Cutting Costs With EV Charging Stations: Sea-Tac Airport Case Study

Image CC Licensed by: Alan Turkus

When the Seattle-Tacoma International Airport elected to install 600 EV charging stations this year, going green wasn’t the only thing on its agenda. As the 17^th busiest airport in the US, Sea-Tac serves 31.5 million passengers and hosts over 20 airlines. In addition to managing its large environmental footprint, it also has to remain a competitive hub for air travel and look ahead towards changing transportation trends.

Part of remaining competitive means providing services that benefit its airlines and travelers. And since electric vehicles are quickly picking up steam as a viable transportation option, looking into the installation of EV charging stations made sense.

Interestingly, one of the primary reasons Sea-Tac will be installing EV charging stations is to help airlines save money while using its facilities. In particular, Sea-Tac estimates its network of charging stations could save its airlines nearly $2.8 million per year in fuel costs. In addition, the airport could reduce greenhouse gas emissions by 10,000 tons, which would be equivalent to taking 1,900 cars off the road.

Having such an accessible EV infrastructure will allow airlines to seamlessly make the transition from diesel to electric power for their ground support vehicles and equipment.

The project is being spearheaded by the Port of Seattle, Alaska Airlines, and Western Washington Clean Cities and will be carried out in two phases: phase one will see 296 charging stations at concourse D, C and the north satellite, while phase two will see 300 additional charging locations in the rest of the terminal. Altogether the project will likely be completed in fall of this year.

Alaska Airlines already has 204 EVs on the ground at Sea-Tac airport, with plans to invest in many more.

What Any Property Manager Can Learn from Sea-Tac:

So what is the biggest take-away from this case study?

There are more than just environmental considerations involved in the installation of EV charging stations. 

Indeed, many properties (not just airports) are realizing that providing valuable EV amenities can reduce operating costs and provide a valuable service to EV drivers. Fuel prices are only going to increase into the future, thus making a compelling case for an all-electric vehicle fleet. Plus while making the necessary infrastructure investments, you are also helping the increasing number of EV drivers who also need a place to charge their car.

Joseph Tohill is a freelance writer and online communications specialist for organizations in the sustainability sector. He has a B.A. in Interdisciplinary Studies from the University of British Columbia and spent most of his academic career studying sustainable urban development; namely the interdisciplinary relationship between built form and natural environment.

EV Economics: A Cost-Benefit Analysis of Electric Vehicles

Image CC Licenses by: Paul Krueger

 
EV skeptics are quick to proclaim the higher upfront costs of electric vehicles and their limited range compared to gas powered cars. But while these arguments may have been true when the first electric cars hit the market a few years, they no longer pass muster today. 

Today’s EV landscape is vastly different than the one three years ago, with technological innovation, improving infrastructure, and higher fuel prices making them an increasingly viable consumer option. In fact, if one were to take a life cycle analysis of electric vehicles, they pay for themselves by applying basic laws of economics.

In this article, I’ll provide a brief cost-benefit analysis of electric vehicles in an attempt to shed some light on the long-term economic benefits associated with buying an EV.

The Financial Cost of Electric Vehicles

Upon first glance, it may seem that electric vehicles have a higher upfront cost than the average gas powered car. And while this is certainly true in many cases, it doesn’t account for the host of subsidies or the life cycle savings inherent to electric vehicles.

Take the Ford Focus Electric. With a price tag of $32,490, it is a whole $9,000 more expensive than the gas powered version. However, when you factor in the $7,500 federal tax credit, the Ford Focus becomes $24,990. Many states also have their own subsidies available. For instance, in the state of Colorado, the state chips in another $6,000, making the price almost $4,500 cheaper than the gas powered Focus overall. If you buy the car in Illinois, the price decreases by $4,000, and in California the price decreases by $2,500 due to state subsidies.

Therefore, anyone interested in buying an EV right now would likely not have to shell out much more than if he/she were to buy a similar model gas powered car.

On top of the initial subsidies available, electric vehicles can save consumers a huge amount of money over the car’s lifespan. Now, of course the price of electricity changes depending on where you charge up your car. But regardless of where you decide to charge your car, the price of electricity pales in comparison to refueling a gas powered car. An often quoted average is $2-3 per charge, but many places will have rates hovering around $1.50.

On top of that, maintenance costs are way cheaper in an electric car than a gas-powered car.

Overall, you’re likely looking at an economic savings in many cases, right from the initial purchase through to the end of the car’s lifespan.

Should Consumer’s Be Anxious About Range Anxiety?

One of those intangible costs associated with buying an EV is the influence of range anxiety. Without a doubt, the majority of electric vehicles have lower range than most other cars. The Ford Focus electric gets about 74 miles per charge, the Nissan Leaf gets about 73 miles, and the BMW i3 gets between  81 to 91 miles of range. The standout amongst electric vehicles of course is the Tesla Model S with a range of 265 miles.

However, statistics on how far consumers typically drive reveal some interesting insight. The average American drives roughly 30 miles per day, which is well within the range of all of the above electric vehicles. Longer trips over 300 miles constitute less than 5% of all trips that current drivers might need to take. According to the Union of Concerned Scientists, roughly 42% of Americans could make the switch to electric without having to alter their driving habits.

Lifespan Costs of EVs Will Decrease Over Time

Finally, the lifespan costs associated with EVs will drop over time – these are benefits even consumers who buy an EV today will experience. 

First there’s the obvious savings of avoiding fossil fuels. The price of gas has already gone up considerably over the past 10 years and shows no sign of slowing down. The overall trend is towards higher fuel prices, and thus higher expenses attributed to driving around in a gas powered car.

Secondly, improvements in battery technology will make replacing EV batteries cheaper in the future. Presently, battery technology is improving by 6-8% every year. By 2020, this could mean batteries would cost between $5,200 and $6,500, far less than their current price tag of around $12,000. While critics often highlight the high prices associated with replacing the battery down the road, they fail to take into account the considerably lower prices for these batteries in the future.

Conclusion

Electric vehicles are far cheaper than many people realize when one accounts for subsidies available, lower maintenance costs, higher fuel prices, and improving technology. The lifespan savings inherent to an EV are its key selling feature when looking exclusively at their financial viability over the long-term.

However, on top of the economics, there are also the environmental benefits associated with choosing an EV. Environmental benefits are incredibly difficult to account for in a cost-benefit analysis in any tangible way, but they are certainly important.

One of the reasons I haven’t relied on the environmental benefits associated with EVs is because they are by now quite obvious, and are probably the biggest selling feature of EVs. However, hopefully I’ve proven that EVs make sense purely on an economic level for a consumer that is looking to save money over the long-term while also contributing to a sustainable future. 

Joseph Tohill is a freelance writer and online communications specialist for organizations in the sustainability sector. He has a B.A. in Interdisciplinary Studies from the University of British Columbia and spent most of his academic career studying sustainable urban development; namely the interdisciplinary relationship between built form and natural environment.

Tapping into EV Demographics: Matching Consumer Demand with Supply In Retail

Image CC Licensed By: Richard Masoner

What do Walgreens, Kohls, and Wal-Mart have in common? Aside from being large US retailers, all of these companies have also installed EV charging stations at many of their stores. And these are not the types of businesses that randomly blow money on the latest gadgets. They make calculated business decisions about the services they provide based on market research, demographic trends, and proven technologies.

It’s safe to say that when it comes to installing EV charging stations, these retail giants have done their homework. 

Other retailers still sitting on the fence about EV charging stations would be well-advised to look at the EV market a little closer to see how they can capture EV drivers in their business models. In particular, they should look at the demographic and social trends that are driving growth in the EV market at the moment.

One surprising element of EV demographics is that environmental concerns are only some amongst several reasons a consumer may buy an electric car. For instance, a recent study of EV drivers in California revealed some interesting information pertaining to Nissan Leaf, Chevy Volt, and Toyota Prius owners.

Environmental concerns came out on top for Nissan Leaf drivers, with 38% citing environmental concerns as their primary reason for purchasing an electric vehicle. Given the Leaf is an all-electric vehicle, this makes sense, as Leaf drivers are completely reliant on the electric grid for power, rather than supplementing electric power with fossil fuels.

Interestingly, Chevy Volt drivers claimed saving money by using cheap electricity was their primary reason for embracing an EV, followed by access to HOV lanes. Environmental concerns came in third place, with 18 percent of Volt drivers citing the environment as a buying motivation. 

Toyota Prius drivers were most concerned with access to HOV lanes, followed with saving money and curbing environmental degradation.

While environmental concerns factored into the purchasing decisions of all groups of EV owners, clearly there were other factors at play. EVs are not just being embraced by eco-minded consumers – they are also embraced by individuals looking to save money and get from point A to point B faster.

In addition, EVs are winning major awards not just amongst other EVs, but amongst all cars in general. For instance, Consumer Reports picked the Tesla Model S as the best overall car of the year for 2014. Top factors in their decision were the Model S’ emissions free driving experience, 225 mile driving range, internet access, and cutting-edge interface. 

Therefore, amongst all automobile drivers, EVs are becoming a more mainstream, highly desirable form of transportation that are only going to become more popular in the coming years. 

Consequently, while it would make sense for retailers to install EV charging stations to green their corporate image, the fact that EVs appeal to a wide range of people means that there can be economic and customer service motivations to installing a charging station as well. The demographic trends suggest EVs are catching on and becoming an increasingly important form of personal transportation. 

Retailers can use this information to their advantage when determining how to give their business a competitive advantage over other retailers in the years to come. And one of the ways they can improve their competitive advantage is to install EV charging stations, an increasingly in-demand consumer amenity.

Joseph Tohill is a freelance writer and online communications specialist for organizations in the sustainability sector. He has a B.A. in Interdisciplinary Studies from the University of British Columbia and spent most of his academic career studying sustainable urban development; namely the interdisciplinary relationship between built form and natural environment.