Electric Vehicles: A Forcefor the FutureThe growth of electric powered vehicles will lead to a fun-damental shift in the existing landscape in areas such asdesign and manufacturing, distribution and after sales serv-ice, and energy supply and infrastructure.Energy, Utilities and Chemicals the way we do itElectric Vehicles (EVs) are a force for thefuture and collaboration inside and out-side the automotive and utility indus-tries will be key to electric vehicledevelopment and integration.Globally, Capgemini is identifying op-portunities and implications for EV gridtechnology recognizing that by 2030,the plug in electric vehicle market willmature, with about 4.5 6 million newEV sales per year in the United Statesalone. Battery power and energy densitymay be two-to-four or more times pres-ent levels for increased ranges andheavier vehiclesthis means longercharging times and/or more rapidspecial-purpose chargers.Addressing the ChallengesThe emerging EV technologies offer anopportunity for utilities to shape and fa-cilitate new opportunities for grid inte-gration and regulation. Advancingunderstanding of EV integration marketand reliability implications is importantas plug in vehicle technology advances,energy stored in the batteries of the ve-hicles can be used to support ancillaryservices, demand response programs,and the integration of renewable tech-nologies.The growth of electric powered vehicleswill lead to a fundamental shift in theexisting landscape in areas such as de-sign and manufacturing, distributionand after sales service, and energy sup-ply and infrastructure. Governmentsand other public sector bodies aroundthe world are making significant invest-ments in the development of electric ve-hicles and introducing various taxcredits, incentives and subsidies. Energycompanies and other industries havealso set their sights on electric vehicles,but most importantly, electric vehicledevelopment is being strongly fueled byconsumer demand stemming from eco-nomic and environmental factors.Electric vehicles have the potential to bea market-changing force. However, thecontinued development of this businesswill require collaboration both insideand, more importantly, beyond the au-tomotive industry. Parties including ve-hicle manufacturers, suppliers, dealers,other retailers, consumers, electric util-ity companies and governments must allbe aligned. Capgemini has the support-ing tools and methodologies to helpbring together these key stakeholders inthe emerging electric vehicle business,as well as broad and proven experiencein automotive strategy, process, infra-structure and retail. We use proprietaryapproaches such as our Accelerated So-lutions Environment (ASE) to harnesshigh-performance group creativity andcollaboration to achieve buy-in andbuild solutions in record time, particu-larly relating to emerging technologiesand business models.Changing the LandscapeAs these development scenarios playout, the growth of electric vehicles willraise a number of critical questions: Will traditional players (vehicle manu-facturers, suppliers, energy compa-nies) be able to maintain theirdominant positions? Will new players be able to design vi-able products and strategies to gainmarket share? Will new after sales players design andimplement new business models? Can business and potentially gov-ernment define and develop thestandards and infrastructure necessaryto provide the power supply for elec-tric vehicles? Can companies and governments op-timize the management of electricalenergy needs?The answers to these questions will un-derlie a fundamental shift in the existinglandscape in areas such as design andmanufacturing, distribution and aftersales service, and energy supply and in-frastructure.Traditional and new players will need toconsider the potential impact of thisemerging market on their business.Traditional manufacturers will need todefine their strategy for positioning thedifferent clean vehicle technologiesand rethink their design and manufac-turing capabilities as well as their sup-ply chain. Automotive suppliers willneed to adapt existing products and de-velop new products to suit electric vehi-cles, while new suppliers withpurpose-built products will enter themarket. Traditional car dealers, serviceproviders and spare parts vendors willneed to adapt and transform their activi-ties to serve the electric vehicle market.Gasoline and tanker companies willneed to manage the transition to a newpower source that will reduce the tradi-tional heart of their business. And largeutilities will need to take into accountthe potential impact on the grid, newrate structures and new types of serv-ices.At the same time, new players, includ-ing vehicle and battery manufacturers,will need to master the technology de-velopment and scalability needed toserve the mass market. Mobility serviceproviders and car rental companies willalso need to adapt their business modelsfor this new market. The developmentof a significant market for electric vehi-cles will likely give rise to the need for anew network of charging points thatcould include traditional fuel stations aswell as other players with a large num-ber of physical locations. This could in-clude big fast-food operators such asMcDonalds or retail chains like Wal-mart.Energy, Utilities and Chemicals the way we do itCapgemini, one of theworld's foremost providersof consulting, technology and outsourc-ing services, enables its clients to trans-form and perform through technologies.Capgemini provides its clients with in-sights and capabilities that boost theirfreedom to achieve superior resultsthrough a unique way of working, theCollaborative Business ExperienceTM. TheGroup relies on its global delivery modelcalled Rightshore, which aims to get theright balance of the best talent from mul-tiple locations, working as one team tocreate and deliver the optimum solutionfor clients. Present in more than 30 coun-tries, Capgemini reported 2009 globalrevenues of EUR 8.4 billion and employs90,000 people worldwide.More information is available atwww.capgemini.comAbout Capgemini and theCollaborative Business ExperienceTMFor more information please contact:Collaboration Is Key to ElectricVehicle DevelopmentCapgemini is actively engaged in analyz-ing the opportunities and implicationsof the emerging EV integration con-cepts. We are identifying products andservices that EVs could provide underexisting market and reliability structureswithin various markets. This includesrecommendations and analysis of re-quirements that address, reliability, mar-ket products and services, demandresponse and alternative energy oppor-tunities, technology, communications,security and protocol requirements, is-sues, constraints, costs and the account-able parties, such as vendors, regulatory,utility staff, and standard setting agen-cies, performance, operability and ob-servability requirements andrecommendation, requirements for utili-ties to be the integrators of the afore-mentioned products and services,recommendations appropriate for theutilities to have a consistent view, stan-dards, and how the products and serv-ices would play across all of themarkets.We are also providing specific recom-mendations on market implementationsuccess factors, including: proposedmarket design and operational require-ments recommendations for the opera-www.capgemini.com/energyCopyright 2010 Capgemini. No part of this document may be modified, deleted or expanded by any process or means withoutprior written permission from Capgemini. Rightshore is a trademark belonging to Capgemini.tional and market infrastructure devel-opment considering vehicle-to-grid(V2G) interoperability, Demand Re-sponse (DR) and alternative energy, re-sults of detailed modeling and analysisas appropriate to demonstrate feasibilityof recommendations and time lines, rec-ommendations for development of oper-ational and market infrastructure thatprovided for visibility to the system op-erator in real time and integration withEMS and DMS systems and pricing al-gorithms, settlements, physical andcyber security, field safety, vehicle plugand play requirements, and applicableuniform grid codes and standards.Gord ReynoldsPractice LeaderSmart Energy Servicesgord.reynolds@capgemini.com+1 416.732.2200