In 2008 Gordon Brown was very vocal

in his support for moves to make the

UK the electric car capital of Europe.
Electric vehicles offer the potential
for signicant carbon savings over
existing technology. Gradually
replacing the existing vehicle eet
with electric alternatives could
signicantly reduce the UKs total
carbon emissions and contribute to
our ambitious mitigation targets.
These targets are looming and if the
UK doesnt act quickly and decisively,
there is a real chance that they will
not be achieved.
At this juncture, our automotive sector is suffering in
the face of a global economic downturn. People are
being made redundant and output is shrinking. Is it
time for the Government and automotive sector to
work together to ensure the UK is ready to exploit a
changing market and demand? With other countries
already pursuing electric vehicles in earnest, are we
already in danger of missing out?
IMechE rmly believes that electric vehicles are an
important part of the UKs motoring and low carbon
future and urges the Government to do more to ensure
that we are well placed to capitalise on their potential.
There are still some technical hurdles to be overcome
but we need to consider how to make electric vehicles
(EVs) more attractive to the consumer. This requires
rm action that would:
Remove current barriers to entry. Electric vehicles
have limited ranges and are generally more
expensive than existing petrol alternatives. Further,
the UK has no plans to introduce a nationwide
charging network to facilitate the introduction of
EVs. Denmark is solving this problem by developing
a network of battery swapping stations that will
allow consumers to increase the range of their
vehicle. This will require signicant public sector
investment to facilitate their introduction.
Encourage consumers to take up electric vehicles
through scal incentives. By reducing the cost of
more favourable technologies, Government can
get more people using less polluting transport
choices. Denmark, Portugal and Israel are all
planning signicant tax breaks for business users
and consumers. Electric vehicles tend to be cheap
to run but the upfront capital costs tend to be high.
In short, Government has a role to play in making
electric vehicles nancially attractive.
Ensure Government leads the way. In line with the
EU, the Government has already announced that
within 3 years new car purchases by government
departments must average 130gmCO
2
/km or less.
However, the Government can do more; the public
sector is a huge user of vehicles. The Government
should introduce standards of procurement that
lead the way, favouring EVs where appropriate and
impose a limit of 90gmCO
2
/km for other vehicles.
Improving the world through engineering
ELECTRIC
VEHICLES
TRANSPORT POLICY STATEMENT: 09/05
ELECTRIC
VEHICLES
THE CONTEXT
The UK Government has made a commitment to
reduce CO
2
emissions by 80% in a little over four
decades. Transport currently produces around a
quarter of the UKs total CO
2
emissions, with road
transport contributing over 80% of this. However,
mobility is essential; it drives economic growth
and societal development and we cannot just stop
travelling. We must therefore opt for solutions
offering the greatest emissions reductions from the
31.4 million cars and vans
1
on our roads.
The UK automotive industry has a long heritage
and reputation for innovation. From the boom of
the inter-war years through to its peak in the early
1970s
2
, the automotive industry has continually been
at the forefront of UK manufacturing. In recent years,
the industry has produced around 1.5 million cars
annually, employing 850,000 people directly with
an annual turnover of nearly 50 billion
3
. However,
the global economic crisis has hit the automotive
industry hard. Several UK based manufacturers have
had to either reduce hours or staff numbers. For
example, despite being the most efcient car plant in
Europe, Nissan UK has shed 1,200 jobs at its factory
in the North East, Honda is halting production at
its Swindon plant for four months and Bentley will
close its Crewe plant for seven weeks from March
4
.
This has, in turn, impacted on the supply chain.
GKN, which designs and manufactures driveline
components, has cut several hundred jobs in the UK
as demand has dropped
5
.
In previous recessions, notably the 1970s, the
automotive industry has gone through periods of
transformation. With nearly every major automotive
manufacturer committed to them, are electric vehicles
the opportunity for UK industry to redene itself and
take a leading role globally in the decades ahead?
CURRENT POLICY
The European Union has recognised the need to
reduce the impact cars have on our environment. In
December 2008, the European Parliament adopted
the Commissions proposals to limit eet average
new car CO
2
levels to 130g/km by 2015 and to 95g/
km by 2020. Currently, average CO
2
emissions from
new passenger cars in the EU are 160g/km
6
. This
is encouraging but there is every indication that
conventionally powered vehicles will be capable
of operating within these limits. The case for EVs
remains strong though; not only will they emit less
CO
2
than conventional alternatives but they will
reduce our dependence on fossil fuels.
In October 2008, the Transport Secretary pledged
80m to support industry research, development
and demonstration into electric and low carbon cars
delivered through the Technology Strategy Boards
Low Carbon Vehicles Innovation Platform. However,
much of this funding had already been allocated
with little available for EV research. For example,
benefactors from this substantial investment,
including Jaguar with LimoGreen, BAE Systems
with Hybrid Electric Technology for Transit Buses
and Ricardo with their two to four-stroke switching
technology for existing internal combustion engines
7
.
Alongside the recent decision to allow for the further
expansion of Heathrow, the Government recently
announced the provision of further funds (250
million) to get more low carbon vehicles on the road
8
,
although is yet unclear how this funding is to be
allocated. If Government is determined to make full
use of EVs in the UK, more needs to be done and
much of this new funding should go into researching
ways of improving their range.
The UK Government has been reluctant to bail out
struggling automotive manufacturers. Jaguar Land
Rovers owner Tata Motors was in discussion with
the Government in late 2008 to secure a 1 billion
rescue package to alleviate concerns stemming from
the economic crisis. In the event the Government has
subsequently ensured loan guarantees to the sector
to allow access to capital for viable businesses
9
.
It appears, however, that none of these loan
guarantees are tied to restructuring for future low
carbon opportunities.
MARKET POTENTIAL
Currently the vehicles on the UKs roads produce
around 110 million tonnes of CO
2
annually. Clearly
if all of these were to be replaced by EVs, tail-pipe
CO
2
emissions would be reduced to zero and the
actual carbon impact of travel would be shifted to
the source of energy. Currently, the carbon intensity
of the UKs National Grid is poor at around 550gCO
2
/
KWh
10
. Until this gure reduces, the actual benet
of EVs is not as startling as is sometimes claimed.
Despite this, over a life-cycle current EVs are around
40% less carbon intensive than major alternatives
11
.
This gure will only improve as the UK moves
towards a less carbon intensive energy supply.
Indeed, the Government estimates this gure will be
closer to 55% by 2020.
Any transition to EVs is likely to yield signicant
results if focused on passenger cars and vans.
However, the Government high range forecasts
estimate that only 8% of vehicles on UK roads will be
electric by 2020. Their mid range scenario predicts
just 2.5% market saturation by the same date
12
.
Given the substantial carbon benet of EVs, are
we underestimating the need for radical policies to
encourage more onto our roads?
THE GOVERNMENT
PREDICTS THAT ONLY
2.5% OF CARS ON OUR
ROADS WILL BE ELECTRIC
BY 2020. GIVEN THEIR
POTENTIAL CARBON
BENEFIT, IS THIS ENOUGH?
BARRIERS TO ENTRY
Range. Battery technology is still not mature enough
to give EVs a range comparable to conventional cars.
Most EVs run on a single battery pack and have a
range of about 250 kilometres (160 miles). However,
over 90% of two-way journeys in the UK fall within
this range
13
and Government statistics show that
only 1% of car journeys are over 100 miles. Despite
this the development of a charging infrastructure
will help to alleviate public concerns.
Cost. EVs are getting cheaper but they are
still around 12% more expensive than existing
alternatives, due in large part to the cost of
batteries. As with most new environmentally-
friendly technologies, the upfront capital costs are
greater but consumers are not always aware of the
full life-cycle savings of EVs and the reduced cost of
charging as opposed to refuelling.
Charging Infrastructure. There are already
tried and tested examples of plug in charging
infrastructures but such systems require signicant
investment. Such systems will need to be in
operation before a large uptake is likely. Battery
charging times can also be quite lengthy with 5 to
6 hours needed for a full recharge. Whilst this may
be acceptable for most consumers there could be
capacity implications if everyone charged overnight.
An alternative is to have a network of battery
changing stations. Standardising batteries and
connections would not be difcult and re-charging
could be co-ordinated with energy companies. There
is also the potential for the charging stations, with
their banks of charged batteries, to act as suppliers
to the National Grid when demand is high.
Batteries. Concerns have also been expressed about
the batteries themselves. Firstly, they are heavy
(circa 300kg). Secondly, proponents of EVs suggest
batteries based on existing technology should
exceed the average lifespan of the cars they power.
Batteries should be capable of about 7,000 charges
which, assuming each charge will sustain 100
miles, would deliver more than half a million miles
14
.
Thirdly, the batteries most likely to be used in the
majority of EVs will be based on lithium although
research on the suitability of other materials is
ongoing. Existing sources of lithium are nite, and
some predict that they may run out within the next
decade or two
15
, and there is also insufcient battery
manufacturing capacity worldwide
16
. New sources of
lithium or alternative technology and manufacturing
capacity will need to be found if EVs are to full
their market potential.
GLOBAL LEADERS
Despite the Governments desire to make Britain
the electric car capital of Europe, we are far from
global pioneers in the eld. Other Governments
and authorities have been quick to see the
potential of EVs, including:
Israel was the rst country to radically pursue
EVs. With its aim of becoming independent of oil
by 2020, the Israeli Government signed contracts
to deliver a recharge grid, consisting of both
recharging points and battery swap stations, by
2010, with further deployment of Renault-Nissan
manufactured electric cars in 2011. The Israeli
Government has also agreed to give tax breaks to
electric car buyers to encourage early adopters;
currently cars are subject to 72% tax in Israel,
whereas EVs will be subject to just 10%. As a
result, 19 Israeli companies are already committed
to implement EV eets
17
.
Denmark, which already has more than 10,000
EVs on its roads
18
, has also pledged to deliver an
electric car network by 2011. The network will
include 20,000 recharging points, 150 battery
swap stations and will be powered, largely, by
wind power. Such a system will allow Denmark
to better capture and make use of its wind energy
resources; about 20% of Denmarks electricity is
supplied by wind but much of this is lost as the
availability of supplies does not always dovetail
with peaks in energy demand electric vehicles
will effectively act as storage units for the
excess energy. Further, the Danish Government
are to offer tax beaks on EVs. The vehicles,
manufactured by Renault-Nissan, could cost up to
50% less than the average small car, particularly
as existing vehicles are subject to very high taxes.
Portugal. The Portuguese Government is
overseeing the introduction of EVs in the country
from 2011, with a network of 1,300 charging points
with fast charging points in major conurbations
like Lisbon and Porto. EVs, again produced by
Renault-Nissan, will be marketed at a similar price
to conventional alternatives. With high fuel costs,
EVs are therefore likely to be attractive. Further,
this new venture is likely to secure inward
investment and jobs. Nissan has recently signed a
letter of intent with the Portuguese Government
to build a battery manufacturing plant that will
create 300 jobs, with the two parties intending to
invest C300 million and C400 million respectively
19
.
Paris has decided to build on its successful Velib
bike hire scheme with a similar electric car hire
version. The scheme would include 700 pick-up
points around the city with around 2,000 to 4,000
cars available. Payment mode and tariffs have
not yet been set. Londons mayor, Boris Johnson,
has reportedly shown interest in the possibility of
adopting a similar scheme in London. The mayor
also recently set up the London Electric Vehicle
Partnership, which is designed to accelerate
introduction of low carbon vehicles in the capital.
Institution of
Mechanical Engineers
1 Birdcage Walk
Westminster
London
SW1H 9JJ
T 020 7304 6862
F 020 7222 8553
publicaffairs
@
imeche.org
www.imeche.org/policy
HOW CAN BRITAIN BECOME THE
ELECTRIC CAR CAPITAL OF EUROPE?
Whilst the Government rhetoric seems to be pro-
EVs, the reality is that we are behind some of our
European colleagues. Denmark, Portugal and Paris
are all pursuing ambitious plans to implement EV
networks on a grand scale. These networks are
likely to be delivered in as little as two years with
further up-take to be encouraged using various
scal incentives. In turn, this has added economic
benets. The Danes will be able to use their wind
energy resources much more effectively and, despite
global conditions, the Portuguese are already
beneting from foreign direct investment from
Japanese rms. If the UK Government doesnt take
action now, the likelihood of achieving its stated
emissions targets as well as stabilising a stricken
automotive sector and preparing it for an innovative,
competitive future is slim.
The Government has pumped signicant, and
welcome, funds into research, development and
demonstration of low carbon vehicles, but they
neither have committed to building an EV network
of any size nor signalled their intention to do so
in the near future. Time is running out not only
because our carbon emissions are still increasing
but also because our national competitors are
getting ahead and our automotive industry is
struggling. We must act now.
So how does IMechE suggest the UK capitalise on
the considerable potential of EVs?
Remove the Barriers to Entry. EVs have limited
ranges, which despite the fact that only 1% of
car journeys are over 100 miles, is seen as a
disadvantage. Denmark is solving this problem
by developing a network of battery swapping
stations that effectively extend vehicle range. This
will require signicant public sector investment
and the removal of planning barriers to facilitate
widespread adoption of EVs.
No bail out without EV research. Any
funds used to bail out UK based automotive
companies should be specically linked to EV
research commitments.
Incentives, incentives. The marginal social cost
of pollution and CO
2
has not yet been effectively
internalised by the market. By reducing the cost
of more favourable technologies, Government can
encourage use of less polluting transport choices.
Denmark, Portugal and Israel are all planning
signicant tax breaks for business users and
consumers. Electric vehicles tend to be cheap to
run but the upfront capital costs tend to be high.
In short, Government has a role to play in making
EVs nancially attractive.
Ensure Low Carbon Standards in Government
Procurement. The public sector is a huge user
of vehicles. Introducing standards favouring EVs
where appropriate will not only reduce carbon
emissions but also set an example for consumers
and businesses. If EVs are to become the norm
then public perception must change. Government
must lead the way and use EVs as much as
possible and set low emissions limits for the
remainder of their eet.
REFERENCES
1
BERR & DfT (2008). Investigation into the scope of the
Transport Sector to Switch to Electric Vehicles.
2
www.thisismoney.co.uk/news/article.
html?in_article_id=421263&in_page_id=2
3
SMMT (2008). Motor Industry Facts 2008.
4
www.news.bbc.co.uk/1/hi/business/7901092.stm
5
www.gknplc.com/news/NewsItem.asp?La
stPage=NewsHome&NewsID=373
6
http://ec.europa.eu/environment/air/
transport/co2/co2_home.htm
7
Technology Strategy Board, Low Carbon Vehicles
Innovation Platform. http://www.innovateuk.
org/_assets/pdf/competition-documents/
lowcarbonvehicles_innovation%20platform.pdf
8
http://nds.coi.gov.uk/environment/fullDetail.asp?ReleaseID=
389762&NewsAreaID=2&NavigatedFromDepartment=False
9
http://nds.coi.gov.uk/environment/fullDetail.asp?ReleaseID
=391023&NewsAreaID=2&NavigatedFromDepartment=True
10
DEFRA carbon emissions reporting guidelines
electricity conversion factors.
11
BERR & Dft (2008). Investigation into the scope of the
Transport Sector to Switch to Electric Vehicles.
12
Ibid.
13
Ibid.
14
www.iht.com/articles/2008/01/21/business/cars.php
15
www.news.bbc.co.uk/1/hi/business/7707847.stm
16
BERR & DfT (2008). Investigation into the scope of the
Transport Sector to Switch to Electric Vehicles.
17
www.globes.co.il/serveen/globes/DocView.
asp?did=1000428168&d=1725
18
International Energy Agency (2007). Implementing
Agreement on Hybrid and Electric Vehicles.
19
http://uk.reuters.com/article/oilRpt/idUKL221820020090302