Session 13: Electrification of the Transport Sector

May 8th, 2018

A clean, efficient, and effective transport system is critical to economic growth and to the health and welfare of inhabitants of fast- growing urban areas. Following the Paris Climate Agreement in December 2015, a long-term political signal was sent to decarbonize the transport sector. More than three-quarters of national climate plans (nationally determined contributions, or NDCs) explicitly identify transport as a mitigation priority. As technology improves, and global transport systems become increasingly electrified, energy efficiency policies in the sector are needed to minimize rising electricity demand and to limit the impact on energy security. Several countries in Asia are setting ambitious targets for the transport sector; however, in this fast-changing market, most policymakers are unsure of what are the most suitable approaches and strategies, and how to integrate these with energy efficiency policies. New and innovative technologies such as electric vehicles have the potential to reduce emissions and alleviate variability in energy supply if implemented with energy efficiency measures. The presentations in this session will cover innovative policies and strategies, identify the challenges and opportunities supported by relevant case studies, and provide key insights and recommendations for policymakers and business leaders.


Session Chair: James Leather, Chief of Transport Sector Group, Asian Development Bank


Leonardo Paoli, Analyst, International Energy Agency

Global EV Outlook 2018

Under the Electric Vehicles Initiative, the International Energy Agency tracks global developments in the electric vehicle markets, and conducts projections towards 2030. This presentation will discuss IEA’s Global EV Outlook which describes trends in uptake of electric vehicles, charging infrastructure, grid interaction and CO2 emissions. The report also includes a special focus on battery developments for electric mobility and feasibility of electric bus deployment. The results include both a quantified overview of trends in deployment, investment and technologies, and provides a wide range of policy recommendations.

Balawant Joshi, Managing Director, Idam Infrastructure Advisory Private Limited

Designing an Optimum Feebate Structure for Light Duty Vehicles (<3500 Kg) in India

The Government of India is aggressively and extensively promoting electric-mobility. Feebates, a market-based policy employing ‘polluter pays principle’, in conjunction with strict vehicle performance standards, can be an effective strategy to drive this transition. However, the Indian Corporate Average Fuel Consumption (CAFC) norms for light-duty vehicles under 3,500 kg do not offer any incentives to exceed the benchmark or to transition to newer technologies. An effective feebate structure should be revenue neutral and should be linear. This presentation will propose a mathematical function to determine optimum feebate structure for light-duty vehicles (LDVs), which can be implemented using a simple excel based tool, and using publicly available vehicle registration data. The presentation shall discuss the pros and cons of both a linear and stepped feebate functions, as well as the levels of incentives and penalties.

Robin Hughes, Chairman, Clean Vehicle Solutions (Asia) Limited

Developing a Sustainable Electric Vehicle (EV) Business Model in Emerging Markets

We are all aware of the accelerating growth of the EV market. Original Equipment Manufacturers (OEMs) plan to phase out diesel engines in the next decade, and many individual countries plane to phase out fossil fuel vehicles by 2040. Adopting EV as a sustainable mobility solution is challenging, especially in stressed and polluting countries where “Green & Clean Fuel” policies have a checkered history. EV in emerging markets requires focused planning and execution. Where are EVs best used? Does the market have scale to justify government support? Is there infrastructure in place without compromising domestic “grid” supply? Can we guarantee EV owner affordability? This presentation will demonstrate that these challenges can be met through coordinated partnerships involving all those in the commercial business cycle.

Reji Kumar Pillai, President, India Smart Grid Forum

Implementation Plan for Electrification of Public Transportation for an Indian Metropolitan City

Typically, the electrification impact study for EV rollout is done after the routes, vehicles and chargers have been duly selected. This reactionary step often leads to additional grid capex costs and/or higher tariffs. Further, if the location is not optimized, the charging infrastructure owner/operator, is often subjected to poor utilization of charger assets compounded by punitive demand and electricity charges. This often increases the overall cost of any EV project. To compensate for this deficit, the industry seeks buyer incentives and concessional electricity tariff from the government. However, if all the above planning parameters were taken as a single optimization objective and iterated to find the lowest total cost solution, the overall costs could be dramatically lowered. This presentation will discuss that approach.