Amsterdam leads electric car revolution

A Nissan electric car in Amsterdam is connected to a charger.
Three-hundred cars are in use for Car2Go, a car rental service, in the city.
/ Korea Times photo by Kim Se-jeong

By Kim Se-jeong

Due to the threat of climate change and its consequences, increasing numbers of people are becoming committed to reducing dependence on fossil fuels that increase greenhouse gases in the Earth's atmosphere.

Although debates over this subject are complex and heavily politicized, the everyday objectives for using alternative energies are clear.

These range from how to warm a room, heat water, keep lights on in office and enable people to commute without using oil, coal or gas.

As transportation consumes vast amounts of oil, developing electric cars has become a key sector of interest and development.

Due to technological limitations, achieving commercial production of "green" cars is still a distant dream. The biggest technical challenge is to manufacture a vehicle that can run at a high speed on a long-lasting battery.

But, this is not entirely out of reach.

Moreover, due to ever escalating prices at the gas pump, the push for electric mobility is gaining traction.

Automakers are increasing investment in developing and commercializing electrically-powered cars. The public sector is also providing more support for the private sector to speed up commercialization.

Europe is at the forefront of these changes and development.

Also on the rise is, although slow, the number of electric cars actually on the roads.

Amsterdam

No discussion on electric cars can take place without mentioning Amsterdam, the capital of the Netherlands.

The city, famous for its canals, also has an interesting story to share when it comes to electric cars.

Even though it lacks a home-grown automobile industry, the city is successfully leading change in the world. The number of electric cars on the city's street is increasing, very quickly.

Automakers from around the world are flocking there to test and show off their latest models. The city government has systems and regulations in place to encourage residents to choose electric mobility over petroleum powered vehicles.

Alongside the city's scenic canals, electric cars are frequently seen.

Painted in blue and white and stamped with the logo "Car2Go," electric cars are recognizable not only for their tiny size but also for their cable connections to slim electrical chargers.

These cutting edge vehicles are part of a private program run by Japanese auto firm Nissan which began in 2011. Around 300 small blue-white cars were put in use throughout the city. Anyone can use them after paying a small registration fee. Users can pick up and drop off vehicles as they please after making reservations through the Internet.

These are not the only electric vehicles in the city.

Additionally, nearly 800 of its population that is just above 800,000 own electric cars.

City officials say it is the speed of uptake that makes the city's move toward electric transportation a success story.

In 2010, the city only had 70 electric cars on the street. In less than three years, this number increased by more than 10-fold. As of January this year, it rose to almost 800, and the government is planning to increase it further to 3,000 by the end of this year.

Plus, Mercedes-Benz runs Taxi-e with 30 electric vehicles.

Pieter Swinkels, communication advisor to the air quality department of the Amsterdam city council, said one of the biggest contributing factors is the installation of charging stations.

"It's always a chicken-and-egg question," Swinkels told The Korea Times.

In other words, automobile companies are reluctant to spend money on setting up charging stations themselves without the promise of a good sale.

So, the city government went ahead to declare that it'd set up charging stations when electric cars arrive in the city, and it did.

Currently, 450 charging stations are scattered throughout the city, which plans to set up 1,000 more by the end of this year. The city seeks to increase the number of electric cars to 3,000.

The electricity for the charging stations is supplied from windmill power plants off the shore of Amsterdam.

This infrastructure was eventually paid for because more automobile companies are attracted to the city as a test market for their new models.

Car2Go is a prime example.

Nissan, the operator of the program, was looking for a place to run a pilot project. Initially, Amsterdam lost the bid for the program to San Francisco in the United States.

But, "one year later, they came back to us and said ‘We'd like to have the second pilot program in Amsterdam,'" Swinkels said.

Amsterdam offers a variety of schemes to attract its residents to use and own electric cars. The municipal authorities give subsidies for individual purchases of electric vehicles, and customers are entitled to a tax deduction.

"For example, when you file your tax every year, you are asked about your vehicle, and according to the amount of greenhouse gas saved, you get tax reduction.

It was also proposed to give drivers of electric cars free parking and free charging, however, this is currently not in place.

Now, Amsterdam has set a new target of replacing gasoline-run trucks and vans with electric ones.

Seoul

In a nutshell, the development of the electric car market in Seoul is very much in the hands of the public sector ever since around thirty electric vehicles were purchased by the city government in 2009. Currently, nearly 334 electric cars are up and running around the city, almost triple the number in Amsterdam. They are all owned by government entities such as Seoul City Hall. Employees may use the vehicles free of charge. They are, however, required to pay parking fees.

The central government subsidizes corporate purchases, putting up one third of the total cost. One Hyundai Ray EV costs about 45 million won ($41,500).

Government subsidies are not available for individual consumers.

The Ministry of Knowledge Economy in charge of research and development sets aside a meaningful amount of money for automobile companies to invest in technological advancement, which will eventually bring prices down.

The Ray, made by Hyundai, is so far the only model available on the Korean market, but anticipation is high that by the end of this year, the market will become more diverse.

Charging stations come under the responsibility of the Ministry of Environment, which overlooks and promotes distribution of the vehicles inside the Korean market.

But the total number of charging stations is only 67 in the city ― with just over 300 across in the country ― indicating a lack of infrastructure.

The Knowledge Economy Ministry rolled out the Car Sharing Program, equivalent to Car2Go, late last year. The scheme is almost identical to Car2Go in Amsterdam, but the operator only has only 22 vehicles available at 18 locations around the capital. Charging the vehicles is free of charge. Seoul citizens can learn about how to make use of the vehicles online via www.evshare.co.kr