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Aside from a few Chinese electric scooters
in Addis Abeba and Hawassa and a couple of
electric club-cars at the Sheraton and
Millennium Hall, electric cars remain out of
the picture as a transportation option to
Ethiopians. Many people may remember the
green electric trolley busses on display in
Meskel Square almost two years ago or the
little electric cars in Dire Dawa on ETV
over a year ago. But nothing has been seen
of either of these in public since.
This situation may not last long as it has
become harder and harder to name a major
automaker that is not at least developing a
prototype battery electric vehicle with
plans for sales in the next one to three
years. There is even a six-seat hatchback
being developed in South Africa by Optimal
Energy with delivery to prepaid customers
planned for 2012.
But how many of these plans are actually to
bare fruit is another question. Electric
vehicles have been promised by many leading
automakers since the Arab Oil Embargo of the
1970s, yet most highway capable electric
vehicles in operation today, according to
the Electric Auto Association, have been
converted by small third party organizations
using the chassis of an internal combustion
engine vehicle. Even these vehicle
conversions have not been made available to
African states and are as yet unheard of in
Ethiopia as they are mostly limited to
western countries as seen on evalbum.com.
There is an interesting albeit sad story of
one particular electric vehicle that found
its way to Addis and is even now in use. It
was one of about only 2,000 electric
vehicles manufactured by General Motors (GM)
during the 1990s for the California Zero
Emissions Vehicle Mandate. This California
law required all major automakers in the
state to sell an increasing percentage of
vehicles that released no pollution. The
reason for the law was the rising asthma,
emphysema, and cancer rates caused by
pollution from automobiles. Soon, other
states began adopting the California law.
At the same time GM, Toyota, Ford, Chrysler,
Nissan and Honda produced these battery
electric vehicles in limited numbers, they
fought the legislation. When they eventually
won, they all secretly started recalling the
vehicles, which were mostly leased, and
crushed them as documented in the film "Who
Killed the Electric Vehicle." GM even sold
its battery technology to ChevronTexaco, a
large oil company in the United States. They
promptly shut down production and sued
Panasonic for copyright infringement over
the similar batteries they were making for
Ford and Toyota.
Why did the major automakers take such
drastic action against the electric vehicle?
Because the electric vehicle required a very
different business model than that of the
internal combustion engine vehicle, and they
did not want to be forced to change,
according to former GM employee Chelsea
Sexton.
GM's EV1 could go over 240km per day or much
farther if charged during mealtimes or other
breaks and all for a very negligible cost of
electricity. It could go about 130km per
hour and looked like a normal sporty car.
So, why did it require a business model so
different, that the major automakers chose
to crush it?
The difference was that it required
virtually no maintenance, a big part of any
automaker's profits. Also, instead of paying
for expensive fuel every month, customers
would have to pay for expensive batteries
every few years or every decade depending on
the kind of batteries they purchased.
Alternatively, the batteries could be leased
on a monthly basis, but that would require
the automaker's cooperation.
GM refused to adapt to a changing market, as
many large corporations do, and even tried
to pretend that they had never made the EV1.
However, Toyota managed to combine the two
business models by producing the Prius
hybrid starting in the late 1990s and
subsequently overtook GM as the largest
automaker in the world with their new
'green' image.
If hypothetically, this brand of electric
vehicles was put to use in Addis Abeba, what
sort of changes can be expected of take
place for life in the city? Would the city's
transportation dilemma be alleviated or
would this innovation bring more
complications than relief? As people
complain of congestion, noise pollution and
the smog of unchecked the motor vehicles,
would a lithe little car that runs on
nothing but electricity be the answer to the
city's rampant traffic impasse.
As Prius was immensely popular. It was
popular because it used less fuel, it
produced less pollution, it emitted less
greenhouse gasses, and it was the new
high-tech gadget.
Then thethe reality of global warming
started to hit home with events such as
hurricane Katrina, the price of oil soared
to ridiculous levels past 140 dollars per
barrel, and the financial crises rocked the
world, the automotive industry suddenly
realized that all the things that made the
Prius popular would make electric vehicles
even more popular.
Countries around the world started offering
generous incentives to those who would
produce or purchase electric vehicles. Then
GM admitted that crushing its electric
vehicle programme was its biggest mistake as
it faced its looming bankruptcy. Newly
inaugurated United States President Barack
Obama offered 12.5 billion dollars in
stimulus money to promote electric vehicles,
and the race was on.
China stands as the country with the most to
gain from electric vehicle technology. It
has the world's largest hydropower
resources, limited oil deposits, huge
industrial capacity, and the largest
emerging middle class looking to buy new
cars. Also, with the price of oil, it makes
more sense for other countries to pay China
one time for a car that uses domestic energy
from their home countries instead of buying
a car that requires paying for foreign oil
every month.
India is also in basically the same boat as
China regarding the above characteristics
and situations. Even for countries that
produce all their electricity from dirty,
expensive coal, the electric vehicle is
still cleaner and cheaper than the internal
combustion engine vehicle in the long run,
according to Sherry Boschert, author of the
book 'Plug-In Hybrids.'
Where blackouts are common, electric
vehicles can act as a mobile power backup
source. Like mobile phones, electric
vehicles are conveniently charged at night
when electricity is often wasted anyway due
to lack of demand and the fact that power
plants cannot be turned on and off everyday.
It seems like the brains behind this idea,
knew exactly what the local entrepreneur
faces here. While blackouts are nearly
unheard of in the US, the citizenry of
Ethiopia is well acquainted with the
inconveniences and downright emergencies
that a power outage can affect. Had this
technology been available to the business
men and women, imagine the loss suffered by
the retailers not to mention middlemen
peddling new and second-hand generators.
These generators, which are after all
batteries, run on diesel producing the much
hated fumes and costing a fortune in the
process.
Rarely are batteries completely depleted by
daily commutes in an electric vehicle
leaving the remainder available for powering
a home or small business. They can even be
driven from one area that has light to
another area without light to provide power
there.
Whether or not electric vehicles are adopted
quickly in developing countries, they will
surely provide huge benefits here due to
their positive effect on mitigating global
warming.
If some kind of carbon trading scheme is
adopted in the international community,
heavy polluters such as the United States
and China may be required to give aid to
countries developing sustainable economies.
Ethiopia only needs to add electric vehicles
to its portfolio of green technologies which
already includes geothermal, wind and solar
electricity production.
Many countries provide incentives to those
purchasing electric vehicles. The United
States offers thousands of dollars as an
income tax credit depending on the cost of
the vehicle. Singapore has a 40pc rebate on
the open market value of each electric
vehicle purchased. In India, several states
have exempted electric vehicles from sales
tax. The central government of India gives
an additional 75,000 rupees to any
government agency buying electric vehicles.
This intelligence was according to REVA,
currently largest producer of electric
vehicles in the world, which is based in
Bangalore, India.
Ethiopia, currently, has no incentives in
place for electric vehicles. Surprisingly,
vehicles with an electric motor have already
been assigned tax rates by the Customs
Authority. They are taxed the same as a car
with a small internal combustion engine.
After adding the various rates the total tax
amounts to more than 100pc. Instead of being
on par with liquid fuel vehicles, electric
vehicles should be taxed at zero per cent.
Each electric vehicle increases productivity
without sacrificing foreign exchange for a
fuel that pollutes the air, damages health,
and creates wear requiring the regular
replacement of parts. This should at least
be done in the beginning to encourage the
early adoption of a transportation system
which the public is not currently accustomed
to.
Finally, the government should carryout cost
comparison studies specific to its own
vehicle fleets. Some fleet vehicles
regularly travel short distances, which
require much smaller battery packs,
significantly reducing their initial cost.
Even the old EEPCo trucks you see driving
around, for example, could be converted to
electric at a fraction of the cost of buying
a new vehicle, which the government has
tried to limit due to budget constraints.
No matter what is done in the mean time, the
government may be forced to use electric
vehicles in the near future. As Prime
Minister Meles Zenawi has stated, oil prices
are unlikely to come down - due to
speculation based on their finite sources.
It would be tragic for the Ethiopian economy
to be punished like it was when prices went
up past 140 dollars per barrel, especially
now that there are abundant electricity
sources coming online this year that could
be used to power electric vehicles. |