Tampere Summaries of TIDE implementation scenarios This project has received funding from the European Union s Seventh Framework Programme for research, technologiacal development and demostration under grant agreement no 313979
Tampere and TIDE The TIDE Project TIDE is a FP7 co-ordination action aiming to network key actors actively engaged in developing innovative urban transport concepts and to facilitate the co-ordination of their activities across Europe. The project duration is from 2012 2015. Tampere is a Champion City within the project that aims at implementing a new innovative financing scheme for charging stations. This document summarises an implementation scenario that gives advice on how to realise the build-up of charging infrastructure in the specific context of Tampere. This also provides an example to other cities interested in the uptake of the measure. The City The city centre of Tampere is surrounded by lakes and ridge scenery, sited on an isthmus between the lakes Pyhäjärvi and Näsijärvi. Tampere is the third largest city in Finland and the largest inland centre in the Nordic countries. Currently there are over 220,000 inhabitants in Tampere, and close to half a million inhabitants in Tampere Region, which comprises Tampere and its neighbouring municipalities. Tampere is one of the three most rapidly developing regions in Finland. In 2010 and 2012, the City of Tampere came first in an image survey comparing the largest cities in Finland. It was also the most attractive city among Finns who plan on moving. Tampere is a centre of leadingedge technology, research, education, culture, sports and business. The, Finland Source: The Innovative Concept Tampere is well-known for its innovative approach in many fields of business. In terms of mobility and its innovations, Tampere has been on the leading edge in Finland over the years. Since 2012 Tampere has provided an innovation, experimentation, and development environment called ITS Factory that enables the public sector and businesses to cooperate in order to develop innovative solutions for transport and mobility. In addition to ITS innovations, Tampere has recognised the potential for electric vehicles to address some of its increasing traffic-related problems, such as pollution, noise and increasing transportation costs. The city aims to finance tens of public charging stations in the coming years to support emobility. Road traffic network in Tampere Source: Tampere 2
The Challenge and the vision The Challenge Tampere s future urban transport challenges will stem from two key factors: the population is projected to increase by 45,000 (i.e. more than 20% increase in city population) by 2030 and traffic will increase by 30%. This could lead to increased pollution, noise and congestion. Tampere Region is the second biggest growth centre in Finland. Tampere has signed the Covenant of Mayors, the Aalborg commitment and the Eurocities Declaration of Mayors that all require significant reductions to CO2- emissions and sustainable development. The Mayor Program New Tampere 2013 2016 also emphasises sustainable transport, open data and innovative solutions. In light of Tampere s long-term environmental and social goals and challenges, the city will need to focus on decreasing CO2-emissions, concentrating workplaces in the city, and ensuring sustainable development. Tampere is at the moment planning tram lines, developing and implementing ITS, planning to develop city s railway station and investing on other infrastructure development projects as well. Now is the right time to also develop electric mobility comprehensively. The Vision Mr Mika Kulmala Traffic engineer, In addition to efficient and smooth public transport, private cars are still needed and used. Thus Tampere will promote low emission vehicles, such as electric vehicles, and support the implementation of a comprehensive public charging network as defined in the city s 2015 emobility Action Plan. New city-built public charging infrastructure creates a solid base for EV growth in Tampere and encourages the private sector to invest in charging stations. Incentives for EV users (e.g. free charging & parking) increase the visibility and attractiveness of EVs while improving userfriendliness. The impact of publicly financed charging stations would be the increased general awareness of emobility, accessible and easyto-use charging infrastructure and a notable increase in the amount of EVs, including city s own fleet. Tampere would strengthen its position as an innovative, environmentally aware city with business orientation. Since the EVs are zero emission vehicles, positive environmental impacts can also be expected. Regional transport policy in the Source: 3
Good examples Rotterdam, Netherlands: Charging Infrastructure for Electric Vehicles As of mid-2015, Rotterdam has realised 1,300 public and private charging stations at strategic locations throughout the city. This was achieved in three different ways: (a) on private property, (b) in public parking and (c) onstreet. On private property, the property owners were reimbursed for cost of the charging point. Including, one year of free electricity. In public parking and on-street, a charging station and free parking space was provided to electric vehicle owners until the end of 2014. The goal was to provide the city in the short term with a reliable, recognisable and uniform network of public, semi-public and private charging stations throughout the city. Users will be able to charge their vehicles everywhere they go. The payment system is accessible to all and includes advanced payment poles on the street as well as in parking areas. All charging stations are provided with clear and understandable explanatory symbols, they can be locked and they are user-friendly. Stuttgart, Germany: Build-Up of A Charging Infrastructure for Electric Vehicles In 2012 EnBW Energie Baden-Württemberg AG one of the largest energy companies in Germany and the city of Stuttgart built up an electric charging infrastructure. In and around Stuttgart there are more than 600 charging points installed. Stuttgart has the largest electric freefloating car-sharing fleet in Europe, consisting of 500 car2go Smart Electric Drive vehicles. In addition, EnBW tests different functionalities at the charging points to improve the user friendliness and analyses the requirements of users. This project allows EnBW to gather knowledge and data on how to profitably operate charging infrastructure. The project is realised within the Schaufenster Elektromobilität (show-case project electric mobility), which is an initiative by the German Government to promote electric mobility within Germany. Charging infrastructure and car2go Source: EnBW 4
The Users and Implementers User Needs Tampere targets all EV users with its emobility activities. More specifically, the target groups are the employees of the city of Tampere (driving EVs) and the municipal fleet operators, but also all private car drivers (citizens & businesses). At the same time, private sector investment in charging infrastructure should also support commuters and public transit traffic. In principle, EV users want a dense, easy-to-use charging infrastructure. For example, integrating charging identification information into the existing bus card makes the network more user-friendly and also has benefits for the public transport operator. Citizens of Tampere also expect some privileges for electric vehicles such as free parking and free charging to compensate the higher initial costs of purchasing EVs. Further technical improvements on the vehicle and battery side are needed in order for EVs to be competitive with the conventional vehicles in Finland. Potential charging station locations at Hakametsä ice hockey stadium area Source: Antti Järvinen Key Stakeholders The main stakeholders involved in supporting financing schemes for charging infrastructure include: Energy companies (Tampereen Sähkölaitos) Charging infrastructure operator Charging station installer (Tampereen Vera Ltd.) City departments Public transport operator (TKL) Private building owners Parking operators (Finnpark) Charging points in a parking hall in Tampere Source: Universities and research i nstitutes (e.g. Tampere University of Technology, University of Tampere, TAKK) Electric mobility projects (e.g. Emobility Works) EVE-program of Tekes (Electric Vehicle Systems 2011 2015) 5
Transferability Transferability To Tampere Regarding the transferability of financing schemes for electric vehicles, there are certain general success factors and barriers. Success factors: The most important factor is the market penetration of electric vehicles. The higher the market penetration of electric vehicles, the more favorable the demand for public charging infrastructure (in urban areas). An increase in demand for charging points can lead to a higher utilisation rate of public charging infrastructure. A prerequisite for the successful operation of charging infrastructure is an interoperable charging infrastructure. Different roaming platforms are run by various charging infrastructure operators in order to generate interoperability and thus accessibility from the users perspective. Key barriers: The biggest barrier is the utilisation of a charging infrastructure. The market for electric vehicles is not yet mature. There are too few users for a sufficient utilization rate of the available charging infrastructure in Tampere. Therefore, at the moment there is no business case for public charging stations in Tampere. The costs exceed the revenues from electricity sales. To attract potential EV-users in the first place, Tampere s plan is to allow people to charge for free. Source: The General Transferability of An Innovative Financing Scheme for Charging Stations EV charging infrastructure requires a critical size to become economically viable and demands a wellthought-through financing scheme to make the investment profitable. The main factors that support successful transfer to other cities are: High market penetration of electric vehicles Cost-efficient build-up of charging infrastructure. Modification of available pre-heater poles to slow charging infrastructure can be seen as an efficient extension for public charging infrastructure. The build-up of charging infrastructure is a crucial requirement for the operation of EVs across Europe. However, the financing scheme for charging infrastructure is a yet unsolved matter and relies on factors like market penetration of electric vehicles, high cost for build-up and low margins when operating the charging infrastructure. 6
The Measure Implementation Timing Tampere will introduce several city-owned public charging stations to promote the usage of EVs and plans to provide free charging for the users for a limited time. Typically the main challenge for the installation of (semi-)public charging stations is the establishment of sustainable business and financing models, since the revenue from the electric power does not usually cover the cost of installation. However, since the city will invest in the charging devices in Tampere, the operator has a better chance to make the business profitable. This will be realised once the city s incentives are removed in the future. With the support of TIDE and a strong innovative community, Tampere will create an implementation scenario for a financing scheme for charging stations with the highest potential for the years after the free charging incentive. The main parking operator, Finnpark, and energy supplier Tampereen Sähkölaitos (both owned by the city) have been active in the emobility sector, i.e. with special payment methods of charging already in use, but the actions should be strategically planned and unified as well to make the system user-friendly. Charging station with electric vehicle Source: Fraunhofer IAO The scenario for financing schemes for EV charging will be implemented in the below timeframe. Key activity When Leading Partner Target role chosen for the city regarding emobility City board s positive decision on electric mobility Draft plan for charging station network Workshop for relevant stakeholders Finalised emobility action plan First charging stations installed Choosing the charging station operator Incentives for EV users Building up the private charging station network First electric bus charging station(s) Removal of free charging incentive April 2014 August 2014 End of October, 2014 Early November, 2014 Early 2015 Autumn 2015 Autumn 2015 Spring 2016 Ramboll Finland Ltd. & AC2SG Software Ltd. & Ramboll Ramboll & Tampere Ramboll & Tampere 2015 with different stakeholders 2016 End of 2018? 7
The Measure Financial Aspects The costs for building the charging infrastructure consist of acquisition of the charging devices, construction, more powerful electricity connections (if needed) and maintenance costs. In addition, there will be costs from the free charging-incentive. The city of Tampere will build some infrastructure on its own premises, but most of the charging stations will actually be built on privately owned spaces, including shopping centres, petrol stations, etc. At this point it is unclear whether Tampere is able or needs to take part in the private investments. Nevertheless, a strong public-private-partnership is required to come up with the planned charging station network. This will require some work to be done by the city. Type of cost Fast charging stations Semi-fast charging stations Slow charging stations New electricity connections for fast charging, if needed Maintenance of the infrastructure/ year Labour costs of public-privatepartnership/year Free charging incentive Estimated total costs of investments Source of funding 250 000 Public + Private sector 300 000 Public + private sector 20 000 Public sector 50 000 Private sector? Private sector + public sector? Public sector? Public sector Long-Term Perspective Communication approach: The city should be responsible for communications for the planned measures. The goal is threefold: First, the city needs to raise awareness regarding emobility and the planned actions inside its own organisation. Secondly, the public needs to be informed about the planned emobility in Tampere. Thirdly, national media coverage should be pursued to encourage other municipalities to invest in emobility as well. Funding & financing: Tampere s charging network plan is based on a strong public-private-partnership. The city must organise a budget to build up the network. The city may also need to support the private sector s investments. At the moment it is uncertain if the national subsidy for charging infrastructure will be available for Tampere s investments. Monitoring & evaluation: The key aspects to be monitored in Tampere are the development of the city-wide EV numbers and the utilisation rate of the installed charging stations. Based on these the charging network will either be expanded or kept as such. The city of Tampere should follow the price development of the charging stations and the development of the planning and construction costs to be able to adjust budgets accordingly. They should also follow the profitability of the charging stations (for the stations subject to a charge). This information is needed to evaluate the viability of the current business model. Budget plan for charging infrastructure in Tampere Source: Tampere 8
Lessons Learnt The city of Tampere started its emobility Action Plan process in autumn 2013. It took more than two years to finalise the action plan, so the process was rather long. The main reason was the city s limited knowledge of implementing an EV charging network at the beginning, and initial studies on emobility in general were needed. Moreover, the process included several consultation periods and decision making processes inside the city s organisation. In addition, even though the Action Plan is finalised, it is taking a long time to secure the municipal investments. The main lessons learned from the process so far are: All relevant stakeholders need to be included in the process from the beginning. The market is changing rapidly, so things studied two years ago are already outdated. The process should thus be shorter. The public procurement process for charging stations slows down the implementation. Check List The following check list summarises key aspects for implementing financing schemes for charging infrastructure and intends to give the reader advice on whether the concept is suitable for the city s context. Check List Key conditions for implementation Implementation time Stakeholders involved Undesirable secondary effects Location concept: what scale of charging infrastructure should be deployed? Financing concept: how is the charging infrastructure financed? Operating concept: who is operating the charging infrastructure? Citizen participation to increase local acceptance Site selection: where to build charging infrastructure? Planning within a few months Medium term implementation Transport operators and authorities as well as public transport associations Fleet operators Interest groups Local authorities End customers Restrictions in the interoperability of charging infrastructure from various operators. MOL Bubi public bike sharing scheme Photo: BKK Centre for Budapest Transport For further details on how to implement Financing Schemes for Charging Infrastructure please see the TIDE Guidelines for implementers (available from www.tideinnovation.eu). 9
The mission of the TIDE project is to enhance the broad transfer and take up of 15 innovative urban transport and mobility measures throughout Europe and to make a visible contribution to establish them as mainstream measures. TIDE focuses on 15 innovative measures in five thematic clusters: financing models and pricing measures, non motorised transport, network and traffic management to support traveller information, electric vehicles and public transport organisation. Sustainable Urban Mobility Plans are a horizontal topic to integrate the cluster activities. Prepared for the European Commission by Michael Haag and Andrej Cacilo, Uni Stuttgart IAT Pekka Stenman, for the city of Tampere Publication date: September 2015 For more information on TIDE, contact the project coordinator at Polis: Ivo Cré Phone: +32 (0)2 500 56 76 Email: icre@polisnetwork.eu Karen Vancluysen Tel: +32 (0)2 500 56 75 Email: kvancluysen@polisnetwork.eu Or visit the project website: www.tide innovation.eu Follow TIDE on Twitter: @TIDE_Innovation Join the TIDE LinkedIn Group: Transport Innovation Deployment for Europe This project has received funding from the European Union s Seventh Framework Programme for research, technologiacal development and demostration under grant agreement no 313979