Asean Business logo
SPONSORED BYUOB logo
Commentary

Electrifying public and private transport for city-wide improvement

    • Singapore's commitment to electrifying its public transportation by deploying 100 per cent cleaner energy bus fleets by 2040, will help promote a more sustainable transport sector.
    • Singapore's commitment to electrifying its public transportation by deploying 100 per cent cleaner energy bus fleets by 2040, will help promote a more sustainable transport sector. BT FILE
    Published Thu, Dec 22, 2022 · 03:00 PM

    The world needs to cut 43% of its emissions by 2030, and Asia is racing against the clock. This will be critical to meet the Paris Agreement goals.

    Asia is the most populous continent in the world, housing 60 per cent of the world’s total population. With rapid urbanisation underway, the region will expect to welcome another 1.1 billion people by 2028.

    The unprecedented population growth will bring greater challenges to the region’s transport infrastructure such as rising individual vehicle ownerships, spawning congestion and increased carbon emissions. In Southeast Asia alone, transport is responsible for 40 per cent of global greenhouse gas emissions and 23 per cent of carbon dioxide.

    To build a more resilient and safer transport sector, countries must consider ramping up their efforts to green public and private transport networks through the transition to Electric Vehicles (EV).

    According to Singapore’s Land Transport Authority, EV emits half the amount of CO2 as compared to a vehicle powered by an internal combustion engine (ICE). Singapore could reduce carbon emissions by 1.5 to 2 million tonnes, or about 4 per cent of its total national emissions, if all its light vehicles run on electricity.

    Electrifying city transport

    Many countries are working through the complexities of shifting gears towards a greener transportation network, but we’re seeing some great examples that showcase the benefits of adopting EVs in urban cities within Southeast Asia.

    A NEWSLETTER FOR YOU

    Friday, 8.30 am

    Asean Business

    Business insights centering on South-east Asia's fast-growing economies.

    Singapore is a great example of how a country can leverage EVs for a greener transport infrastructure. The nation’s commitment to electrifying its public transportation by deploying 100 per cent cleaner energy bus fleets by 2040, will help promote a more sustainable transport sector. Additionally, to support private car owners in their green journey, Singapore has strengthened its charging infrastructure through strategic investments.

    More recently, the country spearheaded the deployment of 12,000 EV charging points across 2,000 HDB carparks, together with LTA and ComfortDelGro. We will see more EV fleets deployed through popular car-sharing platform, GetGo, establishing car sharing as a key pillar of Singapore land transport ecosystem. These initiatives will help increase accessibility and awareness of EVs in Singapore.

    Similarly, Malaysia has also taken the initiative to increase the availability of charging points across the city. In line with their low carbon mobility blueprint, the country aims to establish 10,000 charging stations by 2025, compared with the 1,000 currently available. To further increase accessibility of EV, the government is providing tax incentives to encourage the private sector to collaborate in Malaysia’s developing charging infrastructure. In Bangkok, Thailand, a city notorious for their busy streets and packed busses, have decided to upgrade the infamous bus line no.8. Shifting away from the old-fashioned diesel-powered buses, The city will make way for 1000 new electric busses that will serve more than 1 million passengers per day, across 25,000 trips in the city.

    The greener transport offers passengers a safe and comfortable ride in the city, compared to the overpacked and overheated busses of the past.

    Overcoming barriers to adoption

    While many are keen to adopt EVs, countries in Asia are still slow to progress towards mass adoption. The limited availability of EVs remain a significant barrier to mass adoption.

    A lever that can significantly help increase EV adoption are government incentives. This includes Singapore’s Commercial Vehicles Emissions Scheme (CVES) and Early Turnover Scheme, which work hand-in-hand to incentivise car owners to replace their older ICE vehicles for a greener option. Car owners that choose to opt into this scheme can receive rebates of up to 45 per cent on their additional registration fees – lowering upfront costs.

    However, lowering costs alone is not enough. Education and awareness are required to ease anxious consumers on how far they can travel with EVs using a single charge and how to cope with the prolonged charging times. Providing consumers with helpful insights on EVs and their capabilities will help assure them that EVs are the most effective solution in the long-run.

    Beyond the consumer segment, industry players – such as those in the logistics sector – are concerned with the costs associated with electrifying their fleet with EVs. To that end, using digital solutions that help analyse the Total Cost of Ownership (TCO) help with the transitioning to an EV fleet. This can also help industry players convince stakeholders, helping them see the positive impact of how an EV strategy goes beyond benefiting the environment, but also their bottom line.

    Charging infrastructure and network are equally important

    While grants and government incentives can help kickstart the EV journey, it is not the only driver for growth. Instead, we must action on policies and regulations that help maintain a safe and accessible EV charging network, not only for private but also commercial EVs.

    The tremendous acceleration of the EV market will not only impact the overall grid, but the entire electricity market. It is going to be interesting to see how Asia deals with the challenges of the changing landscape, like energy decentralization.

    Adopting a decentralized approach can help ease the deployment of EVs by bringing power sources closer to the end user. With EV users spread across the nation, energy generation in a decentralized manner can reduce the transmission and distribution inefficiencies.

    This is an opportunity for utilities like Singapore Power to drive new business models, which require further innovation in B2B technology.

    Singapore’s latest EV charging bill is also a great step forward to help prioritise maintenance and aftermarket support for its charging infrastructure. Through continued investments and advocating for such policies, we can innovate and advance EVs in the transport sector.

    The writer is general manager, environmental business division APAC, at Hitachi Asia.

    Copyright SPH Media. All rights reserved.