VinFast electric bus during test run Not only buses, coaches should also be encouraged to use trams Air pollution and fine dust threaten people’s quality of life. Every year, Vietnam has to pay a large amount of money, about 8-10 billion USD to import gasoline. Part of this is spent on operating traditional fossil fuel-powered vehicles. In addition to the proposed inner-city electric buses for application in Hanoi and Ho Chi Minh City. In Ho Chi Minh City, it is thought that the government should consider the early policy of putting electric-powered intercity passenger cars into operation in order to both exploit the superiority of electric vehicle technology, while protecting the environment and bringing a a new look for public passenger transport in the new era. The world’s two major problems, which are environmental pollution due to emissions and energy security due to the finiteness of fossil energy sources (coal, oil, gas) have gradually become urgent. Air pollution, fine dust in Vietnam has become serious with big cities like Hanoi, Ho Chi Minh City, etc. Ho Chi Minh. Here, it is recorded that there are maximum number of days in a year with the most dramatic air quality index – the most polluted air in the world. In the past two years, authorities at all levels have met to discuss and direct long-term radical solutions to further strengthen the control of air pollution, including the control of carbon emissions and fine dust from the air. means of transport. And fossil energy sources are not available in all countries. Vietnam is one of the importing countries, still heavily dependent on the world’s oil (although it is also partly domestic), it is estimated that it still has to import about 8-10 billion USD per year. With zero emissions and using electricity instead of petrol, electric vehicles are said to be a breakthrough solution for Vietnam in the context of the need to strengthen air pollution control, ensure energy security and suitability. with the development trend of the world’s means of transport. Simple structure of electric vehicles compared to vehicles using internal combustion engines “Electric vehicle” (EV) is often understood as a vehicle with an electric motor drive system. From the outside, an electric car looks like a car with an internal combustion engine (petroleum car). However, except for some parts and components for sharing, about 70% of the components of the two vehicles are different. The significant difference between electric vehicles and vehicles using internal combustion engines is the number of moving parts. Electric vehicles have only one moving part, which is the electric motor (motor), while cars using internal combustion engines have tens of thousands of different parts. Important components of electric vehicles include: battery, electric motor control system, regenerative braking system and powertrain. The number of spare parts for moving parts is less than in electric cars, which leads to another important difference, which is that electric cars require less maintenance (more economical to operate) and safer. safer, in addition to the advantages of environmental protection, civilized and modern technology. Why electric cars are becoming more and more popular At the United Nations Climate Change Conference 2015 (COP 21) held in Paris (France), the participants reaffirmed their efforts to strengthen the response to climate change. The Paris Agreement announced in December 2015 has set a target to limit global temperature rise to below 2 degrees Celsius. This goal can only be achieved when the energy and other sectors significantly reduce emissions. greenhouse gas emissions. The transport sector accounts for about a quarter of emissions from energy-related industries. The goal of reducing greenhouse gas emissions to contribute to achieving the goal of reducing global warming below 02 degrees Celsius can only be achieved with a strong commitment of the transport sector. The Sustainable Development Report of the International Energy Agency (IEA) has shown that, to achieve this goal, by 2050, the world’s transport sector must contribute at least one-fifth of total greenhouse gas emissions. cuts from energy use activities. Electric cars are identified as a key factor contributing to reducing greenhouse gas emissions in the transport sector, increasing energy efficiency, reducing greenhouse gas emissions in general, encouraging the development of new energy sources and recycled energy. In the context of rapid urbanization, the development of electric cars also contributes to reducing air pollution and noise pollution in big cities. The main obstacles to the development of electric cars are the initial cost of the car and the time available between two charges of the battery. However, the recent rapid development of science and technology has shown positive signs. According to a recent report by the US electric car company Proterra, a single charge for the bus can be up and running for 650 km and the price is becoming more and more relevant to the market to ensure more competitive exploitation than traditional gasoline-powered vehicles. Level of use of electric vehicles in countries around the world To date, China is the leading country in production, domestic consumption and export, with the famous electric car manufacturer BYD. In China, according to the data at the end of 2018, the total number of electric buses put into operation is over 421,000 units, Shenzhen city uses 100% of electric vehicles in public passenger transport, while Beijing and Shanghai , the utilization rate of electric buses has reached over 80%. Electric buses are increasingly popular in provinces and cities in China. Europe ranks 2nd among countries using electric vehicles with 2,250 units, the number of electric vehicles used will increase as some European countries such as the Netherlands set a target to convert and use 100% electric vehicles. (including buses, coaches plus and private cars) by 2024. The United States is also the country that is starting to shift towards using more electric vehicles. Although there are only over 300 electric buses in the United States, the number of electric buses is increasing in the near future, with the city of Los Ageles having just decided to buy 155 electric buses to serve all passenger transport activities. in this city. With the new energy policy (Green New Deal), led by many famous electric vehicle manufacturers such as Telsla, Proterra and even Apple recently announced the new Apple car electric car model, there is sure to be a boom in usage. electric vehicles in the United States under the new administration are clearly visible. For electric vehicles, environmental protection is always a top priority Why use an electric car? As mentioned above, electric vehicles are vehicles without chimneys, do not emit CO2, greenhouse gases into the environment. Therefore, the exploitation of electric vehicles in passenger transport is completely environmentally friendly, which is not controversial. Many researchers, policy makers still argue. The first is the traceable environmental issue of electric vehicles, that is, the source of electricity that electric vehicles use is clean electricity, that is, electricity using renewable energy such as solar power, wind power … or electricity from heat. Obviously, over the past time, the Government has called on businesses to invest in the production of solar power, rooftop voltage and wind power…, this electricity has been purchased by the state and connected to the national grid. Only the current supply has not met the demand and more clean electricity is needed to connect to the network. The second is the problem that the production of batteries for electric vehicles is still energy-intensive and emits a significant amount of CO2. As stated, today’s technology is evolving like crazy. As the demand for electric vehicles and batteries increases, mass production of large capacity batteries will result in better environmental control and lower loss and emissions. Here, it is a matter of deciding for the electric vehicle industry to have a direction in which to invest, cooperate and develop. When domestic manufacturers have been proactive in technology, it is possible to produce and recycle used batteries, thereby closing the production and exploitation process effectively and ensuring the problem. environment. What are the implications for passenger transport in Vietnam in the new period? Facing the environmental context, the challenge of air pollution as well as ensuring national energy security, Vietnam should consider the development of electric cars as a breakthrough policy for technology development, domestic auto industry. The introduction of electric vehicles into transport operation has really been a push to change for the progress to serve the travel needs of people and socio-economic development in the new period. The use of electric vehicles for public passenger transport is not only in the inner city as the project of electric buses in Hanoi and Ho Chi Minh City. Ho Chi Minh City as the media recently mentioned, but also hereby recommended that the State should have a policy to encourage the development of electric vehicles for inter-provincial passenger transport (both for fixed and non-fixed routes). To do this, the state has policies to socialize and encourage transport business owners to use electric vehicles in transport business activities; encourage businesses to invest in charging station infrastructure at rest stops, bus stations and other concentrated stops for re-energized vehicles to serve well for transport activities. In short, the policy to encourage the use of electric vehicles is a right one, in terms of both environmental protection as well as energy security. In addition to electric buses as currently proposed to be applied in the inner city of Hanoi, Ho Chi Minh City. Ho Chi Minh City is also considering the application of intercity buses running on electricity. With a national electric passenger transport network being formed, improving user experience, increasing the quality of transport services, electric cars will have a good future in Vietnam, gradually replacing the traditional means of transport. fossil fuel-powered transportation.

Write an article / Ma Xiaolei

edit / Tu Yanping

design / Zhao Haoran

source / Blommberg, Author: Liam Denning

Originally, the petroleum industry would just concentrate on finding “oil barrels”. You don’t have to worry about other things at all, but electric vehicles have overturned the “iron rice bowl” of others.

Goldman Sachs’ latest forecast shows that road fuel consumption will reach its peak in the next five years. For the stone giants, one way to solve this problem is to replace the gas pump with a charging pile.

The main difference between charging an electric car and refueling an ordinary car is that the former can usually be charged at home or at work. Most electric car owners also use this charging method, and it is likely to continue. However, their charging speed is often very slow and cannot cover the needs of all situations.

It is estimated that by 2040, fast public charging piles will account for about a quarter of car electricity demand.

Public fast charging stations are most similar to the existing gas station business, and some oil giants have already started operations. For example, BP Plc has currently installed about 10,000 charging piles, and plans to reach 70,000 by 2030. This represents a major investment, because the cost of fast charging piles is as high as $50,000, and it also needs to provide funds for local grid upgrades. To achieve this goal means that as many people as possible need to enter these charging stations.

According to a recent report by Oswald Clint, an analyst at Bernstein Research, the current 10%-20% utilization rate of fast charging piles only yields 7%-9% return on investment capital. If the utilization rate exceeds 30%, that is, about 7 hours in every 24 hours, the rate of return will jump to more than 30%, which is more like a reason to persuade oil investors to make green investments.

This utilization threshold is consistent with the work of Chris Nelder of the Rocky Mountain Institute on the economics of vehicle charging and the predictions of Fastned BV, an independent fast-charging network in the Netherlands.

Bernstein’s analysis assumes that drivers pay 60 cents per kilowatt hour for fast charging, which is equivalent to more than $5 per gallon of gasoline. This is competitive in Europe where road fuel is highly taxed, but not necessarily in the United States, where the average oil price today is less than $3.

In addition, as Nelder’s work has emphasized, the demand for utilities based on the peak electricity consumption of industrial and commercial customers can greatly increase the cost of electricity supply. Adding these costs and operating expenses, a fast charging pile with a utilization rate of 20% may cost 50 cents per kilowatt hour, which is equivalent to $4 per gallon to cover its costs, and there is no profit margin. However, if the utilization rate is increased to 35%, it is equivalent to the oil price cost falling below US$2.9.

Bernstein’s Clint calculated that the fuel retail industry in the United States and Europe currently generates a gross profit margin of approximately $125 billion. He estimated that by 2040, fast charging may generate 35 billion U.S. dollars, rising to 56 billion U.S. dollars by 2050. In order to get a share of the pie, the oil giants must increase the relevant cash flow as much as possible to expand the profit pool and keep customers engaged.

Convenience retail is a typical additional service that contributes most of the gross profit to US gas stations, and can be upgraded and expanded to newer services, such as e-commerce delivery. However, most existing gas stations may not be suitable for providing charging services. The best places to set up fast charging piles should be those where you can spend more time, while establishing new charging infrastructure in specialized facilities, such as shopping malls or parks.

Oil giants have long had fleet refueling operations. Bernstein’s Klint estimates that this has brought a steady gross profit of US$1 billion per year for Royal Dutch Shell. This can be extended to commercial and municipal customers (accounting for one-fifth of the estimated demand in 2040), seeking a reliable energy supplier for the electrified fleet. Depot-scale charging facilities revolve around a major customer, including shared car fleets, to provide scale and reliable use.

At the same time, ordinary electric car drivers can be bound to it through a service plan. For example, in the deregulated electricity market in parts of Europe and the United States, Shell may provide homeowners with retail electricity, including their electric vehicles. Considering the average driving pattern, the vast majority of the trips are short distances, and all the costs of electrified driving can compete with gasoline, even at the premium of fast charging during the journey.

More importantly, this may provide drivers with things they can’t get in gasoline, such as stable fuel costs. In theory, the price of an electric car can be like a mobile phone package, covering the regular driving mode with a fixed fee and providing recharge services for long-distance travel.

None of this is so easy to achieve. Electricity is a beast completely different from oil. It has its own incumbents, utilities, and new entrants surfing the wave of green financing. There are more unknown factors, especially self-driving cars may redraw the charging map. As RMI’s Nelder said, “It’s impossible for us today to avoid building tomorrow’s stranded assets.”

Minimizing this situation means preparing for the future of electrification. The oil giants have great power to use, especially their huge scale. However, success depends precisely on what the industry is not good at: how to turn monopolistic goods into competitive consumer services.

PVOIL’s General Director Doan Van Nhuom and VPI Director Nguyen Anh Duc signed “Consulting service contract for research on batteries and charging stations for electric cars” VPI Director Nguyen Anh Duc said, according to a survey by Frost & Sullivan (USA), 33% of consumers in Vietnam are interested in buying electric vehicles, the rest is price, charging technology, battery price and battery life. With the role and mission of a scientific research unit of Vietnam Oil and Gas Group, VPI will monitor market indicators, regularly update PVOIL’s leaders to have a basis for making accurate decisions, preparing solutions to cope with risks and take advantage of opportunities in the energy shifting trend. PVOIL’s Chairman Cao Hoai Duong said that in the energy transition trend, PVOIL is a directly affected unit, so there is always a sense of proactively responding to “minimize danger and utilize muscle”. 3 years ago, PVOIL has been interested in researching the development of electric vehicles, the possibility of replacing electric cars for gasoline-powered vehicles and building possible scenarios. PVOIL hopes that, through the cooperation with VPI, experts will support PVOIL in researching technology, engineering, and development trends of batteries and charging stations so that PVOIL will have more information in planning development strategy. development, ready to adapt to the development trend of electric vehicles. As an oil product distribution business, the energy shift will directly affect PVOIL’s business operations. Therefore, PVOIL needs to take advantage of the available infrastructure of the system of more than 600 petrol stations across the country, apply technology 4.0 in business activities to have solutions to welcome the trend. development potential of electric car.