Volkswagen charging unit teams up with Norway's Otovo to broaden EV services
07/06/2024 09:30
By Christoph Steitz
BERLIN, June 7 (Reuters) - Volkswagen's VOWG_p.DE EV
charging unit Elli has partnered with Norway's Otovo OTOVO.OL
to offer Huawei HWT.UL equipment that lets customers connect
their cars with solar and storage systems at home in order to
cut power bills.
The partnership marks the latest move by Volkswagen along
the energy sector's value chain, already covering wallboxes,
power tariffs as well as access to more than 700,000 public
charging spots across Europe.
Norway's Otovo, founded in 2016, essentially functions like
a marketplace where homeowners can order equipment, including
solar panels and batteries, as well as their installations in 13
markets across the continent.
The rationale of the deal is to beef up Elli's services tied
to its new wallbox, while exposing Otovo to the client base of
Europe's largest carmaker, the chief executives of both
businesses told Reuters.
"In terms of EV sales, if you look at the list of the
markets Otovo is in, they actually cover 70%, 80% of the entire
European volume," Elli CEO Giovanni Palazzo said.
Combining wallboxes and photovoltaic systems by using home
storage can cut costs to charge electric vehicles by up to 40%,
the companies estimate.
The partnership will start out by integrating Huawei
inverters, which convert direct current into alternate current,
as well as battery storage systems by the Chinese companies,
Otovo CEO and founder Andreas Thorsheim said.
That, he said, was key in building an ecosystem for EV
drivers that exists "around the vehicle when it's in its garage
and can get its power directly from the home and the roof".
The partnership comes as demand for EVs has lost momentum,
causing expansion plans by major European carmakers to be
adjusted or delayed to ensure capital allocation.
Palazzo still argued that such a move at this time could
help accelerate the expansion, which has been hampered by high
prices, range anxiety and a lack of affordable models.
Otovo's Thorsheim agreed.
"If you miss a beat in this market, you're going to lag far
behind. It's really a time to be on the attack."
(Reporting by Christoph Steitz; editing by David Evans)
((christoph.steitz@thomsonreuters.com; +49 30 220 133 647))