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In Spring, Estonian government decided to use the funds received from the sale of AAUs to purchase 500 electric vehicles, develop a countrywide EV-infrastructure and set up a support scheme for early adopters.

However, the state's initiative should not be looked at as a mere transportation-related project but as an opportunity for Estonian entrepreneurs to gain a foothold in the rapidly growing e-mobility business.

In 10-15 years, 10-12% of cars sold will drive only on batteries. It appears, that in the future most profitable business opportunities in the industry are not related to car-manufacturing as such but can be found in other parts of the value chain – vehicle operation and value added services. This, in turn, means that new players outside the traditional car industry have an opportunity to enter the market and find their niches.

Estonian companies could have a chance in such areas as IT-and payment solutions, location-based services, battery recycling and second life, manufacturing and operating of charging stations, car sharing, load balancing, information- and entertainment services.
A great example is NOW!Innovations, one of Development Fund's recent investments. The company has moved to foreign markets and is now offering the first pay by cell EV charging service solution in California and in the whole U.S.

Thanks to the AAU-deal, the number of EV-s rolling on the streets will increase to at least 1000 in a couple of years.

This, however cannot be the final goal. First and foremost, all stakeholders, including the state, businesses and local governments should really think of how e-mobility in Estonia will evolve and how to benefit from it.
The government initiative is a good start - we cannot know in advance, how it will succeed in igniting innovation in e-mobility but without trying we would never find it out.

Lauri.Matsulevits[A]arengufond.ee

In addition:  Coffee morning: From 1000 e-vehicles to new business opportunities