Building Blocks of Electric Vehicle Deployment: A Guide for Developing Countries

Abstract

Historically, the transportation sector has been powered overwhelmingly by petroleum-based products, but momentum for electric vehicles (EVs) is growing. Global auto manufacturers are pivoting away from traditional internal combustion vehicles, and the private sector, public sector, investors, and utilities are investing heavily in vehicle electrification. At the same time, national and subnational governments are pledging support for EV deployment and charging infrastructure investments and phasing in bans on new gasoline and diesel vehicles. Plummeting lithium-ion battery prices over the past decade have enabled EV market expansion, and battery costs are projected to continue falling. Auto manufacturers are increasing EV model availability to meet customer demand. Decarbonization of the power sector reduces the carbon and environmental impacts of EVs as they age. In other words, a confluence of factors is accelerating EV deployment worldwide, which amounts to a radical shift in the transportation sector, with significant implications for the power sector, transportation, and the environment.Countries can use electric transportation to help fulfill numerous goals, including greenhouse gas (GHG) emissions targets, local air quality goals, mobility objectives, energy security, and transportation resiliency. Vehicle electrification is a promising pathway to achieving clean energy transitions in the transport sector at scale. As vehicles electrify, the traditionally siloed electricity and transport sectors increasingly converge to create technical, institutional, and economic opportunities and challenges. To navigate this transition effectively, we propose the following foundational pillars or "building blocks" that undergird effective electric vehicle (EV) deployment. Jurisdictions with experience and mature EV markets offer useful lessons learned that may enable developing countries to leapfrog over common roadblocks. Nonetheless, developing countries face distinct challenges collectively, and individually, from developed countries that require careful consideration.From our work around the world, the U.S. Agency for International Development (USAID) and National Renewable Energy Laboratory (NREL) have witnessed interest growing in EVs for a variety of reasons. Lao People's Democratic Republic (PDR), for example, looks toward EVs as a way to use their surplus of hydropower to displace expensive oil. Thailand and Pakistan seek economic development opportunities in EV manufacturing. Cities including Mexico City, Surat, India, and Kingston, Jamaica see the potential of bus electrification to improve local air quality and reduce traffic congestion. Many USAID partner countries in Southeast Asia are trying to understand how to reach ambitious EV deployment targets and implement EV and transportation plans. This pursuit is prompting questions about EV supply equipment (EVSE) standards, tariff design, and business models that affirm the importance of the building blocks outlined in this report. Effective EV deployment is...

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