EV Carbon Offsets Strengthening Business Case Fundamentals for - - PowerPoint PPT Presentation
EV Carbon Offsets Strengthening Business Case Fundamentals for Electric Vehicle Service Equipment August 7, 2018 Speakers Connecticut Green Bank: Laura Fidao, Finance Matt Macunas, Legal & Marketing Guest speaker: Sue Hall, founder
August 7, 2018
Connecticut Green Bank: Laura Fidao, Finance Matt Macunas, Legal & Marketing Guest speaker: ▪ Sue Hall, founder and CEO of Climate Neutral Business Network
– Pioneering carbon strategies with Fortune 50 companies
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Source: Atlas Public Policy analysis of data from hybridcars.com & U.S. Energy Information Administration (2018)
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CT presently: ▪ 315 charging stations with 703 charging outlets ▪ ~ 6,000 EVs registered
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Source: Alternative Fuels Data Center (July 30, 2018)
U.S. 2025 target under Paris Agreement: ▪ 14 million new EVs ▪ > 330,000 public charging outlets
▪ $4.7 billion - EV charging infrastructure price tag ▪ $2.3 billion - funding gap
Source: Center for American Progress
US near-term:
and 49,502 outlets US growth targets:
▪ Methodology in approval process, with potential for new revenue stream for EV charging site hosts
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Partner organizations seeking to open access to carbon capital markets for EV charging systems, to strengthen their business case fundamentals and accelerate deployment ▪ Credits based on GHG emissions savings from fuel- switching, factoring in the electricity supply mix feeding the EV charger ▪ Measures kWh dispensed during charging sessions
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Return on capital for first single EVSE installation:
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DCFC 50kW ($85K) @ $3-10/ton @ CA LCFC $25-100/ton 3 charges / day 0.5 - 2% 4 - 18% 10 charges / day 2 – 6% 15 – 60% Return on capital for installation of 4 EVSE units: Level 2 ($8.5K) @ $3-10/ton @ CA LCFC $25-100/ton 1 charge / day 1.4 – 4.7% 12 – 47% DCFC 50kW ($43K) @ $3-10/ton @ CA LCFC $25-100/ton 10 charges / day 3 – 11% 29 – 113% Level 2 ($3K) @ $3-10/ton @ CA LCFC $25-100/ton 1 charge / day 3 – 10% 25 – 100% CARBON RETURN-ON-CAPITAL DROPS STRAIGHT TO BOTTOM LINE
Return on capital for first single EVSE installation:
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DCFC 50kW ($85K) @ $5-10/ton @ CA LCFC $50-100/ton 10 charges / day 3 – 6% 29 - 58% DCFC 150kW ($150K) @ $5-10/ton @ CA LCFC $50-100/ton 10 charges / day 4.2 – 8.4% 42 – 84% DCFC 320kW ($235K) @ $5-10/ton @ CA LCFC $50-100/ton 10 charges / day 5.6 – 11.3% 56 – 113%
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Carbon Contribution (at $5/ton) DCFC 50kW (10 charges / day) Level 2 (1 charge / day) Result OEM Rebate of $7k / $0.5k 36% 121% Comparable to OEM rebate contributions Equipment $35k / $2.5k 7% 24% Profit margins
Landlord parking $2.5k 100% 24% Covers open parking lot costs Rental fee $240 / year $104 $25 Covers barrier to adoption
EV Webinar: Creating New Value for Charging Station Owners Carbon Business Case Carbon Business Case: proved salience of carbon capital to accelerate EV charging investment Methodology White Paper Outline core logic for EV Charging methodology Stakeholder reviews Pilot Project Development Pilot project credits verified Expansion to new project credits Methodology Development/Approval Formal methodology written and accredited Pilot projects designed in parallel to ensure alignment
Project Credit Verification/Sales
Stage 2: Almost complete Stage 1: Completed Completed 2018 …. 2018/2019 Stage 3: Underway
EV Webinar: Creating New Value for Charging Station Owners
Basis Market barriers Positive List (look up) Performance benchmark to be exceeded Common practice Nesting national/state Applicable Any project All project instances Only top 15% performing project instances When Now Now When perf benchmarks are added to meth later + Post 5% MS Thru region 5% MS e.g. for when MS > 5% MS
Project Test Market Barriers Emerging Market: 5% MS
Performance Top 15%
Projects will use 5% MS test until region penetration exceeds … Then Project Testing w market barrier assessment … unless a performance test is later added to the methodology
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Avoiding Double-Counting ▪ Methodology avoids double-counting in several ways:
sectors where our reductions arise
which cannot double count any region’s RPS/retired REC claims
demonstrate that RECs have not been claimed from renewable generation component.
EV Webinar: Creating New Value for Charging Station Owners
How optimize these financial carbon incentives? For low carbon and effective electric transportation future?
EV Vehicles
EV charging results in fewer fossil fuel miles driven
Generating allowances for fossil fuel importers But still securing compliance credits for EV chargers by using set aside reserve
Cap and Trade …. … with set aside reserve EV Charging: Compliance Credits Issued Fossil Fuel Importers Gain Allowances More EV’s charged … Fewer FF Miles Driven
▪ We seek early participants in this new market - owners and purchasers ▪ CT Green Bank plans to administer a program to aggregate carbon offsets from EV chargers within CT.
– Owner allows for data access to Green Bank, or assigns environmental rights – Green Bank obtains 3rd party verification and approval of charging session data for the portfolio of chargers – Arrive at agreements for revenue split over the course of the crediting period
costs for 3rd party verification
▪ Seeking CT participants who have (or plan to have) EV charging on-site*
– Municipalities – Businesses – Institutions – Charging platform providers
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*Exploratory conversations. No early commitments needed.
Contact: Matt.Macunas@CTGreenBank.com (860) 257-2889 Laura.Fidao@CTGreenBank.com (860) 263-0125
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“VCS’s approval of this carbon offset methodology provides another arrow in the quiver to reduce greenhouse gas emissions and confront climate change. Increasing private investment in EV infrastructure by valuing emission reductions will help increase consumer demand for EVs by providing them with easy access to cheaper and cleaner fuel while reducing range anxiety.”