WHILE India seems to rock on to Electric Avenue, the Philippines has yet to, in Eddie Grants’s words, “take it higher”. But many in the local electric-vehicle (EV) industry are optimistic on its faster adaptation, mainly in the public sphere.
The players, however, are setting modest targets, as heavy cost of ownership of EVs, among others, remains a problem. That is, if one asks the Electric Vehicle Association of the Philippines (Evap).
For Evap President Rommel Juan, the way forward for the nascent industry is sobering: the EV industry’s not slated for a boom but neither is it backsliding even with new setbacks.
According to data obtained from the industry association, sales of electric vehicles (from members and nonmembers alike) from beginning of their operations until end-2016 have amounted to some 11,000 units. The figure encompasses electric tricycles (4,260), electric bikes (3,803 units), electric scooters (654), electric jeepneys (134) and electric quad-bikes (three). The rest are from nonmembers.
Juan said the figures reflect the industry’s stance, as it receives wider support from the government through the Department of Transportation (DOTr). Likewise, there’s also a carrot: exemption from the government’s tax-reform agenda.
Cost, meanwhile, is the invisible stick.
Prohibitive
A primary issue with owning EVs, in general, is still the prohibitive cost, according to Juan. “This is certainly the case in vehicles meant for public transportation,” he said.
According to Juan, e-jeepneys (which are the battery electric type) cost on average P860,000 for the 17-seater type, while a 23-seater type costs P1.6 million.
For e-tricycles, the picture is bleaker. Late last year the Department of Energy (DOE) shut down an e-trike project it entered into with the Asian Development Bank. The reason was for the lack of take-up among operators.
The attendant cost and supply of supporting infrastructure (such as charging stations) and absence of after-sales support, added to the rationale of then-Energy Secretary Alfonso G. Cusi to pull the plug on it.
By then, Evap member Bemac Electric Transportation Philippines and Japan’s Uzushio Electric Co. Ltd. already secured the $30-million contract to produce the initial tranche of 3,000 units of e-trikes.
The program envisioned a total production of 100,000 units when it was started in 2013. But with the cancellation, the government will just procure the initial 3,000-unit pledge.
Setback
WITH the cancellation representing a setback for the industry, Juan said Evap is now focusing efforts on the e-jeepney as a bid in the public transportation space. E-tricycles can just be an alternative, he said.
“We’re still working with the DOE, and they’re working hard to deploy the 3,000. There’s a hurdle really for tricycles because of the cost. But there’s a real need for jeepneys now and, in terms of cost, they’re competitive versus the new Euro 4 internal combustion engine [ICE] vehicles. We’re pushing now more on the jeepneys,” Juan added.
Electric jeepneys are considered the precursor of e-vehicles.
The country started in 2008 with e-jeepneys that plied the Green Route of Makati City back in the industry’s inception. One of the main reasons for the slow uptake of EVs has been the lack of supporting charging infrastructure, according to QEV Philippines Electromobility Solutions and Consulting Group Inc.
To address this, QEV has set its sights to establish the first EV charging infrastructure network in the Philippines.
Win-win
THE bright star for the industry shone on October 10, when listed oil firm Pilipinas Shell Petroleum Corp. (PSPC) announced that the first 100 pilot sites of EV charging stations will be located in Metro Manila.
“The agreement cites an initial 100 pilot sites using PSPC’s strategically located Retail Stations in Metro Manila as EV charging posts,” said the oil firm, referring to a memorandum of agreement it signed with QEV Philippines on October 5 to put up the first EV fast-charging infrastructure network in the country.
QEV Philippines is a partnership between Spanish businessmen Endika Aboitiz and Enrique Banuelos. The first installations of the charging stations, Shell said, will occur in December.
The charging posts will be supplied by Swiss multinational company ABB.
The agreement was signed in the presence of Energy Secretary Alfonso G. Cusi along with Undersecretary Jess Posadas and Assistant Secretary Gerardo Erguiza Jr.
“You come up with a better, safer vehicle for the public,” Cusi said. “Drivers will earn more, so it’s a win-win for all.”
Proposal
JUAN considers tax exemptions as another boost in the arm of the e-vehicle industry.
“There’s a Senate version being discussed now. It’s not yet passed, I know, but their version exempts electric vehicles and hybrid,” Juan said. “We’re happy with that.”
With the legislative chamber’s sentiment now in their favor, the industry is vying for clearer provisions on possibly gray areas in the exemption clause, with the intent of extending fiscal and nonfiscal incentives on these.
“DOF [Department of Finance] Undersecretary [Karl Kendrick T.] Chua wrote to us asking for the expanded definition of electric vehicles,” Juan said. “We gave them a position paper and we want these categories spelled out in their version; the clearer, the better, so there are no misreadings.”
The position paper details the four types of EVs: battery e-vehicles (BEVs), plug-in hybrids, hybrids and fuel-cell EVs.
The difference among these types is the extent by which they’re powered by electric means, as a vehicle that still uses a standard internal combustion engine with a backup electric motor is still considered an “electric vehicle”.
The Toyota Prius, for example, is a hybrid as it is propelled by both an ICE and an electric motor but do not need to be plugged in to charge the batteries. Hybrid EV batteries are charged by the ICE or other propulsion source and during regenerative braking.
Exemptions
HOWEVER, as charging and re-fueling stations are entitled to incentives under the Board of Investments’s Investment Priorities Plan, the manufacture itself of e-vehicles is not in the current plan.
To this, the Evap is eyeing some leeway on relevant import value-added tax, sales VAT and tariffs and duties, as well as non-fiscal incentives.
This would be especially significant on the BEVs, as e-jeepneys fall into this category.
Any government support will be welcomed, said Juan, as the DOTr puts together a program that can breathe new life to the EV industry. This is touted as the PUV Modernization Plan, alternatively called the Eco-PUV program.
The multiagency project is spearheaded by the DOTr, with the manufacturing component expertise provided by the Department of Trade and Industry; the Bureau of Product Standards (BPS) of the DTI was tasked to dictate the technical guidelines of the modern, eco-friendly “Filipino PUV”.
The BPS already issued the technical guidelines for the modern PUV, ambitiously targeting for a completely modern and sustainable “green” transportation: engine that can accommodate Euro 4 fuel, has a seating capacity of at least 22 passengers, a service door and emergency exit, and even equipped with a GPS system, wireless Internet connection and dash camera.
The BPS released standards for four types of e-PUVs, depending if the vehicle is for long- or short-distance journeys.
Prospects
WHILE the majority of the supply of units for PUV modernization program will still be taken up by the standard ICE vehicles, the industry is eyeing at least 5 percent of the expected demand.
“To give a rough target, the industry is expecting at least 5 percent of the total PUV modernization demand, or 5 percent of the 200,000 units of jeepneys that the DOTr wants to be replaced,” Juan said.
For the units that will be using the e-vehicle platform, a different set of technical guidelines will be released by the BPS.
Aside from eyeing 5 percent of the 200,000 unit estimate, Evap is keeping mum on prospects. Right now it is awaiting the route rationalization plan of the DOTr, which will identify specific routes that EVS may service.
“The DOTr agreed that once the plan is done, we’ll talk to them and they will suggest where the e-vehicles can be deployed,” Juan added. “E-jeepneys are more suited for shorter routes [as] these can’t run for long distances.”
In terms of the supporting infrastructure, the prospects are brighter, as well.
Juan said part of the technical guidelines being drafted is identifying the specifics of the charging system so these can be presented to interested suppliers.