Electrification of Transport: A Pathway to Net-Zero by 2050
As the world grapples with the pressing need to combat climate change, the electrification of transport emerges as a pivotal strategy in achieving net-zero emissions by 2050. Ensuring sufficient electricity demand and providing incentives on electricity prices are crucial steps that can accelerate this transition. With the rise of electric and hybrid vehicles, the demand for electricity at charging stations is set to soar, necessitating a robust infrastructure and supportive policies.
The Growing Demand for Electric Vehicles
At a recent conference hosted by Vietnam Investment Review (VIR), Tran Anh Thai, Vice General Director of Applied Technical Systems JSC, highlighted the increasing prevalence of hybrid and electric cars. This surge in electric vehicle (EV) adoption is directly linked to the growing demand for electricity at charging stations. Thai emphasized that Vietnam’s green transport strategy necessitates a significant increase in renewable energy to provide the green electricity required for the transport sector’s transition. He projected that, under current policies, the number of electric vehicles in Vietnam could increase approximately 12-fold by 2035.
Infrastructure Development: A Synchronised Approach
To support this anticipated growth in electric vehicles, Thai underscored the importance of synchronizing the development of charging station infrastructure with the expansion of the electricity grid. This alignment is essential to ensure that the increasing demand for electricity from charging stations can be met without straining the existing power supply.
In the United States, a successful model has been established to encourage consumers to switch to electric vehicles. Charging station electricity prices are strategically set lower than the monthly costs associated with petrol cars. With an average electricity price of about 13 US cents per kilowatt-hour, the cost of charging an electric vehicle becomes significantly more attractive compared to traditional fuel options. This pricing strategy serves as a powerful incentive for consumers to make the switch to electric mobility.
Global Perspectives on Electrification
During another conference focused on green transport development challenges, Deputy Minister of Transport Le Anh Tuan noted that no country has fully realized the policies and infrastructure necessary to achieve net-zero emissions. He acknowledged that while electrification is a critical trend, it is not the sole solution. Vietnam’s strengths in agriculture and forestry must also be considered in the broader context of carbon market development. Tuan emphasized the need for a balanced approach, integrating the growth of the electricity sector with the development of transport infrastructure.
He pointed out that the successful development of electric road vehicles hinges on the establishment of a comprehensive charging station system. Without a targeted and ambitious plan for renewable energy expansion and integration within the power sector, the potential for cross-sectoral synergies remains untapped.
The Cost of Inaction
The Vietnam Energy Outlook Report, published in June by the Electricity and Renewable Energy Authority, the Danish Energy Agency, and the Embassy of Denmark, warns that a slower transition in the power sector, coupled with a rapid shift to e-fuels and other green alternatives, could lead to higher costs in achieving the net-zero goal by 2050. This underscores the urgency of aligning policies and infrastructure development across sectors to facilitate a smoother transition.
The Role of Industry Leaders
Companies like BYD Vietnam are stepping up to contribute to the greening of the automotive industry. Vo Minh Luc, CEO of BYD Vietnam, shared insights into the company’s commitment to providing a convenient experience for users, further driving the adoption of electric vehicles in the country. Such industry initiatives are vital in supporting Vietnam’s green transformation goals.
Conclusion: A Strategic Path Forward
Vietnam’s journey towards electric vehicle adoption and reduced emissions, while fraught with challenges, is achievable through strategic planning, supportive tax policies, and robust infrastructure. By ensuring sufficient electricity demand and incentivizing lower electricity prices for charging stations, the country can promote the electrification of transport, thereby accelerating its net-zero process by 2050. The collaborative efforts of government, industry, and consumers will be essential in realizing a sustainable and green future for Vietnam’s transport sector.