By leveraging its unique geographic advantages, fostering collaboration between government, industry, and civil society, and embracing technological innovation, Nepal can chart a course towards a cleaner, greener and prosperous future.
As the global automotive industry continues to evolve, it is becoming necessary to address environmental concerns and transition towards sustainable transportation solutions. While both electric vehicles (EVs) and internal combustion engine (ICE) vehicles have their advantages and challenges, proactive measures and technological advancements can pave the way for a greener and cleaner future on our roads. It is, therefore, imperative for policymakers, industry stakeholders and consumers to collaborate in driving this transformation towards a more sustainable and environmentally friendly transportation landscape.
The choice between EVs and ICE vehicles ultimately rests on factors such as energy source, infrastructure, and individual preferences. However, with concerted efforts and innovative solutions, we can navigate towards a more sustainable and cleaner transportation future for generations to come. In the ongoing discourse surrounding the choice between EVs and ICE vehicles, there is a lot of confusion going on in social media as well as among consumers. EV, being a new technology, has caught all the stakeholders including government agencies, importers, mechanics, consumers and the media off guard. Let's delve into pros and cons and the ongoing discussion on EV vs ICE to come to a conclusion on which is better for Nepal.
From an environmental perspective, in developed countries, critics may point out that the source of electricity for charging EVs often comes from coal or oil, which raises questions about the overall environmental impact. However, in countries like Nepal, where hydroelectricity is the primary source of power, EVs offer a 100% green energy solution, reducing carbon emissions significantly. Due to construction of hydropower dams, the production and movement of construction materials to the site does have some carbon footprint. But it is negligible compared to the long-term benefit of establishing a renewable energy base which many future generations will benefit from. Transitioning from ICE vehicles to EVs in regions with clean energy sources, such as hydroelectricity in Nepal, can substantially reduce carbon emissions and promote environmental sustainability. EVs produce no greenhouse gas emissions during operation, making them a cleaner alternative to ICE vehicles. Transitioning to EVs can significantly reduce noise pollution, a major cause of stress-related diseases and hearing impairment, contributing to overall public health improvement. Moreover, EVs facilitation aligns with Nepal's obligation to provide clean air to citizens, enhancing its environmentally responsible image globally.
In the context of Nepal, commercial vehicles running on diesel generate 90% of toxic harmful pollutants in the context of Nepal. If we consider the narrow streets of Nepal which lack natural ventilation, these diesel engines need to be banned at the earliest. Other factors make diesel the worst source of fuel. To start with, Nepal receives low-quality diesel with high levels of sulphur to keep costs low which exacerbates air pollution. Second, there is a higher chance of adulteration in diesel and it is difficult to ascertain if the diesel is adulterated. Likewise, the use of grey parts in diesel engines and a lack of timely repair and servicing are the other causes behind the thick black fumes emitted from diesel-powered trucks and buses.
However, it is not possible to replace all diesel-powered vehicles as there does not seem to be any alternative to diesel in the long-haul trucking industry. Due to the bulk weight of Lithium Ion batteries and fast consumption of energy by trucks, they will have very limited range and long battery charging times. A hydrogen fuel cell-powered engine which is currently in the evolving and testing stage seems to be the only long-term solution. Nepal can at least use fuel that can be domestically produced i.e. biodiesel which will be much cleaner and cheaper.
The same goes for petrol engines. Though they are less polluting compared to diesel, nothing has been done to curb its pollution. India has started to mix 20% of domestically produced ethanol that is derived from plant sources like sugarcane in petrol which will result in much cleaner emissions. A lot of studies have already been done in this sector in the last 20 years and Nepal’s sugar industry can easily produce and supply ethanol to Nepal Oil corporation (NOC). But for some unknown reason, NOC is not taking any initiative in this regard.
Since the government has decided to implement the Euro VI emission norms for the coming fiscal year, which begins in mid-July, there is confusion among ICE vehicle importers and responsible government officials in Nepal that petrol imported from Indian Oil Corporation (IOC) is of the same quality distributed to Indian consumers. Petrol being distributed in Nepal does not have ethanol. Likewise, advanced Euro VI engines require Octane 95 grade of petrol, which is easily available in almost all the petrol in India. But Nepal does not import Octane 95 grade of petrol. It is unfortunate that the government is keen on implementing Euro VI norms without focusing on promoting biodiesel, ethanol, and higher-grade fuel.
From the government's perspective, navigating the transition from ICE to EV has presented unforeseen challenges. The government advocated for the adoption of clean energy vehicles and incorporated this into its policies. However, it now faces a dilemma due to the slow collection of taxes at customs points following the substitution of ICE vehicles with EVs. The situation is further complicated by the fact that the rescue policy designed by the International Monetary Fund (IMF) for Sri Lanka and Pakistan has been enforced in Nepal which has resulted in a prolonged recession and business closures. Consequently, the government is poised to make the unpopular decision of increasing taxes on passenger EVs to generate the revenue necessary for running the country.
Exploring challenges, opportunities, and strategies for clean, green, and sustainable mobility in advance with alternative sources of taxes for revenue collection and infrastructure development is too much to ask for from our bureaucracy given the frequent changes in political leadership and the lack of training for government employees in this sector.
Another concern for policymakers is the decreased import of petroleum products over the last two years, which may indicate a shift away from petrol and diesel and pose a challenge for the government in revenue collection. However, it is important to note that the present recession is to blame, as EVs currently account for only 0.3% of the total vehicle population in Nepal.
While challenges such as initial cost, infrastructure development, and workforce readiness persist, the advantages of EVs - ranging from reduced environmental impact to enhanced economic viability - offer a compelling case for embracing electric mobility.
Energy Security and Infrastructure
Load Management for NEA: The surge in EV adoption could strain the weak infrastructure of the Nepal Electricity Authority (NEA). However, leveraging EV batteries fitted in private vehicle as energy storage systems presents an opportunity to stabilise voltage and manage peak loads. This reduces the requirement for planned pumped water reservoir systems or mass battery storage systems. The technology for sharing excess electricity during off-peak times and extracting it during peak demand using batteries as alternative energy storage is already available in developed countries. NEA just needs to develop an ecosystem for it.
Energy Independence: EV adoption reduces dependence on fuel imports thereby mitigating the risks associated with reliance on a single supplier. Given Nepal's history of fuel supply crises, this independence is crucial for national resilience and stability.
Charging Infrastructure: The lack of charging infrastructure is a significant barrier. However, the rapid growth of charging stations, both from private sector and governmental initiatives, coupled with advancements in EV range, alleviates range anxiety and promotes EV adoption. It is unfortunate that nobody at the policymaking level decided to go for a single charger system in Nepal for small EVs and bigger commercial EVs. Private vehicles are imported with CCS2 chargers, while commercial vehicles have GBT chargers. Because of this, private vehicle users have to wait for hours of waiting time on highways while the GBT charger next to them is lying idle.
Workforce Development and Charging Infrastructure
Human Resource Development: The scarcity of technical expertise for EV maintenance in the present pool of mechanics presents a challenge in Nepal. However, investing in training programs can address future needs and stimulate job creation in the ever-expanding EV industry. Importers of EVs and government bodies both need to invest in training and upgrading to produce a strong workforce for the EV industry.
The shifting landscape for service technicians, parts suppliers, financial viability, and technological advancements is another matter of concern. Questions are being raised on the future of mechanics who have skills in fixing ICE vehicles only. The traditional service sector faces the prospect of disruption as EV technology replaces conventional engines. However, this shift presents an opportunity for technicians to upgrade their skills and adapt to the evolving landscape. By embracing new technology, service providers can position themselves as experts in the emerging EV ecosystem, ensuring a faster readiness of the industry to cater to the growing demand for maintenance and repair services.
Parts Importers and Suppliers: Parts suppliers also need to dive deep in parts requirement as EVs require much fewer parts compared to ICE vehicles. Entrepreneurs importing parts may initially face diminished revenue from the displacement of components like engines and gearboxes. However, the demand for electric drivetrain components and batteries presents a new market opportunity. Parts suppliers can diversify their offerings to cater to the evolving needs of the EV market.
Commercial Vehicle Fleet Operators: With lower maintenance costs and reduced downtime, entrepreneurs can allocate resources more effectively, ensuring timely repayment of bank loans and fostering stronger relationships with financiers. This improved financial standing enhances the attractiveness of EV investments and accelerates the rate of return on investment. Moreover, the integration of technology in EVs enables owners to exercise greater control over operational expenses by numerous means such as combatting cheating by staffers, real-time monitoring of vehicle movement, and controlling unnecessary maintenance that is frequent in ICE vehicles. This enhanced oversight translates into increased profitability and operational efficiency for the fleet operators.
EVs for Private Car Users
For those coming from ICE vehicles, the transition to EVs represents a paradigm shift in the driving experience. Given below are the unique viewpoints of drivers navigating the switch from traditional internal combustion vehicles to electric mobility, focusing on adaptation concerns, safety considerations, and cost implications:
Transition from Manual Gearbox: New drivers accustomed to manual gearboxes may initially find the transition to EVs awkward. However, the instant pickup and seamless operation of EVs, devoid of clutch involvement, offer a stress-free driving experience. This ease of operation translates to less fatigue during extended driving hours which enhances overall driver comfort and productivity.
Safety and Comfort Features: EVs are equipped with advanced safety features such as Anti-lock Braking System (ABS) and Anti-lock Braking Distribution (ABD), ensuring enhanced safety on the road. Additionally, comfort features like air conditioning, cameras, and video recording further enhance the driving experience, providing drivers with a sense of security and convenience.
Busting the Myths
Battery Replacement Cost: One of the primary concerns for EV owners is the high cost of battery replacement, which may offset savings from reduced fossil fuel consumption. However, the decreasing trend in battery costs, coupled with innovations such as the ability to replace individual cells, mitigates this concern. Unlike the engines of traditional ICE vehicles, EV batteries do not become unusable after reaching the end of their battery warranty life, which is generally defined as 70% of the vehicle battery. This means it can be still used for commuting on intercity routes/roads with decreased range.
Long-term Savings and Sustainability: While the initial investment in EVs may be huge, the long-term benefits outweigh the costs. With decreasing battery costs and minimal maintenance requirements, EVs offer owners significant savings over time. Moreover, the sustainability aspect of EVs aligns with the environmental consciousness of drivers, providing a sense of satisfaction in contributing to a cleaner, greener future.
EVs from Nepal's Geographic Perspective
There is a misconception among the general public that EVS are underpowered and are not suitable for Nepali windy uphill roads. Let’s delve into Nepal's geographic perspective on EV adoption, highlighting the suitability of EVs for uphill and downhill driving, addressing cost concerns, and recognising the inevitability of transitioning to electric mobility in the global automotive landscape.
Navigating Nepal's Terrain: Nepal's mountainous landscape poses challenges for conventional vehicles, but EVs offer a distinct advantage. With minimal loss of power during downhill drives, EVs capitalise on regenerative braking, replenishing the battery, and maximising energy efficiency. This inherent feature of having the highest torque at starting, unlike ICE which needs a higher RPM in the engine, makes EVs well-suited for Nepal's elevations with powerful pickup. This ensures the economical use of resources and enhanced performance on uphill routes where additional power is needed.
Economic Viability: Despite initial cost considerations, EV adoption in Nepal is an inevitable process driven by global automotive trends. As major manufacturers commit to transitioning to electric mobility within the next decade, the availability of traditional internal combustion engines (ICEs) for small commercial vehicles becomes uncertain. Insisting on ICE vehicles in the face of this inevitability risks limiting future supply options and may prove economically unsustainable in the long run. Though slightly expensive during upfront purchase, EVs especially in commercial use, offset the extra cost difference with ICE via saving in fuel in the first year of operation itself.
Conclusion and Recommendations
While challenges such as charging infrastructure and initial investment costs remain, Nepal's geographic perspective supports the urgency of building a robust EV ecosystem. Strategic investments in charging stations along key routes, coupled with incentives for EV adoption, are essential for facilitating widespread acceptance and utilisation of electric mobility solutions across the country. The transition to EVs represents not just a technological shift. It is a paradigmatic transformation towards sustainable mobility. From the hills of Kathmandu to the plains of Terai, the advantages of EVs in navigating Nepal's diverse terrain are clear. By embracing electric mobility, Nepal can unlock new opportunities for economic growth, environmental stewardship, and resilience in the face of global automotive trends. As the world moves towards an electric future, Nepal is well-positioned to lead the charge towards a cleaner, greener tomorrow.
The discourse surrounding EVs in Nepal encompasses a multifaceted dialogue, addressing geographical, economic, and environmental considerations. As the country grapples with its unique topography and navigates the transition towards sustainable mobility, key insights emerge to inform the next course of action. From the perspective of drivers, entrepreneurs, and the government, the potential benefits of EV adoption are undeniable. While challenges such as initial cost, infrastructure development, and workforce readiness persist, the advantages of EVs - ranging from reduced environmental impact to enhanced economic viability - offer a compelling case for embracing electric mobility. Nepal's geographic perspective further underscores the suitability of EVs for navigating its diverse terrain, with features like regenerative braking making uphill and downhill driving more efficient. Moreover, the inevitability of the global shift towards electric mobility necessitates proactive measures to ensure Nepal remains aligned with international trends and positioned for long-term sustainability. In light of these insights, the ideal recommendation for Nepal is a comprehensive approach that addresses the following key areas:
Infrastructure Development: Accelerating investments in charging infrastructure and grid modernisation can support widespread EV adoption across urban and rural areas. Likewise, public-private partnerships can play a crucial role in expanding charging networks and fostering innovation in energy management technologies.
Policy Support: Implementing supportive policies and incentives to encourage EV uptake, including tax breaks, subsidies for EV purchases, and regulatory measures will be crucial to promote sustainable transportation practices. Likewise, aligning with global initiatives and standards will enhance Nepal's credibility and attractiveness to international investors and manufacturers.
Workforce Development: Investing in training programs and skill development initiatives to equip technicians, entrepreneurs, and government personnel with the expertise is a must to support the growing EV ecosystem. Collaboration with educational institutions and industry stakeholders can ensure a steady supply of skilled professionals capable of driving innovation in the sector.
Public Awareness: Launching targeted awareness campaigns to educate consumers, businesses, and policymakers about the benefits is crucial to dispel misconceptions about EVs. Highlighting the economic, environmental, and social advantages of electric mobility will foster greater acceptance and adoption within Nepali society.
By embracing these recommendations and adopting a proactive stance towards electric mobility, Nepal can position itself as a regional leader in sustainable transportation. By leveraging its unique geographic advantages, fostering collaboration between government, industry, and civil society, and embracing technological innovation, Nepal can chart a course towards a cleaner, greener, and more prosperous future for all.
(Bijukchhe has 24 years of experience in import and distribution of vehicles in Nepal.)
