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Anna West

Energy Now Expo 2013
February 21, 2013
52

Anna West

The low emission vehicle sector - how is it growing?

Energy Now Expo 2013

February 21, 2013
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Transcript

  1. When not if: An update on the low emission vehicle

    sector Energy Now Expo 13 February 2013 Anna West Head of Consumer Incentives, OLEV
  2. 3 A reminder on OLEV Office for Low Emission Vehicles

    (OLEV) Incentives Infrastructure Supply Chain R&D Energy issues
  3. 4 A reminder on why International aviation/shipping 6% Business 14%

    Residential 14% Other 5% Agriculture 8% Energy supply 32.5% Domestic transport 19.4% 130g/km EU Fleet Ave target 2015 95g/km EU Fleet Ave target 2020 50-60g/km likely maximum achievable with an ICE Sub 50g/km – Only achievable by ULEVs and the opportunity for UK Plc. 2010 GHG
  4. 5 Mass Market EV Technology Niche EVs 2020 2000 2010

    2030 Full Hybrid Micro/Mild Hybrid 130 95 TBD EU Fleet Average CO2 Targets (g/km) 2040 Plug-In Hybrid IC Engine and Transmission innovations (gasoline/diesel/gas/renewables) Demonstrators Fuel Cell Vehicle Demonstrators Charging Infrastructure H2 Infrastructure Energy Storage Breakthrough Energy Storage Breakthrough Vehicle Weight and Drag Reduction Fuel Cell & H2 Supply/Storage Breakthrough Industry consensus… Source: New Automotive Innovation and Growth Team 2009
  5. 7 Current barriers  Price  Range (anxiety)  Product

    range  Perception  Rarity / novelty  Infrastructure  Residual Value
  6. 8  Incentives: Plug-In Car and Van Grants (£300m) 

    Infrastructure: Plugged-In Places (£30m)  R&D (£82m)  Fiscal levers  Other regulations – Congestion Charge, LEZs.  CO2 regulations Current policy levers
  7. 9 Plug-In Car Grant (PICG) - up to £5,000 (25%)

     Live since 1 Jan 2011  11 Cars eligible  Spending Review confirmed Government support for PICG for the life of this Parliament  PICG reviewed early 2012
  8. 10 Plug-In Van Grant (PIVG) - up to £8,000 (20%)

     Live since Feb 2012  7 vans eligible
  9. 11 Progress to date and forecasts (plug-in grants) Plug-in Car

    and Van Grant Uptake / Forecast (at January 2013) 710 605 384 106 106 430 75 41 80 19 786 892 3236 2451 1805 1295 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 Jul-Sep 2011 Oct-Dec 2011 Jan-Mar 2012 Apr-Jun 2012 Jul-Sep 2012 Oct-Dec 2012 Jan-Mar 2013 Apr-Jun 2013 Jul-Sep 2013 Oct-Dec 2013 Jan-Mar 2014 Apr-Jun 2014 Jul-Sep 2014 Oct-Dec 2014 Car Grants per Quarter Van Grants per Quarter Cumulative Car & Van uptake Forecast uptake - Low Forecast uptake - medium Forecast uptake - high
  10. 12 Vehicles coming to market (a sample!) Company Model Type

    Range BMW i3 Fully electric 80 to 100 Volvo V-60 Plug-in Hybrid PHEV 32 electric 620 extended Ford Focus Fully electric 76 (est) Ford C-MAX PHEV PHEV 21 electric 620 extended Mitsubishi Outlander Plug-in Hybrid PHEV 34 electric 500 extended Renault ZOE Fully electric 60-80 (est) Ford Transit Connect Electric Fully electric 80 (est) Peugeot Partner Electrique Van Fully electric 105 (est) Nissan ENV200 Fully electric TBC Citroen Berlingo Electric Fully electric 60 (est)
  11. 13 Plugged-in Places (PIP) Programme • Providing up to £30m

    match- funding to consortia of businesses and public sector partners to install plug-in vehicle recharging infrastructure across the UK Note: All 12/13 figures are estimates and subject to change
  12. 14 Progress to date (infrastructure) Type of PIP Chargepoints (to

    end Sept 2012) 1194 1214 122 31 3 kw 7 kw 20 kw 50 kw Location of Total PIP and Non PIP Chargepoints (To End of September 2012) 54% 14% 24% 8% Public On Street Public Parking Domestic Private Workplace Cumulative Actual/ Forecast Chargepoint Numbers 8459 0 2000 4000 6000 8000 10000 12000 Q1 Q2 Q3 Q4 FY10/11 FY11/12 FY12/13 PIP Non PIP Original PIP Ambition
  13. 16 Research and Development OLEV funds (£82m) specific programmes and

    research to meet its priorities, most are delivered through the Technology Strategy Board (TSB), a non Governmental organisation sponsored and funded by BIS Automotive Council set five strategic areas for R&D: *(OLEV Funded) • Improvements to internal combustion engines • Energy storage and energy management* • Lightweight vehicles and power train structures* • Development of power electronics and electric machines* • Developing and applying Intelligent Transport Systems Low Carbon Vehicle Public Procurement Programme (LCVPP) was launched in December 2011 providing a grant to public sector organisations towards purchase of hybrid vans (restricted to 500).
  14. 17 Hydrogen – UKH2 Mobility Key findings of evaluation phase

    were published 4 February 2013: details can be found here: http://news.bis.gov.uk/Press-Releases/Future-of-hydrogen-powered-cars-mapped-out-68719.aspx ▪ UK Government departments Phase 1 participants ▪ Car OEMs ▪ Hydrogen providers/ producers and utilities ▪ Technology providers ▪ Public-private partnerships ▪ Fuel retailers A ground-breaking joint industry-government project, launched in January 2012, to evaluate the potential for hydrogen fuel cell electric vehicles in the UK and develop a strategy for the commercial roll-out from 2015
  15. 18 ULEVs and the energy system - In the long

    term, if battery technologies develop, they may be able to act as backup energy sources for homes and supplement the grid during peak demand periods – this is known as Vehicle to Grid (V2G) or Vehicle to Home (V2H). ULEVs will place additional demands on the electricity system. Future investments in the electricity distribution network must anticipate the development of the market But there is also an opportunity. Through innovative Time of Use Tariffs, consumers could be encouraged to charge their vehicle when there is less demand for energy. Smart meters, automation and smart appliances will support more flexible electricity demand and so more efficient use of the grid. Hydrogen vehicles offer a similar opportunity for energy storage.
  16. 19 Financial benefits The following incentives are available to all

    EV purchasers:  Vehicle Excise Duty (VED) exemption (£130 saving against Band F)  Lower fuel tax and costs: EV price per mile 2-3p, conventional car 13p In addition, the following incentives are also available to fleet purchasers:  Enhanced Capital Allowance: write-down 100% of EV value in 1st year to set against tax (even if the grant has been used)  National Insurance Contribution (NIC) exemption on providing company car and on providing fuel benefit (where fuel is provided by employer)  NIC and Income Tax exemption for employees receiving company and also on receipt of car fuel benefit.  Van benefit charge (VBC) – when employers provide employees with a van for private (as well as business) use, a £3000 Van Benefit Charge is payable. Since April 2010, zero-carbon vans are exempt for five years. At the local level, other incentives include:  Congestion charge exemption: £9-10 per day – £2000 per year (200 days)  Free residential parking
  17. 20  Last week the European Commission published a new

    proposal for a directive on deployment of alternative fuels infrastructure.  It sets binding targets and common standards for the build- up of alternative fuels infrastructure across the EU.  It sets minimum requirements on the number and geographical proximity of alternative fuels infrastructure for road transport and maritime operations, and proposes common technical standards for their construction and operation. EU Clean Power for Transport
  18. 21  The European Commission Work Programme 2012 contained an

    initiative for 2013 titled ‘Strategy for reducing Heavy Duty Vehicles CO2 emissions’.  The initiative aims to address the problem of growing CO2 emissions from heavy duty vehicles and looks to reduce emissions in a cost-effective way.  A change in political focus has meant the initiative has been taken off this years EU Work Programme, but Commission are continuing with preparation for the strategy. Heavy Duty Vehicles - EU HDV Strategy
  19. 22 Heavy Duty Vehicles – Next Steps  Commission likely

    to produce an Impact Assessment in early spring 2013.  Intend to publish a strategy for reducing CO2 from Heavy Duty Vehicles in summer/autumn 2013, and view some form of mandatory emissions targets as inevitable.  Continuing work to further refine a ‘simulation tool’ that could be used to derive a vehicles CO2 value – intended for consumer labelling or future regulatory limits. Hoping to have first results and proof of concept working in spring 2013.
  20. 23 Heavy Duty Vehicles - Early UK position  We

    agree with the Commission that emissions must fall significantly if we are to meet our wider climate change objectives. However, as a Government we want to avoid regulation wherever possible.  Our industry is leading the drive to reduce emissions from freight in the UK. It knows best how to manage operations and reduce fuel consumption and carbon footprints and should therefore be in the best position to develop its own strategies.  OLEV will engage bilaterally with DG CLIMA to ensure our actions and evidence of UK carbon reduction initiatives are represented.
  21. 24 Opportunities / challenges Reduce barriers to domestic charger roll-out

    Easier/faster rapid charger roll-out Identify opportunities COMMUNICATIONS & PUBLIC INFORMATION Fleets and Procurement Increase interoperability