Energy Transition New York

East Coast Electric a 2 year review

East Coast Electric a 2 year review
2 years ago 15 Dutch companies, organizations and research institutes saw the potential of the U.S. electric vehicle and microgrid market. Now on my way back on one of my too many flights across the ocean, I realize that the initial 2 years of East Coast Electric are over.  Dutch Minister Ploumen opened up the EV-Box office as the fast growing company has incorporated in the U.S.. Since the start Viriciti was and still is very pro-active in the U.S. market and is deploying more and more systems (especially on the West-coast). A new program has formed in Dutch-ATES bringing geothermal heating and cooling systems to the U.S., and the Netherlands has positioned itself as a leader in electric vehicle adoption through the government 2 government program and multiple participations in New York Energy Week and other events.
 
While the program is formally over, East Coast Electric will continue to exist and will pro-actively make the connections for Dutch clean energy companies, host events around Dutch clean energy solutions and the office at the Urban Future Lab can always be used by companies who want to work out of New York for a couple of days/weeks.
 
Throughout the program we had strong support from the Netherlands that made it easy to keep going. Whether it where companies visiting New York or friends/family that remained honest and interested in the new adventures.
 
The Netherlands currently has 75.000 electric vehicles, the US has 400.000. On a per capita basis the Netherlands keep on leading the way, however the sheer market size of the U.S. holds huge potential for nearly all Dutch EV companies. With an expected 1 million vehicles on the road by 2020 there is a lot we can achieve.
 
The program will continue, only my role will change as from January 1 2016, I will set-up EV-Box North America with assembly in the U.S., to provide the U.S. market with reliable, scalable EVSE hardware with functionality that creates a business-case for EVSE owners in commercial locations.
 
Personally I have not met all my goals, and dreaming out loud, I would want all New York City Taxis, Ubers and Lyft to be electric by 2025. To get there we need 30% or about 20.000 vehicles in the next 3 to 4 years, which is quite doable. The technology is readily available, it is time to execute.
 
All the best, Tim Kreukniet
 
ps, for a detailed report of the results of East Coast Electric or questions just send me an email to tim.kreukniet -at- et-ny.com 


UPDATE: Even with low gas prices - TCO of EV still beats regular vehicles

By, Nicholas Lalli

Gas prices need to be $1.85 a gallon before leasing a regular vehicle is cheaper than leasing an electric one

The United States in 2015 is beginning to break away from a time of recession. Unemployment is decreasing, along with energy costs, but the long lasting effects on our financial mentality have set in. This has been proven with the large increase in number of leased vehicles, which are over 3 times larger than seen in 2009. The benefits of leasing are clear, in that you can afford a newer and more expensive vehicle over a 3 year period, while paying a fraction of the MSRP. To clarify, leasing a vehicle is practically a long term rental, and you aren’t tied to the costs of repairing an older vehicle with higher mileage. Typically, leases are over a 3 year or 36 month period and restrict you to using 45,000 of the vehicles miles. The monthly lease payments are determined using sales tax which vary by state, a down payment ($2,000 in our model), and residual value of the vehicle (how much the vehicle is worth after the lease). 

The model above calculates the specific variables attributing to the lease cost, in addition to outside expenses faced over that 3 year period. Rumor has it that Electric Vehicles have lower annual fueling costs, but does that make-up the difference in a higher MSRP? The fueling costs are calculated as the additional electricity charges on your utility bill, based on the convenience of fueling at home.  Luckily the United States government provides a $7,500 dollar incentive on the purchase or lease of a plug-in electric vehicle. These various factors facilitated my interest in the total cost of ownership for a leased electric vehicle and internal combustion powered vehicle. The calculations shown above are made using the tax, and average energy costs of New York State. The implemented incentive proved viable in reducing the TCO of leased vehicles over this 3 year period. The Nearly $10,000 dollar difference in MSRP of the Nissan Leaf and VW Golf was voided due to the combination of lower fuel costs, and government credits associated with the Plug-in electric vehicle. The $7,500 dollar incentive forced payments to the Nissan Leaf dealer down to $12,605.96, still above $11,797.50 Golf. The Nissan owner begins to gain ground on the Volkswagen owner once fuel costs begin to accumulate. Over the 3 year period, the Leaf owner then saves more than $2,100 in fuel costs forcing the VW owner to spend slightly more over the 3 year period. To clarify, a $29,000 dollar electric vehicle will save you money over 3 years compared to a $20,000 dollar gasoline powered vehicle. 

Over the period of developing this model the United States saw a significant decrease in oil prices. My initial results of the TCO using gas prices around $3.25/gallon significantly favored the Electric Vehicle. Outdated prices in this model are in no way useful, therefore we adjusted prices down to $2.50 a gallon. Surprisingly, there is still a strong case supporting the Electric Vehicle; allowing one to own a much more valuable car for around the same total cost of ownership. But, how low do gas prices need to drop before the internal combustion engine is less costly to own? Continuing the comparison of the Nissan Leaf and Volkswagen Golf, we notice a $950 dollar difference in cost of ownership. For the VW’s TCO to match the leaf, their gasoline expenses must be reduced to $2,950 over that 3 year period. In order for this to occur, gasoline prices must be reduce to $1.85/gallon, which New York hasn’t seen consistently in over a decade.

If leasing a vehicle is really for those who are financially conscious, then they can really go above and beyond by leasing a Plug-in electric vehicle as a greener solution as well. 


Total cost of ownership of EV leasing cheaper than Regular car

Total Cost of Ownership: Leasing and Electric Vehicle VS. Standard Combustion engine

By, Nicholas Lalli

The United States in 2015 is beginning to break away from a time of recession. Unemployment is decreasing, along with energy costs, but the long lasting effects on our financial mentality have set in. This has been proven with the large increase in number of leased vehicles, which are over 3 times larger than seen in 2009. The benefits of leasing are clear, in that you can afford a newer and more expensive vehicle over a 3 year period, while paying a fraction of the MSRP. To clarify, leasing a vehicle is practically a long term rental, and you aren’t tied to the costs of repairing an older vehicle with higher mileage. Typically, leases are over a 3 year or 36 month period and restrict you to using 45,000 of the vehicles miles. The monthly lease payments are determined using sales tax which vary by state, a down payment ($2,000 in our model), and residual value of the vehicle (how much the vehicle is worth after the lease). 

The model shows the specific variables attributing to the lease cost, in addition to outside expenses faced over that 3 year period. Rumor has it that Electric Vehicles have lower annual fueling costs, but does that make-up the difference in a higher MSRP? Luckily the United States government provides a $7,500 dollar incentive on the purchase or lease of a plug-in electric vehicle. These various factors facilitated my interest in the total cost of ownership for a leased electric vehicle and internal combustion powered vehicle. The calculations shown above are made using the tax, and average energy costs of New York State. The implemented incentive proved viable in reducing the TCO of leased vehicles over this 3 year period. The $15,000 dollar difference in MSRP of the Chevy Volt and VW Golf was voided due to the combination of lower fuel costs, and government credits associated with the Plug-in electric vehicle. The $7,500 dollar incentive decreased the payments to the Volt dealer to $15,439.43, still above $11,797.50 Golf. The Chevy owner begins to gain ground on the Volkswagen owner once fuel costs begin to accumulate. Over the 3 year period, the Chevy owner then saves more than $4,000 in fuel costs forcing the VW owner to spend slightly more over the 3 year period.

To clarify, a $35,000 dollar electric vehicle will save you money over 3 years compared to a $20,000 dollar gasoline powered vehicle.  In every instance depicted above the electric vehicle was more expensive, yet costs less to own. If leasing a vehicle is really for those with financial conscientiousness, then they can really go above and beyond by leasing a Plug-in electric vehicle. 

So an EV is not only a greener solution it is also a cheaper one. 

For any questions mail me at: nicholas.lalli (at) et-ny.com


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