Industry AgendaElectric Vehicles for Smarter Cities: The Future of Energy and MobilityJanuary 2018In collaboration with Bain & Company World Economic Forum® © 2018 – All rights reserved.No part of this publication may be reproduced orTransmitted in any form or by any means, including Photocopying and recording, or by any information Storage and retrieval system.REF 020218 - case 40232 3Electric Vehicles for Smarter Cities: The Future of Energy and MobilityContents4 Preface5 Overview7 The vision12 The value of the transformation16 Recommendations for action22 Conclusions23 Appendix27 References29 Acknowledgements 4Electric Vehicles for Smarter Cities: The Future of Energy and MobilityPrefaceBy 2050, about 70% of the world’s population will live, commute and work in urban areas. Between now and then, cities and suburbs will undergo significant transformations to create sustainable living conditions for their residents. Mobility and energy are the twin pillars of these transformations, and both will require radical adaptation to meet demographic and economic growth without increasing congestion and pollution. Cities will require mobility and energy solutions that are sustainable, affordable, secure and inclusive, and integrated with customer-centric infrastructure and services. Thus, the convergence of energy and mobility is critical. These are exciting times in which new technologies allow people to rethink the way they live in a more sustainable and efficient manner. Smart mobility. Smart water. Smart grid. Smart integration. These are the foundations of tomorrow’s cities, which are being realized today.Following the World Economic Forum’s previous work on the future of electricity and the digital transformation of industries, this report examines the major trends affecting the transformation of energy and mobility systems, with a special focus on cities: electrification, decentralization and digitalization of the energy system, along with the shift towards shared mobility and autonomous driving. The recommendations provided aim to accelerate these transformations, in ways that will magnify the economic and societal benefits they could bring. While suggesting a comprehensive approach and broadly applicable principles, this report also shows how to tailor each electrification strategy to specific markets: energy, mobility and urban infrastructure patterns will affect how the countries and cities decide their own priorities. Furthermore, the report also showcases examples of transformational public and private initiatives to drive greater collaboration. The vision and framework proposed in this report will support policy-makers and urban planners, as well as private investors and businesses to undertake the critical actions required to accelerate electric mobility where energy, mobility and urban transformations converge.Cheryl MartinHead of IndustriesMember of the Managing BoardWorld Economic ForumFrancesco StaraceChief Executive Officer and General ManagerEnelJean-Pascal TricoireChairman and Chief Executive OfficerSchneider Electric 5Electric Vehicles for Smarter Cities: The Future of Energy and MobilityMobility is going to change rapidly in the coming years as elec-tric vehicles (EV) proliferate, ride sharing continues to grow, and eventually autonomous vehicles (AV) enter urban fleets. This is especially true in cities where new forms of mobility are concen-trated and where investment in supporting infrastructure is need-ed to accommodate this growth. These changes coincide with the evolution towards cleaner, more decentralized and digitalized energy systems and services, and increasing electrification. Today, public- and private-sector stakeholders deploy policy, infrastructure and business models based largely on current patterns of mobility and vehicle ownership. The uptake of privately owned EVs is encouraged, while business models for charging stations vary, as they are deployed or operated by a range of players – public agencies, car manufacturers, energy companies and pure players. Limited interoperability and digitalization of infrastructure can make broad customer engagement challenging. Outside the energy sector, awareness of energy-related issues is low. Mobility integration with electricity system and grid edge technologies is emerging. As a consequence, EV charging could create local constraints and stability problems on power networks and reduce the environmental benefits of electrification. There is an opportunity to design a different future, and reap both environmental and economic benefits with a call to action around the following three principles to be acted upon:1. Take a multistakeholder and market-specific approach: First and foremost, a market-specific approach that considers all relevant stakeholders should be applied to new mobility patterns with smarter and cleaner energy systems (see Figure 1). Energy, mobility and infrastructure enterprises, along with p