clean vehicle procurement in rotterdam...clean vehicle procurement in rotterdam lode messemaker msc,...

Rotterdam Climate Initiative is the climate program of the City of Rotterdam, Deltalinqs, DCMR Environmental Protection Agency Rijnmond and Port of Rotterdam NV.

Clean Vehicle Procurement in Rotterdam

Lode Messemaker MSc, City of Rotterdam, 15 June 2011

l.messemaker@gw.rotterdam.nl +31 10 489 7775

Past EV Experiences

Past EV Experiences

• Positive

– All experiences show usability of EV for specific niches

– Positive user feedback

– New technologies are accepted

– Better energy efficiency compared to ICE

• Neutral

– EV’s demand special care of users

• Negative

– Availability and after sales

– Problems and break-downs

– High costs

– Product improvements (reliability, performance)

– Subsidies on vehicles were unsuccessful

Vision

• Maintain multi-track approach, including all alternatives

• Focus on EV where possible

• Stimulate innovations and economic spin-off

• Facilitate market development

• Prefer OEM over retrofit

• Run pilots in protected environments

• Target a broad spectrum, from small scooters to heavy trucks

• Without pushing the market in one direction

• Without changing policy too often

• Remain flexible and acknowledge future uncertainties

Procurement Examples in Rotterdam

1. Clean Vehicle Fleet

2. Charging Infrastructure

3. Dutch Consortium for the Tender of Electric Cars (DC-TEC)

4. Public Transport

5. Experience Center

Hybrid Volvo garbage truck

Clean Vehicle Fleet

Electric sweeper &Electric ‘Binkie’ garbage truck

Clean Vehicle Fleet

• Stakeholders

– Vehicle suppliers (dealer network)

– Lease department (incl. service / maintenance)

– Fleet managers (per department)

– Users (public works, engineering, waste collection etc.)

• Procurement

– Flexi-fuel vehicles and Euro5 / EEV in past tenders

– 75% of vehicle fleet was clean by 2009

– Hybrid passenger cars in recent tender

– Electric vehicles still in pilot phase, no public tenders yet

– 25% of vehicle fleet will be full-electric or hybrid by 2014

Charging Infrastructure

• Private space

• Parking garages

• Public space

• Fast-charging where necessary

Charging Infrastructure

• Stakeholders

– Local and regional government

– Infrastructure suppliers

– Energy companies and power grid operators

– Payment service providers

– Users

• Procurement

– Investment in public charging infrastructure instead of vehicles

– The goal is to promote and facilitate EV procurement by external stakeholders (e.g. citizens, private companies, taxi fleets)

– Subsidies on private charging infrastructure

– Municipal working group to facilitate first applications and prepare public tender for infrastructure

Procurement in DC-TEC

Goals

Creation of the launching demand to ensure the Netherlands is one of the

pioneers of electric mobility1

Creation of an open, cross-industry platform that will significantly reduce

the barriers to EV procurement2

Dissemination of knowledge and persuasion of policy makers to create

operational boundary conditions that equal or exceed existing internal

combustion engine vehicles

3

Support adoption of electric mobility by the broader public and auto

industry4

Stakeholders

Overview of consortium and indicated vehicle volumes

Logistics

Energy/

construction

Financial/

professional

services Government Other

STATUS CONFIRMED

2543

Four vehicle types tendered in separate lots

Overview of lot allocation1)

2010 2012

1) Figures are illustrative; 3) Internal combustion engine; 2) Specifics of business case to be determined (e.g. duration in years, expected

mileage, reference vehicle, depreciation of electric vehicle and battery, operational costs, conventional vehicle comparison). Depreciation

of infrastructural investment not included in the business case.

• The Tender Board has the

discretion to amend the lot

allocation and vehicle specification

• The vehicles should meet the

condition of operational financial

neutrality with respect to existing

ICE2) vehicles3)

• Workshop consultation with the

participant fleet managers and

dialogue with the manufactures will

be used to develop the evaluation

and selection criteria

• Infrastructure will not be included in

the tender

• An opt-out will be provided for

leasing

LOT 3 TYPE

III

Small utility

vehicle

LOT 4 TYPE

IV

Large utility

vehicle

LOT 2 TYPE IIPassenger

vehicle – C

Segment

LOT 1 TYPE IPassenger

vehicle – A/B

Segment

NOTES

What happened?

• 2009: start of project and LoI

• 2010: RFI

• End of 2010: RFI results

• Early 2011: end of project, with no vehicles procured

• Different wishes/demands from different participants (public vs private participants)

• Legal issues and delays (foundation, public procurement legislation)

• Decline of urgency (joint market pull, demand driven)

• Withdrawal of important stakeholder (board member and large buyer)

Next steps

• Large firms continue without the public institutions

• Small public institutions continue to be supported by existing foundation

• Large public institutions continue independent, but keep sharing knowledge and experience

16

Public Transport

• Green electricity for metro and tram

• Electric shuttles

• 4 (hybrid) electric busses

Public Transport

• Currently the cleanest public transport fleet in The Netherlands

• Public transport operator is still a public institution

• In near future possibly regional tender/concession

• Limits pilots and larger clean vehicle procurement opportunities

• Same for infrastructure (e.g. CNG installations)

• Possible full-electric bus pilot

• Enforcing the takeover of pilot equipment needed to some extent

EV Experience Center

• Test-drive and information center for the public

• Located in the brand-new central train station

• Facilitates procurement for SME’s and private individuals

Thank you! Questions?

Procurement Conclusions

• Fleet lifetime and budgets influence clean procurement options

• Public tender legislation is limiting speed of cleaning vehicle fleets (e.g. procurement contracts fixed for 4 years through tenders)

• Public tender legislation is limiting pilot project possibilities (different vehicles instead of 1 manufacturer per lot)

• Risk of procurement becoming more legally driven instead of policy and practice driven (risk averse instead of taking opportunities)

• Should we be ‘the best boy in the class’?

• Both top-down and bottom-up support are needed

22

Car Sharing

23

Scooters and Bikes

BioDiesel (B30)

• Pilot B30 in trucks

– High blend (30%) BioDiesel from used cooking oil

– 50 trucks

– 4.7 million vehicle kilometers

– 1.6 million liters of BioDiesel

– Intensive monitoring of:

• Emissions

• Truck engines

• User experiences

• Storage tanks at filling stations

– Public Private Partnership

– Results will be made public

BioDiesel (B30) - Public Private Partnership

Producent

Biodiesel

Vervoerders

Pomphouders

Autodealers

/ importeurs

Initiator / Aanjager

BioEthanol (E85)

• Pilot BEST

– High gasoline blend E85 (85%) for FFV's

– Low gasoline blends E5, E10 & E15

– Low diesel blends, e.g. O2 diesel

– Introduction of BioEthanol filling stations

– Results are public (final report)

Compressed Natural Gas (CNG)

• Pilot with 5 CNG taxi's

– Lack of filling stations due to high investment costs

• CNG as a step towards biogas

• Gas To Liquid (GTL) possibilities

Challenges

• Solid policy vs. dynamic politics (national and local level)

• Personal opinions and resistance

• Acceptance of management

• Acceptance of fleet managers and users

• Slow market development (programs delayed for several years)

• Standardization (plugs, AC/DC, slow and fast charging protocols)

• Mainstreaming sustainable alternatives

• Uncertainties regarding need for public infrastructure and road safety issues in transition phase