Like anything else, trends move through the car industry, catapulting one make and model to the top of the list, only to replace it with the next best thing. However, the fascination with electric cars appears to be more than just a fad. Since 2008, when the electric car market first took off, the list of electric cars available for purchase has grown to a couple dozen different options. The Nissan Leaf and Chevy Volt are two of the most popular battery powered cars or electric vehicles (EV). It’s truly a global phenomenon as electric vehicles that can double as emergency power sources were the highlight of the recent Tokyo auto show.
For instance, the Chevy Volt is a plug-in range-extended electric vehicle with an on-board gasoline generator and 16kW battery. The electric motor directly propels the car and the battery can power the car for the first 25 to 50 miles. After that, the on-board gasoline generator provides electricity for the motor. Solar panel roofs also have been discussed as possible options on the vehicle in the future.
Sumitomo Electric Industries, Japan’s largest producer of wire and cable with more than 200 subsidiaries and affiliates worldwide, says it soon will be able to triple EV batteries’ range. It’s working on a new line of aluminum celmet batteries, a metal material that is very porous and can be processed easily into various shapes and for multiple applications.
The hype spreads
Clearly, the new interest in EVs has produced a ripple effect. Now that car manufacturers are hot on batteries, the demand for battery charging stations also has surged. This industry holds great opportunity. At the start of 2011, there were around 500 electric vehicle charging stations in the U.S. By the end of 2012, that number is expected grow to about 20,000. For instance, when visiting Toyota’s website for Prius, there is a map to check locations for Prius plug-in availability.
A study by Deloitte titled, “A New Era—Accelerating toward 2020, An Automotive Industry Transformed” claimed that by 2020, EVs, together with other “green” cars will account for one-third of the total of global car sales. It’s important to note that such estimations do vary greatly. As reported in The Wall Street Journal in October 2011, J.D. Power & Associates expects all-electric vehicles will account for less than 1 percent of U.S. auto sales in 2018. When hybrids are added to the equation, the J.D. Power market share forecast goes up to 8 percent. However, Nissan Motor Co. expects the future to bring bigger numbers, expecting pure EV sales will comprise 10 percent of all global vehicles sales by 2010.
Case study: Newington Electric
Formed in 1958, Newington Electric Company in Newington, Conn., USA, provides conventional electrical services for consumers. Now, more than half a century later, the company continues to thrive. However, the increased interest in EVs sparked an idea that would help grow the company, while also meeting the evolving needs of their customers. In 2011, Newington Electric officially launched Connecticut Electric Car, a division dedicated to the installation of car-charging stations, both commercial and residential.
Within a matter of a few months, Connecticut Electric Car became a statewide leader in providing licensed and registered installation of car-charging stations. General Electric named the company an authorized installer of electric car generators.
One of their first big clients was an upscale shopping area in West Hartford, Conn., USA, called Blue Back Square. It is a retail center with two parking garages, in addition to street parking. Connecticut Electric Car installed two car-charging stations in one of the center’s parking garages.
“The need for such amenities was clear based on the feedback we were hearing from the people who shop and eat in our retail center,” said Barbara Lerner, Blue Back Square marketing manager. “Increasingly, people are turning to energy-efficient alternatives for their transportation and we realized if we want to attract consumers, we need to stay current as well without facilities.”
Another enticing perk of Blue Back Square’s charging stations is that patrons who use the paid parking garages where the chargers are located do not pay an extra fee to charge. For instance, in Burbank, Calif., USA, 11 new EV charging stations debuted in late November 2011. For the six months after installation, motorists will be permitted to plug in for free. However, the Burbank City Council passed a measure instituting a US$2 per hour charging fee effective July 1, 2012.
Connecticut Electric Car continues to seek out business partners including retail, medical, business and municipal clients and property management companies. The benefits of a professional car-charging station are tremendous as it only takes a car battery a few hours to charge to full capacity where it could take as long as two days with a residential plug-in system.
To charge an electric car, the owner simply drives up to the charging station and plugs in the EV. Beyond convenience there are also tremendous government tax advantages available for individuals and businesses that purchase electric cars.
Connecticut Electric Car also has seen a big jump in requests for residential units. The average price for installation, including the cost of the unit, runs about US$1,200, an amount well worth the convenience factor.
The reason for the growing interest in EVs appears to be twofold: desire to invest in a more fuel-efficient and cost-effective vehicle, and concern for the environment.
For instance, Chevy says it costs about US$1.50 a day to charge its EV, the Volt. The Chevy Web page states, “For less than the cost of a latte, you can fully charge your Volt and drive an EPA—estimated 35 miles gas free.” The Toyota Prius hybrid is said to get up to 38 percent fuel savings compared to its gasoline counterparts.
Experts also say the carbon dioxide output of an EV is dramatically less than a conventional internal combustion automobile. Ultimately, that leads to significant reduction of urban air pollution. One website, evsroll.com, broke it down like this: the fuel reduction for 2 million Prius cars is equal to around to 8.5 million barrels of oil per year. To put the savings in perspective, the U.S. uses around 9 million barrels of gasoline per day. From an air quality point of view, the reduced CO2 from 2 million Prius vehicles adds up to about 4 million tons per year.
The U.S. Department of Energy Efficiency and Renewable Energy website, fueleconomy.gov, lists the following benefits of owning an EV:
- Energy efficient: Electric motors convert 75 percent of the chemical energy from the batteries to power the wheels—internal combustion engines (ICEs) only convert 20 percent of the energy stored in gasoline.
- Environmentally friendly: EVs emit no tailpipe pollutants, although the power plant producing the electricity may emit them. Electricity from nuclear-, hydro-, solar- or wind-powered plants causes no air pollutants.
- Performance benefits: Electric motors provide quiet, smooth operation and stronger acceleration and require less maintenance than ICEs.
- Reduce energy dependence: Electricity is a domestic energy source.
Most EVs only can go about 100 to 200 miles before recharging, which is why the demand is so great for an increased access to charging stations.
When working with an evolving technology such as EV, education is a critical component in the process. Both professional installers of charging units and consumers should be kept abreast of the latest information concerning EVs.
EVs are doing much more than offering consumers new options for automobiles. This is also an exciting opportunity for those in the energy industry to grow their business, and Newington Electric Company is just one example of how even older companies can adapt and compete in a cutting-edge world. FMJ
