How much can a motorist save using an electric vehicle over a conventional car?

With petroleum prices going up and climate awareness increasing, electric vehicles or EVs are presented as an alternative for financially and environmentally conscious consumers.

But do EVs really live up to their promise of being cost-efficient and environment-friendly? For the Department of Energy's Energy Utilization and Management Bureau Director Patrick Aquino, the answer is yes.

“For an estimated average travel of 300 kilometers per month, EV users can save up to P1,000.00 compared to using ICE (internal combustion engine) vehicles,” Aquino said.

The DOE official said the fuel consumption cost per kilometer stands at P1.67 for EVs, and P5.00 per kilometer for ICE vehicles.

Multiplied by 300 kilometers a month, the use of EVs will only cost P501 for 30 days; conventional cars, P1,500.

“EVs are more efficient compared with conventional ICE vehicles,” Aquino said.

“[EVs] have an average fuel consumption of six kilometers per kilowatt-hour (km/kWh) which can be translated to P1.67 per km (at an electricity rate of P10.00 per kWh); compared to the 14 km per liter of gasoline equivalent, which can be translated to P5.00 per km (at P70.00 per liter of average gasoline price),” he said.

“EVs are around three times cost-effective vs. conventional ICE vehicles," Aquino said.

He stressed, however, that operational efficiency will vary depending on the driver’s behavior and traffic, as well as other factors such as hot weather conditions, which can affect the lifespan of the battery.

“The increase in temperature speeds the chemical reactions within the battery. While the increase in chemical reaction speed can increase the output of the battery, but also increases the speed of battery degradation. Thus, quality batteries like lithium-ion batteries with battery management systems are suitable for Philippine conditions,” the DOE official said.

Electric Vehicle Association of the Philippines (EVAP) president Edmund Araga echoed the DOE’s computation, saying that the amount that can be saved using EV depends on the user, but “at present P70 per liter of gasoline as an energy consumption rate charge of power utilities is average rate P10 to P11 per kilowatt-hour. In charging the unit it will take you six to eight [hours] to have a full charge on battery.”

EV users can also benefit from low maintenance costs.

“EVs have very few moving parts (about 20 moving parts vs 2,000+ components in ICE vehicles). EVs don’t need fluids such as engine oil and transmission fluid, so they require relatively little maintenance and are less likely to leak,” Aquino said.

Are EVs environmentally friendly?

EVs remain a tiny fraction of the market. Citing data from the Land Transportation Office (LTO),  Araga said that 13,934 EVs have been sold in the Philippines to date.

DOE’s Aquino said EVs are regarded as more environmentally friendly vehicles compared to ICE vehicles because they have no tailpipe emission or direct emission.

“Shifting to EVs can reduce the oil consumption to around 43 liters of gasoline per 300 kilometers or equivalent to 98.9 kilograms of carbon dioxide CO2 avoidance (at 2.3 kilograms of CO2 per liter of gasoline),” the Energy official said.

Likewise, Araga said that “the Philippines can save barrels of imported fuels that we procure annually and it addresses air and noise pollution… that would be a saving grace in terms of health issues to our citizens.”

Challenges for EV industry

The EVAP chief said the enactment into law of the Electric Vehicle Industry Development Act (EVIDA) “helped the industry to take off.”

The Republic Act No. 11697 or the EVIDA, which lapsed into law in April, aims to develop and regulate the EV industry in the Philippines.

“More and more charging stations are now available and in fact it spread through the North as far as La Union, Baguio, Aurora and Isabela provinces. EVIDA helped the industry to take off and that awareness is the key to inform the market,” Araga said.

Citing DOE data, the EVAP said there were 278 registered EV charging stations nationwide.

“The only hurdle at the moment is still on financing that we are hoping that commercial banks would be open to this,” Araga said.

Apart from financing, the EVAP chief said another challenge for the sector is the roll out of programs for local government units “as it would be very challenging for their constituents to convince them in switching into electric, specifically the existing TODAs (tricycle operators and drivers associations).”

Proposed zero tariff for EVs

Last month, the National Economic and Development Authority (NEDA) Board proposed to President Ferdinand Marcos Jr. an executive order that will slash the tariff rates on EVs, except hybrid types, to 0% from the current range of 5% to 7%.

The proposed EO would also enforce a tariff modification on certain parts and components of electric vehicles from 5% to 1% for five years.

With this, Araga said the EVAP is anticipating better sales on EVs.

“I project about a 20% to 30% increase of sales upon implementation of zero tariff rates,” the EVAP chief said.

To encourage further shift to EVs, Araga said that “right pricing and strategic low down payment schemes are a plus.” — BM, GMA Integrated News