E.ON Inhouse Consulting Case: E-Mobility

Expected answer for a) and b):

• Industry & Commerce
  • Already in use, e.g., CHPs, solar panels, excess heat utilization
  • Future solutions, e.g., application of hydrogen / fuel cells to decrease strong reliance on traditional energy sources
• Households
  • Already in use, e.g., solar panels storage solutions, and heat pumps
  • Future solutions, e.g., smart home appliances (run at times of excess feed-in from renewables)
• Transportation
  • Already in use, e.g., electric passenger cars, busses, trains and micro-mobility solutions (scooters etc.)
  • Future solutions, e.g., electric / hydrogen / fuel cell trucks

Expectation: Name at least two green energy solutions in use and two potential green energy solutions in the future for every sector.

“After we have made ourselves an overview of the overall energy consumption of the transportation sector, it is now time to evaluate the project of Essen’s mayor Mr. Jensen as he has approached E.ON to transform the city to more sustainable solutions. Within this project, Mr. Jensen would like to promote E-Mobility in the city. Before starting the project with Mr. Jensen, a profitability analysis from E.ON's perspective needs to be conducted.“

Once the candidate made herself/himself an overview of the question, hand out the overview of the project’s data (Data Sheet B) to the candidate.

Expectation

• It is expected that the interviewee is explaining its rationale on how to calculate the utilization rate, the annual profit and the margin as the solution requires several interim steps to get to the solution.
• If the interviewee does not come up with a step based calculation approach, support the interviewee to develop the step wise process.

Expected answer for a) & b):

• Why should the project be started?
  • Environmental benefits – E-Mobility highly reduces local emissions, contributing to better air quality and Essen’s CO₂ emissions goals
  • Economic opportunities – investing in E-Mobility infrastructure, e.g., charging stations, as economic growth stimulator in Essen
  • Future-proofing transportation – promoting other eco-friendly urban mobility solutions (e.g., car sharing) for Essen through E-Mobility
• Why is E.ON the right partner for the project?
  • Experience – long-term experience with E-Mobility businesses in Germany and Europe and large-scale projects in energy industry
  • Partnership – long-term relationship between E.ON and city of Essen (e.g., E.ON corporate HQ in Essen since 2016)
  • Services – E.ON offers a wide range of complementary services and solutions for electric vehicle (EV) owners, e.g., home charging solutions

Expectation: Name at least two points for a) & b).

Expected answer:

• Short time frame until breakeven point with less than 4 years (total investment: 1,68m €; annual profit: 424k €)
• High profitability with profit margin of almost 7 % (6.73 %)

Expected answer:

• Levers for profitability
  • Increase lifetime of a charging station, e.g., through improved maintenance or higher quality components
  • Decrease yearly overhead costs by improving operational processes, e.g., central maintenance hubs, efficient parts inventory or skilled workforce
  • Increase utilization rate, e.g., by avoiding downtimes due to technical errors and user education to reduce risk of misuse
• Risks for profitability
  • Higher prices due to high demand for charging station components as the energy transition towards green modes of transport is significantly rising.
  • Overestimation of utilization rate, e.g., due to unpopular spots for the charging stations
  • Rapid advancements in charging technology can render existing infrastructure obsolete