Electric Vehicles and Infrastructure – Opportunities for the Software Sector

North East England 2010

Introduction

This report seeks to provide an introduction to electric vehicles and the related logistics and

infrastructure, specifically within the context of the North East region. The report will

provide the starting point and source of information for a larger project to identify potential

links between Sunderland University Software Hatchery and the Electric Vehicle (EV) sector.

By exploring the technology requirements of EVs and the planned local infrastructure, along

with case studies and examples from elsewhere, it is envisaged that opportunities can be

identified for partnerships, university involvement and innovations.

Why Electric Vehicles?

The internal combustion engine, powered by petrol and diesel, has dominated the automobile

industry almost since its inception [1], but contemporary issues are increasing the need for

alternative and more efficient ways of powering vehicles [2]. Governments are increasingly

seeing electric vehicles as an effective response to many of the difficulties presented by

concerns such as the recent financial crisis, fluctuations in oil and other commodity prices,

and the ongoing climate change crisis [3]. According to a study for the Department for

Transport [4], widespread adoption of electric vehicles capable of a range of 50km or more

could cut road transport carbon emissions in half.

A typical electric vehicle recharging point

There are obvious benefits to ending the reliance upon finite oil-based fuels like petrol and

diesel, whose prices and availability may prove increasingly volatile [5]. It is clear however

that with the current infrastructure, electric vehicles will be mostly powered by fossil fuels

that are used by traditional power stations [6]. For this reason it is important that the

renewable energy sector grows along with the electric vehicle industry [26], and the viability

of this will be explored later in the report.

Ambitious targets have been set which provide a clear and accelerating trajectory for the

deployment of low carbon vehicles and adaptation of new ultra-low carbon technologies in

the UK [3][Figure 1]. This enables industry to make strategic planning decisions and

investments for the future. Successful organisations will be those who embrace and respond

most effectively to the introduction of new low and ultra-low carbon vehicles.

Figure 1: High level technology roadmap for the UK’s decarbonisation of road transport [3]

History of Electric Vehicles

The electric motor has been used to power

vehicles almost since the development of

electric batteries in the 1830s. By 1900, electric

vehicles actually outsold all other types of cars.

The decline in electric cars in the early 1900s

was caused by the need for longer range

vehicles, the increasing accessibility of oil-

based fuels, and the advent of mass-production

of the combustion engine, pioneered by Henry Ford. Electric vehicles became relatively

inefficient and inadequate for 20th Century requirements, and they were almost completely

forgotten between the 1930s and 1960s.

The need for alternative fuels started to become apparent in the 1960s and several companies

pioneered electric vehicles largely used for commercial purposes like the utility industry and

mail delivery in the USA and the milk floats that became ubiquitous in the UK. These

vehicles remained relatively low powered compared to their petroleum-powered counterparts,

with top speeds rarely exceeding 45mph and ranges of less than 50 miles.

By the 1990s, greater environmental awareness and government incentives encouraged major

vehicle manufacturers like General Motors, Ford, Chrysler and Toyota to enter the electric

vehicle sector [22,23,24,25]. They began to convert existing vehicles into electric or part-

electric vehicles, and they also started to develop electric vehicles from scratch. There are

many types of electric vehicle in development, defined by the extent to which they are

powered by electricity:

Hybrid Electric Vehicles (HEVs)

Detroit Electric Advertisement (1912)

A hybrid vehicle is one that is powered by

both an internal combustion engine and an

electric propulsion system, a combination

which provides increased fuel economy

and better performance. The hybrid

became widely available with the release

of the Toyota Prius in Japan in 1997

[27,28], followed by the Honda Insight in

1999 [29,30]. Many manufacturers now

make hybrids and they form an increasingly significant sector of the automotive market.

Worldwide sales of Toyota HEVs reached 1 million by 2007, and 2 million in August 2009

[28]. The Honda Insight became the best selling car in Japan in April 2009, and US

manufacturers have now made hybrid vehicles a top priority.

Many hybrid vehicles do now allow external charging (i.e. plugging into the electricity grid

to recharge) as they operate in charge sustaining mode, whereby the batteries are continually

charged from energy from the internal combustion engine. Many hybrid vehicles now make

use of regenerative braking, which converts kinetic energy from braking into usable electric

power, increasing energy efficiency. Due to the specifics of the North East of England

project, the only hybrid vehicles this report covers are plug-in hybrid vehicles (PHEV) –

those which contain a combustion engine and electric propulsion, but can be charged from

the national grid.

Fully Electric Vehicles (EVs)

Fully electric vehicles are those which derive all of their energy from electricity. There are

various subdivisions of electric vehicles, depending on the specific electricity source, but for

the purpose of this project we will concentrate on battery electric vehicles (BEVs) – those

which derive all of their power from onboard batteries, and represent a fast-growing segment

of the automobile industry, with particular relevance to the North East of England, as we will

discuss.

The Toyota Prius

One of the main advantages of fully electric vehicles is that no emissions are released directly

by the car, presenting great advantages in combating urban pollution, and pollution generally

as the centralised electricity production of power stations can contained and reduced much

more effectively. Where electric vehicles are powered by renewable energy sources such as

solar or wind plants, emissions are almost completely eliminated.

The lithium-ion batteries developed over the

last few decades have enabled much more

efficient and lightweight electric vehicle

batteries. Nissan plans utilise the lithium-

ion battery in the Nissan LEAF to be

launched in 2010. It will be the first

completely electric zero emission vehicle

accessible to the mass consumer market, with a range of up to 100 miles and a ‘quick

recharge’ capability where the battery can be charged to 80% of capacity within 30 minutes.

With a top speed of around 90mph, it is calculated that the Nissan LEAF will be suitable for

around 70% of all journeys made in the UK. The company said that pricing would be

announced closer to the car's full launch in late 2010, but insisted that it would be

"competitively priced" against cars of a similar size, meaning that it is likely to cost between

£10,000 and £15,000.

The North East of England

The Nissan LEAF, proposed for launch in 2010

In July 2009, it was announced that the

first Low-Carbon Economic Area

(LCEA) for Ultra Low-Carbon

Vehicles will be located in North East

England [7,8,9]. The Tyne & Wear

urban area will form the core of the

LCEA whilst the North East generally

will form second ‘tier’ of the wider

LCEA. The objective is to establish

the region into a low-carbon economy

by developing renewable energy

[Figure 2], intelligent networks and

design, with low-carbon vehicles

forming a key part of the overall

project [10,11,12,13]. The

government is also determined to

ensure that energy management is integrated with extensive digital networks, providing

significant opportunities for the software sector as well as many others who will become

involved in new supply chains [14]

"The North East has distinguished itself as the first specialised region for ultra-low carbon vehicles. This is good

news not just for the North East, but for the whole of the UK, helping to attract foreign investment and securing

UK's place as a global leader in high-tech manufacturing and automotive industries. The collaboration between

local businesses, universities and colleges will create a hub of expertise to boost innovation and accelerate

business growth in this important area of 'green' industry." [15]

UK Business Secretary Peter Mandelson

Through a range of initiatives and partnerships, it is envisaged that the North East of England

will become the national centre and a leading global region for electric low-carbon vehicles

in the UK. There is a great deal of work ahead, not least work to encourage take-up of

electric vehicles, but it is hoped that a range of initiatives will form a sound base for the

North East’s low carbon ambitions. The following section of the report will explore key

organisations involved, and initiatives they are involved in.

Figure 2: The North East Low Carbon Economic Area (LCEA)[7]

Nissan and One North East

In December 2009, the regional

development agency One North East

signed a definitive agreement with

Nissan setting out a roadmap for the

development of the low carbon

transport and infrastructure in the

North East. The agreement will ensure

attractive government incentives for

consumers and businesses who use

electric vehicles, including 619 free

charging points around the region, offering free recharging for electric vehicles potentially

until 2012 or until a working payment system is established. Education and demonstration

programmes will also be developed over the next two years, in order to increase awareness

and enthusiasm for electric vehicles [16].

As part of the Low Carbon Economic Area, the government intends to establish a new

training centre specialising in low carbon automotive technologies, a technology park and an

open access test track for low carbon vehicles [ 17]. Nissan is also investing more than

£200m in building an electric car battery factory at its existing Sunderland plant, which will

produce 60,000 lithium-ion batteries each year, creating up to 350 jobs [18].

Smiths Electric Vehicles (Part of the Tanfield Group)

Nissan / One North East agreement, December 2009

Smiths Electric Vehicles, based in

Washington Tyne & Wear, are the

world’s largest manufacturer of road-

going commercial electric vehicles.

They have embarked on a number of

partnerships to supply electric vehicles

to industry, including major

supermarkets (e.g. Sainsbury’s runs the

world’s largest electric van fleet,

provided by Smiths) Royal mail and

other delivery and haulage companies, as well as to councils and local authorities. Smiths are

also a leader in electric vehicle maintenance with 20 depots and 150 mobile engineers

nationwide.

AVID Vehicles Ltd. (Advanced Vehicle Innovation and Development)

Avid Vehicles Ltd are an engineering company based in Cramlington, who manufacture

electric and hybrid vehicles as well as providing low emissions conversions of existing

vehicles. The AVID Engineering Centre has the capacity to produce small production runs of

from 1 up to 1000 vehicles.

Tech/Ops Sevcon

Tech/Ops Sevcon is a manufacturer of high quality motor controllers and system components

(microprocessors, etc) for battery powered vehicles. Its headquarters are in Gateshead and

the company is a world leader in the industry with 50 years experience.

Sainsburys’ electric fleet is provided by Smiths

Cenex

Cenex is the UK’s first centre of excellent for low carbon and fuel cell technologies,

supported by the Department for Business Innovation and Skills to promote development and

competitiveness in low carbon and fuel cell technologies in transport applications.

The key objectives of Cenex are to:

To map current and emerging technologies in the low carbon and fuel cell markets

and identify and communicate those which may influence the future direction of the

industry

To mobilise or otherwise construct an effective UK supply chain by coordinating the

activities of academia, component suppliers, assemblers, vehicle manufacturers and

other intermediaries

To be a flagship organisation for the promotion of UK activities on low carbon and

fuel cell technologies and to act as the focus for projects requiring international

cooperation

To influence the creation and deployment of fleet-scale demonstrators in the UK

passenger vehicle, public transport and commercial vehicle sectors

To facilitate affordable market entry strategies for low carbon and fuel cell

technologies by direct intervention with public and private sector procurement

bodies.

Romag

Romag is a glass Manufacturer based in

Leadgate, Co. Durham who are currently

piloting photovoltaic (solar power) charging

canopies that could be positioned over any

parking space, to generate electricity from the

sun.

Photovoltaic glass canopies can generate electricity

Technological Maturity

It is important to understand the stages of development where the most effective involvement

can be orchestrated by various stakeholders in the electric vehicle industry. With investments

secured from investors such as One North East and Government as well as private investment

funds, the low-carbon economy in the North East is making vital steps towards technological

maturity. Academic and research institutions like universities and the Software Hatchery

should be involved in the research, development and demonstration stages of the

technological cycle. Partnerships with business and investors are useful in providing

commercial focus and credibility to academic involvement.

The EU Initiative

The European Union president, in discussion with a number of large car manufacturers, has announced the need for a pan-European strategy to produce a viable electric car, in order to help the EU take the lead in developing electric vehicles and infrastructure. There are particular ICT investments to be made by the EU In the following areas:

Battery management and power supply Control mechanisms Interconnections with the transport and power infrastructures. Reduction of taxes for lower emission cars and for scrapping old cars Procurement network of regional and local authorities to pool demand for clean buses

Practicalities of the North East Low Carbon Emissions Area

The above diagram [Figure 3], devised by the consultancy Future Transport Systems [15],

shows the location of the proposed electric vehicle hub in Newcastle, with different radiuses

indicating the locations where outlying charging points would be most effective. The

locations of charging points are determined by a range of factors such as road type, journey

type and popular commuting routes, which would need to be constantly monitored and

regulated by software systems. The diagram emphasises how electric vehicles would be

viable for transport within the North East region given a properly devised charging

infrastructure.

Figure 3: Strategic Electric Vehicle Infrastructure planning map for the North East.(supplied by Future Transport Systems)[15]

Futures Study

Drivers of Change

The purpose of a futures study is to envisage potential future scenarios, so that the most

effective responses can be developed for each scenario, reducing uncertainty [19,20,21]. This

kind of study takes into account the main factors that drive change in the industry, and end

result is that organisations are more equipped to respond quickly and effectively in uncertain

conditions.

The first stage in developing future scenarios is to identify two main drivers that will impact

upon the industry we are working in. For businesses working with the low-emission

transport sector, the perception of low emission transport is a major factor. Perception will

determine how many people and organisations are operating electric vehicles, the extent to

which these people and organisations are linked up and operating in synergy.

For the ‘perception of low emission transport’ driver, two possible extreme situations are

defined – namely ‘niche’, where interest in the sector remains fairly low and so investment is

limited to small schemes, and ‘accessible’ where the general public take an active interest and

there is a wide involvement in the sector.

The second driver of change identified for the low-emission transport sector is Technology

and Renewable Energy. The current status of technology and renewable energy at any time

is very influential upon those working within the sector, so it forms the basis of the second set

of extreme circumstances. The first is ‘fast changing’, where the government shows a lot of

commitment to renewable energy and technology development, enforcing CO2 targets

enabling a great deal of public and private activity in technology and energy advancement.

The opposite end of this spectrum is ‘complacency’ where CO2 targets become less

important, perhaps due to new priorities or cost issues. In this extreme, there is a lack of

research and development, with efforts to make existing technology more efficient rather than

replace it. In this extreme we may find that nuclear power becomes a prominent source of

energy and the internal combustion engine is still used in most new cars.

Scenario generation

By combining the two drivers with their extremes at each end, we form four segments, each

representing a different potential future scenario we may find ourselves operating within. By

understanding the conditions in each of the four scenarios, we can think about the best

responses and how to succeed in this scenario. The four segments are described in the

following diagram:

The top left scenario is titled slow growth and perhaps best represents the low emission

transport scenario that we have in the present day. It is marked by a commitment to

technology and new forms of energy, but within a small, but expanding industrial sector.

Key considerations for software enterprise in this scenario are:

Partnerships with established organisations in the low-carbon sector

Pool resources with other research and enterprise entities to save costs

Widespread but dispersed and unconnected – need to develop connecting networks

through software, involving different regions

The top right scenario is labelled small players and represents the lowest level of expansion

in the sector. There is limited investment from the public sector, and a lack of activity in the

private sector. In this scenario efforts are needed to expand awareness and enthusiasm of the

low carbon economy:

Development of software to promote the electric vehicle take-up, rather than to

support existing initiatives

Efforts needed to seek out opportunities from small private sector players and the

limited government initiatives

Need for innovative thinking that could help propel the industry into another scenario

The bottom right scenario is named efficiency and describes a situation where low emission

transport is widespread, accessible and affordable, but where great efforts are not being taken

to develop the technological and renewable energy infrastructure. The following issues will

be prominent:

Concentrating on fossil fuels and nuclear power and making these more efficient

through software innovation

Refinement and cost saving measures in current technologies

City-specific infrastructures with a need to connect various regions

The final quadrant is termed mainstream, the most dynamic scenario, where joined-up

thinking, consumer enthusiasm and investment in technology has created a fast-moving

scenario with the low-carbon economy becoming a significant part of the wider economy.

This scenario will be marked by the following:

Large scale nationwide networks

Need to keep up to date with advancements through involvement with small and large

organisations in the sector

Engagement between a wide range of businesses and the low emission sector,

necessitating a variety of software solutions for a wide range of applications

Opportunities and Routes Forward

Explore ergonomic, human factors, interfaces and operating systems of electric

vehicles and associated infrastructure

Innovative approaches to vehicle charging and charge monitoring

Remote monitoring or control of electronic vehicles (i.e. from mobile phone or

home computer) with notification systems

Useful ways to collect and utilise information such as usage rates, mileage

covered, geographical spread, etc

Need to Bring Together…

Policy makers

Manufacturers

Electricity generators and distributors

Technology specialists

Research establishments

Urban designers

Transport planners

The wider economy (especially fleet operators)

The general public

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