The Toyota Prius Plug-in Hybrid Electric Vehicle To Debut At The 2011 Frankfurt Motor Show

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Majority of Consumers Ready to Consider Buying Plug-in Electric Vehicles, But Challenge Utilities with their Car ...

The majority of consumers would consider buying a plug-in electric vehicle (PEV) for their next car purchase, according to a global study by Accenture (NYSE:ACN). But an accompanying report concludes that consumer preferences for charging PEVs could increase the cost and complexity of managing the electricity grid and charging infrastructure.

?Plug-in electric vehicles: changing perceptions, hedging bets?, a study of over 7000 people in 13 countries, found that 60 percent of consumers would consider buying a PEV for their next car purchase. 68 percent would probably or certainly do so within the next three years (23 percent certainly, 45 percent probably). Respondents in China are by far the most enthusiastic, 96 percent of them probably or certainly considering a purchase in the next three years.

Consumers? preferences for charging PEVs, however, could challenge utilities and charging service providers by increasing grid congestion and peak time electricity demand.

Two thirds (67 percent) of consumers are not willing to let charge point operators limit when they can charge their PEV. A further 20 percent would only accept limits if they fell within time periods they had chosen. This would reduce the scope to manage electricity demand and avoid grid congestion. 62 percent would reject battery swapping, where empty batteries are quickly replaced at service stations for fully charged ones, preferring to plug in their car to recharge the battery. This could limit the opportunity for charging off peak, when battery swapping companies would most likely refuel batteries. 55 percent would only plug in their PEV when they need to charge up, rather than whenever they park. This behavior could result in less predictable charging patterns and could reduce the demand for public charging infrastructure.

Consumers would also need more supportive charging infrastructure in order to adopt fully electric PEVs. Only 29 percent of car drivers would buy fully electric PEVs. 71 percent would prefer plug-in hybrid EVs (PHEVs), which run on gasoline / diesel once the battery runs low. 85 percent say fully electric PEVs have insufficient battery range to cover their daily driving needs. But 83 percent cite the insufficient availability of charging points and 70 percent think charging times for full plug-in EVs are too long.

"As drivers get behind the wheel, they may become more open to fully electric vehicles and battery swapping services. But denser charging networks and fast charging units will be required if utilities want to drive up demand for all plug-in electric vehicles,? said Matias Alonso, global managing director, Utilities, Accenture. "The uncertain demand for plug-in electric vehicles and their impact on the grid means that energy providers must choose between running the risk of network overload and the need for large infrastructure investment, or early deployment of smart technologies that proactively manage local electricity demand and supply.?

Cost not the only factor of adoption

The fuel source of electricity is important to car drivers. 80 percent would want to know the source of the electricity used to charge their car. 45 percent say that the fuel source would have an impact on their decision to buy a PEV. Of these, 85 percent would be encouraged to buy a PEV if the fuel source was renewable. Nuclear and fossil fuel generated electricity would discourage 48 and 51 percent respectively from buying a PEV.

The cost of PEVs is not currently the only key factor of adoption. 51 percent of consumers would be motivated to buy a PEV for their next purchase if the total running cost was lower than for a conventional vehicle. More important, however, would be the availability of charging points (63 percent) and the battery range being equal to a full tank of a conventional car (53 percent).

When asked what incentives would encourage them to switch to a PEV, 65 percent of respondents cite free parking, 44 percent point to toll discounts and 43 percent to the availability of priority lanes as potential incentives.

"The cost of buying and running plug-in electric vehicles will be a major factor determining take up, but city authorities and energy providers will have to motivate drivers in non-financial ways if they are to push up adoption,? said Matias Alonso. "Stimulating demand for plug-in electric vehicles at the lowest possible cost to investors and taxpayers will require the public and private sectors to segment the market and offer a range of non financial incentives. For instance, young urban drivers may be attracted by the availability of parking concessions and the guarantee of renewable fuel sources.?

Competition for charging services

Utilities may face strong competition in the charging services market. When asked who they would prefer to buy charging services from, 79 percent put utilities in their top three choices. 71 percent listed gas/ diesel service stations in their top three. Retailers and local governments fare less well on 51 and 48 percent respectively. The vast majority of car drivers would want to pay as they charge, as they do for fuel today, requiring utilities to consider changes to their revenue and billing systems if they are to service the market.

Recommendations for energy utilities

1) Reach consumers through commercial alliances with automotive distributors: this will help monitor local demand for PEVs and their impact on infrastructure. It will also give them advantaged access to new customers as they purchase PEVs.

2) Optimize infrastructure through collaboration with distribution network operators (DNOs): This includes investing in smart charging to automate charging at times and speeds optimal to the grid and generation capacity. Utilities should also use analytics to exploit consumer usage to better determine patterns of demand and supply.

3) Engage consumers through market segmentation: Target customer groups with different offers to increase margins as adoption rises. Utilities should also ensure the focus of PEV pilots covers the customer experience as well as technology issues.

Click here to download the report and find further details of the survey findings and recommendations for infrastructure players, gasoline / diesel retailers, service providers, metropolitan authorities and regulators.

About Accenture

Accenture is a global management consulting, technology services and outsourcing company, with more than 215,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world?s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.6?billion for the fiscal year ended Aug. 31, 2010. Its home page is www.accenture.com.

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Ameren plugs their plug-in car; what are the pros and cons of going electric?

If Ameren Illinois wasn't making such a fuss about it, its i MiEV (Mitsubushi innovative Electric Vehicle) might have caught observers by surprise when it rolled up Wednesday at the Ameren Illinois Operating Center in Belleville.

Except for a little tire noise, the vehicle is exceptionally quiet, said Eric Kozak, managing supervisor of the Ameren Illinois fleet.

The i MiEV is a battery-electric vehicle that can travel about 80 miles on a full charge. Ameren Illinois is taking the car around its service area for the next two weeks to show it off.

"We can show our employees and customers what an electric vehicle looks like and discuss the advantages and disadvantages, he said.

Its advantages are that it is quiet, cheap to operate and it can be plugged into an ordinary 110-volt electrical outlet to recharge, he said. Disadvantages include the need to charge it frequently, limited range and high initial price.

Kozak said to charge the car fully for its 80-mile range takes about $2 of electricity. To drive that 80 miles in a normal car at an average of 20 miles per gallon of gasoline at the current price of $3.69 per gallon would be $14.76.

It takes about eight hours to fully charge. For an additional cost, a 220-volt plug is available that will let the car charge a little faster.

"So it is economical," he said. "The initial upfront cost is what is holding it back."

Kozak said Mitsubishi is estimating a $30,000 base price for the car, but it would come with a $7,500 government tax credit. It will be available in 2012.

Kozak said the car has been tested in various outlets at the company and also at employees' homes, and not once has the car failed to charge.

He said that except for the lack of engine noise, the car drives like a normal small car. It has a regenerative braking system that puts a small amount of energy back into the battery when the car is slowing down.

However, alternators have not yet been developed that can recharge the large battery packs while an electric car is in motion.

"Running the heater or air conditioner will reduce the estimated mileage range," he said. "I could see that on the indicator this morning when I turned on the defroster. It dropped, but it came back up when I turned off the defroster."

Kozak said Ameren Illinois customers already are asking questions. Are there going to be charging stations? What do I need to have in my garage?

"We do ask them to contact us when they buy a plug-in car," he said. "If three or four neighbors have the cars, we may need to upgrade the transformers outside. There is no charge for any service up to the electric meter on the house."

He said most people won't need to modify their outlets or do any work inside their houses to accommodate the cars.

Ameren Illinois is in discussions with various groups about charging stations and other issues, such as alternative rates related to the electric cars.

To ask questions or make comments, e-mail the company at corpcomm@ameren.com.

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