torsdag 15 oktober 2015

EV in Norway Upends Sweden on
2030 Fossil Fuel Independence

Introduction
Our neighbor country Norway with a population of 5 million has a rapid expanding electric car fleet currently accounting for 50 000 registered electric cars with nearly 25 % of all new cars being electric while Sweden with its population of 9,5 million lags behind with a fleet of around 8 000 electric cars. The difference is considerable and is most likely a result of more favorable consumer value, a different market approach and consumer attitude, a system Sweden might learn from if a car fleet not dependent on fossil fuel is desiderated in the near coming decades.

Background
In Norway, where 98 % of the electricity production comes from hydropower, one of hundred persons owns an electric car, a total of 50 000 cars positioning Norway as an EV pioneer. In Sweden that number is less than one out of thousand persons as per 2015. In order to promote sales of electric cars in Norway, incentives such as tax cuts, benefits such as free parking, exemptions of tolls and access to bus lanes, deducted VAT and free car registration charge is offered by the government who’s target is 100 000 electric cars in the country by 2020. Furthermore a Norway has a well-developed infrastructure of 7 000 free recharging stations and 300 fast and semi-fast charging stations where customers can fully charge their car within 30 minutes for a small fee. (Norsk Elbilforening, 2015) In Sweden, with a 50 % electricity production stemmed from hydropower, there is currently a grant of SEK 40 000 for purchase of an electric car. However this premium will be canceled by 2017 when a bonus-malus-system will be introduced in which purchasers of cars with high emissions pays a fee in order to finance the subvention of environmental-friendly cars. The government has a target of being non-dependent on fossil-fueled cars by 2030. (Alestig, 2015)


Discussion and conclusion
The reasons for Norway’s rapid upswing in the electric car market may possibly constitute a combination of government leveraging in order to transform the transport sector to become more environmentally friendly enabling consumers to by an electric car at a reasonable price, offering the service provided by the many charging stations and other benefits energizing the market. Another aspect is that the on top of the above Norwegians now that the electricity most likely is green coming from hydro makes their decision to switch from a conventional combustion engine car more plausible. In Sweden a grant is probably not enough to convince the populace to invest in an electric car since other non-fiscal incentives and stimuli are more or less absent. Moreover, the environmental chain is not fully optimized until potential electric car byers now for sure that charging always is accessible and that charge comes from renewables, which might not always be the case in Sweden. Swedish private and state parties need come together and work for the future of the electric cars and determines within what framework to develop and how to reform the car industry and change consumer habitude. Norway’s in some parts excessive campaign might not be tenable in the long run due to tax shortage but has evidently functioned as a powerful kick-start, a kick-start Sweden really needs in order to meet 2030 target.


References
Norsk Elbilforening, 2015. Statistikk. Acquired 2015-10-15 from
http://www.elbil.no/nyheter/statistikk

Norsk Elbilforening, 2015. The Norwegian Electric Vehicle Association. Acquired 2015-10-15 from
http://www.elbil.no/elbilforeningen/english-please/717-the-norwegian-electric-vehicle-association


Alestig, P., 2015. Näringsliv. SvD Näringsliv. Acquired 2015-10-15 from http://www.svd.se/asa-romson-lovar-miljobilspremie-hela-2015

Falter for small German energy producers?

Introduction
As a result of the decisions to phase out nuclear Germany has well earned its lead as pioneer and world champion in the arena of renewables with a remarkable growth of PV system installments over the last few years on top of a rapid 30 % yearly increase of wind power produced electricity. PV in Germany, of which mostly are smaller rooftop photovoltaic projects installed and financed by private persons, account for powering of around 7 million households. Bundestag, the current parliament of Germany, is in the passing of long-foreseen reforms of its milestone energy laws. However, this presumptive legislation will enforce the 2000-enacted Renewable Energy Source Act and the reform may strike hard on small and medium-sized producers who then are obliged to compete with large producers in a not yet developed “green” transmission grid.


Background
During a day with perfect weather conditions up to 75 % of Germany’s electricity demand could be supplied from renewables. The household PV system installments including of energy cooperatives constitute to well over half of Germany’s renewable energy production upending the energy sector making it Europe’s most decentralized and community-driven. This would require substantial reconstruction of the transmission grid since many “green” producers are small individually and PV systems decentralized while wind power plants often are located across rural farmland and coastline unlike the powerful centrally situated power plants. The current German grid is built for the use of nuclear and the Big Four located primarily in the south industrial hubs. When nuclear still was an option a new grid was not a priority nor necessary but today it is of great importance and of urgency due to the fact that further nuclear plants will be shut down in 2017. (Hockenos, 2015)

The reform of Germany’s energy laws include centrally of cutting feed-in-tariffs that will disperse entirely by 2018 and replaced by a bidding system while incentives for new installations dropped significantly 2014. A producer guarantee is currently a fixed electrify price, FIT, for 20 years, which is essential for households and small-sized enterprises to secure an investment. However, the bidding system might serve as a control instrument for renewable energy expansion and will most likely change the profile of German energy producers where households and small-sized enterprises would not risk such a large investment without the FIT long-term security. (Bentham, 2015)


The future construction of Germany’s transmission grid needs be decentralized in order to meet the criterion of a functional grid also suitable for small “green” producers as well as building a line from north to south transmitting coastline and off-shore wind-generated power to the industrial areas. It seems that massive promotions and incentives for encouragement of investments of small systems has been done but not simultaneously developed a required grid in the areas in which these systems indeed are set up. There needs also consensus whether the grid is to take form of a super-grid or a smart-grid where the latter is ideal for multiple types of fluctuating small-scale renewable energies like solar and wind and matches up available power at any given time with demand. On top of the massive and urgent need of grid reconstruction, smaller producers needs the security of investment in for continuous increase of smaller systems and not be at risk at being outrivaled by larger producers.


References
Hocknos. P., 2015 Germany’s Renewable Energy Gamble The Environmental Magazine Acquired 2015-10-19 from
http://www.emagazine.com/magazine/germanys-renewable-energy-gamble.pdf


Bentham. P, 2015 Germany Reforms Renewable Energy Law. Power Mag, 1 August 2015,  Acquired 2015-10-19 from http://www.powermag.com/germny-reforms-renewable-energy-laws/?pagenum=3

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