In partnership with the Asian Development Bank (ADB) and the Clean Technology Fund (CTF), the DOE is implementing the Market Transformation through Introduction of Energy Efficient Electric Vehicles Project or the E-Trike Project to promote energy efficiency and clean technologies in the transport sector. It aims to reduce the sector’s annual petroleum consumption by 2.8 percent (based on 20 million barrels annual consumption in 2010) and to avoid CO2 emission of estimated 259,008 tons annually by shifting to 100,000 electric tricycles (e-trikes).
This project is an offshoot of the ADB and the DOE pilot study of 20 locally assembled e-trikes powered by improved lithium-ion batteries in the City of Mandaluyong. Results of the pilot test showed that the tricycle drivers were able to carry more passengers, experienced more comfort for the drivers and passengers, and increased in daily income. The program also benefitted from driver feedbacks in handling and operation of an e-trike by improving the design model. In 2012, the DOE conducted a nationwide contest for the Best E-trike Design, which solicited 180 design entries from the academe, public and private design practitioners. Using the top 3 winning designs, the DOE through ADB commisioned an electric vehicle consultant to come up with the improved DOE E-trike Design model and focused on the safety and structural integrity aspects.
The introduction of e-trikes with lithium-ion battery technology is envisioned to pave the way for increased safety standards and improved environmental compliance which complements government’s plan to support e-vehicle business, including e-trikes. Flow of new investments started pouring in the second half of 2013 and as of the end of 2015, there were ten (10) new companies engaged in the manufacturing of e-trikes and registered under the BOI-Investment Priority projects. This has traslated to about PhP500 million of fresh investments and more than 500 local jobs generated.
In 2015, the DOE conducted a total of twenty three (23) promotional activities such as IECs, focus group discussions and consultations from which participants came from LGUs, financial conduits and Transport Operators and Drivers Assosiations (TODA) in order to build up EV market as well as address the concerns on safety, range anxiety, battery and after sales support.
As catalyst in the transformation of the electric vehicles sector, the DOE is working with the National Economic Development Authority to come up with refinements in the implementation arrangements and to ensure that deployment of e-trikes among targeted beneficiaries, such as LGUs/transport groups, will be completed by 2017.
EVs are not commercially competitive compared with conventional gas or diesel-fed vehicles, particularly, hurdle in the acquisition cost. Financial institutions/developmental banks should open their portfolio for early adopters of EVs. New businesses should be further encouraged to invest in after sales services such as, charging stations, parts and supply/service centers, warranty/insurance providers, etc. For EV industry to take off, the DOE has come up for a short to medium-term action plans that will assist in its establishment.
- Lobby with LGU to provide enabling environment such as preferential franchises for electric vehicles.
- Network with LandBank of the Philippines (LBP) and other financial conduits such as, rural banks, transport cooperatives, multi-purpose cooperatives to provide loan facilities.
- Facilitate the establishment of minimum performance and non-discriminatory regulations for EVs and charging stations.
- Facilitate the improvement of electric vehicles value chain through the development of training modules for drivers and operators on the safe use of EVs in partnership with Technical Education and Skill Development Authority (TESDA).
- Development of Emergency Response Protocol for EVs with the DILG-BFP.
- Network with transport groups to establish demand for EVs
- Conduct IECs and public awareness campaigns to address social acceptance problems on the benefits of using EVs
- Advocate for the passage of legislations that will bring down the cost of EVs acquisition either through importation for the initial market penetration and sourcing out locally in the medium term.
- Continue promotional activities of EVs.