Sparks Fly in the Electric Vehicles Market

EVs’ popularity rises as new models and incentives are made available

One-sixth of every barrel of oil is used to fuel passenger vehicles, according to Peter Tertzakian, chief energy economist at ARC Financial. But even if one-million electric vehicles were sold within a year, it would only displace 50,000 barrels of oil a day. That isn’t much, relative to the approximate 96-million barrels that are demanded worldwide on a daily basis.

While it’s not enough to reverse the environmental damage done by emissions, it is better than nothing. The number of electric vehicles being purchased is constantly on the rise, and the more hitting the streets, the bigger the dent in the fossil fuel industry will be.

“Compared with other vehicle fuel or technology options, electric motors are extremely efficient, and have the potential to drastically reduce emissions, particularly in B.C. where 93 per cent of our electricity is clean,” says Charlotte Argue, Program Manager of the Fraser Basin Council’s Climate Change and Air Quality Program. “By switching to electric, we have the potential to save over 80 per cent of our vehicle emissions footprint compared to a gas car. They also benefit our local air quality.”

Right now, there are four types of electric cars on the Canadian market: Battery Electric Vehicles, Plug-in Hybrid Electric Vehicles, Hybrid Electric Vehicles, and Fuel-cell Electric Vehicles. Out of those four options, the BEV is the only car that runs entirely on batteries. The traditional and plug-in hybrids are fuelled partially by batteries and partially by engines, though only PHEVs can be plugged into the power grid. HEVs create all of their energy from gasoline and regenerative braking.

Fuel-cell Electric Vehicles are the most recent, efficient, and environmentally friendly of the lot, since they are powered by a chemical reaction between hydrogen and oxygen which produces exclusively electricity and water. Despite the fact that the FEV in itself creates no harmful emissions, the process of making hydrogen fuel for the reaction is energy intensive, as it must be produced via steam reforming or electrolysis. Inaccessible distribution of hydrogen fuel is another drawback, since hydrogen must be stored “either at very high pressures or very low temperatures, which complicates both the tank design and refuelling process,” according to a primer on Canadian Automobile Association’s website.

The lack of accessibility to charging stations—and the limited “battery life” of electric vehicles—has created a phenomena known as range anxiety for many EV owners. It has been defined as the fear that the battery will run out before the driver reaches their destination, leaving them stranded on the street. That concern is understandable, considering that less than 16 per cent of all vehicle fuelling stations in Canada are for electric vehicles. There are 1,859 total across the country (CAA Electric Vehicle Charging Station Locator), as compared to the 11,811 retail gasoline stations (the Kent Group’s 2014 National Retail Petroleum Site Census), which means that finding a place to plug in your EV can be tricky.

Currently, there are no charging stations at Kwantlen Polytechnic University, and there are no plans to construct them.

“Charging stations are something we’ve looked into in the past, but we put on hold the process of looking into it,” says Kwantlen Student Association president, Alex McGowan. “Charging stations are certainly something that’s on our radar and will be looked into again in the future.”

Now that electric vehicles have started to become more popular, another obstacle is that there are too many drivers for the number of stations. Already there have been reports of long lineups, caused either by the mere multitude of people waiting or drivers leaving their car plugged in for unreasonable amounts of time. Because more stations are always being built, it is possible that this issue will disappear, and for many it’s hardly even an issue. EVs can be charged at home overnight, so stopping at charging stations may not always be necessary.

The primary reason for the increasing public availability of electric vehicles and charging stations is government support. The province of B.C. put $6.5-million into building charging stations five years ago, and now it offers several incentives to those interested in buying electric vehicles. One example is the Scrap-It Program, which pays car owners up to $3,250 to give up their old vehicles for recycling.

“We’ve scrapped 40,000 cars. That’s a massive number of vehicles, and when we take them off of the road, they’re permanently off the road,” says Dennis Rogoza, CEO of the B.C. Scrap-It Program.

On March 23 of this year, B.C. Minister of Energy and Mines Bill Bennett announced that, “The province will offer incentives of up to $5,000 for the purchase or lease of a new battery electric or plug-in hybrid electric vehicle, and up to $6,000 for a hydrogen fuel cell vehicle.” These incentives are part of the Clean Energy Vehicle program, which began April 1, 2015, as a partnership between the B.C. Ministry of Energy and Mines and the New Car Dealers Association of British Columbia. The CEV program will cost $10.6-million over the next three years, with funds allocated to incentives, investment in charging and hydrogen fuelling infrastructure, training, outreach, and research.

“Encouraging and promoting environmentally friendly transportation is part of a broader strategy to ensure British Columbia remains a climate action leader. With transportation representing 37 per cent of total provincial greenhouse gas emissions, clean energy vehicles are essential to reducing emissions and maintaining healthy air quality,” says Mary Polak, B.C. Minister of Environment, about the CEV program.

There are 34 vehicles that are eligible for the program, including makes from Audi, BMW, Cadillac, Chevrolet, Ford, Hyundai, Kia, Mitsubishi, Nissan, Smart, Toyota, and Volvo. Those who choose a fuel-cell vehicle will receive “an additional point-of-sale incentive of $1,000 to offset the current barrier of limited hydrogen fuelling locations for fuel cell vehicles” as well as the initial incentive price. All vehicles must have been purchased after April 1, 2015 in order to be eligible, and the program’s incentives will run “until March 31, 2018, or until funds are exhausted.”

When the CEV incentives are used in tandem with the Scrap-It Program, the cost of electric vehicles becomes considerably more reasonable. Further incentives, such as a recent decision to allow electric vehicle drivers to use the HOV lane without any passengers, have driven up the sales as well.

Governments aren’t the only ones making an effort, though; brands are also releasing more affordable cars. Tesla Motors is preparing to release the Tesla Model 3, which would have a range of over 300 kilometres and a price tag starting at $35,000 before incentives—under half the cost of older Tesla models. The company’s goal is to increase sales by 17 per cent by 2020, although the industry is a hotbed for intense company rivalry. Hyundai is launching a line of EVs called Ioniq, which has a shorter range than the Model 3, but a lower selling point. 2009’s Nissan Leaf goes for between $32,698 and $40,500, and Audi’s e-tron Q6 marked the first of the brand’s all-electric SUVs. Porsche and BMW have also debuted affordable electric vehicles under their names.

But out of all of the big names in the business, it’s General Motors’ Chevrolet Volt that’s giving Tesla a run for their money. With a price of $37,500 and a range of about 320 kilometres, it offers very similar selling points to the Model 3.

The International Energy Agency’s Global EV Outlook “shows an increase in charging infrastructure and sales of electric vehicles as well as a decrease in battery cost.” If these trends continue to improve, it is possible that electric vehicles could make a significant contribution to slowing the effects of climate change.

“This is about how we want to be living tomorrow, and in years, decades, and centuries to come,” says Argue. “Our current way of living can’t be supported long-term, and we’re already seeing and feeling the consequences.”