1.1. Global EV Context
1.2. The Australian Context
1.3. Australia and Electric Vehicles
1.4. The Role of Local Government in Australia
1.5. The Challenge
2. Literature Review
2.1. The Australian Case
2.2. The Role of Government
2.3. Business Models
2.4. The Case Study
3.1. Overall Methodology
3.2. Business Model Characteristics and Design Possibilities
- Business model decisions from the morphological boxes on infrastructure and system services were combined into a single box.
- The design possibilities were re-arranged in a different order to structure this around three key questions the Council had regarding their business models.
- Some design possibilities were added or amended to be more relevant for a local council and the business model design decisions they were contemplating.
- Accessibility, ownership, and operation (blue box).
- Grid interaction, data, and control (red box).
- Finance and transactions (green box).
3.2.1. Accessibility, Ownership, and Operation
3.2.2. Grid Interaction, Data, and Control
- The type of connection can be “unidirectional” (delivers power in one direction) or “bidirectional” (transmits electricity in both directions), necessary to access services such as load-shifting or back-feeding electricity into the grid.
- The information and communication could be unidirectional, where control is based on grid or vehicle data, or bidirectional, which allows both grid and vehicle to be integrated into controlling the charging process.
- Information can be processed in different time intervals from day-ahead planning to a real-time connection, allowing an immediate modification of the charging profile.
- Indirect control of charging processes can be via a price signal while direct control allows switching signals to be sent to the battery in the vehicle. In practice, a combination of both could be used.
3.2.3. Finance and Transaction
- Retail operators: This may include shopping centres, hotels, service stations, car manufactures/dealers, etc.
- Energy utilities: In the Australian context, the energy utility can be either energy retailers or distribution network service providers.
- Third parties: These may include independent charging station providers, charging infrastructure manufactures, or other interested parties.
3.3. Defining the Business Model Options
3.3.1. Business Model Type Classification
- Public access—where the charging station is available to all to use. These are typically offered to the general public to use by councils, motoring organisations, and energy utilities. The cost to the customer varies from being free, to pay per use, subscription/membership fees, or a combination of them. Subtypes were classified as:
- Third party-owned.
- Energy utility-owned.
- Semi-public access—where the use of the charging station is restricted to a set of users. For example, the service is offered to members of a particular EV charging network, owners of certain brands of vehicles, guests visiting certain hotels, or customers visiting certain businesses. From the end customer perspective, these services may be provided for free or different charge models might be offered. Subtypes were classified as:
- Guest and visitor servicing.
- Business self-funded.
3.3.2. Business Model Options and Prioritisation
- For the “Customer”: This is the end customer. In the case of this model, it is the person(s) with the EV who is looking to get it charged.
- For the “Council”: In this case (self-managed model), the Council is the charge point operator.
- The Self-Managed EV Charging Business Model.
- The Third-Party EV Charging Business Model.
Data Availability Statement
Conflicts of Interest
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|Country||Population (Million) a||Landmass (sq. km) a||Population Density (People Per sq. km)||GDP (Millions of US Dollars) a||Vehicle Fleet (Registered Motor Vehicles) (Millions)||EV Vehicle Fleet (Plug-in)||No. of Public Chargers|
|New Zealand g||4.9||263,310||19||206,929||3.5||5108||613|
|United Kingdom g||66.8||241,930||276||2,827,113||37.7||242,200||18,265|
|Type of EV Support Mechanism||Description|
|Australian Government||Factsheet on strategy (2019).|
Future Fuels Strategy discussion paper (2021).
|None||Consultation on strategy for enabling private sector deployment of low emission road transport technologies.|
|Australian Capital Territory (ACT)||Yes (2018)||Stamp duty waiver on new vehicles.|
Discounted vehicle registration.
|New vehicle purchases pay nothing for stamp duty for the first 2 years followed by an ongoing 20% discount.|
They also receive an extra $200 discount on registration.
|Queensland (QLD)||Yes (2017)||Reduced stamp duty for EVs and hybrids.||Reduced stamp duty ($2 per $100 up to $100,000 and $4 per $100 thereafter).|
|New South Wales (NSW)||Yes (2019)||Reduced motor vehicle tax (all fuel-efficient vehicles).||For all vehicles with CO2 emissions <150 g/km.|
|South Australia (SA)||Yes (2020)||None||Support for smart charging demonstrations.|
|Northern Territory (NT)||In consultation (2019)||None||-|
|Western Australia (WA)||Yes (2020)||None||$20 million in support for an EV charging network.|
|Victoria (VIC)||Yes (2021)||Discounted vehicle registration.|
Reduced stamp duty rate, Subsidy.
|$100 annual discount on vehicle registration.|
EVs exempt from “luxury vehicle” rate of stamp duty (pay a flat rate of $8.40 per $200 of market value, rather than up to $18 as per non-electric vehicles),
Twenty-thousand subsidies of up to $3000 for new EV purchases under $69,000.
|Local Government (a selection)|
|City of Adelaide||No||Sustainability incentives for rebates on EV charging stations.||Up to 50% (up to a maximum of $10,000 for advanced systems capable of demand management) for EV charging stations.|
|City of Sydney||No||Discounted parking permits.||For vehicles with emissions less than 112 CO2 g/km, an annual parking permit costs $41, which increases to $159 for CO2 emissions >260 g/km.|
|Lake Macquarie City Council||Yes (2020)||None||-|
|Business Model Subtype||Government-Owned||Third-Party Owned||Utility Owned|
|Example||City of Amsterdam||City of Adelaide||NRMA||Californian Energy Utilities|
|Type of Organisation||Local council||Local council||Automobile association||Energy utilities (various)|
|Summary||Public-owned, public access charging points provided within a locally governed area for a charge (initially free).||Public-owned, public access charging points provided within a locally governed area for a charge.||Private owned, public access charging points provided for free to all (non-members charged in future) on major highways and popular travel destinations.||Private owned, public access charging points provided by an energy retailer for a charge.|
|Charge Point Operator||City of Amsterdam, Energy companies||Chargefox||NRMA||Varies (third-party operators, utility operated)|
|Value Proposition for Owner/Operator||Increase visits by EV owner market segment, improve local air quality, provide EV infrastructure to residents.||Demonstrate that sustainability is a commercial opportunity for the council, position Adelaide as a hub for EVs, ensure access for visitors, create investment opportunities, support the local economy, and benefit the community.||Reduce motoring costs, increase consumer choice, (eventually) increase membership through the offering of free charging.||Increase electricity sales, gain new customers, bundle with new service offerings, demonstrate social responsibility.|
|Access||Open access but requires a pass card.||Open access but you must also pay for the parking. Pay with a credit card.||Open access||Open access|
|Cost to Customer||Pay per use model (standard parking charges still apply for both on-street and off-street parking).||Currently, free for all (eventually, non-members will pay per use).||Pay per use model (time of use discounts in some cases to encourage off-peak charging).|
|Value Add 1|
|Cons||Lots of risks reside with the council (finance, own and operation).||Relies on initial funding.||May find it difficult to scale up to the national level to benefit all members.|
|Business Model Subtype||Membership-Based Charging Stations||Guest and Visitor Servicing||Business Self-Funded|
|Example||Tesla||eChargeWork||Go-To-U Charging Network|
|Type of organisation||Automobile manufacturer||Chargepoint Operator||Businesses (various)|
|Summary||Self-funded, privately owned charging points with a mix of semi-public (Destination Charging) and restricted access (Tesla Superchargers for Tesla owners) provided for a charge.||Third-party funded, private owned, restricted (semi-public) access charging points provided for a charge to guests, customers, and visitors.||Self-funded, private owned, restricted access charging points provided for free to guests, customers, and visitors.|
|Charge Point Operator||Tesla||eChargeWork||Business owners|
|Value proposition for owner/operator||The world’s fastest charging network and the most access to charging stations of all EV owners.||Early access to the EV owner customer segment.|
|Access||Access for guests, customers, and visitors.|
|Cost to customer||Pay per use (€20 per charging session).||Free|
|Cons||Takes on a lot of the risks but slowly transferring these back to hosts and customers.||Revenue for the business may not be enough to compensate if paid parking.Competing with Tesla’s Destination Charging proposition.||Much of the risk resides with the business for own, install, operate.|
Host business must pay for the additional service for customers and tricky to balance cost vs. reward (increased patronage).
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