daily life and to the energy system. Vision: Leading platform in Europe Virta is the leading platform where different companies can offer state-of-the-art easy to buy, easy to sell everyday services to people and businesses. 15.3.2018 Pg 30
We charge. info@virta.global www.virta.global
Additional information Pg 32
Plug & Charge Q1/2018 Q3/2018 Following ISO15118 standard for vehicle to grid communication interface Enables identifying by wire Technical pilot with a limited scope Pg 33
Protect your grid Our management system protects your grid on all levels by keeping charging power in check Support renewables We balance the variation caused by renewables with EV s and even store energy for when the sun doesn t shine Pg 34
Reasons for not purchasing an electric car Comprehensive charging infrastructure is key for EV adoption. Nothing Resale / residual value Safety Don't know Limited choice Performance, practicality, looks Technology not proven Lack of knowledge Cost Distance travelled on charge Availability of chargers 0% 10% 20% 30% 40% 50% Source: UK Department for Transport (2016), N=649 license holders. Multiple selections possible. Pg 35
Demand for charging grows on par with EV s All EV s require public and private charging. Public chargers (millions) 16 14 12 10 8 6 4 IEA B2DS IEA 2DS Paris Decleration 2 0 2010 2015 2020 2025 Source: IEA Global EV Outlook 2017 Pg 36