Thimphu electric vehicle incentives

Loan equity for EVs increased to 50% and 23 quick EV charging stations to be installed between 2019-21
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Loan equity for EVs increased to 50% and 23 quick EV charging stations to be installed between 2019-21

To promote lowemission vehicles and Electric Vehicles (EVs) in the country, 23 quick EVcharging stations will be installed over the course of three years.

This is part of the GlobalEnvironmental Facility''s (GEF) three-year US$ 3mn project (2019-21), ''BhutanSustainable Low-emission Urban Transport System'' which offers incentives totaxi drivers who switch to EVs and tax waivers to the general population who dothe same.

The Road Safety and TransportAuthority (RSTA) is planning to change the country''s urban transport sector bypromoting EVs for cabbies.

"We are focusing on taxidrivers registered in Thimphu because the number of taxis registered in Thimphuis large and we have found out that the taxis cause the most carbon emission,"said RSTA Director General, Pemba Wangchuk.

As of 2018, there are around4,170 registered taxis in the country of which 1,885 taxis are registered inThimphu alone.

On an average, taxis travelabout 75,000km a year.

The RSTA Director General saidthe project will fund 20% of the cost or will provide a subsidy of US$ 5,500 toabout 300 taxi operators as incentive. "Those interested would be able to get50% loan as the Royal Monetary Authority has approved to increase the loanequity to 50% from the existing 30%," he said. "We are hopeful that this willreduce the import of fuels as a huge amount goes into the import of fuels."

According to RSTA record, thenumber of vehicles in the country has increased almost four times from slightlyless than 25,000 in 2000 to over 100,544 as of December 31, 2018.

Greenhouse gas (GHG) emissionsin the Bhutanese transport sector is projected to more than double from a valueof 177,000 tCO2 in 2005 to 376,000 tCO2 in 2020.

Pemba Wangchuk said that theproject is feasible in the country as Bhutan is rich in hydropower resourcesand thus, using hydro-based electricity in the transportation sector willbenefit the country in the long run. "We are exporting electricity to othercountries as we have rich hydropower resources so the project is sustainable inour country," he said. "We are not only importing fuel which is noteco-friendly but it also removes a huge burden off our economy."

Pemba Wangchuk said that tomake it convenient for EV users, RSTA is planning to spread the quick chargingstations over different locations if incase the EVs have to travel to longerdistances. "We will be installing quick charging stations in places like Paro,Haa, Lamperi, Wangduephodrang, Punakha, Gedu and at Wangkha on the way toPhuentsholing."

One of the main challenges forthe EVs is the battery-life which lasts for only four hours. "But with thequick charging stations it will take less time to recharge," said the RSTADirector General.

One of the important strategiesto address growing GHG level is to shift from traditional fuel (diesel andgasoline) to EVs. "The electric vehicle is one of the new technologies thathave garnered attention in developed countries, and increasingly in developingcountries, as one of the keys to low-carbon emission," said Pemba Wangchuk.

Further, he said that thoughefforts are being made to reduce pollution, going electric in the transportsector has not progressed as desired. "It is because of the people''s mindset.We are so used to the fuel car and to shift to electric cars is something thatwill take time."

He said that it is not only inBhutan but globally, the use of EVs is not popular and its use is picking uponly recently. "Neighboring countries like India and China are also lookingforward to go electrical by 2030," he said. "Now, since a lot of companies areinvesting in electric cars, the quality will improve and costs will reduce."

Pemba Wangchuk said also saidthat the authority is encouraging people to go for EVs by not imposing tax forgreen cars in addition to building infrastructure for EVs like quick chargingstations in the country.

Meanwhile, the estimated costof each quick charging facility was approximately US$ 25,000 during thepiloting phase in 2016 but currently, the overall cost of installing a multiplecharging facility would allow more than one car to be charged at a time at US$40,000.

As of today, there are around 26 government EVs, 71 private EVs, four EV taxis and one diplomat EV in the country. Thimphu has the highest number of vehicles with 52,322 followed by Phuentsholing with 34,707, Gelephu has 6,462 and SamdrupJongkhar has 5,194 as of December 31, 2018.

Jigme Wangchen from Thimphu

The country''s first and the only financial newspaper, Business Bhutan Private Limited, was conceived on June 1, 2009 and officially launched on September 26 the same year. 

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Memoirs from the late 1900s about Bhutan often talk about its infamous form of transit: a series of minibuses ruefully called ''Vomit Comets''. Bhutan''s geography is almost entirely mountainous, so roads must follow the winding rivers to connect faraway districts.

The roads themselves can be perilous: they are cut into the mountain and drop precipitously on one side. Erosion and landslides form constant obstacles. And until recently, roads across the country weren''t paved, yet the ''Vomit Comets'' would take the bumpy, windy curves at breakneck speed.

Bhutanese officials struggle to adopt public transit that can accommodate this difficult geography. The country is too hilly and convoluted for trains, subways, or streetcars. The bus system has only gotten marginally better since the ''Vomit Comet'' era, mostly because of asphalt. Cars remain the primary way to get around for those that can afford them.

The combination of geography, poor public transit, and increased development means that the number of private vehicles in Bhutan has exploded. According to a 2018 Ministry of Information and Communications report, the number of private cars registered in Bhutan, including taxis, went from 25,000 in 2000 to 89,3000 in 2017 — an increase of 357 per cent, and equivalent to a car for every tenth person in a country with a population of only around 800,000.

"Expanding public transit would be my first priority," says Tenzin Wangmo, the Chief Climate Officer of the National Environment Commission (NEC), when asked what environmental actions the NEC would take if they had enough funding.

Simply deploying 300 vehicles won''t be sufficient if you don''t significantly expand the quick charging infrastructure.

The crush of cars, especially in Thimphu, the capital city of Bhutan, has wider implications beyond traffic. Exhaust from vehicles pollutes Thimphu''s air. The exhaust particles from fossil fuel combustion vehicles can exacerbate asthma and lead to premature deaths from heart disease. And the amount of air pollution in Thimphu has doubled between 2007 and 2018. The pollutants, plus the roads, sidewalks, and buildings, also absorb heat, making the whole city hotter.

Vehicles that run on fossil fuels are also adding to Bhutan''s greenhouse gas emissions. The petroleum needed to run these cars must be shipped in, increasing Bhutan''s dependency on foreign extractive resources. In a country where electricity comes entirely from hydropower, most of Bhutan''s emissions come from the transportation sector.

A Swiss consulting firm estimated that Bhutan''s emissions from vehicles would triple between 2018 and 2030 if the Bhutanese maintain the status quo. This could put Bhutan''s pledge of forever remaining carbon neutral in jeopardy.

Bhutan is promoting electric vehicle use to combat these growing emissions. However, this has not been an easy transition. A 2014 programme attempted to start this progress, but due to misconceptions and a lack of awareness, nothing came of it. Early in 2019, GEF and UNDP revitalised the electric vehicle programme with the goal of rolling out 300 electric vehicles in the taxi sector by 2021.  Even under this new attempt, however, there are still a number of challenges.

"A lot of people don''t have trust or confidence in this technology," said Phub Gyeltshen, the programme''s project manager. "We have had to work hard to convince them."

About Thimphu electric vehicle incentives

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