Energy

Industry -
SHELL
Charging
Stations in
Europe

Team:
Abdul Ghani Alsabouni
Hitendra Tellakula
Hüseyin Osman Deniz
Amit Kumar 1
Table of Contents

• Introduction
• Analysis of the Energy Market for Charging Stations
• Value Chain Ecosystem
• Five Forces Analysis
• Business Model Canvas
• CASE
• IONITY & Hubject
• Digitalization
• Conclusion
2
Introduction to the Energy Industry
in Mobility

3
Why is the Energy Industry Relevant to the Mobility Industry?
The change in market share is driven by
two factors Policies and regulation &
Customer demand
• By 2030, Electric vehicles will
account for about 20% of the
market share.
• More electric vehicles will
require more electricity.
• Policies and regulations are
pushing for electrification.
• All major markets have
emission regulations placed, to
meet these demands electric
vehicles are to grow
significantly.
• This illustrates the close
relation of how the energy
industry will impact or will
relate to the coming future of
mobility.

Source: Mckinsey
How does the Current Charging Stations Network Look?
Cumulative Public, Private and Semi-Public charging station deployment in EMEA
Current Charging Station Networks overview
•Many EV charging stations are part of networks run by
service operators.
•Depending on subscription type, users can often only
charge at points that are a part of their network.
•Lack of ‘roaming’ between networks is potential
inhibitor to EV sales.
•Industry is starting to use PAYG roaming models and
data sharing.
European Automotive Manufacturers Association
Key Takeaways
•At critical point in market for infrastructure – moving away
from public led, to private push (OEMs, property owners, etc.).
•A significant positive change in the projection for sales of
BEVs and PHEVs will impact the amount of public and
commercial charging infrastructure needed.
•If the cost of charging stations remains high, this may dampen
demand.
5
Source: Mckinsey
When is the Importance of this Industry ?

Electric vehicles are unlikely to create a power-demand crisis but

could reshape the load curve
• According to Mckinsey the
expected growth rate of EVs will
not drive substantial increase in
total grid power in near future.
• Germany as an example, EV
growth is not likely to cause
large increases in power
demand through 2030; instead,
it potentially adds about 1
percent to the total and
requires about five extra
gigawatts (GW) of generation
capacity. That amount could
grow to roughly 4 percent by
2050 (about 20GW).

Key Takeaways
• Support for energy demand could be coming from renewable energy sources such as Wind, Solar and
partially from gas powered.
6
Source: Mckinsey
What are the Effects?
EV growth in Germany to add 1 percent(about 5GW) to the total energy demand by 2030 and 4 percent by 2050
and requiring about 20 GW of addition power.

• The most important effect will be

an increase in evening peak loads
• The changing load curve will be
challenging at the local level since
the EV distribution will vary.
• For typical residential area with
150 homes and with 25 percent EV
penetration, peak load would
increase by 30 percent.
• Additional to Peak loads, the
highly volatile and spiky charging
station would require balancing
systems.

Key Takeaways
• Energy players can introduce time-of-use tariffs to reduce the load.
• As the cost batteries are reducing, Utility/Energy can invest on battery packs to smooth the load profiles.
7
Source: Mckinsey
Where is it going to Happen?
We expect a high concentration of electric vehicle stock in cities and suburban areas.

• According to Mckinsey’s geo

spatial analysis
• EV penetration will likely to be
more in suburban areas even
when though the EV’s nation wide
penetration is high.

Key Takeaways:

Target locations for charging

station providers should be where
the EV density is more

Number per Square kilometer % of private passenger cars

Electrical Vehicles stock in Germany at 10% national penetration Source: 8

Mckinseyc
How is Electrification going to Happen?
Electrificationisisdriven
Electrification drivenby
bystrong
strongimprovements
improvementsin
ineconomic
economicof ofEVs,
EVs,reaching
reachingcost
costparity
paritywith
withconventional fuel vehicle in
conventional fuel vehicle in the early 2020s the early 2020s

• Across segments, EVs will

become the lower cost option
in the coming 5-10 years
• EV costs will go down rapidly,
mainly driven by a decrease in
costs for battery packs(from
USD220 to USD73 per kWh)
• Further improvements in
battery technology will enable
the electrification of the
heavy duty segments, which
are hardest to electrify

Source: 9
Mckinseyc
Market Segmentation based on Customer’s Charging Locations and Use

10
Value Chain Ecosystem

11
Value Chain Ecosystem

• Utilities, Power & ESCO

are logically located
upstream.
• Automakers & Logistics
initially developed on
charging infrastructure
part to develop to EVs
viable or improve sales.
• Manufactures
leveraged to make
equipment's for
charging stations.
• IT & Telecom offered
add on services.
• Pure Players were
created to operate only
on the EV charging
infrastructure market.

12
Source: Capgemini
Invent
How are the Energy Players Strengthening their Position
Utilities & Power companies continue to reshape their investment strategies and to transform their business models
through mergers and acquisitions (M&A) and partnerships in this crowded EV charging ecosystem. Furthermore,
these moves demonstrate that these players are getting ready for the future load-balancing challenges, due to
increasing green energy production usage.

• They are mainly targeting investment areas where

they could leverage their know-how
• Engie’s ambition to become a fully integrated
energy provider is exemplified by their
acquisition of EVBox
• - BMW Group, Ford Motor Company and the
Volkswagen Group with Audi and Porsche,
Daimler - have already joined their forces to
form the joint venture IONITY , with the
objective of creating a high powerful charging
network across Europe by 2020

13
Source: Capgemini
Invent
Five Forces Analysis

14
Porter’s Five Forces Analysis – SHELL
• The larger amount of energy
produced in the long run, the
lower the marginal cost of • Differentiate from other
production, this is an advantage providers, since substitute
for SHELL. products are available.
• Existing regulations support the • Alternate sources of energy can
entry of new players. Competitive create dependability.
• Threat of new players entering
the charging network. Threats Rivalry Substitute • Threat of substitute charging
stations is high.
• High investment towards Social, of New • The industry is Products &
Environmental & Sustainable
Entrants growing at a Services
solutions ensure strong position.
fast rate
• High efficiency
in energy
production
• Becoming a
clear market
leader • Customer price sensitivity and
• No threat of forward integration. Bargaining Bargaining high market knowledge.
• Creating an advance digital platform Power of Power of • Buyer Consciousness: Customers
to attract the highest amount of Suppliers Buyers preferences towards renewable
customers. energy sources, emission free
• Network Distribution: Availability of lifestyle.
many convenient stations for the • Dependability: The more stations
users. placed around the users daily
route, the more convenient it is.
15
Business Model Canvas

16
SHELL Business Model Canvas

17
The Automotive Industry is Moving
Towards Electric Vehicles

18
CASE – Intuitive Mobility by Daimler AG

19
CASE – Intuitive Mobility by Daimler AG
Connected
• Car-to-X communication offers higher traffic
safety and long journey planning.
• Being connected to your vehicle at all times,
ensuring all your preferences are accomplished,
including your favorite charging stations.
• Monitoring your vehicle through the app means
higher security.
Autonomous
• With the slow but sure introduction of
autonomous vehicles, the role of the automobile
will change forever.
• Autonomous vehicles will change the public
transportation sector as well as the private vehicle
sector.
• The infrastructure must be ready for such a drastic
change, and so should the charging stations.
• The future is the autonomous electric vehicle, and
the more prepared the charging stations are, the
higher their chances of success.
20
Source: Daimler Intuitive mobility
CASE – Intuitive Mobility by Daimler AG

Shared Electric
• Shared mobility has already made its • The future of the automobile is electric, and the
introduction into the European market. energy industry must be prepared.
• Shared EV vehicles will increase the number
of overall users of charging stations.
• Building more charging stations means that
more people can share EV’s and transport to
different places.

21
Source: Daimler Intuitive mobility
IONITY & Hubject

22
IONITY

• Founded in October 2017, IONITY is a joint venture

that is approved by the European Commission • To make this possible, IONITY has set a goal to
between some of the most influential automotive
create 400 charging stations amongst 18 countries
before the end of 2020.
companies in the world:
• These stations should not exceed 120 kilometers
1. Daimler AG from each other.
2. Volkswagen Group: Main focus on VW, Porsche & Audi • Several vehicles of up to 350 kW can be charged
3. BMW Group simultaneously at these stations.
• The locations of these charging stations are at
4. Ford Motor Company partner companies such as:
5. Hyundai Motor Company 1. Shell
• IONITY’s current goal is to create a network of 400 2. Q8
publicly accessible charging stations across European
motorways for electric vehicles by 2020. 3. MRH
• The aim is to make electromobility suitable for long 4. OMV
distance travels, thus building the initial infrastructure 5. Tank & Rast
of future electric mobility.
6. Circle K
23
Source: Ionity
Hubject

Hubject is the biggest digital marketplace for services related to EV charging.

Founded in 2012, offers an "eRoaming" platform which aims to connect up EV charging

stations and unify overall charging infrastructure for better mapping and easier payment
solutions. Their solutions cater to the entire EV charging value chain.

Products:

24
Source: Hubject
Digitalization

25
Digitalization

• Digital platform development to connect the user to the closest charging station via
phone app on their route.
• Membership driven digital application that creates brand loyalty, dependability, and ease
of use.
• With the vehicle charge level being connected via the cloud to the station, charging time
can be directly given to the user.
• Offering electric charging from renewable energy sources for conscious users who want to
live a zero carbon lifestyle.
• Optimizing the maximum amount of charging stations for all users to avoid long waiting
times.
• Other Opportunities: Additional Revenue Through Advertisements.

Other Players:

ChargePoint Chargemap Charge Hub EV map Nextcharge 26

Conclusions for the Future

27
Ideas to Look Forward to
V2G
• With more renewable energy source
challenges such as demand and supply. And
requires heavy investment to store energy.
• V2G can help in load balancing and
frequency regulation.
Key takeaways
Electric charging companies could provide the
infrastructure to facilitate the infrastructure and charging
commission for the transaction.
Battery Swap
• Public transport could be a very suitable case for
battery swap system since they operate in fleets.
• Addresses the major issue of standardization.
• BSS could be installed at the depots or at the
stops where multiple lines share a location.
• Revenues could be created by charging service
fee.
28
Conclusion

• Partnerships with companies like Hubject and IONITY work as aggregators that will help increase customer base.
• Infrastructure with current charging stations must be a gradual process because the EV technologies are advancing
exponentially.
• SHELL must start taking stronger initiatives to create more sustainable and renewable energy sources, since more
electric energy is required.
• Investigating future potential fuels such as hydrogen fuel cell.
• The digital experience plays a big role on how ready SHELL is for the future, the more options they have for
conscious energy consumers, the better their position will be.
• Invest into new technologies such as V2G and Battery Swap systems to expand their business either through
partnerships with automotive OEMs and power energy suppliers such Engie, thus becoming futureproof.

29
Thank you for your time and attention!

Questions and Feedback

30