towards electro-mobility for cleaner air and climate...

Towards Electro-mobility for cleaner air and climate securityy

Anumita RoychowdhuryCentre for Science and Environment

1March 03, 2017Tamarind HallIndia Habitat Centre , New Delhi

First generation action – Big CNG transition shows resulttransition shows result

Particulate pollution decline and rise again due to rapid increase in vehicle numbers

2Based on CPCB dataBased on CPCB data

2015 winter catalyses second generation action

Directives from the Supreme Court since October 2015:Environment compensation charge on trucks significant

generation action

-- Environment compensation charge on trucks – significant reduction in truck numbers-- Bans10 year old trucks; divert non-destined trucks-- All coal power plants shut– only one allowed to open in summer-- Directions for action across NCR to control trash burning and construction activities, Expansion of CNG programmeconstruction activities, Expansion of CNG programme-- Big diesel cars pay pollution charge-- Delhi and NCR gets first ever Graded Response Action Plan -- Direction to prepare comprehensive time bound source-wise action plan to control pollution in Delhi NCR

Central government issued notification on Euro VI in 2020

Opportunity for second energy transition?

Bend and sustain the pollution curveLesson from this winter

4

What’s on table?

Ministry of Environment and Forests – meet clean air standards and INDC commitment of reducing carbon intensity of growth by 30-35% by 2030commitment of reducing carbon intensity of growth by 30 35% by 2030

Ministry of Petroleum and Natural Gas -- Reduce oil import dependence by 50% by 2020; 75% by 2025 -- Transport sector uses up 40% of petroleum products. Vehicle numbers to increase six fold by 2030 and Indians will travel thrice as many kilometers as they travelled in 2001.

Ministry of Road Transport and Highways and Bureau of Energy Efficiency:Ministry of Road Transport and Highways and Bureau of Energy Efficiency: Fuel economy standards

Aspirational goal of our Power Minister Piyush Goyal – all vehicles to be sold in p g y y2030 should be electric vehicle

National Mission on Electric Mobility – 6-7 million electric vehicle units by 2020. Incentive programme of Faster Adoption and Manufacturing of Hybrid and Electric vehicles Ministry of Renewable Energy; Department of Science and Technology

Why should we look at electric mobility?

DoubtsIs it the right time when we are operating at much lower level of technology

mobility?

Is it the right time when we are operating at much lower level of technology curve?Too expensive? Will it not block other lower cost options needed at larger scale?scale? Electro-mobility linked to dirty power cannot give adequate greenhouse gas benefits.Mainstream technologies are improving to become very fuel efficient WhyMainstream technologies are improving to become very fuel efficient. Why spend so much on EV options?

But there is merit in the case for EV-- Paradigm shift away from ICE engine is inevitable - More cost effective to make the transition now before we are pushed towards more expensive petrol and diesel solutions in the longer run. Part of preventive strategy g p gy-- EV is the only strategy with flexible upstream fuel options. Grid will only get cleaner

Has electric vehicle programmeHas electric vehicle programme delivered so far? What do we learn for

course correction?course correction?The case of FAME

Trend in Electric cars and hybrids -India

•Initial support from Alternate Fuels for SurfaceFuels for Surface Transportation Programmeand subsidy scheme. Sharp decline in electric cardecline in electric car registration b/w 2012-13•Very small volume

Source: 2016, Global EV Outlook, International Energy Agency

Global market: Small but growing

Global electric car stock, 2010-15•Electric vehicle stock still smallstock – still small –less than 3% but growing

•Electric vehicle stock in 2016 was

i h k htwice the stock that existed in 2014.

•2005 – only few hundreds.

Source: 2016, Global EV Outlook 2016, International Energy Agency

India vs Delhi

India Delhi

*Note: Electric vehicle includes all Battery Operated Vehicles like 4 wheelers, 2 wheelers., Whereas hybrid are only 4 wheelers)Source: 2016 Parivahan Sewa Ministry of Road Transport and Highways Government of IndiaSource: 2016, Parivahan Sewa, Ministry of Road Transport and Highways, Government of India

•EV and Hybrid penetration -- 1.1% nationally; In Delhi 4.1%• Delhi has 62% of total electric vehicle registered in 2016; 79% of diesel mild hybrid cars; and 97% of strong hybridshybrid cars; and 97% of strong hybrids.•Electric two-wheelers dominate national sales, -- sales of electric 2- wheelers and cars tripled from 2014 levels to 23,000 units, of which 21,000 units are electric 2 wheelers. (Ten months 2016)

Policies on electro-mobility taking shape....

•National Mission on Electric Mobility in 2011 and National Electric M bilit Mi i Pl 2020 (NEMMP) i 2012 13 f tMobility Mission Plan 2020 (NEMMP) in 2012-13 -- future roadmap for electric mobility in India, along the lines of the National Automotive Mission Plan 2006-16.

•Target of 6-7 million electric/hybrid vehicles by 2020 along with indigenization of technologyindigenization of technology

• Faster Adoption and Manufacturing of (Hybrid and) Electric (FAME) 2015 16 t 2020 21 f t h l D l t(FAME) -- 2015-16 to 2020-21 for technology Development; Demand Creation; Pilot Projects; Charging Infrastructure.

•Standards and certification -- Authorized Testing Centre to certify vehicle to qualify for demand incentives. Get eligibility certificate

Break-up of the Scheme components…

Component of the Scheme (In crores)Year 2015-16 2016-17

Technology Platform (including testing infrastructure)

70 120

Demand Incentive 155 340

Charging Infrastructure 10 20

Pilot Projects 20 50

IEC/ Operations 05 05

Source: Fame India Scheme

Total 260 535

Grand total Rs. 795 crore

•As on December 2016, incentives for -- 33 models of two wheelers, 12 models of cars; one three wheeler model.•Out of the Rs 795 crore outlay only Rs 190 crore utilized of which as of•Out of the Rs. 795 crore outlay only Rs. 190 crore utilized, -- of which -- as of June 2016 -- Rs. 83 crore used for demand incentives.

Incentives Structure…

Demand incentive for vehicles by segment (Incentive in Rupees)

S. No. Vehicle Segment Minimum Incentive Maximum Incentive1 2 Wheeler Scooter 1800 22,0002 Motorcycle 3500 29,0003 3 wheeler Autorikshaw 3300 610004 4 wheeler Passenger cars 11,000 1,38,000

4.1 a) Electric 1,24,000 1,38,0004.2 b) Mild Hybrid 13,000 13,0004.3 c) Plug-in 70,000 70,0005 LCVs 17,000 1,87,0006 Bus 30,00,000 66,00,000

15% or 30 000 if30% of Kit price or

7 Retro Fitment Category15% or 30,000 if reduction in fuel

consumption is 10-30%

90,000 if reduction in fuel consumption is more

than 30%

Definition as per Department of Heavy Industry’s FAME Guideline…

Mild hybrid: A ‘Hybrid Electric Vehicle (HEV)’* which has a ‘Stop-Start’ arrangement, ‘Electric Regenerative Braking System’ and a ‘Motor Assist’arrangement, Electric Regenerative Braking System and a Motor Assist (motor alone is not capable to propel the vehicle from a stationary condition).

Strong hybrid: A ‘Hybrid Electric Vehicle (HEV)’ which has a ‘Stop-Start’ arrangement, ‘Electric Regenerative Braking System’ and a ‘Motor Drive’ (motor alone is capable to propel the vehicle from a stationary condition).(motor alone is capable to propel the vehicle from a stationary condition).

Plug-in hybrid: A ‘Strong HEV’ vehicle which has a provision for ‘Off Vehicle Charging’ (OVC) of ‘Rechargeable Energy Storage SystemVehicle Charging (OVC) of Rechargeable Energy Storage System (ReESS)’.

Electric vehicle: A vehicle which is powered exclusively by an electricElectric vehicle: A vehicle which is powered exclusively by an electric motor whose traction energy is supplied exclusively by traction battery installed in the vehicle and has an ‘Electric Regenerative Braking System’.

Number of Hybrid and Electric Vehicles sold under the demand incentive scheme

d i th 2015 16 d 2016 17during the year 2015-16 and 2016-17

Name of OEM Type of VehicleNumber of Vehicles Total Demand

Incentive released (Rs )2015-16 2016-17(Upto

June 2016) Total released (Rs.)June 2016)Mahindra REVA Electric Vehicles

Pvt Ltd4W Electric 753 76 829 10,27,96,000

Electrotherm 2W 2411 499 2910 2 18 25 000

(Indian ) Ltd2W 2411 499 2910 2,18,25,000

Maruti Suzuki India Ltd

4W Mild Hybrid 30157 8610 38767 50,39,71,000

Hero Electric Vehicles Pvt Ltd

2W 12039 1718 13757 10,45,46,000Vehicles Pvt LtdToyota Kirloskar

Motor Pvt Ltd4W Strong Hybrid 1023 148 1171 8,19,70,000

Lohia Auto Industries

2W 99 24 123 9,22,500

Ampere VehiclesAmpere Vehicles Pvt Ltd

2W 234 60 294 22,05,000

Avon Cycles Ltd 2W 628 48 676 50,70,000Chris Motors 2W 96 54 150 11,25,000

Ajanta 2W 2034 0 2034 1 52 55 000

Source: Lok Sabha Starred Question No.133 to the DHI

jManufacturing Ltd

2W 2034 0 2034 1,52,55,000

Total 49474 11237 60711 83,96,85,500

Model getting incentive under the FAME scheme

S. No OEMs Model Name

Incentive Amount No. (Rs.)

Four Wheelers1 Mahindra and Mahindra Limited E-VERITO 138,000 2 Mahindra and Mahindra Limited Mahindra e Supro Cargo Van 187 0002 Mahindra and Mahindra Limited Mahindra e-Supro Cargo Van 187,000 3 Mahindra Reva E2O T2 - 48V Li-on Winston 450 Amp 124,000 4 Mahindra Reva E2O T1 -72V Li-ion ATL 550 Amp 124,000 5 Mahindra Reva E2O T6 - 48V Li -ion CALB 450 AMP 124,000 6 Mahindra Reva e2o Plus P4 124,000 7 Mahindra Reva e2o Plus P2 124,000 8 Mahindra Reva e2o Plus P6 124,000 9 M hi d R 2 Pl P8 124 0009 Mahindra Reva e2o Plus P8 124,000 10 Maruti Suzuki India Ltd Maruti Ciaz Diesel SHVS Std. 13,000 11 Maruti Suzuki India Ltd MARUTI ERTIGA LDI SHVS 13,000 12 Toyota Kirloskar Motor Pvt Ltd TOYOTA CAMRY HYBRID 70,000 y

Three Wheelers1 Electrotherm (India) Limited ET Uvraj 25,000

Two wheelers

S. No. OEMs Model Name Incentive Amount (Rs.)Two Wheelers1 Ajanta Manufacturing Limited J-50 PLUS 7,500 2 Ampere Vehicles Pvt. Ltd. V60 7,500 3 Ampere Vehicles Pvt. Ltd. Ampere-V48 7,500 4 AVON Cycles Limited AVON ESCOOT 207 7,500 5 AVON Cycles Limited AVON E MATE 7,500 6 Chris Motors Breeze lite 7,500 7 Electrotherm (India) Limited Yo Electron ER 7,500 8 Electrotherm (India) Limited Yo Xplor 7,500 9 Electrotherm (India) Limited Yo Spark 9,400 10 Electrotherm (India) Limited Yo Exl ER 9,400 11 Hero Electric Vehicle Private Limited Maxi 7,500 12 Hero Electric Vehicle Private Limited Zion 7,500 13 Hero Electric Vehicle Private Limited Optima Plus 7,500 14 Hero Electric Vehicle Private Limited E Sprint 9,400 15 H El t i V hi l P i t Li it d Ph t 9 40015 Hero Electric Vehicle Private Limited Photon 9,400 16 Hero Electric Vehicle Private Limited Cruz 7,500 17 Hero Electric Vehicle Private Limited Hero Wave 7,500 18 Hero Electric Vehicle Private Limited Hero Wave DX - Extra Mile 7,500 19 Hero Electric Vehicle Private Limited OPTIMA DX 7,500 20 Hero Electric Vehicle Private Limited NYX 7,500 21 Hero Electric Vehicle Private Limited OPTIMA DX LI 17 00021 Hero Electric Vehicle Private Limited OPTIMA DX LI 17,000 22 Hero Electric Vehicle Private Limited Maxi LI 17,000 23 Hero Electric Vehicle Private Limited NYX-LI 17,000 24 Hero Electric Vehicle Private Limited OPTIMA BX LI 17,000 25 Hero Electric Vehicle Private Limited Cruz LI 17,000 26 Hero Electric Vehicle Private Limited PHOTON LI 22,000 27 Lohia Auto Industries OMA STAR 7,500 ,28 Lohia Auto Industries OMA STAR DX 7,500 29 Lohia Auto Industries GENIUS 7,500 30 Okinawa Autotech Private Limited RIDGE 9,400 31 Tunwal Electronics Elektrika 48 7,500 32 Tunwal Electronics Sport 63 7,500 33 Tunwal Electronics STORM ZX 7,500

State level actionAir ambience fund

S NoType of Cost of Vehicle (Base Subsidy

State level of actionS. No.Vehicle Price) amount

1. Up to Rs. 20,000 Rs. 1,000

State level of action

Collections and Utilization of Air Ambience Fund for

2 Wheeler2.Between Rs. 20,000

and Rs. 25,000Rs. 2,000

3 Ab R 2 000 R 00

Incentivizing Electric Vehicles

Utilisation rate of subsidy3. Above Rs. 25,000 Rs. 5,500

4.3

WheelersN.A. Rs. 30,000

Utilisation rate of subsidy 20% of total collection

But fund collection has i d i ifi tl5.

4 Wheeler

Up to Rs. 5,00,000 Rs. 30,000

6.More than Rs.

5,00,000Rs. 1,50,000

increased significantly

Programme will need recalibration to utilise the fund more effectively

Results?

95% of the cars sold in 2015-16 under FAME were diesel mild hybrid…FAME were diesel mild hybrid…


Share of total incentive given in 2015-16….

•2015-16: Out of Rs. 70 crore spent on incentives, Rs. 40 crore is for diesel mild h b id 57%hybrids -- 57%

•None for 3 wheelers and buses.

•Incentive for diesel mild hybrid-- MarutiCiaz Diesel SHVS Std is 1.5% of cost; for electric car Mahindra Reva (Electric Car) is 24 7% of cost of caris 24.7% of cost of car

•But higher volume of diesel mild hybrid has cornered more than half of the fund.

•Diesel mild hybrid enjoy FAME incentives as well as excise tax reduction. Now listed for super credits under fuel


Now listed for super credits under fuel economy programme

Emissions and fuel saving gains?

Fuel Consumption Savings of Models Under FAME Scheme Compared with base Models Nearly 60% of

FAME incentiveFAME incentive tied with nominal improvement and established technologytechnology

22

Source: ICCT

Why incentive is linked with minimal improvement and low incremental cost?

Comparative total cost of ownership (include purchase cost, fuel cost, insurance cost, maintenance cost, depreciation -- 2015-16 ):

improvement and low incremental cost?

Mild diesel hybrid cars: Total cost of ownership for mild hybrids is about 5% lower than base model with incentive and 14% higher without any incentive.

Strong hybrid carsTotal cost of ownership is about 23% higher without any incentive

2015-16 – sales of Toyota Camry 7 times higher than base model – though much2015 16 sales of Toyota Camry 7 times higher than base model though much smaller in number

Electric carsT t l t f hi i b t 1% l th b d l ith i ti dTotal cost of ownership is about 1% lower than base model with incentive and 51% higher without any incentivesales very small – less than 1000 in 2015-16

23

Source: ICCT

How incentives influence cost of two-wheeler ownership?

Low speed electric two-wheelerLow speed electric two wheeler Total cost of ownership is about 44% lower than base model with incentive and 28% lower without any incentive. Delhi government incentive further helpsTax incentive significant

High speed electric two-wheeler Total cost of ownership is about 7% higher than conventional model with incentive

d 26% hi h ith t i tiand 26% higher without any incentiveTax incentive significant

Cost of two-wheelers with lithium Ion battery is much higher – will need supporty g pp

24

Source: ICCT

Barriers for Electric Vehicles…

Segment- wise challenges

Vehicle segment wise matrix of key barriers to EV adoptionVehicle segment wise matrix of key barriers to EV adoption

4-W 2-W 3-W LCV BusRange 4 4 4 4Range 4 4 4 4

Charging time 5 5 3

Battery Replacement

3 3 3 3 2Replacement

Low top speed

2 2 2 2 4

Low pick up 1 1 1 1 1Low pick up 1 1 1 1 1

Note: Numbers indicate priority with 1 representing the highest ranking

Source: GoI- industry study.

Two-wheeler: slow start

Emissions gains

19 out of 24 two-wheeler model low speed scooters with max power output of less p pthan 250 watts and maximum speed of 25 kilometers per hour

Except Hero Optima Dx Li all are lead acidExcept Hero Optima Dx Li all are lead acid battery – more expensive

FAME caps maximum energy consumption from low and high speed two-wheelers at 5 kwh/100 km and 8 kwh/100km for incentive.

Yet to achieve scale. Cost constraints? Battery cost? Consumer acceptance?

Opportunity?

28

Source: ICCT

pp ySmall trip length in most cities -- short range Delivery bikes?

What has China done about two-wheelers?

Chinese regulations promote low weight, low speed vehicles f f tfor safety

Indian models are comparatively heavierea e

China also largely lead acid battery

China has restricted petrol two-wheelers in certain cities. This has created mandate..

29

B N t tBuses: Non starterIncentives for buses under FAME Rs

30 00 000 to Rs 66 00 00030,00,000 to Rs 66,00,000

Buses

•Nascent interest in electric buselectric bus

•Navi Mumbai pilot project•Himachal Pradesh pilot: 100 EV buses•West Bengal released gtender•Chandigarh proposed pilot•Bengaluru pilot •2015 Prime Minister flagged off the Smart

Electric Bus•Bengaluru pilot •Telengana proposed pilot•Gurgaon proposed pilot

31

Cost of transition

-- How can state transport corporations plan? Implications for viability gap funding -- Addressing the issue of range-- Building metro feeder

A t d l h ttl-- Aggregator model -- shuttle-- Employee programme

ExpensiveExpensiveEg. Ashok Leyland Bus– Circuit•Seating capacity varies from 35- 65•Range is upto 120 km in a single chargeRange is upto 120 km in a single charge•Cost varies from Rs1.5 crore to 3.5 crore•Incentives under FAME (Rs 30,00,000 to Rs 66,00,000)•Actual cost of the bus reduces to Rs 1.2 crore to Rs. 2.84 crore

32

Diesel and CNG pathways to meet Euro VI normsDiesel emissions control route more complicated and

iexpensive

Looking at solutions

Support from governments for upfront capital costs

Battery swapping – delink battery from the vehicle –business model for swapping; standardisation and specs for battery pack; need reliable market with scale: risk reduction;battery pack; need reliable market with scale: risk reduction;

Short range for feeder and local routes for cost effective solutions

Tax incentive

Create dedicated fund based on polluter pay principleCreate dedicated fund based on polluter pay principle –eg Delhi – clean air fund from tax on trucks and big diesel cars

34Can EV based metro feeder be built into the overall capital cost and operational plan of metro etc?

Para-transit

Three-wheelers and taxis Close to half of average trip length in most cities is within 3-4 km range

P t it b d bilit i i bl d ff tiPara transit based on e-mobility is a viable and effective option

Vehicle models are availableVehicle models are available

Already strong response from informal sector – e-rickshawsrickshaws

Swapping and fast charging facilities

Fiscal s pport35

Fiscal support

Designated parking and charging

Electricity?

Emissions benefits from passenger Cars Under FAME Scheme under current

scenario

Vehicle Technology Segment Curb Weight

(kg)

Length (mm)

Displacement(cc)

Price Range(INR

Gasoline Equivalent Fuel Consumption

Life-Cycle CO2e

Emissions

scenario

(kg) (cc) (INR Lakhs)

Consumption(liter/100 km)

Emissions (Tonnes/12 years)

Maruti Ciaz SHVS

Mild Hybrid (Diesel)

Midsize 1,115 4,490 1,248 8 to 10.5 3.98 16.14

Maruti Ertiga SHVS


Utility Vehicle (UV1)

1,235 4,265 1,248 7.5 to 9.5 4.55 18.49

Toyota Strong Hybrid Premium 1,635 4,850 2,494 28 to 32 5.22 19.49Toyota Camry Hybrid

Strong Hybrid (Gasoline)

Premium 1,635 4,850 2,494 28 to 32 5.22 19.49

Mahindra e2o

Battery-Operated El t i

Mini 830 3,280 NA 4.5 to 7.5 0.86 12.15

Electric

Mahindra eVerito

Battery-Operated Electric

Midsize 1,140 4,277 NA 9.5 - 10 1.47 23.85

37[1] As per classification mechanism adopted by Society of Indian Automobile Manufacturers[2] Retail price in Delhi (1 INR lakh ~ USD 1,500)[3] As per fuel economy values under test conditions certified by Automotive Research Authority of India – (icct)

If 30% reduction in CO2 intensity


(kg)

Length (mm)

Displacement(cc)

Price Range(INR

Gasoline Equivalent

Fuel

Life-Cycle CO2e

Emissions(kg) (cc) (INR Lakhs)

Fuel Consumption(liter/100 km)

Emissions (Tonnes/ 12 years)

Maruti CiazSHVS


Midsize 1,115 4,490 1,248 8 to 10.5 3.98 16.14

Maruti Ertiga SHVS



1,235 4,265 1,248 7.5 to 9.5 4.55 18.49

Toyota Strong Hybrid Premium 1,635 4,850 2,494 28 to 32 5.22 19.49Camry Hybrid

(Gasoline)

Mahindra e2o


Mini 830 3,280 NA 4.5 to 7.5 0.86 8.50

Mahindra eVerito


Midsize 1,140 4,277 NA 9.5 - 10 1.47 16.70

38[1] As per classification mechanism adopted by Society of Indian Automobile Manufacturers[2] Retail price in Delhi (1 INR lakh ~ USD 1,500)[3] As per fuel economy values under test conditions certified by Automotive Research Authority of India

If 50% reduction in CO2 intensity


(kg)

Length (mm)

Displacement(cc)

Price Range(INR

Gasoline Equivalent Fuel Consumption

Life-Cycle CO2e

Emissions ( g) (cc) (Lakhs)

Co su pt o(liter/100 km)

ss o s(Tonnes/12 years)

Maruti Ciaz SHVS


Midsize 1,115 4,490 1,248 8 to 10.5 3.98 16.14

Maruti Ertiga SHVS



1,235 4,265 1,248 7.5 to 9.5 4.55 18.49

Toyota Camry

Strong Hybrid (Gasoline)

Premium 1,635 4,850 2,494 28 to 32 5.22 19.49y

Hybrid ( )

Mahindra e2o


Mini 830 3,280 NA 4.5 to 7.5 0.86 6.07

Mahindra eVerito


Midsize 1,140 4,277 NA 9.5 - 10 1.47 11.93

39[1] As per classification mechanism adopted by Society of Indian Automobile Manufacturers[2] Retail price in Delhi (1 INR lakh ~ USD 1,500)[3] As per fuel economy values under test conditions certified by Automotive Research Authority of India

Charging infrastructure

•Under FAME, small allocation for charging infrastructureinfrastructure

•DHI - set up 25 charging stations in Bangalore under a pilot project; to set up 200 new charging t ti i iti i l di D lhi J i dstations in cities including Delhi, Jaipur and

Mumbai soon.

•Mahindra has set up their own 82 charging points p g g pfree of cost.

•23 stations in Delhi. Bangalore (16), Gurugram(6) Faridabad (1) Noida (1) Kolkata (18)(6), Faridabad (1), Noida (1), Kolkata (18), Howrah (2), Mumbai (2), Pune (12) and Sahibabad (1).

Source: Plug in India

Concerns ...

•Present regulatory framework doesn’t permit resale of electricityPresent regulatory framework doesn t permit resale of electricity.

•A business model and regulatory approval by which a way side t t/ ki l t t i t ll d i t i h irestaurant/parking lot operators can install and maintain charging

stations and parking bays needs to be worked out.

•India Smart Grid Forum (a PPP initiative of the Ministry of Power, Government of India) under the aegis of Smart Utilities Group (SUG) looking at it(SUG), looking at it..

Charging infrastructure across global cities

Source: McKinsey analysis; press search

Market ramp up of vehicles and publicly accessible charging infrastructure...

Source: Charging Infrastructure for Electric Vehicles in Germany, 2015

Let power sector get involved

Need coordinated action with power pcompanies/Discoms:

Charging infrastructure-- Charging infrastructure

-- Smart metering

-- Map demand and work with consumers

-- Pricing

-- Incentive for industry involved in battery swapping44

-- Incentive for industry involved in battery swapping

-- Consumer awareness

Global learning: Incentives are drivers of EV programmes… But design p g g

incentives well

Leaders

•80% of global t k l t d i

EV sales and market share in a selection of countries and regions, 2015

stock are located in five countries -- US, China, Japan, pNetherlands and Norway.

•Influence of incentive programmes

Source: 2016, Global EV Outlook 2016, International Energy Agency

China

Direct fiscal incentives to consumers•The subsidies paid directly to automakers rather than consumersThe subsidies paid directly to automakers rather than consumers. •Electric vehicles not subject to toll fees and exempted from any local registration restriction like lottery or auction. •Many electric passenger cars and hybrid vehicle models manufacturedMany electric passenger cars and hybrid vehicle models manufactured in China are exempted from paying value added tax (VAT).

Regulatory incentiveRegulatory incentive •The Chinese government had set a target to register 2 million electric vehicles by 2020. •To support the electric vehicle sale the government has also planned•To support the electric vehicle sale, the government has also planned to install 10 million charging points.

Electric buses: Compared to European cities electric buses much•Electric buses: Compared to European cities, electric buses much higher. In 2014, 20,000 electric buses were manufactured and sold in China.

Japan...

Direct fiscal incentives to consumers•Electric vehicle purchasers enjoy exemption and reduction from certain auto-related taxes. •Continue to offer “Clean Energy” subsidies to purchasers of electric gy pvehicles and plug-in hybrids.

Actual amount of subsidy is two third of the price difference between the y pelectric vehicle and a comparable gasoline car.

According to a survey carried by Nissan in 2016, Japan has moreAccording to a survey carried by Nissan in 2016, Japan has more electric charging points that petrol pumps.

Norway...

Direct fiscal incentives to consumers

•BEVs are exempted from the VAT, which normally adds 25 per cent of a vehicle’s list price to the total cost. E ti f BEV f th i t ti t•Exemption of BEVs from the registration tax.

Indirect non fiscal incentive to consumers

•Norwegian BEV owners have preferential access to large parts of public infrastructure, including free access to toll roads, reduced ferry rates, free parking, access to bus lanes, and free charging at public charging stations.

Germany...

Direct fiscal incentives to consumers•BEVs registered before 2016 are exempted from the ownership tax for 10 years and vehicles registered between 2016 and 2020 are exempted for five years.

Regulatory incentive •Germany has approximately 50,000 electric vehicles on the road and aims to introduce one million electric vehicles by 2020 and six million by 2030.

Funding for charging infrastructure: Funding for electric vehicle charging infrastructure primarily relies on private-public partnerships.

California, United States of America

Direct fiscal incentives to consumers

California Vehicle Rebate Project: In 2016, the State of California came up with California Vehicle Rebate Project. p j

Under this programme, a cash rebate of up to $5,000 on zero emission vehicles are given to the vehicles that the California Airemission vehicles are given to the vehicles that the California Air Resources Board has approved or certified.

Bhutan....

Direct fiscal incentives to manufacturers

•In 2014, Memorandum of Understanding signed between the Indian manufacturers.

•The government to bring electric buses and taxis. As on 2016, only 10 electric taxis in Thimpuonly 10 electric taxis in Thimpu.

•Sri Lanka

•Well designed fiscal policy for market transition

Cost curve to get lower

• In the long run, both BEV (100-mile range) and fuel cell vehicles should be cheaper than conventional vehicles

• Even with low battery costs, PHEV always command a significant cost penalty

53 Greene et al (2014) Transitioning to Electric Drive Vehicles. http://www.theicct.org/transitioning-electric-drive-vehiclesNational Research Council (2013) Transitions to Alternative Vehicles and Fuels http://www.nap.edu/catalog.php?record_id=18264

Challenges of in-use compliancecompliance

Need new compliance regime for in-use compliance eed e co p a ce eg e o use co p a ce

• During CSE’s audit, it was found that a hybrid vehicle could not be tested as per idle emission check test pprocedure. Because the operator could not get the required RPM readings.

N d f hi l ' O B d Di ti (OBD)• Need scan of vehicle's On-Board Diagnostic (OBD) system. So the test procedure for hybrids does not include tailpipe emissions.

• There is an urgent need to develop new test protocol by involving OBD check.

India’s opportunity and way forward

India’s trajectory can be different – more public transport oriented for win-win solution -- Buses, feeders, taxis, autos, aggregatorswin solution Buses, feeders, taxis, autos, aggregators

-- Bus strategy – based on both short and long range; battery swapping/ dedicated charging/smart charging; support for fleet purchase etc

Target polluting segment of two wheelers mandate?-- Target polluting segment of two-wheelers – mandate? -- Design incentives carefully to avoid unintended consequences -- Remove diesel mild hybrids from the list-- Link incentive with clear targets – eg Significantly better than the fuelLink incentive with clear targets eg. Significantly better than the fuel economy standards and zero emissions target -- Establish criteria for eligibility for incentives; Need reliable and longer term incentives. But also cap incentive for gradual phase down.p g p-- Technology development – range, battery efficiency etc-- Apply polluter pay principle to create dedicated fund for supporting e-mobility-- Link electro mobility with pedetrianisation of city centre etc and public transport access-- Non fiscal incentives – Public and private charging; adapt building code; link charging with parking infrastructure, safe battery recycling

56Thank You

towards electro-mobility for cleaner air and climate...

Documents