Posts Tagged ‘electric vehicles’

Government tries to jolt EV sales with charging station subsidies

Wednesday, November 27th, 2013

Newspaper ad promoting installation of recharging stations for EVs

Newspaper ad promoting installation of recharging stations for EVs

Norway boasts the highest per capita ownership of electric cars in the world, for a number of interrelated reasons, it seems. The tax on purchases of new cars, all of which are imported, can be more than 100 percent, depending on weight and fuel efficiency, but it’s almost zero for electric cars. The annual automobile tax is about a seventh of the tax burden for a gas-powered vehicle. This savings is apparently enough to offset the higher sticker price of electric cars. According to a friend of ours who is Norwegian, the American Tesla sells for 580,000 kroner, or ¥9.6 million, and there is a six-month waiting list. We asked our friend if there were enough high-speed charging stations in Norway, and he said there are about 4,000, which is not considered enough but he says most people are “satisfied” with charging their EVs at home, where it takes about 8 hours to top them off.

In addition to offering tax breaks, the government promotes EVs by subsidizing the installation of charging stations. EVs do not have to pay road tolls, and they can use lanes that are normally limited to buses and taxis. More significantly, despite the fact that Norway’s wealth is derived from oil, its gas prices are among the highest in the world, twice as much as they are in Japan. So while EVs are very expensive to buy , in the long run they are much more economical thanks to the government.

One of the reasons auto-related taxes are so high in Norway is that the country has no automotive industry to protect. Electric cars are manufactured in Japan and are relatively cheap, but much less popular. At last week’s Tokyo Motor Show, Carlos Ghosn, the CEO of Nissan, which makes the electric Leaf, admitted that EVs weren’t selling as well as expected and that the company’s sales goal of 1.5 million units by 2016 would not be reached.

According to Sankei Biz, EV sales in Japan have picked up slightly in recent months, and as of October 120,000 electric cars have been sold in Japan since they were introduced. About 87,000 of these were made by Nissan. Ghosn says the main reason the target won’t be met is “lack of infrastructure,” meaning lack of charging stations.

In August, Toyota, Nissan, Honda and Mitsubishi announced that they would jointly build more recharging stations throughout Japan to promote electric vehicle sales, with the help of government subsidies, and last week the four automakers agreed on the details of “specific financial assistance” to parties who install charging stations.

Tokyo Shimbun reports that at present there are 1,900 quick charging stations in Japan and about 3,500 normal charging stations. The government will provide subsidies of up to ¥1.7 million to businesses that install quick recharging stations on their properties and ¥400,000 to businesses that install normal recharging stations. The government’s aim is to increase the number of quick stations by 4,000 and normal stations by 8,000, though no timeline has been given.

These subsidies are being offered through both the central government and local governments. Maintenance of the stations will also be subsidized for a limited time. If the business is a convenience store, it has to have parking for at least ten cars, and if it’s a gas station it has to be open 24 hours. Applications for the subsidy, however, will only be taken until February of next year.

Gas station business losing to reality

Wednesday, January 16th, 2013

Tanks for the memories

According to the Petroleum Association of Japan, the demand for gasoline continues to decrease owing to the popularity of hybrids and mini-cars, the greater fuel efficiency of automobiles in general, and a trend that sees more and more young people foregoing the pleasures of motoring. In 1999, 250 million kiloliters of gasoline were sold in Japan. In 2011 the amount was about 200 million. Consequently, the country doesn’t need as many gas stations. There were 60,000 in 1994, only 38,000 in 2011.

The disappearance of gas stations will likely accelerate this year due to a revision to the Fire Prevention Law. Several years ago it was discovered that gasoline reservoirs — the tanks buried under gas stations to store fuel — were leaking at an alarming rate, so the government enacted a law to address the problem. If the tank is 40 years old or older, the owner of the gas station must replace it or repair it. If he doesn’t, his license to pump gas could be revoked. Either operation requires excavation and the use of heavy machinery, and costs between ¥1.5 and ¥2.5 million. Many gas stations, in fact, have at least three tanks underground: one for gasoline, one for diesel, and one for kerosene. Each would have to be replaced once it turns 40. The revision went into effect in February 2011, and all gas stations with tanks older than 40 years had two years to comply. At the same time, the government introduced a subsidy that would provide two-thirds of the cost of the replacement-repair if the application is made by the end of January 2013. According to an industry group survey cited in Tokyo Shimbun, as of the end of September only 30 percent of tanks that needed to be changed actually had been. Of the other respondents, 7.5 percent said they are considering closing their businesses due to the revision. Others said they will wait until the last minute to apply for the subsidy. An industry representative told the Tokyo Shimbun that the older the tank the older the gas station owner, so it is likely they will simply decide to retire if no one in the family wants to take over the business. Perhaps in light of these findings, the government has already decided to extend the subsidy period.

It may not make much of a difference. The projection for gasoline demand in 2020 is only 130 million kiloliters. The main problem with lack of demand is that it affects different regions differently. The loss of gas stations in major cities and densely populated suburban regions won’t cause major problems, but in outlying rural areas, where there is little public transportation and people rely on automobiles to get around, it could cause an increase in so-called gas refugees.

Among Japan’s prefectures, Yamaguchi pays the most for gasoline a year per household — ¥80,000 — while Osaka pays the least, about ¥14,000. If a gas station in Osaka closes, not many people will notice, but if one in Yamaguchi shuts down, the people who relied on it will have to drive even farther to fill up, thus consuming more gasoline just to buy gasoline.

As a side note, the development of electric cars doesn’t seem to be much of a factor in these projections. The magainze Toyo Keizai reports that despite government subsidies, the Nissan Leaf, which first went on sale in Nov. 2010, isn’t selling as well as expected (and Toyota, which just regained its position as No. 1 carmaker in the world, has cancelled its plans to make an electric).

As of last November, Nissan had sold 43,000 Leafs worldwide, including 19,000 in Japan and 17,000 in the U.S. Since manufacturing capacity is 50,000 cars a year, the model is only fulfilling 43 percent of its potential. Experts say the problem is still driving distance. Even with new improvements in battery storage and efficiency, a full charge for a Leaf will only get you 250 km, while the average compact with a full tank could get you up to 800 km.

The relative savings in gasoline costs enjoyed by the electric car driver doesn’t seem to be a major consideration for consumers at the moment. However, this may change as more gas stations disappear, since electric chargers can be installed anywhere without any expensive requirements: dealerships, service areas, even convenience stores.

Electric cars aren’t just for driving any more

Tuesday, March 13th, 2012

Nissan charged up about giving back to the community.

Late last month, Nissan announced that starting in April its new electric car, the Leaf, would be used as an emergency power supply for a new office-condominium high-rise in Shinjuku managed by Sumitomo Real Estate. In the event of a disaster that resulted in a power failure, Leaf cars could be connected to the building’s electrical system through outlets specially installed for recharging electric vehicles and then the cars’ stored power could be used to supply electricity to the building for up to 42 hours for emergency services such as recharging cell phones and illumination. As a side note, the building also has a special hall that can be converted into a shelter for people in Tokyo who cannot return home during a disaster.

Though this is just a corollary benefit of the Leaf, Nissan’s announcement stresses the idea that electric vehicles could offer a wider range of purposes than just mobility. A number of new housing communities that are being developed with “smart grid” technologies have homes with EV charging stations. As with the Sumitomo building, these stations not only provide electricity for charging the battery of an EV, they also accept electricity from an EV that can be used in the home.

Such news is being stressed as more carmakers enter the EV field. Mercedes Benz Japan said it will start selling its own electric car, Smart, as early as August due to consumer demand. It will be the first foreign EV sold in Japan. At the moment the price hasn’t been determined, but an executive with the company has said it will be competitive with domestic EVs. The Leaf’s sticker price is about ¥4 million, but with the restart of the government’s eco car subsidy, a consumer could take it home for about ¥3 million. The Mitsubishi EV, the MiEV, is even cheaper. After subtracting the subsidy it would cost a little less than ¥2 million.

In related news, Panasonic has said it will start selling a rechargeable storage battery system (chikuden) for the home starting next week. The battery specifically takes advantage of home solar systems, and is mainly being promoted as a stopgap measure for power outages. The problem with solar systems is that they only work when the sun is shining and without a storage device any excess power goes to waste if it isn’t fed back into the grid. This battery can store solar power for the night, for a rainy day, or for blackouts. The battery is a lithium ion type, measuring 45 cm by 15.6 cm by 60 cm. Its capacity is 4.65kW per hour. When fully charged it can supply a house of average size with normal power for two days. The main drawback is the cost, which is ¥2,110,500. It’s cheaper to buy a MiEV.

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