The mega-ship BYD Shenzhen arrived on May 28 at the port of Itajaí in southern Brazil, carrying 7,292 electric vehicles from the Chinese company BYD. It set a record for this type of transport, with unloading taking four days. Credit: Porto de Itajaí

By Mario Osava
RIO DE JANEIRO, Aug 7 2025 (IPS)

Residents near the port of Itajaí in southern Brazil celebrated the arrival of 7,292 electric and hybrid vehicles from China aboard the ship BYD Shenzhen on May 28 as a “historic event,” with unloading taking four days. 

It was a record in maritime vehicle transport, but similar operations had already occurred in Brazil and other Latin American countries. A year earlier, the port of Suape in northeastern Brazil received 5,459 units also from BYD, the world’s largest electric vehicle manufacturer."China has been pivotal... Beyond providing more affordable vehicles, its technological leadership and mass production capacity have shaped global trends." —Cristóbal Sarmiento.

China’s automotive industry, led by BYD, is the decisive factor driving electric mobility in Latin America and the Caribbean.

Over the past four years, the number of light electric vehicles in the region has nearly doubled annually, with a 187% jump in 2024, reaching 444,071 by the end of December, according to the Latin American Energy Organization (Olade), whose data excludes non-plug-in hybrids.

This is relatively small, representing only 0.7% of the world’s electric vehicle fleet and 0.3% of the region’s total light vehicles, as noted in Olade’s technical report in May. But it signals great expansion potential, now being fueled by Chinese vehicles.

Lower prices and improving quality make Chinese units competitive amid growing demand for transport electrification in the region, according to Fitzgerald Cantero, Director of Studies, Projects, and Information at Olade.

With their exports to the U.S. and the European Union (EU) practically blocked by 100% and 45.3% tariffs, respectively, Chinese electric vehicles see Latin America as “an attractive market” that remains open, along with Asia, he reasoned.

Industrial Hub of Camaçari in Bahia, northeastern Brazil, where BYD built its plant for producing electric and plug-in hybrid vehicles, batteries, and auto parts. Spanning 460 hectares, it allows for expansions to double production to 300,000 vehicles per year. Part of the facilities were purchased from U.S. automaker Ford, which left the country. Credit: BYD

Renewable Energy and Lithium as Attractions 

An additional Latin American attraction is its abundance of renewable energy, Cantero told IPS by phone from Quito, Olade’s headquarters. Using sustainable electricity is essential to meet the goal of decarbonizing transport and reducing planet-warming emissions.

Moreover, some countries in the region are rich in minerals needed for vehicle electrification, such as lithium for batteries, copper for electrical components, and rare earths containing 17 chemical elements used in magnets for electric car motors, wind turbines, and other strategic technologies.

Thus, the region has become a priority for China, the automotive superpower where 12.87 million electric passenger vehicles were sold in 2024, plus 2.2 million exported—figures close to half of all new cars sold domestically and abroad, according to data compiled by Olade.

China’s leadership is more than absolute, as the next powers—the EU and the U.S.—produced only 2.4 million and 1.1 million electric vehicles, respectively, in 2024, according to the International Energy Agency.

Olade estimates that China accounted for over 75% of global electric vehicle sales. This share is likely to grow, as the European market has stagnated and the U.S. has rolled back its environmental policies.

“The (U.S.) electric vehicle industry has been discouraged by new legislation, which will have a dramatic impact on consumer preferences,” said Margaret Myers, director of the Asia and Latin America Program at the Inter-American Dialogue.

Meanwhile, China is boosting exports of its production surplus, particularly to Global South markets with fewer import restrictions, she noted.

For China, “electric vehicle production is part of a broader effort to improve its economy and secure dominance in key industries, including EVs and their batteries, renewable energy, artificial intelligence, bioscience, and other priorities,” Myers concluded to IPS from Washington.

Electric trucks made in China at the second edition of the International Chinese Auto Expo, held from July 24 to 27 at an events center in Santiago, Chile. These cargo vehicles began operating in large mining facilities and urban areas in Chile and are now becoming more widespread nationwide. Credit: Orlando Milesi / IPS

Large Markets Concentrate Sales 

For now, Latin America remains a net importer. Brazil and Mexico are the largest markets, accounting for 73.6% of electrified vehicle sales (including fully electric, plug-in hybrid, and non-plug-in hybrid models) in the region, according to data from the Latin American Association of Automotive Distributors (Aladda), headquartered in Buenos Aires.

Their share of the population is much smaller. Brazil, with 212 million people, and Mexico, with 130 million, make up just 51.2% of Latin America and the Caribbean’s 668 million inhabitants.

Argentina, in fourth place with 47 million people, does not rank among the top eight in motor transport electrification. Colombia, the third most populous with 53 million, is also third in Aladda’s ranking.

Colombia and Chile lead in electric buses, with 1,590 and 2,600 operating in their cities as of December 2024, respectively, according to Olade. Brazil, despite its much larger population, has only 900—far fewer than Chile, a country of just 18.5 million people.

A Chinese electric vehicle charges its battery at a dealership in south-central Mexico City. Sales of Chinese-made electric vehicles have grown in this Latin American country due to their lower prices compared to Western brands and financing options. Credit: Emilio Godoy / IPS

Three Waves

“The evolution of electromobility in Chile had its first wave between 2017 and 2020, focused on public transportation—specifically electric bus systems,” recalled Cristóbal Sarmiento Laurel, Director of Energy and Sustainable Development at the private Diego Portales University.

The goal was to introduce the new technology in a “more feasible way, since buses operate on controlled routes and schedules, making charging planning easier,” he explained. BYD was the key player in this phase.

The second wave, starting in 2021, saw a “steady rise in sales of light hybrid and fully electric vehicles, with growing market presence from Chinese manufacturers like BYD, Maxus, JA, DFSK, and Changan, which quickly gained ground in the domestic market,” he added.

“China has been pivotal in this journey. Beyond providing more affordable vehicles, its technological leadership and mass production capacity have shaped global trends. For Chile, this relationship isn’t just a commercial opportunity but also a concrete way to accelerate the energy transition,” Sarmiento emphasized.

“Transport accounts for 33.3% of Chile’s energy consumption, according to the National Energy Balance, and relies almost entirely on fossil fuels”, therefore, electrification helps mitigate climate change, Sarmiento told IPS in Santiago.

“Not using fossil fuels is a solution,” but electrified cars “promote individual mobility rather than transforming transportation systems or boosting public transit,” noted Antonio del Río, a researcher at the Renewable Energy Institute of Mexico’s National Autonomous University.

More electric buses—whether Chinese or from other origins—are the way forward, he argued. “The cost per kilometer for an electric vehicle is 60% lower than a conventional car,” he said to IPS in Mexico City.

By the end of 2024, Mexico had only 780 electric buses, according to Olade data—half as many as Colombia, or a quarter per capita.

Assembly line of electric and hybrid vehicles at BYD’s Camaçari plant in northeastern Brazil, which will initially produce 150,000 vehicles annually with potential to double output. The electric vehicle market has grown rapidly in Brazil and Latin America over the past four years. With mass domestic production, Brazil could become an export hub for these advanced-technology vehicles. Credit: BYD

Mexico mirrored the region’s surge in electrified vehicle sales, which reached 412,493 units in 2024, up 174.9% from 2022, according to Aladda. Brazil led growth among major countries with a 256.2% increase, while Mexico saw 142.2%.

Despite the sharp rise, electrified vehicles still represent a small share of total sales: 8.1% regionally on average, 6.8% in Brazil, and 6.1% in Chile in 2024. Colombia stands out at 25.8%.

The most dramatic two-year growth—665.3% regionally—was in plug-in hybrids (PHEVs), followed by pure electric vehicles (EVs) at 403%. Non-plug-in hybrids (HEVs) lost momentum in Brazil but grew in Mexico, Chile, Colombia, and Peru, especially in 2024.

Another notable trend is the diversity of Chinese brands—23 in both Mexico and Chile. Chile has 52 brands total, including Chinese and others, according to Rodrigo Salcedo, president of Chile’s  Electric Vehicle Trade Association (Avec).

The influx of new brands has heightened competition, bringing more options, models, and prices that are gradually approaching those of conventional cars. However, “there’s a gap,” lamented Salcedo, pointing to the lack of information, workshops, and trained technicians for maintenance—except for buses, which benefit from Chinese technicians in Chile.

BYD cars for sale and test drives at an Itavema dealership, a BYD sales network, in Botafogo, a traditional middle-class neighborhood in Rio de Janeiro, Brazil. Credit: Mario Osava / IPS

Third Wave 

Meanwhile, a third wave of electric mobility is emerging in the region, following the initial phases of electric buses and the mass availability of light vehicles at falling prices. This new phase involves the establishment of assembly plants, including Chinese ones.

In Brazil, two Chinese automakers have begun local production of electrified vehicles. BYD (short for Build Your Dreams) started production in July at its assembly plant in Camaçari, Bahia, rolling out three models—one fully electric and two plug-in hybrids. And GWM (Great Wall Motors) is set to begin production this semester in Iracemápolis, São Paulo.

Symbolically, both manufacturers took over former plants of traditional automakers—Ford (U.S.) and Mercedes-Benz (Germany), respectively.

While Chinese-branded cars have been produced in Brazil since 2017 (such as those from the Caoa-Chery joint venture in Anápolis, Goiás), their electrified models, introduced in 2019, were limited in volume.

BYD’s plant marks a new era, designed to assemble 150,000 units annually initially, with plans to double that capacity. The project also includes battery and auto parts production, along with a logistics system, explained Mauro Pereira, general superintendent of Camaçari’s Industrial Development Committee (Cofic).

Cofic manages the Camaçari Industrial Park to create the best operating conditions for 88 local companies, including BYD.

“BYD is putting Brazil at the forefront of vehicle technology,” Pereira stated, anticipating 20,000 direct jobs and triple that in indirect employment. The plant could also turn Brazil into an export hub for vehicles and components, including batteries, to Latin America and possibly Europe.

The Camaçari plant benefited from land incentives and tax breaks, but the real driver was Brazil’s import tariffs on electric vehicles, introduced in January 2024. Starting at 10% (slightly higher for hybrids), they will gradually rise to 35% by 2027.

Chinese new-energy vehicles are cutting costs with advanced, efficient, and intelligent technologies—”they’re smartphones on wheels,” said Thiago Sugahara, VP of the Brazilian Electric Vehicle Association and GWM’s institutional relations manager. Users can control and monitor their cars remotely and safely via smartphone, he explained.

“An electric car is a battery with four wheels,” quipped Ana Lia Rojas, head of Chile’s Renewable Energy and Storage Association (Acera), highlighting both the vehicle’s key component —still  costly—,  and their potential to support power grids.

Colbert Marques, a sales consultant at Itavema (a BYD dealership network), noted that Chinese manufacturers halved EV prices. Today, models start at just over US$20,000, forcing Western brands to slash prices to stay competitive.

Buyers of EVs and hybrids “are more informed and tech-savvy, even older ones,” he observed, confident in his decision to switch to BYD in 2023, having driven traditional vehicles for 18 years.

With contributions from Orlando Milesi (Chile) and Emilio Godoy (Mexico)

Downtown traffic in Mexico City. The electrification of transportation is a challenge in this Latin American country, where over 58 million vehicles are in circulation. Credit: Emilio Godoy / IPS

By Emilio Godoy
MEXICO, Feb 26 2025 (IPS)

Mexico has seen several attempts at assembling electric vehicles (EVs), powered by rechargeable batteries, which have faced challenges related to industrial scale, supply chains, and competitiveness

These issues also complicate the new state production plan for the Taruk bus (meaning “roadrunner” in Yaqui) and the lightweight Olinia car (meaning “movement” in Nahuatl), based on the country’s long automotive experience and a growing market. The plan was formally announced in January by President Claudia Sheinbaum.

Experts consulted by IPS praised the initiative but warned of significant technological, regulatory, and infrastructure challenges in a country where transportation generates nearly a third of all polluting emissions. Cleaning up this sector would benefit urban health.“Asians, especially the Chinese, have developed very advanced technology; they are 15 years ahead of us. There’s no comparison. Government support is minimal and doesn’t meet the huge demand of the automotive sector. If Mexico wants to compete with those who have taken over the electric market, it has to invest,” Gustavo Jiménez

“Asians, especially the Chinese, have developed very advanced technology; they are 15 years ahead of us. There is no comparison. Government support is extremely minimal and does not meet the significant demands of the automotive sector,” said Gustavo Jiménez, director of the private Grupo E-mobilitas, which specializes in electromobility consulting.

During his dialogue with IPS, he emphasized that “if Mexico wants to compete with those who have taken over the electric market, it has to invest.”

Information reviewed by IPS shows that the development of the Taruk bus is more advanced, while the Olinia car still lacks a defined strategy. This comes at a challenging time for the sector due to threats of extraordinary tariffs by U.S. President Donald Trump on vehicles assembled in Mexico.

Additionally, the installation of EV plants by U.S.-based Tesla  and China’s Build Your Dreams (BYD) has been temporarily halted. BYD faces tariffs imposed by the U.S. government on Asian products entering its market.

In fact, prototypes of a Mexican electric bus were designed in 2024 as part of the project “Development of a Mexican Electric Public Transport Bus and Study for the Implementation of Electromobility in Cities to Boost the Country’s Lithium Value Chain.”

The electromobility project is being carried out by the new Secretariat of Science, Humanities, Technologies, and Innovation (Secihti) and private Mexican companies Dina and MegaFlux, which already manufacture electric buses and trucks.

The initiative for electric buses, launched in 2023 with a budget of around US$900,000, aims to accelerate the introduction of Mexican-made units with indigenous technology, strengthen the national EV industry, and support the growth of this segment, given the urgent need to clean up transportation.

The Taruk model will be assembled in the state of Hidalgo, near Mexico City, and benefits from an existing production platform. Its projected weight is 12.5 tons, with a battery discharge rate of around 90% and a range of 180 to 361 kilometers, making it ideal for urban environments.

In comparison, the 50 buses introduced by the capital’s government in October 2024, imported from the Chinese brand Yutong, have a range of 300 kilometers.

In January, President Claudia Sheinbaum announced the state production of the Olinia electric car, designed for short trips. However, the project faces significant technological, economic, and commercial challenges. Credit: Government of Mexico

Competition

The Olinia cars, whose plant will operate in the state of Puebla, bordering Mexico City, has a budget of 1.22 million dollars. They are designed for short trips, with prices ranging from US$ 4,383 to 7,300 and are expected to hit the market by 2026. In comparison, Tesla had planned to invest $5 billion in an assembly plant set to begin operations in 2025.

The Secihti, along with the National Polytechnic Institute and the Mexican Institute of Technology, still lack detailed development plans for the three Olinia models, including a small van.

Currently, automotive companies in Mexico, the world’s seventh-largest producer of light vehicles and third-largest exporter, do not receive subsidies to accelerate the introduction of electric vehicles.

Leticia Pineda, regional leader for Mexico and Canada at the non-governmental  International Council on Clean Transportation, based in Washington, believes the government understands the opportunity to integrate into a valuable supply chain and build economies of scale.

“This is a great opportunity for Mexico to transform its automotive industry, develop manufacturing capabilities to produce vehicles with higher national content. This value addition is a great opportunity to integrate further into this supply chain,” she told IPS.

In 2021, Mexico joined the Glasgow Pact on Electromobility during the climate summit in the Scottish city, which sets a voluntary target of 50% of light vehicle sales being electric and plug-in hybrid by 2030 and 100% by 2040—goals that are difficult to achieve under current conditions.

A prototype of the Taruk electric bus (meaning “roadrunner” in the Yaqui language), designed by the Mexican government and private companies for urban environments in this Latin American country. Credit: Dina

For independent consultant Víctor Alvarado, the intersection of mobility and electricity generation, dominated by fossil fuels in Mexico, must be considered.

“What’s announced but not fully realized is electromobility, and what’s happening is the electrification of heavy and light transportation. Given the composition of the energy matrix, transportation will continue to generate emissions if we don’t commit to electric vehicles,” he told IPS.

The new bus and car ventures will face an increasingly competitive domestic market dominated by U.S., European, and Chinese brands, which have reported significant expansion since 2023.

In recent years, sales of electric and hybrid vehicles, which run on gasoline and electric batteries, have grown in this country of 129 million people, where over 58 million vehicles, mostly cars, are in circulation.

In 2024, EV sales increased by 71%, from 14,172 units in 2023 to 24,283 the following year. The hybrid segment saw the most growth, with sales jumping from 60,146 to 100,020 between the two years, a 66% increase.

The same trend was seen in passenger vehicles, where fossil fuel-powered units, mainly diesel, still dominate. Hybrid model sales surged from just two in 2023 to 670 last year, while electric vehicle sales grew by 16%, from 252 to 294.

However, electric vehicle projects are happening in a legal vacuum. The national strategy, which outlined specific actions and goals, was ready in 2023 but has not been published. While the 2022 General Law on Mobility and Road Safety promotes sustainable transportation, it does not address electric mobility.

Initially, electric mobility in Mexico has the advantage of lithium deposits in rocks and clays, a key element for rechargeable batteries, especially in the northern state of Sonora.

However, environmentalists argue that these deposits are potentially unviable environmentally, economically, and technologically due to water consumption in extraction and high processing costs.

Sales of hybrid and electric vehicles have been growing in recent years in Mexico, though at a slower pace than needed to transition to low-emission transportation. Graph: Amia

Background

The cases of the Mexican private corporation Zacua and Bolivia’s Quantum Motors, whose partner in Mexico is Megaflux, are also illustrative.

The former, located in Puebla, has sold a few dozen units since 2019, with a cost per unit of around $25,000, practically the same as other foreign brands.

Meanwhile, Quantum has sold over 500 cars in Bolivia, El Salvador, Mexico, Paraguay, and Peru since 2019, with their models priced between US$ 6,000 and 8,000, a range similar to what is expected for Olinia’s vehicles.

Mexico has at least 39 automotive plants, including three EV assemblers. Of these, 22 manufacture vehicles and are located in central and northern Mexico, attracted by access to the U.S. market, the main export destination, under the free trade agreement shared with Canada.

Since 2018, Mexico City, with nearly nine million inhabitants and about 24 million in the metropolitan area, has made progress in electrifying public transportation, with units in the Metrobus system and bus routes.

Additionally, cities like Guadalajara, the capital of the western state of Jalisco, and Mérida, the capital of the southeastern state of Yucatán, have promoted similar projects.

The National Strategy for Industrialization and Shared Prosperity, also known as Plan Mexico and announced in January, includes 10 electromobility projects in public transportation across 10 states, with an undefined budget.

Experts consulted by IPS agreed on the importance of comprehensive regulation covering energy sources, infrastructure deployment, vehicle safety, and consumer rights.

For Jiménez, public-private partnerships with Mexican companies and a focus on public transportation are advisable.

“There needs to be significant production capacity to leverage technological advantages and drive industrial development. Electromobility is positioned as a potential solution to health problems, but we must think about public transportation to optimize time, modernize fleets, and reduce environmental impact,” he stated.

Pineda also agreed that delays in the process could result in high costs.

“There’s a lack of joint effort and government support for this transition. These are long-term transformations that require government commitment to provide certainty for investments and the entire supply chain, ensuring progress in electromobility. There needs to be an ecosystem that provides clarity on the direction, so projects don’t remain pilot initiatives,” he emphasized.

Passengers board a public bus in Havana. In recent years, some 40 hybrid buses (alternating diesel and electricity), a technology that saves 25 to 30 percent of fuel and generates less pollution, have been added to public transport in the Cuban capital. CREDIT: Jorge Luis Baños / IPS

By Luis Brizuela
HAVANA, Feb 5 2024 (IPS)

Jorge Sarmientos said he made a good investment when he bought an electric motorcycle to get around and avoid the anxiety suffered by the users of Cuba’s deficient public transportation system or the high prices of private alternatives.

“It was expensive, but I gained independence,” Sarmientos, a Havana-based accountant, told IPS. “Transportation has never been good here. When there is no shortage of buses, there are shortages of spare parts or fuel. Prices should be lowered or there should be facilities for more people to acquire electric vehicles.”"Transportation has never been good here. When there is no shortage of buses, there are shortages of spare parts or fuel. Prices should be lowered or there should be facilities for more people to acquire electric vehicles." -- Jorge Sarmientos

Official data indicate that half a million electric motorcycles are on the roads in this Caribbean island nation of 11 million inhabitants, a form of transportation that helps people and families get around.

Over the last decade, the use of electric vehicles has increased in Cuba, based on customs authorizations for their importation.

More recently, the domestic industry has begun to assemble different models, including electric bicycles and three-wheelers, using parts imported largely from China.

But the fact that they are mainly sold in foreign currency is a hurdle to expanding sales.

The cheapest models in state-owned stores exceed 1,000 dollars, while others go for as much as 6,000 dollars.

In Cuba, the average monthly salary is equivalent to about 35 dollars according to the official exchange rate, or about 16 dollars in the informal market.

According to reports, almost 40 hybrid buses (alternating diesel and electricity) have been added to Havana’s deteriorated fleet of public buses in recent years, a technology that saves 25 to 30 percent of fuel and is less polluting.

But the severe internal economic crisis and the shortage of foreign currency are hindering actions to increase the number of 100 percent electric vehicles in order to gradually decarbonize public transportation.

Some companies and institutions have acquired electric cars, which bring reductions in maintenance costs.

Electric three-wheelers or ecotaxis help alleviate transportation problems in the municipality of Boyeros, one of the 15 that make up the Cuban capital. CREDIT: Jorge Luis Baños / IPS

Local solutions

In the case of Havana, from 2019 to 2023 the Neomovilidad project was implemented, which among its objectives aimed to strengthen the regulatory framework for an efficient transition to a low-emission urban transportation system.

In addition to prioritizing variables such as a gender approach and the inclusion of different age groups, the project provided a pilot public bicycle rental station, run by a local development project led by young people.

It also created three routes of three-wheeled electric ecotaxis driven mainly by women in outlying neighborhoods of Boyeros, one of the 15 municipalities that make up Havana.

The three-wheelers are light, motorized vehicles with a capacity for six passengers in the back, similar to the autorickshaws or tuktuks that are common in Asia. Here they are also called motocarros or mototaxis.

“I think they are a great option for getting around quickly over short distances, and at affordable prices,” retiree Gloria Almaguer, a resident of the Fontanar neighborhood in Boyeros, told IPS. “The bad thing is that there are not enough to cover demand, they can carry only a few people, and there are certain times of day when they ‘vanish’.”

The Neomovilidad project was executed by Havana’s General Directorate of Transportation, implemented by the United Nations Development Program (UNDP) office in Cuba and financed by the Global Environment Facility (GEF).

Other fleets of ecotaxis provide service in the capital’s municipalities of Old Havana, Central Havana, Guanabacoa, Playa and Plaza de la Revolución, also with UNDP support. These are all initiatives that contribute to the national commitment to mitigate climate change.

With routes ranging from two to four kilometers and low prices, a little more than a hundred of these vehicles help provide a solution for sustainable micro-mobility in urban areas.

In other Cuban cities, similar three wheelers with internal combustion engines are in service.

One challenge is that the vast majority of ecotaxis and electric vehicles depend on the national electric grid to recharge their batteries. The ecotaxis recharge during the night at their terminals in the parking lots of public entities, and privately owned vehicles do so at their owners’ homes.

This is because so far there is no infrastructure that would allow electric vehicles to be recharged in a network of service stations.

Around 95 percent of Cuba’s electricity generation relies on fossil fuels.

The government considers it a matter of national security to transform the energy mix, and aims for more than 30 percent of electricity to come from clean energies by 2030, a goal that will be difficult to achieve due to the need for a high level of investment.

Passengers try to board an old vehicle operating as a private cab in Havana. In the Cuban capital, around 25 percent of the estimated total number of passengers resort to private cabs with fixed routes, known as almendrones, which are heavy consumers of gasoline or diesel and are not affordable to everyone. CREDIT: Jorge Luis Baños / IPS

New fuel prices

A majority of the Cuban population depends on the public transportation system, based mainly on buses and other fossil fuel-consuming vehicles.

In Havana, home to 2.1 million inhabitants, “less than 300 buses are working, a city that in the 1980s had 2,500 buses and only four years ago had 600,” said Transport Minister Eduardo Rodríguez Dávila during a television appearance in October 2023.

The greatest impact falls on those with the lowest purchasing power, since buses are the most affordable means of transportation.

The panorama is similar in Cuba’s other 14 provinces. Alternative transport in urban, suburban and rural settlements includes modified trucks, traditional horse-drawn carriages and bicycle cabs which carry one or two passengers and are pedaled by the driver.

In Havana, estimates place the total number of passengers who use private transport at around 25 percent, generally in old U.S.-made cars, the so-called “almendrones” – private cabs with fixed routes – which run on gasoline or diesel and are not affordable for everyone.

Together with the deterioration of the vehicle fleet, the chronic shortage of spare parts, lubricants and other supplies, and the migration of drivers to sectors with greater economic benefits, the fuel shortage has been one of the main causes of the irregular public transportation service, which has been accentuated in the last five years.

“You can spend an hour waiting, or more. A lot of times I’m late for class, even though I get up very early. I can’t afford a private car every day. It’s increasingly difficult to get anywhere,” stressed architecture student Yenia Hernández in an interview with IPS, as she waited at a bus stop with dozens of other people in the Central Havana municipality.

A train travels along a railroad track in Cuba’s capital. A majority of the population depends on the public transportation system, based mainly on buses, trucks and trains, which consume fossil fuels. CREDIT: Jorge Luis Baños / IPS

Energy crises have become more recurrent since 2019, in parallel with the decline of the domestic economic situation and the lack of foreign currency.

According to the authorities, this situation has multiple causes, from breach of contract by suppliers to U.S. government sanctions that hinder access to credit and services from international banks.

In 2021 Cuba imported 126,000 tons of gasoline, in 2022 some 192,000 tons, and in 2023 around 203,000 tons. Despite the increase, the figure remains below the demand of about 360,000 tons, Energy and Mines Minister Vicente de la O Levy said in a televised statement on Jan. 8.

On the other hand, this island nation needs 1.8 billion dollars to cover its annual diesel needs.

“In 2023, 609,000 tons of diesel could be imported, for about 600 million dollars (one third),” added the Energy and Mines Minister.

As of Feb. 1, an increase in the price of gasoline and diesel was planned, in order to bring the selling price in Cuban pesos in line with the official rate of the dollar, regulate sales and sell a portion only through dollar-backed cards, in order to guarantee resupply with the foreign currency, according to the government.

But the measure was postponed until further notice due to a “cybersecurity incident” caused by “a virus from abroad” that affected the system of fuel sales, which is being investigated, official information said.

The strategy to eliminate subsidies projects, as of Mar. 1, an increase in interprovincial transportation fares, with hikes of almost three times the cost of bus fares and six to seven times the cost of train tickets.

While the fares for part of the public transport service will remain unchanged, in the case of Havana, the fare for electric three wheelers will rise from four to 10 pesos (0.03 to 0.08 dollars).

The increases in fuel prices and transportation fares are in addition to the package of provisions that includes tax and tariff modifications as of Jan. 1 and which, according to government officials, are aimed at “rectifying distortions” in the economy and boosting its recovery.

“The only thing I see is that some transportation will be more expensive, but there won’t necessarily be more vehicles, or more modern vehicles with better service,” Reynaldo Martín, an electrical engineer living in Old Havana, told IPS. “Wages remain the same and that means I can’t even dream of buying a bicycle.”

Photo of several cable cars of the Cablebus, which runs on electricity and has been carrying passengers through the south and southeast of Mexico City since 2021. Mexican public transportation is still based on fossil fuels, and a transition to cleaner alternatives is necessary. CREDIT: Emilio Godoy / IPS

By Emilio Godoy
MEXICO CITY, Oct 12 2023 (IPS)

Maribel Ochoa takes less time and spends less money commuting from her home to her work in eastern Mexico City thanks to the use of the electric Cablebus, a cable car that has improved her quality of life since the service began operating two years ago.

“It used to take me an hour. Now I make the trip in 15 minutes and the Cablebus drops me off three blocks from my house. And I don’t have to wait long for the cable car to come,” the 52-year-old married mother of seven, who is a cleaning lady for several families, told IPS."As a country, we are lagging behind. We need to make some adjustments and to be more ambitious. More support is needed from the federal government; it would be very good if it strengthened the mass transit program." -- Bernardo Baranda

In the past, she had to take a minibus to the Metro public transportation system to get to work.

The six-person turquoise-colored cable cars carry passengers dozens of meters at six meters per second through four hills on the east side of Mexico City. Below, passengers can watch the road traffic, the bustle of street vendors and children filing in and out of schools. Greater Mexico City is home to more than 20 million people.

The cable cars fly over the east side of the city, above the chaotic urban expansion below.

The route is part of one of the two lines of the Cablebus electric public transportation system, which is almost 11 kilometers long and connects the southeast with the eastern part of the city.

Since 2021, the cable car system, which cost some 300 million dollars to build, has transported around 36 million people on its two lines, at a rate of 120,000 passengers per day, in 682 cable cars for a distance over 20 kilometers. Line 1 connects the north and east of the capital.

In addition, since 2016, the Mexicable has been operating, with two 14-kilometer routes, in the municipality of Ecatepec, in the neighboring state of Mexico, north of the Mexican capital.

Together with a Metrobus line, a dedicated lane bus rapid transit (BRT) model and trolleybuses, these systems offer an alternative to the conventional fossil fuel-powered transportation networks that are predominant in this Latin American country of some 129 million people.

But these alternative public transportation systems are absent from the streets of medium and small cities due to financial, institutional and technological barriers, according to the report “Moving towards public electromobility in Mexico” released by the Economic Commission for Latin America and the Caribbean (ECLAC).

Mexico has a long tradition of using trolleybuses and cable cars, which were left in the past due to the prioritization of fossil-fueled ground transportation.

With 623 units, mostly trolleybuses, Mexico is the country with the third largest number of electromobility units, after Chile (2043) and Colombia (1589), according to the international E-BUS Radar platform. In total, the region has almost 5,000 electric buses, concentrated in the capital cities.

The replacement of fossil fuel vehicles with electric ones reduces gasoline consumption, air pollution and noise generation.

In Mexico, transportation accounted for 139.15 million tons of carbon dioxide (CO2) equivalent, a gas generated by human activities and responsible for global warming, out of a total of 690.62 million, according to 2021 data from the National Inventory of Greenhouse Gas and Compound Emissions of the governmental National Institute of Ecology and Climate Change (INECC).

The non-governmental Institute for Health Metrics and Evaluation in the United States estimated that air pollution in Mexico caused the death of around 38,000 people in 2019.

A station of the Cablebus, the electric cable car that since 2021 connects the south and southeast of Mexico City, greatly shortening the commute for residents in those areas. Mexican public transport is still mostly powered by fossil fuels, and the country is making a very slow transition to cleaner alternatives. CREDIT: Emilio Godoy / IPS

Few electric vehicles

Bernardo Baranda, director for Latin America of the non-governmental Institute for Transportation and Development Policy (ITDP) said there was “insufficient progress” in the decarbonization of the sector, which, moreover, is taking place mainly in large cities.

“As a country, we are lagging behind. We need to make some adjustments and to be more ambitious. More support is needed from the federal government; it would be very good if it strengthened the mass transit program, to provide incentives for concessionaires and operators to acquire more electric fleets,” he told IPS in Mexico City, where the Institute’s regional headquarters is located.

Since 2005, the government’s National Infrastructure Fund has financed 30 urban transport projects, at a cost of 5.45 billion dollars, but they have involved mainly conventional vehicles.

In Mexico there are more than 53 million vehicles, and the number has been rising steadily since 2000, according to figures from the National Institute of Geography and Statistics, which adds that most of them run on fossil fuels. The institution reported 229.36 million public transportation users in July in the country’s eight main metropolitan areas and cities.

Victor Alvarado, head of the Mobility and Climate Agenda area of the non-governmental organization The Power of the Consumer, identified challenges such as profitability, sufficient demand, adequate facilities, and awareness of the issue among concessionaires and transport operators.

“What we envision today arises from local needs and a commitment to offer public transport services that can mitigate the effects of climate change. The useful life of conventional buses ranges from 10 to 15 years, and this becomes an opportunity to renew the fleet,” he told IPS.

At the national level, experts point out, Mexico lacks an electromobility strategy, with a plan yet to be finalized, despite its importance in the reduction of polluting emissions and the path to move towards a low carbon economy, which is an additional restriction for the adoption of policies.

However, the government of the capital has set goals for the deployment of alternative transportation and pollution reduction.

Mexico City’s Mobility Sector Emission Reduction Plan calls for the addition of 500 trolleybuses by 2024.

In addition, one of the lines of action of the capital city’s Electromobility Strategy 2018-2030 projects that 30 percent of the Metrobus fleet will be electric by 2030, equivalent to 300 buses.

Little by little, more initiatives are joining the move towards electromobility. The government of the capital is building a third Cablebus line, five kilometers long and with 11 stations, on the west side of Mexico City.

And the northern industrial city of Monterrey, with more than 1.5 million inhabitants, is preparing to introduce some 110 electric buses with an investment of 56 million dollars in public funds.

It is doing so through the Tumi E-Bus Mission project, aimed at supporting 500 cities (including Mexico City and Guadalajara, as well as Monterrey) in their transition to the deployment of 100,000 electric buses in total by 2025.

With technical advice from the German Agency for International Cooperation and six international organizations, the plan is part of the Transformative Urban Mobility Initiative.

Likewise, the city of Mérida, capital of the southeastern state of Yucatán, is building the Ie-tram, a 116-kilometer all-electric BRT line on the outskirts of the city, for an investment of some 166 million dollars.

One of the elevated trolleybuses that run along the east side of Mexico City, at one of the stops. Mexico has 623 electric units that reduce polluting emissions, even though the power supply depends on oil by-products. CREDIT: Emilio Godoy / IPS

ECLAC outlines three scenarios for Mexico, to 2025 and 2030. The intensive adoption perspective requires an addition of 18.99 million electric units, so that the proportion would rise to 21 percent and 42 percent of the total, respectively.

Ochoa hopes that alternative transportation will expand, so that her commute will become even shorter and cheaper.

But she knows that this depends on the decisions made by the national and local authorities.

Baranda, the regional expert, is confident that the next government will prioritize electric transport. “The sector is one of the main producers of pollutants. This has to be reflected in budgets. In small cities we should move towards the transition; smaller units can be used, these areas should not be left behind,” he said.

Alvarado the activist said actions are needed in financing, reallocation of budgets, professionalization of local authorities and creation of incentives for the acquisition of more environmentally friendly fleets.

“But part of the problem is that the energy source is still fossil fuels. That is where a focus on renewable energy generation comes in. In the states we have to see who dares to explore renewable energy for transportation; that is a great opportunity,” he said.

But until that future arrives, the urban population has to put up with mostly inefficient, unreliable and polluting public transport.

A group of drivers push a car at the end of a long line to refuel in Havana. The Cuban authorities say the fundamental cause of the shortage of diesel and gasoline has to do with breaches of contracts by suppliers. CREDIT: Jorge Luis Baños/IPS

By Luis Brizuela
HAVANA, Apr 27 2023 (IPS)

Long lines of vehicles outside of gas stations reflect the acute shortage of diesel and gasoline in Cuba, which has had negative impacts on an economy that is highly dependent on fuel imports and has only a small proportion of renewable sources in its energy mix.

“They don’t sell you enough fuel at the gas stations and the line barely creeps forward because there are also many irregularities and corruption. It’s exhausting,” said engineer Rolando Estupiñán, who was driving an old Soviet Union-made Lada. When he spoke to IPS in Havana, he was still a long way from the pumps at the station and had given up hope of working that day.

Lisbet Brito, an accountant living in the Cuban capital, lamented in a conversation with IPS that “the public buses take a long time. Private cars (that act as taxis) are making shorter trips and charging more. Nobody can afford this. It’s very difficult to get to work or school, or to a medical or any other kind of appointment.”

Brito said another fear “is that food prices will rise further or supplies will decrease, if the shortage of oil makes it difficult to supply the markets.”

External and internal factors, including the fuel shortage, contribute to low levels of agricultural production, which is insufficient to meet the demand of the 11.1 million inhabitants of this Caribbean island nation.

The outlook is made even more complex by the macroeconomic imbalances, marked by partial dollarization, high inflation and depreciation of wages, salaries and pensions which have strangled household budgets.

Asiel Ramos, who uses his vehicle as a private taxi in this city of 2.2 million people, justified the increase in his rates “because the cost of a liter of diesel skyrocketed” on the black market, where it ranges from a little more than a dollar to three dollars, in sharp contrast to the average monthly salary of around 35 dollars.

“I pay taxes and I have to keep the car running so my children and wife can eat. I can’t spend days stocking up on fuel, and when it’s over, go back again. If I buy ‘on the left‘ (a euphemism for buying on the black market) I have to raise my prices,” Ramos told IPS.

To get around, most Cubans depend on the public transport system, based mainly on buses, which are less expensive than private taxis. But the chronic deficit of equipment, spare parts, lubricants and other inputs, added to the fuel shortage, means service is irregular, the most visible expression of which is the packed bus stops.

A group of people try to board a minibus on a central avenue in Havana. Public transport in Cuba faces a chronic deficit of equipment, spare parts, lubricants and other inputs, which, added to fuel shortages, means service is irregular and bus stops are crowded. CREDIT: Jorge Luis Baños/IPS

Measures

The fuel shortage drove the authorities to announce on the night of Apr. 25 the cancellation of the traditional parades for May 1, International Workers’ Day, and other activities such as political rallies or workplace, community or municipal events, as a rationing and austerity measure, and to declare that only essential transportation would be available.

In the capital, instead of the workers’ march through the José Marti Plaza de la Revolución, a rally was called for May 1 along the Havana Malecón or seaside boulevard, which expects some 120,000 people coming on foot from five of the 15 Havana municipalities.

On Apr. 17, the Minister of Energy and Mines Vicente de la O Levy said on television that the fundamental cause of the shortage of diesel and gasoline is related to breaches of contracts by suppliers.

He said the U.S. embargo “makes it very difficult to obtain ships to transport the fuel, to seek financing and to meet the normal requirements of these contracts.”

In November, during President Miguel Díaz-Canel’s tour of Algeria, Russia, Turkey and China, agreements were signed with some of these countries for the stable supply of hydrocarbons, power generation and the modernization of thermoelectric plants.

Venezuela and Russia appear to be the country’s main energy suppliers.

On Apr. 23, the general director of the state company Unión Cuba Petróleo (Cupet), Néstor Pérez, told national media outlets that “one of the closest suppliers despite having innumerable production limitations… has guaranteed the supply of some products (refinable crude and derivatives) that somewhat alleviate the existing situation, but do not cover all the demands of the economy and the population.”

Presumably Pérez was referring to Venezuela, although he did not specifically say so, because that country has been the largest supplier of hydrocarbons this century, although due to its own internal crisis its exports to Cuba have clearly declined.

De la O Levy noted that, based on negotiations with international suppliers, an improvement is expected in May, although the availability of fuel will not reach the levels seen in 2017 or 2018, when the country was in a more favorable situation.

The priorities in the use of the reserves are the health and funeral services, public transportation and transport of merchandise, as well as the potato harvest, the official said.

The government of Havana, which as a province encompasses the 15 municipalities that make up the capital, limited the sale of diesel to 100 liters per vehicle and 40 liters of gasoline. In the remaining 14 provinces, rationing measures were also ordered.

Several universities postponed the entry of scholarship students until the first week of May, and announced online classes and consultations.

Sales of liquefied petroleum gas (LPG) are also affected, used by more than 1.7 million consumers, although the next arrival of a ship with the product should bring back stability to the service, according to officials.

Two men shine a mobile phone flashlight while fixing a car during a blackout in Havana. Breakages and repairs in some of the country’s thermoelectric plants lead to power shortages that trigger blackouts that last several hours in some parts of the country. CREDIT: Jorge Luis Baños/IPS

Electricity generation deficit

This situation coincides with breaks and repairs in some of the 20 thermoelectric generation plants, which have operated for an average of more than 30 years.

These plants process, for the most part, heavy national crude oil, with a sulfur content between seven and 18 degrees API, which requires more frequent repair cycles that are sometimes postponed due to a lack of financing.

Around 95 percent of the electricity generated in Cuba comes from fossil sources.

This country consumes some 8.3 million tons of fuel per year, of which almost 40 percent is nationally produced.

President Díaz-Canel explained on Apr. 14 that due to the number of thermoelectric blocks under repair “we have had to depend more on distributed generation that basically consumes diesel” in the country’s 168 municipalities.

The generation deficits cause blackouts, although of a lesser magnitude than the 10 to 12-hour a day cuts that for a large part of 2022 affected different parts of the country and sparked demonstrations and pot-banging protests in poor neighborhoods of several municipalities.

The rest of the electricity generation comes from gas accompanying national oil, and floating units rented to Turkey, while renewable energy sources account for only five percent of the total.

The current energy situation is occurring as summer looms, when temperatures above 35 degrees Celsius increase the use of fans and air conditioners, while a majority of the 3.9 million homes in Cuba depend on electricity for cooking food.

Members of the Electric Motorcycle Club gather in Havana for recreational activities. Customs measures have facilitated the importation of electric vehicles which reduce carbon emissions. CREDIT: Jorge Luis Baños/IPS

Promoting renewable sources

“We must further promote renewable sources and stimulate a change from fuel-guzzling, polluting vehicles that are more than half a century old to more modern and efficient ones,” computer scientist Alexis Rodríguez told IPS from the eastern city of Holguin, where he lives.

The transformation of the national energy mix is ​​considered by the government a matter of national security, and as part of its plans it aims for 37 percent of electricity to come from clean energy by 2030.

Since 2014, Cuba has had a policy for the prospective development of renewable energy sources and their efficient use, and in 2019 Decree Law 345 established regulations to increase the proportion of renewables in electricity generation and gradually decrease the share of fossil fuels.

Such a significant transformation will require investments of some six billion dollars, authorities in the sector estimate, which constitutes a challenge for a country whose main sources of revenue are dwindling, and which has pending a restart of interest payments on its debt to international creditors.

“It is also important to encourage the use of bicycles and electric vehicles, but they must be sold at reasonable prices, on credit as well, with guarantees of spare parts and the improvement of infrastructure,” Rodríguez added.

In addition to hybrid buses, a hundred light electric vehicles have been added to the capital’s public transport system that contribute to citizen micromobility and to reducing carbon emissions.

In recent years, the customs agency made provisions more flexible for citizens and companies to import solar panels. Although official data are not available, the measure has not had a significant influence.

Measures for the import and assembly on the island of bicycles, motorcycles and three and four-wheel electric vehicles – more than half a million of which circulate in Cuba – also bolster the mobility of people and families.

However, the high prices and sales only in hard currencies curb the expansion and use of more environmentally-friendly vehicles. Another hurdle is the dependence on the national power grid to recharge the batteries and the absence of service stations for electric vehicles.

Residents of the Fontanar neighborhood in the Cuban capital are pleased with the incorporation of electric three-wheel vehicles to shorten distances between sectors within Boyeros, one of the municipalities that make up Havana. CREDIT: Jorge Luis Baños/IPS

By Luis Brizuela
HAVANA, Oct 17 2022 (IPS)

The incorporation of small electric vehicles for public transport, together with initiatives that encourage the use of bicycles, represent opportunities and challenges for Cuba to sustainably and inclusively combat the chronic problems in urban mobility.

“Connecting nearby places with electric means of transportation has been very timely and a relief,” said Dania Martínez, referring to the well-known Ecotaxis, six-seater vehicles that since June have been providing transportation between neighborhoods within the municipality of Boyeros, one of the 15 that make up Havana."Neomovilidad has aimed to strengthen the regulatory framework for an efficient transition to a low-carbon urban transport system in Havana, with a positive environmental impact." -- Reynier Campos

The teacher and her son were waiting for one of these vehicles at the Fontanar shopping center to take them to Wajay, their neighborhood on the outskirts of Havana, when IPS asked them what they thought about the service.

“Public transportation is not good in this area, far from the city center, and private taxis charge you a high fee. Just getting somewhere else five kilometers away can be difficult. Hopefully the three-wheelers will spread to other places,” Martinez said.

She was referring to light motorized vehicles that resemble some kinds of Asian autorickshaws, which are also known locally as motocarro or mototaxi, with a capacity for six people in the back.

With a range of 120 kilometers, these three-wheeled electric vehicles cover three two- to four-kilometer routes for a price of four pesos, or 17 cents at the official exchange rate in a country with an average monthly salary equivalent to about 160 dollars.

The fleet of 25 vehicles is part of the Neomovilidad project, implemented by the General Directorate of Transportation of Havana (DGTH) and the United Nations Development Program (UNDP) office in Cuba.

For its implementation until 2023, it has a budget of 1.9 million dollars donated by the Global Environment Facility (GEF).

“From its start in 2019, Neomovilidad has aimed to strengthen the regulatory framework for an efficient transition to a low-carbon urban transport system in Havana, with a positive environmental impact,” Reynier Campos, director of the project, told IPS.

During the first three months of operation, more than 135,000 people were transported, with an estimated monthly emission reduction potential of 6.12 tons of carbon dioxide equivalent.

On the downside, Ecotaxis can only recharge at night by connecting to the national power grid, 95 percent of which depends on the burning of fossil fuels to generate electricity. Recharging is carried out at the three-wheel vehicles’ parking area and is done at night because it takes about six hours.

However, there are plans to contract power from solar parks of the state-owned electric utility Unión Eléctrica de Cuba, in order to offset consumption, executives said.

Other fleets of Ecotaxis provide service in the municipalities of La Habana Vieja, Centro Habana and Guanabacoa, also with UNDP support, and contribute to the national commitment to climate change mitigation actions.

Campos explained that Neomovilidad is a pilot project in Boyeros that could be extended to other Havana municipalities and cities of this Caribbean island nation of 11.1 million people, where public transportation is one of the most pressing long-term issues.

Reynier Campos, head of the Neomovilidad project, stressed that the initiative proposes to strengthen the legislative framework and promote public policies based on four lines that contribute to Sustainable Urban Mobility and help reduce carbon emissions in Cuba. CREDIT: Jorge Luis Baños/IPS

Long-standing problem

With its 2.2 million residents and tens of thousands of people who live here on a short-term basis, Havana has 1.4 million people using transportation daily, one million of whom use the state-owned bus company Empresa de Ómnibus Urbanos, according to the Ministry of Transportation.

But the most recent official reports acknowledge that less than 50 percent of the fleet of public buses are currently operating in the capital.

The Cuban government blames the U.S. embargo as the main obstacle to the purchase of spare parts, as well as the lack of access to credit to repair and renovate buses, the main form of public transportation.

Problems with the availability of fuel and the number of drivers who find work in sectors with greater economic benefits also undermine an irregular service whose most visible face is the overcrowded stops at peak hours.

Figures indicate that 26 percent of the total estimated passengers in Havana use private taxis, which charge higher rates that not everyone can afford.

There are also non-agricultural transportation cooperatives with cabs and minibuses, as well as buses of the state-owned Transmetro Company, that provide services with set schedules.

About 80 percent of Latin America’s inhabitants live in towns and cities, and urban public transport remains essential in regional mobility plans.

Cuba is quietly taking steps to encourage the use of alternative vehicles and increase electricity production from renewable sources, which plans aim to raise from the current five to 37 percent by 2030.

As a result of flexible customs regulations for their importation, as well as assembly, it is estimated that half a million bicycles, motorcycles and electric three-wheelers are in circulation on the island, helping families get around.

However, high prices and sales only in foreign currency hinder their spread. Some of the most economical ones cost over 1,000 dollars, while others range from 2,000 to 5,000 dollars in government stores.

Mirelis Cordovés, driver of one of the electrocycles, makes 11 trips a day on the Fontanar-Wajay route, in the Boyeros municipality of the Cuban capital. She is pleased to have a job and a higher income to support her nine-year-old son, whom she is raising on her own. CREDIT: Jorge Luis Baños/IPS

Gender focus to reduce gaps

Neomovilidad stands out for encouraging the incorporation of women as drivers and promoting female employment.

“In addition to giving me a job, my income is higher, helping me support my nine-year-old son,” Mirelis Cordovés, a single mother who is one of the 13 women who now form part of the project’s team of drivers, told IPS.

Latin American nations such as Chile, Colombia, Costa Rica, the Dominican Republic and Panama have adopted national policies related to the development of electric mobility.

In the case of Cuba, the proposal is “a vision for the development of electromobility from the Ministries of Transport, Energy and Mines and Industry, with guidelines and priority lines in public transport, including the conversion of vehicles,” said Campos.

He said that Neomovilidad proposes to promote public policies that contribute to Sustainable Urban Mobility.

The project urges considering the specific mobility needs of each social group and mainstreaming variables such as gender, age and accessibility, in order to reduce gaps.

The National Gender Equality Survey, conducted in 2016 but whose results were released in February 2019, showed that women primarily bear the burden of care work.

They are the ones who spend the most time taking children, family members or other people under their care to schools, hospitals or to buy food, the survey showed.

Transportation was identified as one of the top three problems for Cuban women, second only to low incomes and housing shortages.

The study drew attention to the correlation between time use and income inequality, because cheaper transportation options (public buses) increase travel delays.

Experts consulted by IPS consider that in the case of Cuba, a developing nation shaken by a three-decade economic crisis and pressing financial problems, there is no need to wait for solutions that demand large resources, if small and accessible alternatives can be devised to organize and facilitate mobility.

The Neomovilidad stand during the 2022 International Transport Fair at the Pabexpo fairgrounds in Havana. The project includes a pilot system of public bicycles, with six bicycle stations and 300 bikes, which should start offering its services before the end of 2022. CREDIT: Jorge Luis Baños/IPS

Integrating bicycles

As part of Neomovilidad, a pilot system of public bicycles should be inaugurated before the end of 2022, with six stations and 300 bicycles, also in the municipality of Boyeros.

The autonomous venture Inteliforja will operate the bicycle mobility system as a local development project, in conjunction with the DGTH, after winning a bidding process.

“The main activity will be the rental of bicycles at affordable prices. It will include other services such as parking, mechanical workshops, as well as complementary activities such as bicycle touring, package delivery and community activities to encourage the use of this means of transport,” explained Luis Alberto Sarmiento, one of the managers of Inteliforja.

Sarmiento told IPS that the central workshop will be located at the José Antonio Echeverría Technological University of Havana, where there are several engineering and architecture courses.

“We plan to install a solar panel-powered station there to charge students’ motorcycles and electric bicycles,” said the young entrepreneur.

“Farther in the future, when we have more resources, we plan to introduce bicycles or three-wheelers for the transportation of elderly and disabled people,” Sarmiento added.

Although electric mobility and the use of bicycles are seen as promoting more open, safer, cleaner and healthier cities, Cuba faces multiple challenges in this regard, starting with the need to lower the price of vehicles and ensure the stable availability of parts and components.

Other pending issues are the lack of recharging points for refueling outside the home, the lack of bicycle lanes or green lanes, in addition to the urgent need to repair a road network, 75 percent of which is classified as in fair or poor condition.

The Mexico City government is increasing the number of electric buses in its fleet, such as the trolleybuses pictured here on a street in the south of the capital. But their energy source is still fossil fuels and the deployment of electric cars remains slow in the country. CREDIT: Emilio Godoy/IPS

By Emilio Godoy
MEXICO CITY, Sep 19 2022 (IPS)

The Mexico City government began testing an elevated route for electric buses with great fanfare on Sept. 11, in a bid to promote more sustainable transport. The initiative is part of an incipient promotion of electromobility in the country, amidst pro-fossil fuel energy policies.

Mexico, a country of some 129 million people, lacks a national road transport strategy, considered vital for reducing polluting emissions and for the path to a low-carbon economy, which restricts the adoption of policies.

Experts consulted by IPS highlighted the limitations of the measures introduced regarding road transportation.

“Electric mobility is still not very developed, both in terms of facilities for acquiring vehicles and infrastructure. We are not advancing as fast as other Latin American cities. There is a lack of cutting-edge projects,” Bernardo Baranda, director for Latin America of the non-governmental Institute for Transportation and Development Policy, based in Mexico City, told IPS.

Mexico City, home to more than 20 million people when its suburbs are included, seeks to promote electric public transport with the new route for an elevated track exclusively for buses. It is also pushing other initiatives, such as the conversion of buses from diesel to electric, announced in July.

Only two other major cities in the country, the western city of Guadalajara and the northern city of Monterrey, have electric public transportation buses.

In the Latin American region, capitals such as Bogota, Montevideo and Santiago de Chile have large electric public transport fleets and countries such as Chile, Costa Rica, Panama and Uruguay already have sectoral plans in the region.

The Mexican vehicle fleet exceeds 53 million units and has been constantly growing since 2000, according to figures from the National Institute of Geography and Statistics.

Sales of electric and hybrid cars are on the rise: in 2016, dealerships sold 254 electric units, compared to 1,703 in the first half of this year alone.

Self-charging hybrids that do not need to be plugged in (they use their gasoline engines to charge the batteries) have been the most popular, with the number purchased climbing from 7,490 in 2016 to 19,060 in the first half of 2022. Sales of plug-in vehicles grew from 521 to 2,263 in that same period.

Since 2018, the government’s Federal Electricity Commission (CFE) has held at least two tenders for the installation of so-called electrolineras, charging stations, in the country, where more than 2,000 points are already operating. But not all of them are working, as IPS found in a tour of several areas of the Mexican capital.

Be that as it may, the government’s plan to deploy this infrastructure has not sufficed to boost the purchase of electric vehicles.

An electric charging point in a neighborhood in south-central Mexico City. The state-owned Federal Electricity Commission has installed more than 2,000 electric vehicle charging centers in Mexico, but this and other measures have not encouraged their spread in the country. CREDIT: Emilio Godoy/IPS

Gustavo Jiménez, director of the consulting firm Grupo E-mobilitas, acknowledged “slow progress” in the deployment of public transportation, cab fleets and delivery companies, as well as vehicle assembly projects.

“For the last two years there have been no export and import tariffs for electric vehicles, which reduces the cost by 20 percent. There is also a reduction in value added tax. But progress has not been as fast as we would like. It is complicated to charge your vehicle as you drive around the country,” he told IPS.

The National Electric Mobility Strategy, which the government of President Andrés Manuel López Obrador froze when he took office in December 2018, created a comprehensive framework and incentive schemes for electric vehicles.

In addition, the current government, described as “pro-fossil fuels” by environmentalists critical of its defense of hydrocarbons, maintains record levels of gasoline subsidies, which will exceed 15 billion dollars in 2022, according to official estimates.

Latin America’s second-largest economy is the world’s 12th biggest oil producer and 17th biggest gas producer. In terms of proven crude oil reserves, it ranks 20th and 41st, according to data from the state-owned oil giant Petróleos Mexicanos (Pemex), in an industry protected by López Obrador despite the country’s climate commitments.

Among the measures of the stalled Strategy were the installation of charging infrastructure in streets and homes, the introduction of green license plates and the exemption of import and export taxes for electric vehicles.

During the 2nd Annual Meeting of the U.S.-Mexico High Level Economic Dialogue, held in Mexico City on Sept. 12, the United States invited its neighbor and trading partner to participate in an integrated electric vehicle supply chain – an essential link in the economic-environmental program implemented by the U.S. government.

White smoke

The Economic Commission for Latin America and the Caribbean (ECLAC) lists 10 electromobility projects in the region, one of which involves the manufacture and sale of electric three-wheeled vehicles in Mexico.

Mexico City, Guadalajara and Monterrey, together with three Colombian cities and five Brazilian cities, are also participating in the TUMI E-Bus Mission project, aimed at supporting 500 cities by 2025 in their transition to the deployment of 100,000 electric buses in total.

Funded by German economic cooperation and six international organizations, the project is part of the Transformative Urban Mobility Initiative (TUMI).

The decarbonization of transportation is fundamental to the fight against the global climate crisis. In Mexico, CO2 emissions from that segment totaled 148 million tons in 2019, equivalent to 20 percent of the total, according to the government’s National Institute of Ecology and Climate Change (Inecc).

Mexico and the United States are seeking to integrate the electric vehicle manufacturing value chain. In the image, Mexico’s foreign minister, Marcelo Ebrard, shows an electric unit manufactured in Mexico in February 2022. CREDIT: Secretariat of Foreign Affairs

Estimates by the Ministry of the Environment and Natural Resources put life-cycle emissions (from fuel extraction to combustion in the engine) at 358 grams of CO2 per kilometer for gasoline-burning vehicles, 166 for hybrid cars (using fuel and electricity) and 77 for solar energy users.

The study “Estimation of costs and benefits associated with the implementation of mitigation actions to meet the emission reduction targets assumed under the Paris Agreement”, presented on Sept. 13 by Inecc, indicates that six sectoral policies would contribute a mitigation of 36.5 million tons by 2030.

It also outlines 35 emission reduction actions with which the country would obtain total benefits of 295 billion dollars.

In the case of electromobility, the average cost of pollution abatement amounts to 500 dollars per ton, with an investment of nearly 5.9 billion dollars, gross benefits of 3.1 billion dollars and a reduction of 600,000 tons of CO2.

By replacing diesel buses with electric buses, the average cost would add up to 152.90 dollars per ton of CO2. The benefits of fuel savings would amount to 3.2 billion dollars.

By 2030, emissions cuts would contribute one million tons, but this potential would increase as domestic power generation incorporates more clean energy.

The CFE estimates that by 2041 some 700,000 electric vehicles will be in circulation in the country and will require 40,000 charging stations, which also means strengthening the domestic electric power grid.

Last November, during the Glasgow climate summit, Mexico adopted a voluntary goal to sell only non-polluting cars by 2035.

However, at the same time, the Mexican government has provided for the legalization of used cars coming from abroad in 2021, which experts see as a negative step in the fight against pollution.

Baranda the transportation expert said gasoline subsidies, the promotion of fossil fuels and the lack of energy transition are barriers to electromobility.

“You need public policies, at the federal and state level, such as incentives and infrastructure. Many countries are doing this. Mexico is not on the way to making good on international commitments. It’s a good opportunity to invest in electric transportation,” he said.

For his part, Jiménez questioned the current energy policy, which has an impact on sustainable mobility.

“There are no clear incentives for public transportation, significant subsidies are required. There is not so much infrastructure, there are no regulations for chargers, there are no measures for the circulation of electric cars. There is a lack of a coherent enabling framework and a national program to promote electric vehicles. Mexico has no coordination at the national level,” he complained.

Iêda de Oliveira is the director of Eletra, a pioneer in the production of electric and hybrid buses in Brazil. In July, the company inaugurated a new plant for the production of 1,800 of these buses per year, relying on the expansion of this market in Brazil and Latin America. CREDIT: Courtesy of Eletra

By Mario Osava
RIO DE JANEIRO, Aug 19 2022 (IPS)

Brazil celebrated 100,000 electric vehicles in circulation in late July, but this is a drop in the ocean compared to the 46 million combustion vehicles registered in the country and in contrast with the pace of the phasing out of oil in the world’s automotive industry.

The lag is due to several factors, but one is the progress achieved in Brazil by biofuels, especially ethanol, which in its best years, such as 2019, surpassed domestic gasoline consumption.

Much of this consumption is due to the addition of 27 percent ethanol in Brazilian gasoline, a blend that helps reduce urban air pollution. Most of it is provided by fuel made from sugarcane.

Also contributing to the success of biofuels is the “flex car” that has been produced in Brazil since 2003, with engines that consume both fuels in a mixture of any proportion. The consumer chooses gasoline or ethanol according to convenience, generally because of the price difference.

There is a consensus that ethanol makes sense to buy if it costs less than 70 percent of the price of gasoline, because in general its consumption per kilometer driven is 30 percent higher. But some nationalists always choose ethanol, as a genuinely national product.

Thus, the transition to electric vehicles will cost Brazil not only the replacement of the entire fuel production and distribution infrastructure with electricity, but also a probable drastic reduction in its sugarcane industry, which generates one million direct and indirect jobs.

In terms of gas stations alone, for example, Brazil has more than 42,000 distributed throughout its vast territory, the largest in Latin America.

The Brazilian automotive industry, which ranks ninth in the world in terms of production, does not yet produce fully electric vehicles. Its option, for now, are hybrids, which have combustion and electric engines.

In June, of the 4,073 electrified vehicles that joined the national fleet, 73 percent were hybrids – ethanol (44 percent) and gasoline (four percent) – while the so-called plug-in hybrid electric vehicles (PHEVs) accounted for 25 percent and have batteries that are also recharged at specific points.

In the first two cases, the two engines provide propulsion or only the electric one, powered by combustion as electricity generator.

Only two of the 13 assembly plants in Brazil produce hybrids. Fully electric cars, with only batteries charged at plugs, are all imported. They accounted for 27 percent of electrified vehicles registered in Brazil in June.

Adalberto Maluf, president of the Brazilian Electric Vehicle Association, fears that the lack of a national electric mobility policy will affect the competitiveness of the Brazilian automotive industry. He decided to resign from his corporate post to run for Congress, for the Green Party. CREDIT: Courtesy of Adalberto Maluf

Brazil’s hesitation

The industrial sector advocates a gradual transition, which would include greater development and use of biofuels and hybrid vehicles, to avoid or at least delay the end of a sector that represents 20 percent of Brazil’s industrial product.

Arguments such as pollution caused by the production and disposal of batteries undermine support for electrification to combat the climate crisis.

Greenhouse gas emissions from electricity generation, a negative factor in countries that depend on fossil fuels, especially coal, do not affect electric mobility in Brazil, where renewable sources account for 85 percent of the electricity mix.

Batteries are also a barrier, as is the higher cost of electric vehicles. But technological advances are expected to make them cheaper and Brazil can benefit from domestic production, if the feasibility of a large lithium mine in the state of Minas Gerais is confirmed, as well as advantages due to the abundance of iron, nickel and niobium, other components, in the country.

Brazil’s reluctance is reflected in the lack of an “electromobility policy,” complained the president of the Brazilian Electric Vehicle Association (ABVE), Adalberto Maluf, at a Jul. 29 debate on the subject in São Paulo.

Without public incentive policies, Brazil could lose international competitiveness and get left behind by the global trend, he lamented.

Maluf, who was also director of Marketing, Sustainability and New Businesses at the Chinese company BYD in Brazil, left his corporate position on Aug. 15 to become a candidate for the lower house of Congress in the October elections for the Green Party. He promises to fight to reduce transportation pollution.

Global progress

The world produced 6.6 million new electrified cars in 2021, more than double the previous year and nearly nine percent of total motor vehicle sales, according to the International Energy Agency.

And the global trend is to go to 100 percent electric or battery-powered vehicles (BVE), rather than hybrids.

Meanwhile Brazil only incorporated 20,427 new electric vehicles during the first half of this year, out of a total of 918,000 cars, trucks, buses and commercial vans.

The automotive sector is facing a decline in production in the last two years, during the COVID-19 pandemic. Its peak occurred in 2013 with 3.7 million units produced that year.

The annual total has dropped since then, and has remained below three million since 2015. This year, 2.34 million vehicles with four or more wheels are expected to be produced.

Around the world, the accelerated advance of electrification is confirmed especially in the European Union, which decided to abolish the sale of combustion cars as of 2035. Norway, which is not a member of the EU, set that goal for 2025, viable since these new vehicles reached two-thirds of sales in the country in 2021.

China is also experiencing an electromobility boom, with three million electric vehicles sold last year, or 15 percent of all motor vehicles produced in the country.

In June 2017 the Ministry of Mines and Energy received the first electric vehicle made by Itaipu, the giant hydroelectric power plant shared by Brazil and Paraguay, as an incentive for the electrification of transportation. But little has been done since then for the dissemination of electric vehicles in the country. CREDIT: Marcelo Camargo/Agência Brasil

Buses reduce the lag

The high price of electric cars, the low investment capacity in infrastructure, the technology gap and the small scale of the market, among other factors, prevent developing countries in the South from following the trend of rich or emerging markets such as China.

But the advance of electric buses helps mitigate that disadvantage, at least in Latin America.

Brazil has the advantage of having companies that produce and export these vehicles which play a key role in mobility in large cities, in addition to a huge market. Its bus fleet exceeds 670,000 units nationwide, which will have to be replaced, since only a few hundred are electric, which is facilitated by the fact that many cities have made electromobility the goal of public transportation.

São Paulo, for example, aims to have 2,600 electric buses in service by 2024 and to eliminate all fuel-powered passenger transport by 2030. Around 15,000 buses serve Brazil’s largest city, a metropolis of 20 million people.

Several companies presented their new public transport vehicles at the Latin American Transport Fair (LatBus), held Aug. 9-11 in São Paulo.

This is the case of Marcopolo, the largest bus body manufacturer in Brazil, which exhibited the Attivi, its first 100 percent electric model for Brazilian cities. The company has already exported more than 350 buses to Latin American countries such as Argentina and Colombia, and Asian countries such as India.

Eletra, which considers itself a “national leader in sustainable transportation technology”, also presented its e-Bus buses in different sizes – 12.5 and 15 meters – fully electric buses that can travel 250 kilometers without recharging the batteries.

The company announced the inauguration of a new industrial plant in São Bernardo do Campo – basically the capital of the Brazilian automotive industry near São Paulo – with an annual capacity to produce 1,800 electric and hybrid buses, and with 1,200 employees.

View of the interior of the Reborn plant, where electric buses are manufactured, for now for the state-owned copper company Codelco, to which a hundred units are to be delivered in December, destined for the El Teniente mine, the largest underground copper mine in the world, with some 3,000 tunnels. CREDIT: Orlando Milesi/IPS

By Orlando Milesi
SANTIAGO, Jul 15 2022 (IPS)

The manufacture in Chile of an electric bus christened Queltehue, a wading bird native to the country, is another step towards electromobility and in the fight against pollution that triggers frequent environmental crises and smog emergencies in Santiago and other cities.

The National Electromobility Strategy, updated and relaunched in 2021, aims for 100 percent of the public transport vehicle fleet and 40 percent of private cars to be electric by 2050. By 2035, internal combustion engine cars will no longer be sold in this country.

That means that in less than 30 years some five million vehicles will switch from fuel to electricity, avoiding the emission of some 11 million tons of carbon dioxide (CO2) per year and reducing spending on oil and petroleum products by more than 3.3 billion dollars a year.

Electric mobility can also be clean and with zero emissions, if this long narrow South American country sandwiched between the Andes Mountains and the Pacific Ocean takes advantage of its enormous potential to produce solar and wind energy thanks to the abundant sunlight in the Atacama Desert and the strong winds in coastal areas and in the southern region of Magallanes.

However, much remains to be done because there are currently only about 2,750 electric vehicles in circulation in Chile and there are only about 310 public chargers to serve them.

A notable stride forward in the last four years has been the increase in the number of electric public transport buses, which now account for 20 percent of the 6,713 buses that serve passengers in Santiago, where 7.1 million of the country’s 19.1 million inhabitants live.

At the Los Espinos Electroterminal, in the municipality of Peñalolén in the Andes foothills bordering Santiago, the electric buses of the private company Metbus begin and end their routes through the Chilean capital. “We noticed that the passengers are more relaxed,” company inspector José Bazán, who traveled twice to Shenzhen, China to buy the electric buses, told IPS. CREDIT: Orlando Milesi/IPS

In May, Minister of Transport and Telecommunications Juan Carlos Muñoz confirmed that another 70 electric buses will serve some 50,000 daily passengers in the working-class municipalities of La Pintana, San Joaquín and Puente Alto, on the southern outskirts of Santiago.

“Bringing electromobility and its benefits to sectors that have been left behind by development not only makes a city more sustainable, it makes it more inclusive,” he said at the time.

“Quality transportation is fundamental for people to leave their cars parked and opt for more efficient modes, which will allow us to make Santiago an environmentally friendly city,” Muñoz added.

So far, electric buses for public transport, a sector that is in private hands in Chile, have come from Chinese companies, especially BYD and Foton, but that is expected to change as electric mobility expands.

The strategy not only targets public transportation, but also freight, commercial vehicles and vehicles used in key industries in the local economy, such as mining.

Engineers Ricardo Repenning and Felipe Cevallos, partners in Reborn, pose for a photo in front of their factory in Rancagua, the first in Chile to manufacture and reassemble electric buses, for now for the state copper industry, but with the intention of extending to urban and rural public transport. CREDIT: Orlando Milesi/IPS

Successful experience in the mines

Felipe Cevallos, a 32-year-old mechanical engineer, and Ricardo Repenning, a 33-year-old electrical engineer, are partners in the Chilean company Reborn Electric Motors, which began by converting diesel vehicles to electric ones, but this year will manufacture 104 electric buses for the El Teniente mine of the state-owned copper company Codelco.

These buses do not emit CO2 or make noise and can safely carry 24 passengers each.

“We have successfully carried passengers a total of 210,000 kilometers in the mine in difficult conditions of mud and salt, steep slopes and high levels of humidity,” Cevallos proudly told IPS during a visit to the company’s plant in the municipality of Rancagua, 86 kilometers south of Santiago.

The 3,000-square-meter automotive facility employs 50 people whose average age is 30, and can produce up to 200 vehicles per year.

The buses are made up of 45 percent Chilean parts, while the bodies are brought from Brazil, the engines come from Canada and the batteries are made in China.

“We manufacture the power and control branches, the distribution strip and the low to high voltage domains, the structures, displays and software to run the systems and the engine cooling cycles and other components,” Cevallos said.

A picture of one of the electric buses on the assembly line at the Reborn plant. Each bus contains 45 percent Chilean parts, while the rest are imported from Brazil, Canada and China. CREDIT: Orlando Milesi/IPS

At El Teniente, the world’s largest underground copper deposit, there are 24 double-gun 150-kw chargers that can charge two Queltehue buses in 40 minutes.

(The scientific name of the Queltehue or Southern Lapwing, the species for which the bus was named, is Vanellus chilensis.)

Other buses operate from Rancagua and another 10 chargers are being installed at the terminal of Transportes Link, the operator of the public transport service, in partnership with Reborn.

“Fast charging requires more power and better splicing. The electrolinera charging station charges faster, but the vehicle must be able to support faster charging,” Repenning explained.

Codelco, the world’s largest copper producer and exporter, is committed to using only electric vehicles to transport workers at El Teniente, which is located under the hill of the same name in the municipality of Machalí, some 120 kilometers from Santiago.

“The 104 buses that we will deliver will transport the workers between their arrival points and locker rooms to the interior of the mine. Each one travels 15 to 20 kilometers, largely through tunnels,” said Repenning.

He added that Reborn manufactures and reassembles electric buses.

“We started out by reconverting diesel buses that had reached the end of their useful life and transforming them into 100 percent electric. In 2020 we started making brand-new 100 percent electric buses in the Rancagua factory,” he explained.

Cables of all colors and sizes are used at the Reborn electric bus plant in the Chilean town of Rancagua. The company is recognized by the international Society of Automotive Engineers. CREDIT: Orlando Milesi/IPS

The company is now focused on transportation in the mining industry, but its technology can be applied to urban and rural transportation – and that is the direction of its future expansion.

Reborn has been recognized by SAE International, formerly named the Society of Automotive Engineers.

“When the batteries were very heavy, a lot of passenger capacity was lost. Today, batteries have greatly improved their energy density,” and that facilitates the electrification of public transportation, Repenning said.

Pending challenges

Land transportation absorbs about 30 percent of the total energy consumed by Chile and the greenhouse gases it generates represent between 17 and 25 percent of the total gases emitted by this country.

Luciano Ahumada, director of the School of Information Technology and Telecommunications at the Diego Portales University (UDP), told IPS that “electromobility is a tremendous tool, perhaps the most important one, for achieving carbon neutrality and thus making us responsible for our environment.”

Ahumada said that among the biggest problems of electromobility are the high price of vehicles and the lack of confidence among users that they can count on a network that recharges batteries in a timely manner.

The private company Metbus is a pioneer in electromobility in Chile. It brought the first two electric buses from China in 2017. It now operates 1,430 electric buses, the largest fleet in South America, with vehicles equipped with air-conditioning, WIFI, USB and camera systems. At the Electroterminal it installed solar panels to generate the energy it consumes in its offices. CREDIT: Orlando Milesi/IPS

An electric bus in Chile costs around 300,000 dollars and a car around 50,000 dollars. But the operating cost of both is a third or a quarter of that of combustion engine vehicles.

“The biggest challenge is to generate an incentive for the purchase and production of electric vehicles and to create and install charging infrastructure and a charging management system that is reliable and sustainable,” said Ahumada.

Héctor Novoa, a professor at the UDP Faculty of Architecture who is working on a doctoral thesis on electric mobility, believes that the Chilean electromobility strategy has pros and cons.

“Chile has the largest fleet in the southern hemisphere with electric buses in public transportation,” he noted.

“But its public policy has gone hand in hand with favoring the involvement of actors that have a share of the energy business. Electromobility is also a business model,” Novoa said.

He cited as examples the Copec group of companies, dedicated to forestry, energy and gas stations, and the Chilean subsidiary of the Italian transnational Enel, focused on electricity and gas.

Many young university graduates work at the Reborn company that operates in the city of Rancagua, south of the Chilean capital, where electric buses are assembled for the El Teniente copper mine, but which has a goal of producing buses for urban and rural public transport. CREDIT: Orlando Milesi/IPS

“Copec has electric vehicle terminals. Where previously the buses were supplied with fuel, now they are sold electricity. Public policy has gone hand in hand with the private sector to secure for it certain parts of the business,” Novoa told IPS.

But the academic regretted that the installation of public electric chargers “has targeted certain upscale neighborhoods and municipalities of Santiago, which points to a strengthening of inequality.

“The charging infrastructure is too limited to allow charging in public places without being exposed to being vandalized,” he acknowledged.

Novoa also called for greater clarity regarding how the city would absorb the new charging infrastructure and make the distribution more egalitarian.

He concurred with Ahumada that “electromobility is a key element for decarbonization” and he also believes that the high price of electric vehicles limits their development.

He stressed, however, that “electromobility is based on an awareness linked to scientific evidence in international forums that brings the ecological and scientific world closer to politics.”

The academic also urged consideration of a largely ignored aspect: the fact that an important part of vehicle emissions comes not from exhaust but from brake pad and tire wear that produces toxic particulate matter.

In saturated zones this fine particulate matter pollutant is significant, Novoa said.

“Climate change has accelerated the transformation processes associated with decarbonizing not only transport, but also other areas linked to industry, such as energy generation,” he said.

Iêda de Oliveira sits at the wheel of one of the buses manufactured by the company she heads, Eletra, a pioneer in electric and hybrid buses in Brazil. She regrets that Brazil, due to a lack of adequate public policies, has lost the foreign market for buses and part of the domestic market to China, after having been a major exporter of buses to Latin America and other regions. CREDIT: Courtesy of Eletra

By Mario Osava
RIO DE JANEIRO, Jul 13 2020 (IPS)

Electric transport, still limited in Latin America despite its urban benefits, could expand during the post-pandemic economic recovery, says Adalberto Maluf, president of the Brazilian Association of Electric Vehicles (ABVE).

If there are major investments in the necessary reactivation of the economy, they should form part of “a transition towards a green economy, in an agenda for the future,” as some European countries have already decided, said Maluf, who is also director in Brazil of the Chinese company BYD, the world’s largest manufacturer of 100 percent electric vehicles.

“The transition to electric mobility powered by clean energy is beginning to generate growing interest among governments, and also among citizens,” notes the report “Electric Mobility 2019: Status and Opportunities for Regional Collaboration in Latin America and the Caribbean,” released in Spanish on Jul. 2 by UN Environment.

This is reflected in “the emergence of different civil society groups dedicated to this sector and made up of enthusiasts, early adopters and entrepreneurs,” according to the report, which points to a bigger push in public transport in the 20 countries studied.

In a region that has rapidly urbanised, with 80 percent of the population living in urban areas, and where the number of large cities has climbed, electric vehicles are improving the environment, transportation, quality of life and collective health, in addition to opening up new economic possibilities and generating jobs and technological innovations.

Transportation is responsible for 22 percent of the region’s emissions of short-lived climate pollutants and 15 percent of greenhouse gases, according to the report by the regional office of the agency also known as the United Nations Environment Programme (UNEP).

The electrification of 100 percent of urban transport would prevent 180,117 deaths from 2019 to 2050 in Mexico City, 207,672 in Buenos Aires and 13,003 in Santiago, by eliminating the gases and particulate matter emitted by conventional vehicles, the report estimates.

The efficiency of electricity, far superior to that of fossil fuels in vehicles, offers a great economic advantage in the medium term.

A bus manufactured by BYD, a Chinese company founded in 1995 that soon became a powerhouse in the production of rechargeable batteries, electric buses and cars and solar panels. In Brazil, the firm set up shop in the city of Campinas, 100 kilometres from São Paulo. Its production is focused on clean energy and transport. CREDIT: Courtesy of BYD Brazil

The electric vehicle is more expensive because of the battery, which can cost nearly half of the total for a bus that can run 200 kilometers without recharging, said Iêda de Oliveira, executive director of Eletra, an electric bus company founded in 1988 in São Bernardo do Campo, near the Brazilian metropolis of São Paulo.

The price difference, she told IPS from that city by phone, is recovered in a few years from savings in energy and maintenance, since electric motors have fewer parts and wear out less.

The economic advantages are accentuated in countries that, like Chile, depend on imported oil and therefore suffer the effects of international price swings and exchange rate fluctuations.

Chile stands out in the electrification of its urban transport. Santiago’s Metropolitan Mobility Network had 386 electric buses by the end of 2019. There will be almost 800 by the end of 2020. BYD (Build Your Dreams) is the largest supplier of electric buses in Chile, Maluf told IPS by telephone from São Paulo.

Furthermore, Chile has set a goal to electrify its entire public transport fleet and 40 percent of private transport by 2050, as part of the National Electromobility Strategy approved in 2016.

Colombia also stands out, with 483 electric buses in operation or on order in Bogotá and another 90 in the cities of Cali and Medellín as of late 2019. The national goal for 2030 is to have 600,000 electric vehicles of all types, according to the UNEP report.

Costa Rica and Panama are other countries in the region that have adopted national electric mobility plans. Argentina, Mexico and Paraguay are in the process of hammering out their own strategies.

The Dual Bus is an innovation developed by the Brazilian company Eletra, which has the advantage of adding more flexibility to the electric bus, which can operate in two configurations: as a hybrid or trolleybus (with electricity supplied by overhead wires) and hybrid or pure electric (battery). In the hybrid, the electricity is generated internally by a diesel engine. CREDIT: Courtesy of Eletra

Brazil, which could lead this process even as a manufacturer of electric vehicles, “lags behind” in electrification, said Maluf, adding that “BYD sold 1045 buses in Latin America in 2019, only four percent of which went to Brazil.”

“Chile is a case in point; it was already a major importer of conventional buses from the Brazilian industry,” said Oliveira, who leads ABVE’s Heavy Vehicle Group, in addition to heading Eletra. “Because of its shortsightedness, Brazil lost the Latin American market to China.

“We need a public policy on electric transport, which is not only an environmental but also an economic question, because Brazil could be a leader, given our large fleet, our national spare parts industry, and our national technology,” she said.

Clear goals, available financing, more favourable taxation that takes into account environmental, social and health benefits, incentives for local battery production and the expansion of recharging infrastructure should form part of this policy, Oliveira said.

Relying on imported batteries proved to be a trap. Suddenly they became outrageously expensive due to the 35 percent devaluation of the Brazilian currency, the real, this year, she pointed out.

In her view, the race for higher-capacity batteries is not the only path to take. Another option is to create more charging stations and use smaller batteries. “Expanding the infrastructure and using smaller batteries makes more sense, if you can charge them more often,” Oliveira said.

Adalberto Maluf, president of the Brazilian Association of Electric Vehicles and director of marketing and sustainability at BYD Brazil, a subsidiary of the Chinese company that is the world’s largest producer of electric buses and one of the largest makers of solar batteries and panels, hopes that public environmental and health awareness in the wake of the COVID-19 pandemic will drive the electrification of transportation, especially urban transport. CREDIT: Courtesy of Adalberto Maluf

Maluf asserted that claiming there are not enough charging stations to argue against increasing the number of electric vehicles in Brazil is no longer justified. There are at least two electric vehicle routes, one on the country’s busiest highway between Rio de Janeiro and São Paulo, and there are scattered charging stations elsewhere.

In addition, batteries can be charged quickly today, in half an hour, and in just 15 minutes 70 percent of capacity can be reached, he said.

Unfamiliarity with technology is the main factor curbing the spread of electromobility, Maluf said.

There is also resistance and political pressure from entrenched interests in the transportation industry, such as the traditional automotive industry, ethanol producers, fuel distributors and urban bus companies.

Nevertheless, electrification is progressing in different areas. Electric motorcycles, bicycles and scooters are mushrooming in cities that are adapting to new modalities.

Cargo transport is also gradually adhering to the new trend. The “retrofitting” of trucks to replace diesel engines with electric motors is Eletra’s new booming business.

In Brazil, hybrid electric vehicles predominate.

The UN Environment report recognises only 2045 electric vehicles registered in Brazil up to October 2019. But it only counts plug-in electric vehicles and excludes hybrids that run on an internal combustion engine and an electric motor that uses energy stored in batteries, which account for more than 90 percent of the electrified fleet.

ABVE statistics count a total of 30,092 electric vehicles registered from 2012 to June 2020. The number of vehicles registered rose threefold in 2019 from the previous year, to 11,858. Hybrids represented 95.4 percent of the total in 2018.

A diversity of options is the best route, given local needs and advantages, Oliveira argued. Adding a small battery to a trolleybus, for example, gives it flexibility that reduces the operating cost, she said.

New business models also promote solutions. Car-sharing, rental vehicles, electric generators, and associating energy distributors to urban transport are a few alternatives.

The Chilean model that separates the owner of the buses from their operators is interesting, as it attracts investment funds for the purchase of vehicles on a large scale, at lower costs, and facilitates solutions to conflicts, Maluf said.

By 2030, India would have 600 million vehicles on their roads, three times the current numbers leading to massive air pollution and greenhouse gas emissions unless it transitions rapidly to green vehicles. Credit: Manipadma Jena/IPS

By Manipadma Jena
NEW DELHI, Dec 6 2019 (IPS)

Dogged by intractable air pollution debilitating large northern swathes from mainly urban vehicle emissions, India earlier this year announced targets for a 40 percent non-fossil component in its fuel-mix by 2030 as part of its Nationally Determined Commitments (NDC) to the Paris accord on climate change. It aims for full electrification of public transit systems and of one-third private vehicles by 2030.

• The G20 nations are the biggest polluters collectively responsible for 78 percent of total global emissions, with the top four emitters China, United States, European Union and India contributing more than 55 percent, states United Nations Emissions Gap Report 2019 released in November.
• As the climate conference in Madrid negotiates greenhouse gas reductions, if countries expect to achieve the 1.5°C and 2°C temperature targets of the Paris Agreement, the large 7.6 percent annual emissions reduction from 2020 to 2030 would be mainly determined by these large emitters, the report has stipulated.

While the Indian government’s intent is firm and EVs multi-dimensional benefits for India widely acknowledged, its ambitious transition to clean transportation is proving far from smooth.

Why India needs Electric Vehicles

By 2030, India would have 600 million on-road vehicles three times the current numbers, dominated by two-wheelers, fuelled mainly by 40 percent population in urban centres. Road transport accounts for around 11percent of total carbon emissions from fuel combustion.

Green private and shared public transportation can ensure clean air and better health for citizens, lower greenhouse gas emission, less road congestion and importantly reduced India’s dependence on imported crude oil, currently 80 percent of total use.

India EV transition priority is on public transport buses, four and three-wheelers for commercial use and as front-runners that can create public awareness and inclination to adopt clean and cheaper-in-the-long-run electric vehicles. 

EV sector that had seen its firstborn in 2010 and then sporadic new introductions without catching the buyers’ imagination or wallet, has been revived by this year’s national budget when the government heavily incentivised its demand by a slew of subsidies.

Hustled into activity by a government that means business this time and pressurised by the climate emergency, technical experts find there are serious infrastructural and policy gaps which need bridging before EVs can come on the roads to stay.

Where is the EV infrastructure?

The first of major hurdles is a near absence of battery charging infrastructure. India plans setting up at least one electric charging station every 3 square kilometres in earmarked metropolitan, one-milion-population and smart cities in the next three years till 2022.

The proposed 2,700 charging stations have been allocated $139,000, a good chunk of the total $1.4 billion budget, which also includes subsidies in the next 3 years under the government’s major EV scheme ‘Faster Adoption and Manufacturing of Electric vehicles (FAME)’.

“But India is seeing the chicken and egg problem of which should come first – the charging facility or the EV,” said a study from Shakti Sustainable Energy Foundation, a Delhi-based clean energy policy non profit. “People will not buy an electric vehicle unless there are charging facilities. At the same time facilities do not make business sense unless there are vehicles to charge.”

EVs high acquisition price tag a deterrent

Notwithstanding government incentives, upfront costs of an EV four-wheeler is between 2-3 times higher compared to the same-segment internal combustion engine (ICE) vehicle.

A basic EV hatchback model – the usual ICE entry level car for Indian families comes in the price range of an ICE mid-range sedan at rupees 10-12 lakhs ($13,900 – $16,700) that most middle-class Indians may never buy in their lifetime.

While the Indian buyer remains hesitant, there is an undeniable forward movement in the EV sector. Several Indian EVs have entered the market since last year. Already more international big names are readying to introduce their EVs into India – today potentially one of the world biggest markets globally, owing to its large population particularly in the 25 – 35 working age group.

Electric three-wheelers have begun plying Delhi and Bengaluru roads targeting micro-mobility or short distance needs such as 3 to 5 kilometre. An example are Delhi metro rail users commuting between the station and their homes. These 3-wheelers’ fares are low because the cost to them is much lower than diesel-run cabs and tuk-tuks.

“Though upfront cost of EVs are high they have a lower operating cost as against fossil fuel whose price have been going up. Also, EVs have only 25 to 30 moving parts as opposed to over 2000 moving parts in an ICE vehicle, thereby being more reliable, with fewer breakdowns,” argue World Resource Institute-India (WRI) researcher team of the Shakti study.

Electric vehicle batteries let down buyers, must evolve fast

A single battery charge in EVs has limited a range of less than 200 kilometres. Accustomed to long distances on a full-tank, the fear of being stranded halfway can be stressful. To compound this drawback, single recharging can take as much as 5 to 8 hours. Though fast charging in an hour is possible with another charging technique, it needs refining in India’s high ambient temperature and power grid voltage limitations.

“Increasing distance range per charge would need bigger sized batteries and end up increasing the car load, compromising its performance. A battery itself is 50 percent of the car’s weight in current Indian EV models. The lithium-ion batteries now being used has low energy density, requiring material bulk,” explain Indian Institute of Technology (IIT) Madras researchers for the Shakti study.

The good news is battery technology is globally evolving fast.

“Car batteries will get much cheaper in 3 to 4 years as technology advances,” said Amitabh Kant, CEO of Niti Aayog, India’s policy think tank for achieving the country’s sustainable development goals.

“This will bring the electric car’s cost at par with the combustion engine car,” he assured. Today a battery alone costs nearly half the price of an electric vehicle.

Currently Lithium-ion battery cost per kWh (kiloWatthour) is $276 (19,760 rupees) which within 4 years can fall to $76 (5440 rupees), according to Kant.

Sector experts are not as optimistic telling IPS that battery cost cuts would take no less than 5 to 7 years, before making financial sense for traditionally price-conscious Indians to buy them.

India imports Lithium, Cobalt, Nickel, Manganese and Graphite, components needed for the car batteries. “Their prices will get pushed up as global manufacturing demands escalate in China, the U.S. and Europe,” they said.

However, the Indian Space Research Organisation (ISRO), which originally used Lithium-ion batteries for its aero-space operations, is already working on making these affordable for car use and transferring manufacturing technology to eligible car makers.

Indian start-ups too are developing a scalable technology for recovering up to 90 percent of these materials from used batteries. Bulk retrieval can be successful only if disposal regulations of cell phones, laptops and vehicle batteries are strictly implemented.

EVs running on coal vs renewable power grid

If EVs run on predominantly coal powered grid, air pollution could be worse than petroleum-based transport, experts warned.

Unless renewable energy can be adequately utilised, fossil fuel only shifts the pollution from roads to coal plant regions.

Another big question being asked is, is India’s power grid ready for EVs to plug in?

With projections of EV increase, an impact assessment finds that high uptake of electricity during peak charging hours will cause a range of power network problems, including significant voltage drops or overload disruptions on distribution feeders.

The level of impact depends not only on EVs’ charging mode, but also on circuit-specific characteristics, researchers said. Location of especially the EV fast-charging stations should be carefully analysed before setting them up, they warned.