Charging infrastructure requirements to increase demand for electric vehicles in Germany. E-Mobility market development

Table of Contents

List of Figures

List of Abbreviations

1 Introduction
1.1 Problem description and objectives
1.2 Methodology and structure

2 Theoretical foundations
2.1 Demand and thematic classification
2.2 Electric vehicles
2.3 Charging infrastructure

3 Development of the e-mobility market

4 Charging infrastructure requirements
4.1 Current challenges regarding market penetration
4.2 Requirements to increase electric vehicle demand

5 Conclusion and Outlook

References

ITM-Checklist

List of Figures

Figure 1: Master plan for charging infrastructure

Figure 2: Overview of demand drivers for EV's

Figure 3: Schematic presentation of value chain components

Figure 4: German charging prices for EV's per charging operator in 2020

Figure 5: Summary of charging infrastructure requirements (4 A's)

List of Abbreviations

Abbildung in dieser Leseprobe nicht enthalten

1 Introduction

Climate change, new technologies and less dependence on fossil fuels are major drivers for the development of electric mobility. Electric mobility produces much less CO2, especially when operated using renewable based electricity and therefore seen as key element of the energy transition towards a CO2 neutral environment. In addi­tion, the batteries of electric vehicles (EV) can be used as energy storage to offset fluctuations in solar and wind power. Thus, electric vehicles foster the market inte­gration and expansion of these volatile energy sources. To support and promote re­search and development of electric vehicles the Federal Government has adopted a set of measures, e.g., the extension of charging infrastructure (Federal Ministry for Economic Affairs and Energy, 2020).

The German Government set ambitious goals for the German charging infrastruc­ture, which is represented by the following figure.

Figure 1: Master plan for charging infrastructure

Abbildung in dieser Leseprobe nicht enthalten

Source: own presentation according to (Die Bundesregierung, 2019)

In order to reach this goal, customers must be convinced that an EV is better than the conventional motor type cars.

1.1 Problem description and objectives

Slowly, but electric vehicles become more visible nowadays. The major current chal­lenges still pose the range of batteries and the charging management. Through dig­italization of traffic systems and the increasing automation of mobility in form of autonomous driving cars, the change will be further accelerated (Zukunftsinstitut GmbH, 2020).

Objective of this assignment is to research charging infrastructure requirements, that potentially increase the demand for electric vehicles. The scope of this work will be limited to the German market, except for the overview of the e-Mobility market de­velopment.

1.2 Methodology and structure

To examine the objective a secondary research of current literature, statistical re­ports, media and regulations will be performed. First of all, the author will present theoretical foundations to better understand the subsequent chapters, following by an overview of the global e-Mobility market development. Hereafter, the components of charging infrastructure are examined and the current challenges regarding market penetration, following an in-depth research of the charging infrastructure require­ments to increase the demand for electric vehicles. Finally, the author will summarize her conclusion and outlook.

2 Theoretical foundations

2.1 Demand and thematic classification

Demand is strong related to price. “The quantity demanded of any good is the amount of the good that buyers are willing and able to purchase” (Mankiw & Taylor, 2011, p. 70). Individual buying behaviour is termed as ‘individual demand', while examining whole markets, defined by “the sum of all individual demands for a specific good or service” (Mankiw & Taylor, p. 71), is referred to as ‘market demand'. The research question focuses on the demand increase for electric vehicles in Germany, thus mar­ket demand applies. Derived from statistical data, many drivers or barriers influence the demand of EV's, which are presented in Figure 2, cf. (Mehta, et al., 2020), (Statista, 2019) and (Zukunftsinstitut GmbH, 2020).

Figure 2: Overview of demand drivers for EV's

Abbildung in dieser Leseprobe nicht enthalten

Source: own presentation

The analysis of the research question is limited to the requirements of charging in­frastructure (focus areas) and will exclude the other factors shown in Figure 2.

2.2 Electric vehicles

An EV is "... a vehicle which uses one or more electric motors for propulsion ...” (Mehta, et al., 2020, p. 198), which includes cars, scooters, buses, trucks, motor­cycles and boats. This term includes all-electric vehicles and hybrid electric vehicles.” (Mehta, et al., p. 198) A hybrid electric vehicle (HEV) is a vehicle powered by an internal combustion engine (ICE) in combination with one or more electric motors that use energy stored in batteries. These are continually recharged with power from the ICE and regenerative braking” (Mehta, et al., 2020, p. 198).

A Statista analysis project, that battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV) will gain the highest growth (Wagner, 2019). A BEV is “. an all-electric vehicle that has an electric motor and a battery but no internal com­bustion engine” (Mehta, et al., p. 198) , while a PHEV is “. a vehicle that can be powered either by an ICE or an electric motor. In contrast to normal hybrid EVs, they can be charged externally.” (Mehta, et al., p. 198) There are some other mix forms of EV's, like light commercial vehicles or plug-in EV's, which will not be further re­searched.

2.3 Charging infrastructure

According to an analysis of Fraunhofer, charging infrastructure comprise private, semi-public and public charging points. While private charging infrastructure is only available to one individual, household or vehicle (i.e., own garage), public charging stations are open to everyone (i.e., at public parking spots). Semi-public charging points are limited to a certain group of people e.g., the employees of a company who use the corporate parking space (Funke, et al., 2015).

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