Electrifying Trucking from Delhi to Shenzhen and San Francisco
Courtesy of RMI.
By Jessie Lund, Samhita Shiledar and Zhe Wang
All over the world, the volume of goods transported on highways, roads and city streets is increasing day by day. Global demand for road freight, driven by GDP and population growth, is expected to increase by more than 45% over the next two decades, reaching more than 60 trillion tonne-km by 2040.
And while freight transport plays an essential role in economic development and quality of life, it also has negative consequences for public health and carbon emissions. Much of this is due to pollution from the diesel and gas used to power these vehicles, which ends up in our atmosphere and lungs. And this is especially true in cities, many of which already have poor air quality.
Fortunately, electric vehicles have become an opportunity to move goods with significantly reduced CO2 emissions and significantly reduce harmful air pollutants. But they’re not only cleaner, they also typically have lower operating costs for fleets than gasoline or diesel vehicles. And the availability of models is increasing rapidly. There are now more than 215 models of zero-emission commercial freight vehicles available globally – a number expected to grow to more than 240 by 2023.
These vehicles could not be coming to market at a better time. Global sales of commercial vehicles are expected to nearly double by 2040, reaching nearly 29 million units per year. But making sure these commercial vehicles are electric won’t just happen. This will require the support of industry stakeholders – fleets and vehicle manufacturers, utilities and charging providers, as well as policy makers and regulators. We face challenges including a high initial purchase cost, insufficient charging infrastructure, and a general lack of confidence in the industry in performance compared to their fossil fuel-powered counterparts.
It means working together, beyond borders and oceans. While the details of specific solutions may be unique to different geographies, the global trucking industry now has the opportunity to co-create solutions together and learn from what has been tried in major countries.
As part of the Electric Truck Bootcamp virtual education series, RMI and the North American Council for Cargo Efficiency (NACFE) recently hosted a session on “Global Perspectives” on Truck Electrification. During the training, experts from RMI, CALSTART and ICCT shared learnings from around the world. We are offering the following information from China, India, and the United States.
Leader with charging infrastructure in China
The city of Shenzhen in southeast China is the global pioneer of electric logistics vehicles (ELVs). Shenzhen started implementing a policy framework to support ELVs in 2015, increasing the share of ELVs from less than 1% to over 30%. This is in part due to the almost ubiquitous charging infrastructure that has been installed across the region.
In addition to incentives for the purchase and use of ELVs, Shenzhen has a framework to incentivize and support the construction of electric vehicle charging infrastructure, which includes installation subsidies, preferential pricing of electricity for charging stations and free parking for charging vehicles.
- Subsidy for the installation of charging infrastructure: In 2013, the Shenzhen municipal government set up a program to subsidize the high construction costs of chargers and stimulate the growth of the charging market. From 2013 to 2015, the subsidy covered 30% of the cost of the charger.
- Preferential electricity pricing for charging stations: Since July 2018, public grid-connected charging facilities with a capacity of at least 150 kW have been eligible for lower volumetric electricity prices and on-demand charging exemptions.
- Free parking to recharge vehicles: Electric vehicles benefit from two hours of free parking per day in public car parks and one hour of free roadside parking per day. This applies to the parking of ELVs during deliveries, which improves their convenience and overall value proposition.
Industry and government collaboration in India
As the demand for urban freight in India increases, the government is implementing various initiatives to switch from fossil fuels to electric vehicles. Key policies such as faster adoption and manufacturing of electric vehicles provide a roadmap and incentives for electric vehicles. In addition, policies on charging infrastructure and advanced battery technologies target the fabrication and construction of the supporting infrastructure. In addition to initiatives at the national level, 16 states have already published their own policies on electric vehicles.
Delhi was one of the first states to announce a policy heavily focused on the electrification of freight. Delhi’s Electric Vehicle Policy, one of the most progressive and inclusive sub-national policies in India, aims to achieve 25% penetration of electric vehicle sales by 2024. Favorable electricity tariff for charging and incentives on EV chargers.
This has translated into a total cost of ownership of light electric vehicles equal to that of their fossil fuel-powered counterparts. Just in the first year of the policy’s launch, the share of electric vehicles in total vehicle registrations has tripled.
One of the main reasons for the policy’s early success was the Delhi government’s continued engagement with the private sector to design and implement the policy. RMI and the Delhi government have held several stakeholder consultations to gather feedback on the policy while designing the incentive structures and their implementation plans. The Delhi government and RMI have also worked with 40 private sector companies to launch a pilot project called “Deliver Electric Delhi” to deploy electric vehicles for last mile deliveries.
Following the same model of change, RMI is currently working with 7 states and union territories in India to inform their policy design and implementation through an initiative called the State EV Policy Accelerator.
American Road Stories
The United States has also made progress in adopting electric trucks. For example, over 137,000 zero emission freight vehicles have been deployed or ordered to date. Much of this progress is due to industry leadership and collaboration.
In order to meet the challenge of industry confidence in electric cargo vehicle technology, stakeholders across the United States worked together to share lessons on the realities of owning and operating these vehicles. vehicles. This was done through industry webinars and workshops, working groups and most recently the Run on Less – Electric (RoL-E) demo event which kicked off earlier this month. -this.
RoL-E includes 13 electric freight vehicles taking real routes, carrying real freight, and sharing daily metrics and real-world “road stories” online. Through RoL-E, participating fleets, manufacturers and drivers share their experiences and lessons learned from the first deployments of electric trucks.
And as part of the preparation for RoL-E, NACFE and RMI organized a 10-part Virtual Electric Truck Bootcamp to raise industry awareness about electric trucks. The Bootcamp brought together stakeholders from the electric truck ecosystem to discuss key opportunities and challenges as they plan for future electric vehicle deployments, including charging infrastructure, incentives, maintenance and funding. . Nearly 50 industry experts, including equipment manufacturers, fleets, utilities, policy makers and charging providers shared their perspective with over 1,200 peers, and the content remains available online so that others can learn more.
Collaboration for the long haul
Freight electrification is clearly happening around the world, although the transition is not happening fast enough, with every country – and sometimes state or city – going it alone. In order to advance the adoption of electric freight vehicles at the pace required to avoid the worst impacts of climate change, we will need everyone behind the wheel, to find solutions to accelerate adoption together, as industry. That is why collaboration and knowledge sharing between geographies is essential.
This is why RMI goes beyond working in individual geographic areas to support initiatives such as the Mission Possible Partnership (MPP). The MPP brings together high-ambition global stakeholders to eliminate emissions from the world’s most emitting industries, including trucking. The upcoming United Nations Climate Change Conference, COP26, also promises to bring together world leaders to spark bold commitments for climate action. This global collaboration can help enable even more ambitious commitments and ensure that the transition happens in a way that makes sense not only for people (public health) and the planet (zero emissions), but also for profits. . And in any language, that’s what we call a win-win-win!
Appreciate the originality of CleanTechnica? Consider becoming a CleanTechnica Member, Supporter, Technician or Ambassador – or Patreon Patron.