So far, the LTA has deployed 60 electric buses and has plans to replace 400 of its diesel buses with EVs by 2025.
Raising adoption rates
To reach its targets though, the government clearly has to ramp up its efforts. Local rates of EV adoption lag many other comparable cities, comprising just 1.2 per cent of all vehicles on the road as of the end of May 2023. For comparison, in Hong Kong the number is 6.3 per cent.
The good news is that sales of new EVs are increasing and made up almost 12 per cent of all car sales in Singapore in 2022, up from almost four per cent in 2021, LTA data shows.
Still, there are multiple reasons for the lag, with the most important one for consumers being cost.
“EVs are still not cheap due to the high cost of EV batteries, which although on a declining trend, have increased in the last year due to geopolitical and supply chain issues,” said Dean Cher, SP Group’s head of mobility.
More affordable EV models for the mass market – costing around S$150,000 (US$113,000) in today’s market – are needed to drive adoption among the wider population, he said.
Charging into the future
Getting enough charging points built is another factor behind the slow adoption.
“The consumer needs to be assured that charging points are around when they need them,” said Cher.
The LTA plans to have 60,000 EV charging points by 2030, with the private sector expected to play a key role in the buildout.
“The Singapore government recognises the importance of supporting the private sector to invest in EV charging infrastructure,” said Goh Chee Kiong, CEO of Charge+, an EV-charging company.
Charge+ is one of the five operators that won tenders last year to install charging points. The others are SP Mobility (a part of SP Group), ComfortDelGro Engie, Shell Eastern Petroleum and Strides Automotive Services.
Goh added that the government is leveraging public-private partnerships to spur investment into EV charging infrastructure. It conducted several tenders to invite the private sector to invest in and operate EV charging stations in public car parks.
Making sure the power needed is readily at hand is another complication.
“The need to meet EV charging demand at locations with insufficient power is another challenge,” said Paul Welsford, head of business development at CDG Engie. “Cost-effective solutions are needed to balance the power that is available at these locations with the power that is needed to charge EVs.”
Charging an EV is a significantly different experience from refuelling at a petrol station, with potential inconveniences related to a longer charging time and the availability of enough charging stations.
Private sector companies are now taking steps to address these issues to make EV charging more accessible and convenient.
SP Group, for example, has established a fast-charging network, especially targeted at taxi drivers, commercial drivers and gig drivers. The company has also developed a mobile app that allows EV drivers to locate charging points, make payments and earn rewards.
Welsford said the company recently opened its largest charging farm to date with 10 high-powered direct current fast charging stations at Sin Ming Avenue to serve both EVs and electric taxis.
The company has also been working with the authorities to organise promotional events such as charging station launches at public car parks and community sites.
The Singapore government recognises the importance of supporting the private sector to invest in EV charging infrastructure
A group effort
It’s clear that this green transport transition will require effort from all stakeholders.
While charging companies expand their networks, the government has rolled out several incentives and tax concessions over the last two years to help accelerate the transition to EVs.
For example, the EV Early Adoption Incentive and the enhanced Vehicular Emissions Scheme were launched to narrow the upfront cost gap with ICE cars. The LTA also reduced the road tax for electric cars from January 1, 2021. Taken together these incentives lower the upfront costs of buying an EV by up to S$45,000 (US$261,000).
“Such policies have been effective to convince consumers to make the change,” said Goh.
Welsford agreed, saying the number of EVs had doubled in the last 12 months, largely due to tax breaks and infrastructural development that had accelerated from 2020.
Still there is more that could help the transition happen faster.
“In the local context, what could perhaps work and move the needle is to lower the cost of owning an EV by having a differentiated Certificate of Entitlement (CoE) system, with a lower CoE price for EVs,” said Cher, referring to the paperwork needed to own and use a motor vehicle in the city.
Consumers can help too, especially in embracing behavioural changes. Regularly topping up EV batteries rather than waiting until they are almost empty before recharging is key to minimising long waits.
And we all know how hard it can be to change ingrained habits.
