Ie 393 final report ev charging evanston-STUDENT GENERATED
1. Northwestern
University
IEMS
393
Feasibility
Study
for
Electric
Vehicle
Charging
Stations
in
Evanston,
Illinois
Ximena
Arias,
Carolina
Pardo,
Harsha
Patel,
Stefano
Pianura,
Santiago
Valdez
June
2,
2011
2. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
Table
of
Contents
INTRODUCTION
3
EXECUTIVE
SUMMARY
4
STAGE
1:
EARLY
IMPLEMENTATION
5
VENDOR
AND
TECHNOLOGY
5
RECOMMENDED
VENDOR
AND
TECHNOLOGY
5
PRICING
STRATEGY
5
KEY
FINANCIAL
CONSIDERATIONS
6
PROMOTIONAL
STRATEGY
7
LOGISTICS:
QUEUING
MODEL
8
STAGE
2:
SCALABLE
GROWTH
10
NEW
TECHNOLOGIES
10
PRICING
STRATEGY
10
NEW
PLACES
TO
EXPAND
11
METRICS
FOR
HOW
TO
EXPAND
12
STAGE
3:
FUTURE
POSSIBILITIES
13
EXPANSION
13
NEW
TECHNOLOGY
13
LEASING
TO
PRIVATE
COMPANIES
13
ASSESSING
THE
STATE
OF
THE
GRID
13
RISKS
13
APPENDICES
15
A.
RESEARCH
15
B.
ANALYSIS
19
B.1
PRICING
AND
FINANCIAL
ANALYSIS
19
B.2
DEMAND
GROWTH
31
B.3
QUEUING
MODEL
33
2
3. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
Introduction
The
following
report
contains
a
compilation
of
our
recommendations
for
the
City
of
Evanston’s
Electric
Vehicle
Charging
Station
implementations.
Throughout
the
course
of
our
work
with
the
CoE’s
Sustainability
Office
we
enjoyed
learning
about
the
project
and
exploring
its
potential
for
success
and
growth.
The
high
level
of
foresight
and
initiative
the
CoE
has
taken
with
regards
to
Electric
Vehicles
has
greatly
impressed
our
team.
Our
hope
is
that
these
recommendations
and
deliverables
will
facilitate
this
growth
and
foresight,
helping
translate
ideas
into
action
in
the
near
future.
With
this
goal
in
mind
we
have
structured
our
report
and
deliverables
to
aid
and
inform
CoE’s
decisions,
with
an
emphasis
on
practical
planning
and
analysis.
More
detailed
quantitative
and
academic
research
is
provided
as
a
supplement
to
the
more
practical,
user-‐centered
portions
of
the
report.
Report
Structure
We
have
divided
this
report
into
three
sections,
corresponding
to
three
stages
of
implementation
for
EV
charging
station
implementation.
An
appendix
supplements
the
report
with
further
detail
on
analysis
and
research,
as
well
as
suggestions
for
further
exploration.
3
4. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
Executive
Summary
Stage
1:
Early
Implementation
Goal
Encourage
EV
technology
adoption
and
brand
Evanston
as
a
green
and
forward-‐looking
city.
Installation
Purchase
two
dual
level
(Level
1&2)
Coulomb
Technologies
Charging
Stations
through
Carbon
Day
vendor
Why?
-‐ Ownership
of
the
stations
allows
control
over
pricing
decisions
-‐ Two
stations
will
meet
at
least
97%
of
demand
up
to
five
charges
per
day
on
average
Location
1800
St.
Maple
Parking
Garage
Why?
-‐ Maple
Garage’s
internal
wiring
allows
a
lower
cost
installation
-‐ Less
disruption
of
existing
traffic
flow
-‐ More
exposure
and
visibility
to
Evanston
Community
Publicity
• Offer
free
charging
until
competitors
start
applying
a
fee
for
charging
EVs
• Invest
in
signs
and
publicity
• Partner
with
iGo
and
local
businesses
Why?
-‐ Ensure
visitors
to
the
garage
know
there
is
an
EV
charging
station
available,
and
are
able
to
find
it
-‐ Spread
the
word
to
the
broader
community
that
Evanston
is
an
early
adopter
of
this
technology
Financial
• The
estimated
cost
for
purchase
and
installation
of
two
stations
is
$13,500.
Considerations
• We
recommend
enforcing
two
types
of
parking
violation
tickets:
• $30
for
overtime
parking
• $200
for
illegal
parking
• Estimated
revenue
from
parking
tickets
will
cover
electrical
and
other
operating
costs.
• In
this
stage
the
stations
are
not
profitable,
and
instead
act
as
a
promoter
of
growth
and
an
investment
Stage
2:
Scalable
Growth
Goal
Make
the
appropriate
expansion
and
pricing
decisions
based
on
a
monitored
level
of
demand
Expansion
Monitor
demand,
use
provided
metrics
to
respond.
Expand
into
Sherman
Plaza
Garage
Strategy
Why?
To
avoid
turning
away
more
than
3%
of
potential
chargers,
we
provide
indicators
that
Evanston
can
use
to
determine
when
to
purchase
an
additional
charging
station
Pricing
Strategy
Refer
to
our
pricing
guide
to
learn
how
applying
different
fees
per
hour
of
charging
will
affect
financial
estimates
and
payback
periods
Maintain
Watch
for
technology
adaptation.
For
example,
the
state
of
the
technology
of
DC
Fast
Charging
stations
as
Flexibility
plausible
solutions
for
installation
on
strategic
curbside
parking
spots
Stage
3:
Future
Possibilities
Goal
Plan
for
long-‐term
risks,
challenges,
and
opportunities.
Take
advantage
of
emerging
technologies.
Expansion
• Consider
expanding
to
outside
street
parking
Possibilities
• Implementing
solar
charging
stations
or
other
renewable
energy
sources
• Giving
charging
station
concessions
to
private
companies
• Asses
the
state
of
the
grid
Pricing
Strategy
At
this
stage,
pricing
will
likely
be
dominated
by
market
forces.
Set
prices
to
competitive
levels.
4
5. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
Stage
1:
Early
Implementation
Vendor
and
Technology
Although
we
considered
the
possibility
of
the
City
of
Evanston
leasing
its
parking
spaces
to
a
private
company
in
order
to
decrease
any
expenses
or
risks,
we
ultimately
recommend
that
the
CoE
buy
and
operate
their
own
charging
stations
(See
Appendix
A.1
for
Vendors).
Owning
and
operating
the
EV
charging
stations
will
allow
the
CoE
to
control
charging
rates
and
number
of
stations
without
harming
their
customers.
Recommended
Vendor
and
Technology
Carbon
Day
is
an
Illinois-‐based
company
and
the
biggest
distributor
of
Coulomb
Technology
charging
stations
in
the
Midwest.
Their
technology
uses
ChargePoint®
Network,
which
allows
the
City
of
Evanston
to
closely
monitor
the
charging
station’s
operations
and
tailor
pricing
strategies
with
a
high
degree
of
control.
Coulomb
Technology
offers
the
3
types
of
charging
levels,
allowing
charges
in
an
enclosed
space
(garage):
Level
1,
2,
and
DC
Quick
Charging.
We
recommend
the
City
of
Evanston
to
acquire
charging
stations
that
offer
dual
levels,
level
1
and
2,
allowing
two
cars
to
charge
simultaneously.
(See
Appendix
A.2
for
Technology)
Given
the
early
stage
of
the
project
and
size
of
the
current
market,
we
recommend
avoiding
DC:
Quick
Charging
stations,
given
their
high
upfront
cost
and
installation
expenses,
as
well
as
potential
compatibility
issues
with
existing
EV
cars
on
the
market.
Each
dual
charging
station
has
a
cost
of
$5,000
and
an
approximate
installation
cost
of
$2,500;
costs
are
explained
thoroughly
in
the
upcoming
sections.
Although
charging
time
varies
among
types
of
cars,
a
Level
1
station
charges
a
car
in
approximately
8-‐13
hours
and
uses
120
Volts.
Level
2
charging
stations
require
4-‐8
hours
to
charge
a
car
and
use
208-‐240
Volts.
(See
Appendix
A.3
for
current
cars
in
the
market).
Pricing
Strategy
For
the
initial
stage,
we
recommend
EV
charging
stations
be
free
for
use.
There
are
two
main
reasons
why
we
recommend
adopting
this
strategy.
Firstly,
we
believe
that
charging
a
fee
can
be
counterproductive
to
the
main
goal
for
this
initial
stage:
encouraging
the
adoption
of
EV
technology
and
sending
a
message
of
sustainability
and
social
responsibility.
In
fact,
offering
free
charging
will
be
an
incentive
for
current
EV
drivers
to
park
in
the
garage
or
for
potential
EV
buyers
to
consider
acquiring
an
EV.
Secondly,
due
to
the
small
market
size
for
EVs
and
the
young
stage
of
the
technology,
offering
free
charging
will
not
constitute
a
large
source
of
lost
revenues;
In
fact,
this
is
the
strategy
that
is
currently
adopted
by
the
large
majority
of
EV
charging
stations’
owners
in
the
United
States,
including
those
in
the
Chicago
area.
Because
in
this
initial
stage
the
charging
stations
won’t
generate
revenue
directly,
we
considered
an
alternative
source
of
revenue:
parking
violation
tickets.
Particularly
we
recommend
the
CoE
enforce
the
following
two
types
of
parking
violation
tickets
(please
see
Appendix
B.1
for
more
details
on
the
financial
model):
1.
Overtime
Parking
Tickets:
tickets
given
to
violators
who
fail
to
remove
their
vehicle
after
the
30-‐minute
grace
period
following
the
time
when
the
vehicle
is
fully
charged
(the
EV
driver
will
receive
an
e-‐mail
or
SMS
notification
for
charging
complete)
5
6. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
2. Illegal
Parking
Tickets:
tickets
given
to
violators
who
park
in
the
spots
reserved
for
EV
charging
without
charging
their
vehicles.
Key
Financial
Considerations
The
estimated
cost
for
the
purchase
and
installation
of
two
EV
charging
stations
is
$13,460.
This
amount
includes
a
5-‐year
extended
warranty,
an
annual
network
fee
and
a
30%
federal
tax
credit.
The
cost
of
operating
the
stations
will
depend
on
the
EV
model
and
the
level
of
charging.
An
average
charging
session
lasting
3.4
hours
without
processing
fee
applied
will
cost
$0.99
($0.49
for
electricity
+
$0.5
for
the
vendor’s
authorization
fee)
(see
Appendix
B.1
for
more
details
on
the
financial
model)
We
estimated
that
even
without
applying
a
fee
for
the
use
of
the
charging
stations,
electrical
costs
and
additional
costs
of
operating
the
charging
stations
would
be
fully
covered
by
revenues
generated
from
parking
violation
tickets.
This
is
illustrated
by
the
following
graph
showing
annual
costs
and
revenues
from
operations
based
on
different
levels
of
demand
(see
Appendix
B.1
for
more
details
on
our
financial
analysis
for
the
Free
Charging
Scenario).
6
7. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
Promotional
Strategy
A
crucial
criterion
for
the
success
of
Stage
1
is
the
effectiveness
of
the
promotional
strategy.
First
and
foremost,
people
who
live
or
work
in
the
city
of
Evanston
need
to
be
aware
of
charging
stations
in
the
1800
Maple
Avenue
parking
garage.
There
are
a
few
simple
ways
to
do
this:
1.
A
clear
and
visible
sign
should
be
put
up
on
the
outside
wall
of
the
entrance
of
the
parking
garage.
Further
signs
should
be
installed
inside
to
guide
potential
users
to
the
charging
stations.
Using
white
and
green
colors
could
also
serve
as
a
way
to
show
drivers
that
this
was
a
green
initiative
started
by
the
city.
2.
A
series
of
broadcasted
announcements
on
the
radio
about
the
inauguration
of
the
stations,
with
the
locations
and
rate
of
operation,
would
also
help
alert
Evanston
of
this
development.
3.
An
announcement
or
even
a
brief
article
explaining
the
new
developments
would
also
help
inform
people.
Potential
Partnerships
Another
potentially
valuable
promotional
strategy
is
to
find
strategic
partners
who
could
also
benefit
from
the
EV
charging
stations.
An
ideal
candidate
would
be
I-‐Go
Car
Sharing.
The
company
recently
released
an
announcement
stating
their
desire
to
put
as
many
as
30
EVs
on
the
road
by
the
end
of
2011.
A
partnership
with
I-‐Go
presents
several
advantages.
From
a
marketing
point
of
view,
each
I-‐Go
car
services
many
users,
increasing
the
“audience”
of
residents
that
can
experience
the
technology.
Further,
I-‐Go
can
act
as
a
stable
customer
of
the
stations,
potentially
providing
an
initial
stream
of
revenue.
Car
dealerships
are
another
potential
partner.
They
stand
to
benefit
from
the
added
infrastructure
by
an
increase
in
car
sales,
and
as
a
result
may
be
willing
to
share
some
of
the
burden
of
advertisement,
or
even
installation
costs.
Equally
important,
car
dealerships
can
serve
as
a
source
of
information
to
residents
thinking
of
buying
an
EV.
Keeping
car
dealerships
aware
of
charging
capabilities
in
Evanston
helps
ensure
that
the
information
gets
to
the
residents
who
need
it
most.
The
City
of
Evanston
could
also
look
into
implementing
a
similar
process
of
ticket
validation
that
is
already
in
place
in
some
restaurants,
shops
and
theaters
close
to
this
parking
garage.
This
way,
people
with
EV
would
get
that
extra
privilege,
thus
bringing
in
more
revenue
from
those
shoppers
and
rewarding
people
who
made
the
change.
7
8. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
Logistics:
Queuing
Model
Since
demand
for
the
charging
station
is
uncertain
we
relied
on
simulation
in
order
to
determine
the
optimal
number
of
stations
to
acquire
for
a
given
level
of
demand.
The
model
varies
demand
while
minimizing
the
percent
of
customers
who
are
being
denied
a
spot
to
charge.
We
provided
three
tolerance
levels
for
blocking
customers
(3%,
5%
and
10%).
In
each
model,
when
the
number
of
customers
blocked
goes
over
the
tolerance
level
we
acquire
another
station.
(See
Appendix
B.3
for
further
detail
on
the
queuing
model).
Determining
the
Optimal
Number
of
Stations
During
stage
one
the
city
of
Evanston
should
aim
to
meet
all
the
demand
that
comes
into
the
garage.
Therefore
for
this
initial
stage,
we
recommend
the
City
of
Evanston
to
adopt
the
first
tolerance
level
simulation
model
(3%
blockage
rate).The
graph
below
shows
the
optimal
number
of
stations
to
acquire
as
charges
per
day
increases:
Graph
1:
Optimal
number
of
stations
needed
to
meet
97%
of
charges
per
day
We
recommend
the
city
of
Evanston
to
acquire
for
this
initial
stage
2
stations.
We
believe
this
is
the
best
way
to
start
since
2
stations
will
meet
97%
of
demand
until
the
charges
go
up
to
5
per
day.
If
we
acquire
1
station
the
city
will
be
forced
to
acquire
a
second
one
shortly
after
(after
0.8
charges
a
day).
Furthermore,
in
this
initial
stage
we
want
the
city
to
establish
a
strong
first
impression
by
minimizing
the
amount
of
customers
they
cannot
serve.
This
initial
target
to
meet
97%
of
demand
shows
that
the
city
is
seriously
committed
to
the
electric
vehicle
initiative.
The
graph
provided
above
will
allow
the
city
to
monitor
the
charges
per
day
as
time
goes
by
and
adapt
the
number
of
stations
as
they
see
fit.
We
are
also
providing
the
graphs
for
both
the
5%
and
10%
tolerance
levels
(See
Appendix
B.3).
These
two
other
tolerance
levels
will
be
useful
when
demand
starts
to
pick
up
and
the
city
can
now
afford
to
turn
away
a
slightly
larger
customer
base.
Another
factor
the
city
should
monitor
is
the
utilization
of
each
machine.
This
is
necessary
since
there
are
risks
to
running
machines
at
full
capacity.
When
machines
are
in
continuous
use
they
are
more
likely
to
break
down,
and
the
rest
of
the
system
tends
to
be
extremely
dependent
and
unstable.
At
a
3%
utilization
tolerance
level
we
have
the
following
utilization
graph:
8
9. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
Graph
2:
Utilization
of
Level
1
and
Level
2
stations
as
charges
per
day
increases
As
demand
increases,
the
utilization
of
the
stations
will
increase.
However,
is
important
to
point
out
that
at
certain
points
in
the
graph
utilization
declines
reflecting
the
exact
point
a
new
station
was
acquired.
When
a
new
station
is
acquired,
the
new
machine
temporarily
alleviates
the
utilization
of
the
entire
set
of
stations
until
demand
catches
up
again.
We
do
not
recommend
running
the
stations
at
a
utilization
rate
higher
than
90%,
as
mentioned
earlier.
Therefore,
when
demand
reaches
7.5
charges
per
day,
the
city
should
not
only
have
the
appropriate
number
of
stations
(6
according
to
the
graph
above),
but
they
should
also
consider
expanding
to
other
facilities
in
order
to
capture
the
increased
demand.
9
10. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
Stage
2:
Scalable
Growth
New
Technologies
As
the
market
for
EVs
increase,
the
City
of
Evanston
should
consider
investing
in
DC
(quick
charging)
stations,
which
are
already
available
in
the
market.
This
type
of
charging
station
is
able
to
charge
cars
in
approximately
30
minutes,
making
EVs
more
appealing
to
customers.
Taking
into
consideration
the
high
cost
of
the
machine,
the
small
number
of
current
demand,
and
certain
compatibility
issues
with
the
available
electrical
vehicles,
we
recommend
the
City
of
Evanston
to
consider
this
investment
as
a
future
implementation.
Currently
the
Chicago
Metro
Area
is
installing
73
DC
charging
stations
that
should
be
available
to
the
public
by
the
end
of
2011.
This
is
why
we
recommend
the
City
of
Evanston
to
watch
the
usage
of
these
stations
as
well
as
any
expansion
that
might
take
place.
The
City
of
Evanston
should
make
this
investment
decision
in
order
to
keep
up
with
market’s
needs.
It
is
important
that
any
decision
made
is
based
on
the
current
demand,
using
the
provided
chart,
which
explains
the
number
of
machines
needed
given
the
demand
(See
Graph
1).
If
such
an
investment
is
made,
the
City
of
Evanston
should
consider
implementing
these
stations
first
in
the
Maple
Garage,
since
customers
who
park
their
cars
for
a
shorter
time
mostly
frequent
it,
given
the
amount
of
surrounding
local
businesses.
Having
these
stations
in
the
garages
will
help
increase
the
amount
of
traffic
in
the
City
of
Evanston.
Pricing
Strategy
With
increased
demand
the
CoE
might
start
charging
a
fee
for
the
use
of
the
charging
stations
and
therefore
collect
revenue
form
charging
sessions.
However,
due
to
the
young
stage
of
the
technology
and
the
uncertainty
of
the
market,
we
cannot
predict
when
the
CoE
can
start
applying
a
fee
for
the
use
of
the
charging
stations.
We
suggest
sensitivity
to
the
pricing
behavior
of
other
charging
station
owners
in
the
Chicago
area
and
adjust
accordingly.
In
addition,
to
assist
the
CoE
in
making
the
right
pricing
decision
when
the
time
comes,
we
are
providing
the
CoE
with
matrix
tables
showing
how
applying
different
fees
per
hour
of
charging
will
affect
their
costs,
revenues
and
profits
based
on
different
levels
of
demand
(See
tables
B.1.3,
B.1.4,
B.1.5,
B.1.6
in
the
Appendix).
The
following
two
graphs
summarize
the
results
of
our
financial
discounted
payback
analysis
considering
different
levels
of
fee
rates
per
hour
of
charge.
10
11. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
New
Places
to
expand
Given
our
recommendation
of
initially
installing
2
charging
stations,
this
section
will
look
into
new
places
to
expand
in
the
future.
For
simplicity,
this
section
will
ignore
payback
periods
for
the
initial
2
stations
as
well
as
the
decision
to
start
collecting
fees
for
users
to
charge
their
EV,
hence
only
expected
yearly
changes
in
demand
would
be
analyzed.
The
original
scope
of
the
project
included
the
Sherman
Plaza
Parking
Garage
as
the
second
garage
where
charging
stations
would
be
installed.
Given
the
noticeable
higher
logistical
costs
involved
in
installing
the
stations
at
that
location,
we
decided
to
ignore
this
parking
garage
from
the
stage
1
recommendations.
As
soon
as
the
City
of
Evanston
decides
to
expand
out
of
the
1800
Maple
Avenue
garage,
our
first
suggestion
would
be
to
install
1
or
more
stations
in
the
821
Davis
Street
garage.
The
number
of
stations
would
depend
on
the
current
demand
for
EV
stations,
given
by
our
included
simulation
results.
Installing
stations
in
this
garage
will
not
only
create
a
more
adequate
supply
for
customers,
but
it
will
also
enable
a
different
customer
segment
to
get
easy
access
to
charging.
People
living
in
the
Sherman
Apartment
building
could
get
to
charge
their
EVs
while
being
in
their
apartment,
opening
up
an
entire
new
dynamic
to
the
way
charging
stations
would
be
used.
11
12. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
A
second
option
of
expansion
would
be
to
install
charging
stations
in
strategic
curbside
parking
spots
around
Evanston.
This
move
would
also
increase
the
customer
base
by
enabling
people
who
normally
do
not
use
parking
garages
to
charge
their
EVs
in
a
convenient
location
for
them.
Installing
parking
garages
in
the
rest
of
the
City
of
Evanston
owned
parking
garages
could
be
considered
the
last
logical
step
for
the
completion
of
this
program.
The
City
would
also
need
to
keep
in
mind
that
a
good
promotional
job
for
these
new
stations
is
a
crucial
factor
for
the
success
of
the
expansion
program.
If
people
do
not
know
they
are
there,
they
will
not
be
used.
Following
the
recommended
promotional
strategies
in
this
report
would
be
an
ideal
way
of
getting
the
same
result
when
adding
stations
around
Evanston.
Metrics
for
how
to
expand
One
of
the
goals
of
our
analysis
is
to
provide
the
CoE
with
information
about
how
to
expand.
There
are
two
metrics
the
city
can
use
to
determine
when
to
purchase
additional
charging
stations:
blocked
customer
limits
and
marginal
station
benefits.
As
long
as
the
focus
is
on
encouraging
demand
we
recommend
a
3%
blocked
customer
limit.
Under
this
metric,
the
CoE
purchases
stations
as
needed
to
ensure
that
no
more
than
3%
of
customers
are
turned
away
because
stations
are
in
use.
Note
that
we
have
also
included
analysis
at
the
5%
and
10%
level
should
the
CoE
choose
to
relax
this
limit.
The
second
metric
is
applicable
when
the
City
feels
demand
is
on
a
stable
trajectory.
At
this
stage
we
recommend
purchasing
stations
based
on
the
lost
revenue
of
customers
turned
away.
When
this
amount
exceeds
the
cost
of
an
additional
station
it
is
logical
to
purchase
an
additional
station.
These
purchase
points
are
highly
sensitive
to
changes
in
costs
and
fees
charged
by
Evanston.
For
example,
a
change
in
electricity
costs,
or
an
increase
in
the
willingness-‐to-‐pay
of
EV
owners
could
both
drastically
change
the
results.
Therefore
we
have
focused
our
analysis
on
providing
information
for
multiple
scenarios.
This
analysis
can
be
seen
in
the
previous
sections
as
well
as
in
the
appendix.
12
13. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
Stage
3:
Future
Possibilities
Expansion
When
the
market
has
increased
considerably,
requiring
more
charging
stations
than
existent
in
Maple
and
Sherman
Garages,
we
recommend
the
City
of
Evanston
to
consider
installing
charging
stations
in
other
available
locations;
either
within
garages
or
outdoors.
This
future
step
is
very
important
in
order
to
increase
the
market
by
offering
variety
in
charging
locations
and
potentially
increasing
commuters
in
the
Evanston
area.
New
technology
If
expansion
in
outdoor
stations
takes
place,
we
recommend
the
City
of
Evanston
look
into
solar
charging
stations,
which
are
already
on
the
market.
By
installing
these
kinds
of
stations,
the
City
of
Evanston
would
be
contributing
to
Evanston’s
goal
of
decreasing
it’s
carbon
footprint,
as
well
as
help
reduce
electricity
costs
throughout
the
whole
system.
This
would
also
help
brand
the
City
of
Evanston
as
a
leader
in
innovation,
gaining
prestige
throughout
surrounding
counties,
which
could
help
the
City
create
some
sort
of
branding
for
future
projects.
Leasing
to
Private
Companies
To
City
of
Evanston
should
consider
bringing
private
companies
to
operate
the
charging
stations.
It
is
likely
that
at
this
stage
of
demand
private
businesses
already
play
a
significant
role
in
the
market.
This
possibility
could
be
implemented
when
the
City
of
Evanston
has
broken-‐even
from
the
initial
investments.
At
this
stage
the
City
of
Evanston
would
no
longer
need
to
dedicate
as
much
attention
to
encouraging
adoption
of
EV
technology,
and
can
turn
it
over
to
private
enterprise
for
management.
Furthermore,
as
the
number
of
stations
increase
they
become
a
larger
management
issue
perhaps
better
suited
to
be
run
by
a
separate
organization.
This
strategy
would
create
revenue
for
the
City
since
it
would
cut
off
operational
expenses
as
well
as
potentially
earn
commissions
from
the
gross
revenues
the
company
make,
opening
other
opportunities
for
the
City
of
Evanston
to
invest
in
different
projects.
Assessing
the
State
of
the
Grid
Although
it
might
be
considered
a
distant
scenario,
the
City
of
Evanston
may
have
to
consider
the
position
and
capacity
of
the
electric
grid.
When
demand
is
higher,
if
several
charging
stations
were
added
without
taking
in
consideration
the
state
of
the
grid,
the
City
of
Evanston
would
exceed
the
available
capacity
and
potentially
cause
failure
in
the
system,
incurring
more
costs.
Looking
into
alternative
sources
of
electricity
(such
as
solar
charging
stations)
might
help
alleviate
this.
Risks
The
Electric
Vehicle
industry
as
a
whole
is
entirely
new,
which
brings
about
additional
risks
and
problems
that
more
established
industries
do
not
have.
What
we
consider
to
be
the
most
important
risk
is
the
fact
that
demand
forecasting
is
extremely
limited
right
now.
Many
particular
factors
could
influence
how
the
market
reacts
to
EVs,
which
in
turn
will
have
great
influence
on
the
demand
for
EV
charging
stations.
This
is
one
factor
that
cannot
be
stressed
enough:
Demand
for
EV
charging
stations
have
a
positive
correlation
with
the
demand
for
EVs.
13
14. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
Uncertain
Demand
The
rise
in
oil
prices
and
the
expectancy
that
they
will
continue
to
rise
in
the
future
will
have
a
positive
impact
on
the
demand
for
EV
charging
stations,
as
consumers
realize
that
making
the
shift
to
an
EV
can
save
money
and
is
also
beneficial
to
the
environment.
Although
this
is
a
positive
thing
for
the
sustainability
initiative
in
Evanston,
there
is
no
way
to
certainly
tell
how
the
rise
in
oil
prices
will
affect
the
demand
for
EV
charging
stations
beforehand,
in
order
to
be
able
to
make
the
changes
necessary.
This
risk
may
lead
to
an
over-‐
or
under-‐capacity
of
charging
stations
in
1800
Maple
Avenue
and
a
tardiness
in
installing
new
stations
elsewhere.
The
financial
recommendations
put
forth
in
this
document
rely
on
several
assumptions,
each
of
which
is
capable
of
disrupting
our
results.
For
example,
if
the
cost
of
electricity
increases,
the
cost
of
charging
would
increase,
which
in
turn
would
delay
the
payback
period
as
the
City
of
Evanston
would
be
recouping
less
money
each
year
than
previously
expected.
Similarly,
if
there
are
more
frequent
illegal
parking
and
overtime
tickets
on
the
reserved
spaces
for
the
stations,
the
revenue
would
increase,
reducing
the
payback
period.
The
possibility
of
these
different
scenarios
has
been
taken
into
account
in
our
calculations,
but
the
fact
that
there
have
never
been
privileged
parking
spaces
for
EV
charging
stations
leaves
rooms
for
unexpected
consequences
during
their
operation.
Emerging
Technology
We
are
in
the
first
generation
of
electric
vehicles.
The
possibility
of
a
malfunction
or
a
necessary
callback
from
part
of
the
manufacturer
is
still
relatively
high
compared
to
gasoline
vehicles.
This
could
affect
the
demand
for
stations
in
two
ways:
Delivering
a
major
hit
to
demand
if
such
a
situation
would
occur
to
a
EV
model
or
the
existence
of
too
many
consumers
who
decide
to
wait
more
time
before
buying
an
EV
to
assure
that
manufacturers
are
delivering
on
their
promises.
In
a
similar
vein,
because
the
technology
is
only
now
emerging,
it
is
likely
to
change
rapidly
and
unexpectedly.
For
this
reason,
throughout
our
recommendations
we
emphasize
monitoring
technology
change
in
order
to
avoid
making
clumsy
or
inflexible
investments
that
cannot
then
be
recouped.
Variable
Market
Pricing
Lastly,
it
is
expected
that
letting
customers
charge
their
EV
for
free
will
not
be
the
modus
operandi
for
a
long
time.
As
more
businesses
and
capital
flow
into
this
industry,
the
costs
of
operating
these
stations
will
be
passed
on
to
the
consumer
by
charging
a
price.
This
implementation
would
greatly
reduce
our
projected
payback
period
for
the
EV
charging
station
investment.
Even
without
charging
customers
to
charge
their
EV,
our
model
shows
that
you
could
make
back
the
investment.
The
risk
here
is
the
fact
that
the
City
of
Evanston
can
never
be
100%
sure
of
what
the
payback
period
will
be,
since
whether
or
not
to
charge
a
price
and
what
price
that
may
be
will
be
dictated
by
market
forces,
which
may
take
time
to
reach
price
equilibrium.
14
15. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
Appendices
A.
Research
A.1
Vendors
Carbon
Day
Car
Charging
Group
350
Green
LLC
Business
Model
Sells
charging
stations
to
Leases
parking
space
and
Leases
parking
space
client.
The
client
takes
takes
care
of
installation,
and
takes
care
of
take
care
of
installation,
operation
and
maintenance
installation,
operation
operating,
and
of
the
charging
stations
and
maintenance
of
the
maintenance
costs.
charging
stations
Costs
• Product:
Approx.
$5-‐6K
None
Depending
on
project
per
station
size
an
upfront
• Installation:
Approx.
investment
would
be
$2,500
for
2
stations
required
• Billing
+Customer
service:
$15/month
per
station
• 7.5%
of
the
gross
revenue
+
$0.5
for
every
transaction
Pros
• Allows
to
control
• 6
months
trial
(starting
More
flexibility
in
pricing
and
access
to
with
1
station)
technology
used
stations
• The
city
would
collect
5%
• Allows
collection
of
from
total
revenue
revenue
• No
upfront
payment
or
• Consolidated,
relatively
installation/operating
large
market
in
the
costs
Midwest
• Installers
and
maintainers
(Revcon)
already
familiar
with
parking
garages
Cons
• Upfront
investment
is
• No
control
over
pricing
• No
control
over
needed,
increasing
risks
($3/hour
today.
$2.5/hour
pricing
(Pricing
not
• The
City
will
need
to
by
next
year)
available
until
August
assign
workforce
for
• Limited
control
over
2011)
maintaining
and
logistics
(which
and
how
• Limited
control
over
operating
the
stations
many
parking
spaces
to
logistics
(which
and
use)
how
many
parking
spaces
to
use)
• Possibility
of
an
upfront
investment
required,
thus
increasing
risk.
• Many
partners
but
few
installations
done
Product
Coulomb
Technologies:
Coulomb
Technologies:
AeroVironment:
Level
Level
1,
2,
and
DC/quick
Level
1,
2,
1
and
2
charge
stations
15
16. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
Information
• Leaders
in
the
Midwest
• Miami-‐based
• San
Diego-‐based
(150
stations
today,
• Has
some
projects
in
• Won
the
Chicago
250-‐300
forecasted
by
Chicago
(Equity
project
(280
stations
the
end
of
2011)
Residential)
by
2011)
• Exclusive
distributor
of
Coulomb
Technologies
for
the
Midwest
• Warranty
on
parts
and
labor:
1
year
16
17. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
A.2
Technology
Figure
1.
Dual
Level
Charging
Station
Charging
Station
Specifications
17
18. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
A.3
Current
and
Upcoming
Electric
Cars
A.3.1
Plug-‐In
Hybrids
Chevy
Volt
Toyota
Prius
(in
2012)
Range
640
(40
on
battery)
600
(6
on
battery)
Top
Speed
(mph)
100
106
Time
to
charge
5
2
A.3.2
Electric
Cars
Tesla
Roadster
Nissan
Leaf
Th!nk
City
Ford
Focus
Range
244
75
124
100
Top
Speed
125
89
65
85
(mph)
Time
to
Charge
3.5
8
10
6
A.3.3
Comparison
between
Plug-‐In
Hybrids
and
Electric
Cars
Nissan
Leaf
(EV)
Chevy
Volt
(PHEV)
Level
1
Level
2
Level
1
Level
2
Battery
Capacity
(kWh)
24
24
16
16
Charge
Voltage
120
220
120
220
Charge
Current
15
15
15
15
kW
1.8
3.3
1.8
3.3
Charging
time
(full
charge)
13.3
7.3
8.9
4.8
18
19. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
B.
Analysis
B.1
Pricing
and
Financial
Analysis
Financial
Model
Our
financial
model
is
based
on
the
following
sources
of
revenues
and
costs
and
assumptions:
Revenues
• Charging
Sessions
Revenue
can
be
collected
from
applying
a
fee
for
the
use
of
the
EV
charging
stations.
The
charging
stations
manufactured
by
Coulomb
Technologies
allow
the
CoE
to
remotely
configure
the
charging
fee
on
a
session
or
hour
basis.
• Parking
Violation
Tickets
Parking
tickets
will
be
given
based
on
two
types
of
parking
violations:
Overtime
Parking:
tickets
will
be
given
to
violators
who
will
fail
to
remove
their
vehicle
after
the
30-‐
minute
grace
period
following
the
time
when
the
vehicle
is
fully
charged.
Illegal
Parking:
tickets
will
be
given
to
violators
who
will
park
in
the
spots
reserved
for
EV
charging
without
charging
their
vehicles
Costs
• EV
Charging
Stations
The
following
cost
estimates
were
obtained
from
Brian
Levin,
vice-‐president
of
Carbon
Day
Fixed
Coulomb
Technologies
Charging
Station
Cost
$5,000.00
Installation
Cost
$2,500.00
Annual
Network
Fee
$180.00
5
yr
Extended
Warranty
$1,300.00
Federal
Tax
Credit
@
30%
$(2,250.00)
Total
Cost
per
Station
$6,730.00
Variable
Authorization
Fee
per
Charging
Session
$0.50
7.5%
of
the
gross
revenue
per
Processing
Fee
per
Charging
Session
charging
session
19
20. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
• Electricity
$0.05
per
kWh
was
used
in
our
model
since
that
is
the
cost
of
electricity
that
CoE
will
fix
for
the
next
years
with
its
electricity
provider,
ComEd.
Based
on
the
preceding
cost
estimates
and
the
following
assumptions
on
charging
sessions,
an
average
charging
session
lasting
3.4
hours
without
processing
fee
applied
will
cost
$0.99
($0.49
for
electricity
+
$0.5
for
the
authorization
fee)
:
[20%*(5
hr)*(1.8
kW)+80%*(3hr)*(3.3
kW)]*[0.05
$/kwH]
+
$0.5
=
$0.99
Assumptions
• Charging
sessions
The
model
assumes
that
all
the
demand
is
met.
Based
on
the
results
of
the
queuing
simulations,
a
single
charging
session
was
modeled
as
follows:
Level
1
Level
2
Probability
of
occurrence
20%
80%
Voltage
(V)
120
220
Current
(A)
15
15
Power
(kW)
1.8
3.3
=Voltage/Current*1000
Charging
session
(hour)
5
3
• Parking
Violation
Tickets
Overtime
parking
Overtime
parking
ticket
fee
$30
Tickets
issued
1
every
30
charges
Illegal
parking
Illegal
parking
ticket
fee
$200
Tickets
issued
1
every
500
charges
Illegal
parking
tickets
are
modeled
based
on
the
tickets
currently
given
to
violators
who
illegally
park
on
the
handicapped
parking
spaces
in
our
two
target
garages:
Maple
and
Sherman
Plaza.
Overtime
Parking
tickets
are
modeled
based
on
the
1-‐hr
maximum
parking
spaces
in
the
Maple
garage.
As
estimated
by
Mark
Turenne,
Parking
Facilities
Supervisor
for
the
CoE,
1
to
3
tickets
are
issued
every
week
and
considering
that
the
Maple
garage
has
25
1-‐hr
maximum
parking
spaces,
a
total
capacity
of
1400
spaces
and
5595
cars
entering
the
garage
per
week,
we
could
estimate
that:
A
ticket
will
be
given
every
3
*
(25/1400)*5595
=
33.3
~
30
customers
20
21. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
Financial
Results
and
Analysis
Our
financial
Analysis
was
conducted
through
two
different
scenarios:
Free
Charging
and
Charging
for
a
Fee.
Both
scenarios
present
cost,
revenue
and
profit
estimates
modeled
using
the
demand
growth
rate
of
12%
calculated
in
our
demand
projection
analysis
(see
Appendix
B.2).
Also
for
both
scenarios,
we
conducted
a
discounted
payback
analysis
using
a
discount
rate
of
5%.
Free
Charging
Scenario
This
scenario
assumes
that
the
CoE
applies
no
fee
for
the
use
of
the
charging
stations.
The
following
graphs
showing
the
financial
results
for
the
Free
Charging
Scenario
are
generated
using
the
data
reported
in
table
B.1.1
21
22. Feasibility
Study
for
Electric
Vehicle
Charging
Stations
Discounted
Payback
Period
1st
Station
41
years
2nd
Station
51
years
Despite
the
extremely
large
discounted
payback
period,
it
should
be
noted
that
even
without
applying
a
fee
to
EV
drivers
for
the
use
of
the
stations,
we
estimate
that
the
CoE
will
incur
a
positive
discounted
operational
profit
meaning
that
the
we
forecast
that
the
cost
of
electricity
and
additional
operational
costs
of
operating
the
stations
will
be
completely
covered
by
the
revenue
generated
from
enforcing
parking
violation
tickets.
22