Shanghai (ZXZC)- Chinse electric vehicle maker NIO and RWE, one of the leading companies in renewable energy in Europe, recently inked a cooperation agreement under which the latter will take over the green power supply for NIO properties that do not directly source electricity from the property owner.

NIO's infrastructures involved in the partnership include NIO Power Swap Stations (PSS), NIO Houses, NIO Hubs, and various NIO office spaces, according to NIO's press release.

NIO's Power Swap Station; photo credit: NIO

Through the supply agreement, NIO will pass on attractive pricing conditions directly to its users in Germany.

"Through collaboration with RWE and access to the electricity exchange with its variable trading prices, we can optimize the charging of batteries in our Power Swap Stations in terms of cost. For example, during the night or when electricity prices are particularly favorable. We will offer a price that is highly competitive and yet does not change daily or hourly, providing planning security for our NIO users," says Marius Hayler, General Manager of NIO Germany.

"We are pleased to have NIO as a partner and to supply them with electricity. Our future collaboration goes beyond mere electricity supply because we aim to use NIO's Power Swap Stations as battery storage to stabilize the German power grid during fluctuating renewable energy feed-in. By storing or releasing green electricity, we can avoid peak loads and better balance electricity demand," says Hendrik Niebaum, Head of Commodity Solutions at RWE Supply & Trading.

Until end of March 2024, NIO customers in Germany can still enjoy free battery swaps. From April 2024 onwards, users in the BaaS model will receive two free swaps per month, with only the received electricity being an additional cost. This means that users only pay for the energy difference between the new and returned batteries. From the third swap onwards, a swapping fee of 10 euros will apply. The new pricing model includes two components: the Swapping Service Fee and the electricity. Through the collaboration with RWE, NIO users will pay a particularly attractive price, comparable to around 0.39 euros per kilowatt-hour.