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Thu, November 14, 2024

Nepal on the way to adoption of EVs, but faces infrastructural problems

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Many countries around the world are on the way to wider adoption of electric vehicles (EVs) to reduce emissions and lower the use of petroleum products — both of the factors responsible for climate change. Nepal is also bracing for the adoption of EVs with the aim of increasing energy consumption within the country and lowering the use of petroleum products. The policies it has made relating to EVs are considered to be positive. It has fixed low taxes on the import of EVs as compared to fuel vehicles, thus boosting their number in the past few years. However, there is a setback — only a few charging stations and related infrastructures. The government through the budget for the fiscal year, 2022/23 has provisioned that petrol and diesel-dependent private and public vehicles in Kathmandu Valley will be gradually replaced by EVs. Similarly, the Nepal Electricity Authority (NEA), the state-owned generator and distributor of electric power, will construct and operate charging stations to encourage the use of EVs. Private sector will be encouraged to replace existing petrol stations with electric charging stations, and public sector will use only EVs. [caption id="attachment_19270" align="alignnone" width="1000"] This image shows high-power charging facilities developed by IONITY. Hyundai Motor Group has joined IONITY for High-Power Charging Network. Image courtesy: Hyundai Moto Group[/caption] The number of charging stations being constructed by EV companies and the NEA is not adequate, said NADA Automobiles Association of Nepal President Dhruba Thapa. There are challenges to increasing the use of EVs, producing the required number of technicians to build infrastructures and repair charging stations, he viewed. “The charging stations are in main cities only. They should be expanded to villages too,” he said. “Private sector alone cannot build charging stations. So, the government should also take initiatives,” he suggested. The workforce for maintaining and repairing EVs has been almost ready, he said. Private sector is efficient in assembling, maintaining and repairing EVs within the country. But, the government has yet to provide assistance at policy level, he complained. “Private sector is ready to produce EVs within the country. But for this, a clear policy is required. It requires big investments to open industries to produce EVs. So, it requires policy stability.” The trend of a change in policy each time when there is a new government has discouraged private sector, he said. He referred to the amendment of tax provisions relating to EVs four times in a span of two years. Similarly, private sector is not clear on what size the Nepali market gets in the use of EVs. Lately, consumers have been taking interest in EVs, said Chief Executive Officer of Sipradi Trading, Rajan Babu Shrestha, also President of the Committee on Electric Vehicle under the NADA. Now, the import and sales of EVs are very good, and the market comments are also good, he said. “At present, consumers’ acceptance is good. The main issue was ‘range anxiety’. Customers were not aware of how EVs performed and what their range is. Now most of them have understood it,” he said. Another reason for customers' attraction to EVs is the low operating costs. “There are charging stations at many places in the country. Its operation cost is also low. Banks and financial institutions easily provide loans to purchase it. So, customers are attracted to it,” said Shrestha. Most of the users get their EVs charged at home. Hardly 40% of charging stations built by EV companies are in use. The number of charging stations is increasing following an increment in the number of EVs, he said. The doubt on whether EVs are also comfortable and usable on a long route is also being gradually eliminated, he said. “The main concern about a long route is whether there are charging stations at every interval. Now, a fast-charging station is being built at a distance of each 60 kilometres on highways. The users are required to take information about whether there are charging stations along the route,” he said. EVs are expensive as compared to fuel vehicles. EV battery is costlier though, he said. Some light EVs are cost-effective as taxes have been waived now. But, EVs above 100 kilowatts are costlier, he said. The NEA is constructing 51 charging stations in various 32 places in the country with the assistance of Rs 380 million by the Asian Development Bank (ADB). Such charging stations will be at a distance of every 60km to 80km along main highways. The Kathmandu Valley has seen the construction of charging stations in seven places — Balkhu, Sajha Yatayat Office, NEA Office in Ratnapark, Tribhuvan International Airport, New Bus Park and Nepal Police Club. Similarly, there are two charging stations under construction in Birtamod (Jhapa); Damak (Jhapa); Inaruwa (Sunsari); Biratnagar Bus Park (Morang); Police Petrol Pump (Saptari); Belaka (Udayapur); Area Police Office, Nijgadh (BARA); Makawanpur; Hariwan Refresh Center (Sarlahi), Buspark and Muglin (Chitwan), Area Police Office in Dhading; Banepa (Kavrepalanchok); Tourist Bus Park and Lake Side in Pokhara (Kaski), Bus Park and Hawa Ghar in Nuwakot, Sindhuligadhi Bus Park (Sindhuli) and Khurkot Resort Centre. Likewise, construction of charging stations is underway at Area Police Office, Bardibas (Mahottari); Lumbini Province Police Office in Butwal (Rupandehi); Bhairahawa Bus Park (Rupandehi); Area Police Office in Bardaghat (Parasi); Area Police Office in Gorusinghe (Kapilvastu); Lamahi Bus Park (Dang); Nepal APF School in Kohalpur (Banke); New Bus Park (Surkhet); Armed Police Force Baijanath Brigade (Kailali); and Shaileshwori Armed Police Force (Kanchanpur). Apart from that, an agreement has been reached with APF and Nepal Police to construct charging stations in other places, said NEA’s Spokesperson Suresh Bhattarai. “Besides NEA constructing charging stations at various 51 places across the country, APF and Nepal Police have also undertaken the project.” More than five months ago, the NEA and APF reached an agreement to construct charging stations. APF has been commissioned to construct charging stations at 15 places across the country including the replacement of two petrol stations operated by the Armed Police Welfare Service Centre. Similarly, Nepal Police will construct charging stations at 25 places. The stations will be built at 16 new places including the replacement of five petrol stations run by the Police Welfare Fund and at four places where the construction of four petrol stations was proposed. A 142 kilowatts charger will be set up at each charging station, while there will be 60 kilowatts (kW) DC and 22kW AC chargers installed. A 50-kVA transformer will be set up at each charging station. Customers can pay digitally through QR code or mobile banking. EV charging station management software will be put at the data centre of the NEA. All charging stations in the country will be controlled from Kathmandu, the federal capital. The NEA through the Electricity Distribution Bylaw, 2078 issued in the Nepali month of Magh, 2078 BS has granted permission to private housing, offices, firms, companies and institutions to set up charging stations. With the implementation of the Bylaw, users can set up charging stations at home. It is cost-effective to get EVs charged at home. According to a study conducted by NEA, the cost of riding an electric car per kilometre is 70 paise, 80 paise for an SUV, 90 paise for a microbus, and Rs 1.20 for a bus. According to data from the Department of Customs, 1,353 EVs worth more than Rs 3.82 billion were imported till December 15 of the current fiscal year 2022/23. Of them, 1,320 are with 100kW and the remaining 33 are below 100kW. A total of 1,807 EVs were imported in the previous FY 2021/22, said the Department. Similarly, 261 EVs were imported in FY 2020/21; 575 in FY 2019/20; and 4,745 in FY 2018/19. EVs have been imported into Nepal mostly from India, China, Indonesia and South Korea. By RSS READ ALSO:
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