The long-awaited Subsidies program for new energy vehicles has been rolled out finally. Under the subsidy policy, different types of new energy vehicles can get a subsidy from 3,000 Yuan to 60,000 Yuan, among which the electric cars are the most favored for each can get the highest 60,000 Yuan. While to some extent it is due to the high technical costs of electric vehicles for reasons, it also reflects the pure electric vehicles have gained strong support and much attention of the state. Through high subsidies, it seems on the surface the pure electric vehicles can get rapid development and large-scale promotion. However, development and promotion of pure electric vehicles can not dependent on subsidies only. It is also very important for the building of supporting infrastructure (charging station, charging pile, battery leasing plant, etc.) to keep pace. As Art of War terms go, to transport forage first before troops and horses. Soldiers in combat need adequate supplies of ammunition, which is an important guarantee for victory of the war. Only when the supporting infrastructure is developed fully, the use of electric vehicles can be improved in a wide range.
The construction of supporting facilities is very important to the development of pure electric vehicles. Therefore, many domestic enterprises who have already seen the enormous potential benefits are rushing into this industry. Among them, the power and oil companies have put into the most efforts. National Grid now has already built electric car charging stations pilot in Shanghai, Tianjin and Xi’an. According to its plan, 75 electric car charging stations and6209 charging piles as well as some electric car battery replacement stations will be built this year in 27 provinces (regions). Till 2015 electric car charging stations will be totaled 4000 and 10,000 in 2020. the first batch of Electric Vehicle Charging Station (pile) produced in Shenzhen by China Southern Power Grid have already been put into operation. The scale of the initial construction includes two power stations and 134 charging piles, with a total charging capacity of 2480 kVA. In particular, the Universiade charging center built especially for the new energy vehicles to serve the Universiade is the largest stand nationally. The China Southern Power Grid plans to build250 charging stations and 12,500 charging piles in Shenzhen by 2015. As to oil enterprises, August 2009, CNOOC and China Putian Information Industry Co., Ltd. jointly funded the establishment of new power plants Putian CNOOC Limited (CNOOC Putian) to speed up the pace of the construction and operations of new energy vehicle charging stations. Currently, CNOOC also is considering building electric car battery replacement stations and will probably build networks in the whole country. And then Sinopec signed an agreement with Beijing municipal government, to co-promote the infrastructure construction of electric vehicle charging stations. Sinopec plans to add charging services to its larger fuel stations and gas stations as well as to increase these integrated charging stations, gradually expanding them to Beijing, and the Hebei, Tianjin and even larger areas to improve the radius of their actions as well as speed up the promotion.
Major companies’ ambitions about the subsidies and the construction of facilities can be easily caught through the above scale and the amount. However, all these are not enough; to improve technologies is also very significant. First, there is no uniform standard for charging equipment and specifications for use, which will inevitably affect the development of entire industry. Second, the charging and discharge time of the batteries is too long. It needs only ten minutes to charge 80% of battery SOC in Japan while the shortest time is half an hour in China. Third, the auto enterprises should focus on cooperation and technical exchanges rather than life-or-death struggles, which definitely will waste resources and energies in stead of achieving rational and effective allocation.
Subsidies for new energy vehicles and the construction of supporting infrastructure, will greatly promote the development of electric vehicles in China. Let us just wait and see.
(Translator: Yalong/Jessie)
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