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Plug-in electric vehicles in Hong Kong

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Introduction

Electric Vehicle (EV), is commonly referred as a vehicle that uses electricity as the source of power, such as trams and trains. As compared to other traditional gasoline- powered vehicles, using electricity as the power source is proved to be free from emitting pollutants through tailpipe hence significantly capable in reducing local pollution. The pressing urge from public and NGOs, as well as the rapid technology development in this field, have encouraged governments around the world to advocate the promotion of EVs into their agenda to combat air pollution. However, concerns about side-effects of adopting EVs, including increasing emission from power plant and intensifying traffic congestion, are raised. The actual effectiveness of using EVs to improve air quality is still questionable.

History and Background

1. What is electric vehicle?

EVs, as defined above, is those using electric motors as their main drive unit, with rechargeable batteries on car and be charged by external source. The benefits of using EVs include low noise pollution, guarantee of energy security, zero roadside emission and high energy efficiency.[1] According to current technology, there are mainly three kinds of EVs in the market. Pure electric, petrol/diesel hybrid and plug- in hybrid electric. Although Hong Kong government recognises all three kinds of EVs to be environmentally friendly hence eligible for exempting tax. The Ordinance (Cap. 330) defined only pure electric EV that is solely propelled by electric power and does not emit any exhaust gas to be EVs. [2][3] Other EVs include public transportation such as trains and trams, which also used electricity as power source as well as free from emission.

2. Current Hong Kong’s Electric Vehicle Policy

In March 1994, the government has first waived the First Registration Tax for EVs aiming to encourage the use of it in Hong Kong. It has been extended for several times, and the latest one lasts until end of March 2017. However, EVs are yet to be popular in Hong Kong. Since 2009-10 Policy Address, a series of schemes and policies have been implemented by the government to actively promote and encourage the use of EVs. In order to coordinate the work in promoting EVs, the Steering Committee on the Promotion of Electric Vehicles was set up in April 2012. The committee is chaired by the Financial Secretary with 2-year terms, along with 16 other members from professionals or government departments. [4]

Rationale and Progress

1. Reasons for the Promotion of Electric Vehicles

1.1 Environmental Aspect

The 2014 Hong Kong Emission Inventory Report indicates that the road transport sector is the largest local air pollution source, especially 60% of carbon monoxide emission comes from transportation. [5] Through replacing burning gasoline with using electricity among the EVs, the roadside air quality is improved after reducing carbon emissions from exhausted gases. Besides minimising various pollution problems and lowering the risk of respiratory illnesses, noises and vibrations are also eliminated when no chemical combustion is involved as in the traditional engines. [6][7] Under the assumption of annual mileage as 20,000 km and consideration over the emissions from generations, the estimated carbon dioxide emitted is around 1,880 kg, 33% and 47% less than that of the hybrid cars and the petrol vehicles respectively.[8]

1.2 Economic Aspect

EVs have a higher energy efficiency than traditional petrol vehicles, allowing an 80% conversion of input energy into usable power, as a 15%-20% improvement than the latter. With technological advancements, EVs have higher battery capacity that allows 100km travelling distance after a single charge, far higher than the original 40km at the early development.[9] By comparing EVs with petrol vehicles over the energy cost, the price of the latter is around 13.6 times higher in the case from Tuen Mun to Mong Kok (30 km; HKD4.7:HKD36.7). [10] The 2011-12 Financial Budget highlighted the value brought by the green development has increased by 12.4% with the 3.6% surge of employees.[11] With the recent emphasis on green economy and smart city in the 2015-16 Financial Budget, the Government believes that the high cost- effectiveness of EVs allows further creation of business and employment opportunities like the complementary accessories of EVs and R&D for further scientific innovations in the ever-expanding market.[12]

2. Development Progress of Electric Vehicles

2.1 Current Figures of Electric Vehicles

Compared to 28 local EVs in 2009, 5,042 registered EVs with 4,899 as private vehicles are recorded for road use as at April 30, 2016.[13]Meanwhile, there is an around 3% annual growth of the new local EVs registrations, which is far higher than other developed automobile markets.[14] From January to May in 2015, more than 1,110 longer-range models of Teslas EVs are sold, accounting for nearly 95% in the EVs market.[15]

Over 1,300 public chargers are spread throughout all 18 local districts, whereas 1 public charger is available for usage by 4 EVs on average. Among them, 921 are standard chargers, 239 are medium chargers, 15 are CHAdeMO quick chargers and 145 are quick chargers with transferrable charging standards (top up the batteries of EVs within 30 minutes when compared to 8 hours previously). The Government and other stakeholders are determined in enhancing the charging efficiency of these public charging infrastructures through various ongoing infrastructure-led collaborations. For example, Charge Hong Kong, a non-profit organization, is working to increase charging facilities in public areas and upgrade the existing public standard chargers to the medium or multi-standard quick type. [16]

Under Pilot Green Transport Fund, 92 EVs are included for trial under a total subsidy of around $96 million in total.[17][18] The 2 models of electric vans as interim trial reflected that 50% to 80% of the fuel costs are saved with no negative and uncertain outcomes in terms of their batteries and performance.[19]These reflected that EVs are compatible with local operating conditions with huge green innovative development potentials in the future.[20]

Promotion

The government is committed to promoting the use of EVs within different sectors in the society. Hence, a number of favourable measures are adopted to boost the use of EVs.

1. Economic Incentive

Giving economic incentives is regarded as a favourable policy that encourages the use of EVs as it lowers the costs. Exemption of the first registration tax on EVs was first introduced in 1997 to promote the use of greener vehicles. [21] The Financial Secretary extended the waiver of the first registration tax on purchasing EVs in 2009 Budget until the end of March 2017.[22] Moreover, enterprises purchasing EVs will enjoy another tax deduction, which is a full “profits tax reduction for the capital expenditure on the EVs in the first year of procurement”. [23]

2. Financial Support

To encourage the public transport sector to use EVs, the government offers the industry some financial assistance programs, for example, “Pilot Green Transport Fund”[24](See the above section). Such a fund targets public transport service providers and attracts them to use innovative and green technologies for trial.[25] Furthermore, other financial assistances are put in place like the one-off grant to PLB owners and the allocation of $180 million HKD for franchised bus runners to purchase electric buses. The former aims to upgrade PLB emission standard to that of EV[26] while the latter serves to test the use of EVs and promote the use of EVs among the community. [27]

3. Infrastructure and Technical Support

With regard to the insufficient charging facilities and immature charging technologies, not only does the government devote to increasing the number of charging sockets while some of them are free,[28] but also to collaborate with EV manufacturing firms for the advancement of charging facilities. [29] [30] Apart from infrastructure support, the government also issues a set of guidelines on the safe use of EV chargers and provides hotline service for information and technical support.[31]

4. Promotional Activity

The government takes the lead to use EVs by giving priority to replace government vehicles with EVs. It is estimated that over 200 government vehicles are EVs.[32] Not only does the government take the lead to use EVs, it also helps organize an event that arouses the public interest to use EVs, namely the “FIA Formula E Championship”. [33] It is found that the government is determined to provide comprehensive support, ranging from introducing preferential policies to holding promotional activity, in an effort to promote the use of EV in Hong Kong.

Criticism

1. Chargers

As at April 2016, there are 1320 public chargers in Hong Kong, distributed unequally in different territories, for example, there are nearly 500 public chargers in Hong Kong Island, whereas only less than 400 are located in New Territories and Island Districts, which cover the most area of Hong Kong (see Diagram 1 below). Therefore, the insufficiency of chargers in rural areas is a great concern to some EV drivers.[34] Some drivers opined that it is not ideal to rely on public chargers, in particular when one could hardly find a parking space in Hong Kong.[35] Some even complained that the public parking space for EVs are often occupied by non-EVs. [36]

Diagram 1. The Number of Chargers for EV in Hong Kong as at April 2016
Region/Speed of Charger Standard Medium Quick Total
Hong Kong Island 359 90 47 496
Kowloon 315 68 46 429
New Territories and Island Districts 247 81 67 395
1320

Another criticism is the formidability for individuals to install chargers in private car parks. The installation of chargers in private buildings has to undergo an array of procedures. According to the guidelines from the government,[37] individual owners of EVs have to consult the owner of the car park space, the dealer of the EV, the property management company and the registered electrical contractor.[38] [39] Apart from lowering the feasibility of charging the EV at work and at home, this also hinders the incentive of using EVs in the long run. [40] [41]

There are 4 types of charging sockets (UK, Europe, US and Japan) for EV in Hong Kong, inter alia, only the Japanese socket could serve a fast charge (in 20 minutes).[42] However, 76% of the chargers in Hong Kong are slow chargers which takes 5 to 12 hours for an EV to be fully charged. [43] [44] [45]

2. Batteries

The battery in an EV has to be replaced every three to four years, and the price could amount to 1/3 of the EV itself. Report says that this might place a high recurrent expenditure on EV drivers.[46] It is also uncertain on how would the abandoned batteries be processed.

3. Indirect Increase in Carbon Dioxide Emission

Using EV is not necessarily reducing carbon dioxide emission. It depends on the carbon intensity of electricity generation.[47][48][49]Coal is used for over half of the power generation in Hong Kong,[50] and research finds that an EV might emit more carbon dioxide than non-EV over 150000-kilometre lifetime after taking into account the carbon intensity of electricity generation and the subsequent production of car batteries.[51]

Lesson Learnt from Oversea EV Policies

1. Singapore

The emphasis of Singaporean government’s EVs policy is placed on the cooperation with vehicle manufacturers and technology companies. By launching EV test-bed and forming agreement with Chinese companies to introduce EV into their public transportation, the determination of the government to utilize EVs as environmental policy to combat air pollution is clearly shown. However, surprisingly, as opposed to Hong Kong, the most popular EV model in Singapore is not Tesla. One may suggest the biggest obstacles come from the international oil company, which considers Singapore as the hub of oil refinement and trading center, hence acting as the tripping stone for the government to continuously promote the use of EVs.[52]

2. United Kingdom

The British government took initiative and launched “green car revolution” programme introducing EVs into the market. This program included a range of incentives, government support, legislation and education programs, together suggesting by 2020 all new cars sold in the UK should be either hybrid or EVs. Apart from large scale subsidy and tax reduction to enhance incentive in purchasing EVs, the government has launched “Plugged-in-Places” scheme to increase vehicle recharging points and convenience, as well as 100% discount for London Congestion Charge. A comprehensive policy planning encouraged people to switch to EVs, resulting in over 20-folds increase of EVs registration in UK from 2011 to 2015.[53]

Future Development

In response to progress in promoting EVs, Hong Kong Productivity Council listed out 13 suggested measures for the government to increase its utility rate.[54] The first step the government shall take is to lay out a comprehensive EVs development plan, together with stages and its corresponding goals. The government is also advised to explore possibilities in promoting EVs by improving their chargers, for instance replace the speed of the EVs charger from normal standard to medium/high standard, introduce a central information bank containing all EVs charging station in Hong Kong, as well as adopt commercial mode of running EVs charging station by increasing its coverage in private housing estate and commercial building. Apart from hardware development, the government is urged to devote resources in cultivating technicians and engineers specialized in EVs to prepare for the upcoming demand in human resources. The Environmental Bureau is now organising a competition to invite public to brainstorm some innovative idea of alternative use of disposed EV battery[55], on one hand engaging the public in policy formation so as supporting the EV battery recycling industry. As evidenced by the world trend, it is believed EV will continue to be in Hong Kong government’s agenda to combat air pollution.

  1. ^ CLP. (2012). CLP Extends Free Vehicle Charging through 2013. Retrieved from http://www.thestandard.com.hk/news_detail.asp?art_id=127018&con_type=3
  2. ^ Kwan, W. S. (2011). Analysing the potential of electric vehicles in improving the air quality of Hong Kong. HKU Theses Online (HKUTO).
  3. ^ Motor Vehicles (First Registration Tax) Ordinance (Cap 330) s.5(3)
  4. ^ Legislative Council. (2012). Information note on the use of electric vehicles. Retrieved from http://www.legco.gov.hk/yr11-12/english/panels/tp/papers/tp0206cb1-961-4-e.pdf
  5. ^ Environmental Protection Department. (2005). Promotion of Electric Vehicles in Hong Kong. Retrieved from http://www.epd.gov.hk/epd/english/environmentinhk/air/prob_solutions/promotion_ev.html
  6. ^ Rinkesh. (2014, May 7). Advantages and disadvantages of electric cars - conserve energy future. Retrieved November 6, 2016, from Energy Articles, http://www.conserve-energy- future.com/advantages-and-disadvantages-of-electric-cars.php
  7. ^ 用家讚 Tesla 反應快夠寧靜. Retrieved November 6, 2016, from http://hk.apple.nextmedia.com/news/art/20150529/19164677
  8. ^ Chan, Edmond, CLP Hong Kong. 發展電動車充電設施及推動電動車普及化 Developing EV Charging Infrastructure & Facilitate Wider Adoption of EV in HK. n.p., 2012. http://www.aesnet.com.hk/wp-content/uploads/EdmondChan_CLP.pdf.
  9. ^ Walden, V. (2016). Government to promote the use of electric cars. Retrieved November 6, 2016, from http://energy.cleartheair.org.hk/?p=338
  10. ^ Ibid.8
  11. ^ LCQ14: Electric vehicles. (2013, November 27). Retrieved November 6, 2016, from http://www.info.gov.hk/gia/general/201311/27/P201311270370.htm
  12. ^ Hong Kong Free Press. (2016, February 24). LIVE: The 2016 Hong Kong budget | Hong Kong free press. Retrieved November 6, 2016, from Hong Kong, https://www.hongkongfp.com/2016/02/24/live-the-2016-hong-kong-budget/
  13. ^ “LCQ18: Charging Facilities for Electric Vehicles.” June 22, 2016. Accessed October 31, 2016. http://www.info.gov.hk/gia/general/201606/22/P201606220411.htm.
  14. ^ “Electric Cars Are Starting to Charge Ahead in Hong Kong.” October 24, 2016. South China Morning Post. Accessed October 31, 2016. http://www.scmp.com/native/tech/topics/premier-living/article/1904890/electric-cars-are- starting-charge-ahead-hong-kong.
  15. ^ Wong, G. (2016, October 29). Can electric vehicles ever really meet Hong Kong’s transport needs? Retrieved November 6, 2016, from http://www.scmp.com/comment/insight- opinion/article/2004126/can-electric-vehicles-ever-really-meet-hong-kongs-transport
  16. ^ Ibid.13
  17. ^ For discussion on 21 July 2015 Legislative Council Panel On Environmental Affairs progress report on the pilot green transport fund. (2015). Retrieved from http://www.legco.gov.hk/yr14-15/english/panels/ea/papers/ea20150721cb1-1113-1-e.pdf;
  18. ^ What we do. (2016). Retrieved November 6, 2016, from http://www.charged.hk/?q=whatwedo
  19. ^ Accessed October 31, 2016. www.hkgsa.org/index.php/download_file/view/73/81/.
  20. ^ Ibid.17
  21. ^ Ibid.2
  22. ^ Tsang, C. W. J. (25 February 2009). The 2009-10 Budget. Budget Speech. Hong Kong Financial Secretary’s Office.
  23. ^ Ibid.5
  24. ^ Please refer to the above section Development Progress of Electric Vehicles
  25. ^ Ibid.5
  26. ^ Ibid.2
  27. ^ Ibid.5
  28. ^ Ibid.1&8
  29. ^ Ibid.4
  30. ^ Ibid.5
  31. ^ Electrical and Mechanical Services Department. (2015). Technical Guidelines on Charging Facilities for Electric V ehicles. Retrieved from http://www.emsd.gov.hk/filemanager/en/content_444/Charging_Facilities_Electric_Vehicles. pdf
  32. ^ Press Releases. (27 November 2013). LCQ 14: Electric Vehicles. Retrieved from http://www.info.gov.hk/gia/general/201311/27/P201311270370.htm
  33. ^ News Government. (9 October 2016). HK ePrix showcases Asia’s world city. Retrieved from http://www.news.gov.hk/en/record/html/2016/10/20161009_175602.shtml
  34. ^ Bauhinia Foundation Research Centre. (October 20, 2014). 電動車普及的障礙. Bauhinia Foundation Research Centre. Retrieved from http://www.bauhinia.org/index.php/zh- HK/analyses/265.
  35. ^ Ng, N. (2016, October 20). Electric cars on the rise in Hong Kong but building management are failing to plug a home-charging gap. SCMP. Retrieved from http://www.scmp.com/news/hong-kong/health-environment/article/1885096/electric-cars- rise-hong-kong-building-management
  36. ^ Ibid.34
  37. ^ Ibid.31
  38. ^ 裝電動車充電設施 邱騰華籲法團配合 - 香港文匯報 (2011, November 24). Wenweipo. Retrieved from http://paper.wenweipo.com/2011/11/24/HK1111240026.htm
  39. ^ Ibid.34
  40. ^ Ibid.35
  41. ^ Shay, C. (2011, February 21). Why electric cars Aren’t selling. Wall Street Journal. Retrieved from http://blogs.wsj.com/hong-kong/2011/01/31/why-electric-cars-arent-selling/
  42. ^ 電動車充電小知識. Retrieved October 31, 2016, from China Light & Power Company, https://www.clponline.com.hk/ev/Pages/ChargingSystem_ChargingMethods.aspx?lang=TC
  43. ^ 蒋璐 (2016, April 14). 電動車不能普及的原因. Hong Kong Commercial Daily. Retrieved from http://www.hkcd.com/content/2016-04/14/content_995801.html
  44. ^ 充電要幾耐? | Tesla 香港指南. (2015, November 12). Retrieved October 31, 2016, from Tesla Guide HK, http://www.tesla- guide.hk/%E5%85%85%E9%9B%BB%E8%A6%81%E5%B9%BE%E8%80%90%EF%BC %9F/
  45. ^ Ibid.42
  46. ^ Ibid.34
  47. ^ Guo, A. (2016, April 14). Teslas may be making Hong Kong’s pollution worse. Bloomberg. Retrieved from http://www.bloomberg.com/news/articles/2016-04-14/hong-kong-teslas- linked-to-more-co2-emissions-than-gasoline-cars
  48. ^ 黃錦輝 (2012, October 27). 使用電動車 不一定環保. Hong Kong Economic Times. Retrieved from http://paper.hket.com/article/825872/%E4%BD%BF%E7%94%A8%E9%9B%BB%E5%8B %95%E8%BB%8A%20%E4%B8%8D%E4%B8%80%E5%AE%9A%E7%92%B0%E4%BF %9D
  49. ^ 【環保救兵】用電要燒煤 電動車污染未必少 (2013, May 2). Apple Daily. Retrieved from http://hk.apple.nextmedia.com/news/art/20130502/18247029
  50. ^ Environment Bureau (2014). Planning ahead for a better fuel mix future fuel mix for electricity generation.Environment Bureau, HKSAR. Retrieved from http://www.enb.gov.hk/sites/default/files/en/node2605/Consultation%20Document.pdf
  51. ^ Ibid.47
  52. ^ Tam, Eddie. (17 May 2016) 全球電動車未來 還看今天香港. Mingpao. http://news.mingpao.com/pns/dailynews/web_tc/article/20160517/s00004/1463421218056
  53. ^ Yu, K. (2013) Policy drivers for electrifying public transport vehicles in Hong Kong : stakeholder responses. HKU Thesis Online.
  54. ^ Hong Kong Productivity Council. Accessed on 1 Nov 2016. “13 項建議 促進電動車普 及 發 展 ” Retrieved from https://www.hkpc.org/zh-HK/industry-support-services/latest- information/5800-electric-vehicle-study
  55. ^ HKSAR Environmental Bureau. Assessed on 3 Dec 2016. “International Competition on Second Life for Retired Batteries from Electric Vehicles” http://www.epd.gov.hk/epd/misc/2ndEVbattery/en/competition.html
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