DOE to address challenges in EV adoption

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DOE to address challenges in EV adoption
  • The Department of Energy is working to address challenges in the adoption of more electric vehicles
  • Some of these issues are market players’ hesitation, high vehicle cost, quality concerns, lack of value chain, and insufficient charging infrastructure
  • The agency supported expansion of Executive Order No. 12, Series of 2023 to include other types of EVs that will have zero import tariff

The Department of Energy (DOE) is working to address challenges in the adoption of electric vehicles (EVs).

Patrick Antonio, Energy Utilization Management director at DOE, highlighted issues in the adoption of EVs by consumers, including market players’ hesitation, high initial cost, and EV reputation or quality concerns.

In a recorded message at the APV (Auto Parts & Vehicles) Expo 2024 in World Trade Center Metro Manila, Pasay City, Antonio said the EV industry in the country faces limited capacity for manufacturing and assembly, including a lack of value chain.

The charging infrastructure is also still in need of grid development and investments into charging systems and services.

Antonio then provided updates on the implementation of Republic Act No. 11697, also known as the Electric Vehicle Industry Development Act (EVIDA). EVIDA outlines the regulatory framework and creates a comprehensive roadmap for the operation of EVs in the country.

The DOE official cited plans for the electrification of public transportation under the Comprehensive Roadmap for the Electric Vehicle Industry or CREVI.

The goal is to reach 7,000 up to 26,500 EVs for public transportation by 2028.

The Davao Public Transport Modernization Program, or DPTMP, on the other hand, aims to have 380 operational electric buses. DPTMP is backed by a $1-billion loan from the Asian Development Bank.

In order to boost EV usage, the DOE supported the expanded Executive Order No. 12 to include in its coverage hybrid EVs, plug-in hybrid EVs, two- and three-wheeled EVs for zero import duties.

The re-fleeting of government vehicles to EVs is also being eyed.

In addition, incentives such as financing for the public utility vehicle modernization program have been lined up, including an increase in subsidy for modern public utility vehicles and special loan packages from the Land Bank of the Philippines and the Development Bank of the Philippines.

Non-fiscal incentives, such as motor vehicle user’s charge discount, priority registration with the Land Transportation Office, and franchise applications to operate under the Land Transportation and Franchising Board, are also in effect. EVs are also exempted from vehicle volume reduction schemes within the National Capital Region.

Based on Department of Transportation and LTO data, there were 7,515 EVs out of the total 14,269,414 registered motor vehicles in the country in 2023. The registered EVs based on vehicle type are the following:

  • 612 electric motorcycles/tricycles
  • 1,432 electric cars/sedans
  • 5,467 sport utility vehicles and UVs
  • four trucks and trailers

There are at least 28 existing EV routes and 443 for electric PUVs.

Some of the pilot projects to be implemented are the Smart Electric Shuttle Service Program, 2-wheel and 3-wheel EVs for logistics, electric PUVs for public transport, and the EV incentive scheme of deploying 150 units for 10 transport cooperatives (pilot project).