European Electric Vehicle Sales up 79% from 2013

by John Brian Shannon John Brian Shannon

What a difference a year makes. Electric Vehicles, once a novelty in Europe, seem to have hit the mainstream. No doubt there is still plenty of room to grow as even with the latest sales increase, EV’s only make up only a tiny fraction of the annual 7 million car sales in the European Union.

Overall, EV sales in Europe are up 79% from the same time period last year, although within individual nations there are wide disparities in EV adoption.

NORWAY — Although Norway is not an EU-member-country, it is part of Europe. And the earliest adopter of electric vehicles in Europe is Norway, registering only 2373 EV sales in the first half of 2013.

Now compare that to the 9950 EV sales Norway logged in the first half of 2014. That’s a 302% increase H1 2013 to H1 2014. In a country of only 5 million people that’s a pretty significant sign that EV’s are gaining wider acceptance.

TESLA has just completed the installation of dozens of free-to-use SuperCharger stations in Norway and you can find them in almost every Norwegian city, town and hamlet. A big draw with the SuperCharger system is that a Tesla Model S can fully charge in about 30 minutes from dead flat. Of course, if you’re just ’topping-up’ your Tesla battery you may not have time to finish your latte before you’re on the road again.

Prior to the latest SuperCharger installations, it took some careful driving to drive the length of Norway and not run the battery down, but one can now drive across the entire country of Norway with hardly a thought about charging locations, all of which are easily located on the huge Tesla LED dashboard display.

The most popular EV’s in Norway are the Tesla Model S and the Nissan LEAF.

GERMANY – Posting respectable numbers but nowhere near the example set by Norway, EU-member-nation Germany has almost doubled their first half EV sales compared to the same time period in 2013. German’s bought 2382 EV’s in H1 of last year, ramping up to 4230 in H1 of this year.

United Kingdom — Another European country that is still not part of the EU, the UK registered 1168 EV’s in H1 of 2013, and in H1 of 2014 some 2570 EV’s were registered.

Both the German and UK drivers prefer the Tesla Model S, the BMWi3 and the Nissan LEAF, although the new Renault Zoe is gaining acceptance as a very affordable electric vehicle.

FRANCE – French citizens buy a lot of EV’s, but numbers were slightly down compared to last year. Still, Renault continues to add affordable new EV models to its lineup. In 2013, there must have been a lot of ‘pent-up’ EV demand, as France registered 7293 EV’s in H1 of 2013, but in H1 of this year France added only 6405 Electric Vehicles to the country’s roads.

The most popular EV’s in France are the Renault Twizy, the new Renault Zoe and the Nissan LEAF.

Electric Vehicle sales soar in Europe as petrol prices move past E1,84 per litre.
Electric Vehicle sales soar in Europe as petrol prices move past € 1,89 per litre in some jurisdictions. Image courtesy of CleanTechnica.

While some countries in the EU could not match (non-EU-member) Norway’s total EV sales, some statistically significant numbers are showing for some EU nations.

The Netherlands for one, zipped up from 437 EV sales in the first half of 2013, to 1149 units in the first half of this year. While Austria went from 252 to 709 H1 to H1 and Belgium went from a lowish 195 first half EV sales up to 629 in H1 of 2014.

As far as the top electric cars, they were the Nissan Leaf (7,109), Tesla Model S (5,330), and Renault Zoe (3,669). Tesla Model S sales were largely in Norway (over 3,000 there), while Renault Zoe sales were largely in France (over 1,600 there). – CleanTechnica.com

All in all, some respectable increases with only France as the spoiler in the Year-on-Year H1 comparison.

Here are the total registrations for H1 2013 and H1 2014.

  • TOTAL EV sales all EU countries (first half of 2013) — 15591
  • TOTAL EV sales all EU countries (first half of 2014) — 27946
  • TOTAL EV sales increase all EU countries year-on-year (first half comparison) — 79%

Even with all that good news, it’s important to remember that while EV sales are showing dramatic improvements in some European nations, electric vehicles have not yet reached 1% of new car sales.

The one bright spot, now that more EV’s are hitting the roads is that public charging stations are being installed at at phenomenal rate. The Netherlands public charging system is geared to a maximum travel distance of 65 kilometres between chargers. That puts electric vehicles on an even footing with petrol stations in the country.

And, unlike a petrol car, you can always charge your car at home or at the office just by plugging it in to an ordinary wall socket, although this slow-charging mode may take a few hours.

Another positive is that affordable new EV models are hitting showrooms, giving drivers more choices and a wider range of electric vehicles to choose from. With names like Tesla, BMW, Toyota, Nissan, Renault, Volvo, Ford and Porsche solidly behind electrified vehicles, reliability issues are non-existent.

Here are some fun facts for European residents to ponder when considering the switch from a petrol engine car to an electric vehicle.

Here are the petrol prices per litre for some selected European nations, as of August 11, 2014:

  1. Austria — € 1,35
  2. Belgium — € 1,61
  3. Denmark — € 1,71
  4. Finland — € 1,63
  5. Germany — € 1,62
  6. Netherlands — € 1,79
  7. Norway — € 1,89
  8. Portugal — € 1,62
  9. Sweden — € 1,55
  10. United Kingdom — € 1,61

To convert these per litre prices, valued in euros – into their U.S. equivalents, we can use the very rough calculation of 4 litres per US gallon (which is how petrol/gasoline is sold in the United States) and 1.33 USD to 1 euro (current as of August 11, 2014).

For the Norwegian example, we can see that 4 litres of petrol (to roughly equal 1 US gallon) will cost you 7.57 euros – and converting that to US dollars gives you $10.14 per US gallon. Many US citizens use 10 gallons of petrol (or more) every day…

In Austria 1 US gallon of petrol (rough calculation) will set you back $7.18 in US dollars.

For those who elect to charge their EV at home for about 1-3 euros per day, you will have no need to stop at a petrol station and pay up to € 1,89 per litre of petrol, times how many litres you burn per day. And it’s doubtful that petrol prices will be dropping any time soon.

Not only are EV’s pollution-free, reliable and extremely low maintenance – spending 1-3 euros per day to recharge your EV battery at home (or nothing if you charge it at a free-to-use public charging station) vs. 5-10 euros per day for petrol depending on the size of the petrol engine – can really add up over the course of a year.

I strongly suspect that 2015 EV sales numbers will greatly surpass these first impressive baby-steps taken by electric vehicle manufacturers and their customers. By 2020, it would be reasonable to expect a full 10% of new vehicle registrations to be of the electrified vehicle variety.

Sustainable Energy Policy to save EU €81 bn/year by 2030

by John Brian Shannon John Brian Shannon

Accenture says a sustainable pan-European energy policy could save consumers €27 to €81 billion per year by 2030 and result in a cleaner utility grid model.
Accenture says a sustainable energy policy could save European electricity consumers €27 to €81 billion per year by 2030.

A recent report authoured by Accenture for EURELECTRIC says that if European nations work together towards an integrated and pan-European energy policy it could generate savings for electricity consumers between €27 to €81 billion per year by 2030 and the result would be a cleaner utility grid model.

Accenture is calling on European governments to phase-out renewable energy targets and renewable energy programme spending — replacing both with a carbon trading scheme, one that essentially rewards low carbon energy producers and penalizes high carbon energy producers.

All of this is happening during a time of unprecedented change within the European energy industry.

In the fascinating German example, that country shut down much of its nuclear power generation rather than spend multi-billions to upgrade its aging and oft-troubled nuclear fleet. Consequently, Germany is now burning record amounts of coal and natural gas to replace that lost generation capacity — in addition to the installation of record amounts of wind, solar and biomass capacities to the German grid.

In the decades following WWII, German utility companies operated in a cozy, sheltered environment. But few knew how expensive it was to operate and maintain on account of massive government subsidies and preferential treatment of the utility industry. German consumers never had it so good and likewise for sleepy German energy giants, which have now awoken to find that the energy picture has changed dramatically in little over a decade.

Hence, even more subsidies were employed to counter for the loss of German nuclear power via Feed-in-Tariffs (FiT) for wind, solar and biomass capacity additions to the grid, partially financed by a hefty nuclear decommissioning fee added to every German electricity bill.

At least in Germany, it turns out that while nuclear has practically disappeared, and with no fuel costs to worry about, renewable energy combined to lower German electricity rates during the hours of the day that wind and solar are active, causing downward pressure on electricity rates. At the same time, German utilities burned record amounts of brown coal and expensive Russian natural gas to meet total demand which caused upward spikes in the electricity rate during the hours of the day that coal and natural gas were required to meet total demand.

In simple terms, the removal of nuclear from the German energy mix has resulted in higher electricity rates — not because some of that capacity was replaced by renewable energy — but because significant fossil fuel burning was required to meet demand, combined with nuclear decommissioning costs.

Were German politicians and their voters wrong to shut down the country’s nuclear power plants? Not a bit. Germany’s nuclear power plants were problem-plagued and the costs to bring all 19 reactors up to modern standards were prohibitive. Shutting down the German nuclear fleet was unfortunate perhaps, but necessary.

German consumers continue to yearn for clean energy and low energy costs. Unsurprisingly, the German public has reacted to energy that seems to be getting dirtier and more expensive by the day, and the massive nuclear decommissioning costs which will continue long past 2022, perhaps until 2045.

After the loss of nuclear, the German energy grid initially became cleaner with the addition of wind and solar, but then became dirtier than ever as record amounts of brown coal and natural gas were burned! Es ist zum weinen.

And that’s just the story in Germany. Every European partner country has its own story to tell in an electricity market that is undergoing unprecedented and rapid change — and each country’s electricity market is as different from each other as they are from the German example. Although each story is different, the net result is the same; The energy industry across Europe must adapt to the loss of (some) nuclear and the growing consumer disenchantment with fossil fuels, and to the huge consumer driven additions of renewable energy to the grid. And it must be done in a cost-effective way or utility companies and their respective governments will face consumer backlash.

Utility companies shocked by the unprecedented and rapid changes thrust upon them by nuclear shutdowns and the multiple demands of consumers are hoping that a harmonized set of rules across Europe will allow them to meet rising electricity demand.

If you look at what utilities really want, it is one harmonized set of rules across Europe. Europe is one market; it’s one playing field, and utilities really benefit from a harmonized set of rules.

It is like playing football; if you play football,you don’t want different rules for different parts of the field. — Sander van Ginkel, Managing Director, Accenture Utilities

“European electricity prices are rising fast. As a result, the overall increase in energy expenditure is putting mounting pressure on residential end-users and undermining the competitiveness of European industry. The implementation of the energy transition has so far lacked optimization on a pan-European scale. Without a concerted effort to more effectively manage the costs of the energy transition, expenditure on electricity and gas in 2030 could be 50 percent higher than it is today.

A step-change in the reshaping of the European energy system is needed — by reconfirming the European power sector’s support for Europe’s sustainability agenda through an optimized approach that avoids unnecessary costs. Doing so would put significant benefits within reach: our analysis shows that implementing an integrated set of levers could generate net savings of €27 to €81 billion per year by 2030. Such savings could be achieved by further integrating energy markets and the supporting regulatory framework at a European level and by leveraging flexibility throughout the electricity value chain — provided utilities, governments, regulators and consumers can forge a joint commitment to work together.” — Quoted from the Accenture/EURELECTRIC report

Accenture’s report says that Europe’s utilities must meet customer demands for more energy, but make it cheaper and cleaner and that the existing grid model will fail unless changes are made. Accenture has suggested four main ways to achieve these goals.

  1. Optimizing renewable energy systems
  2. Market integration
  3. Active system management
  4. Demand response and energy saving

“The restructuring of the European electricity system will have to be carried out cost-effectively if we are to gain the support and trust of energy consumers. This study shows that, with the right policies in place, the energy transition could cost each European citizen over € 100 less a year than if we continue with business as usual.” Hans ten BERGE Secretary General. Union of the Electricity Industry – EURELECTRIC

It seems reasonable that all of Europe’s utility companies acting together could arrive at a better solution. Complementary and overlapping energy capabilities may prove to be the model that works for Europe, as opposed to the direct competition model favoured in the U.S.

A carbon tax which reflects the true societal costs of fossil fuels could be a just solution to Europe’s present grid malaise. However, it is doubtful that a carbon tax will ever reflect the true cost to society of fossil fuels — which have been estimated to cost €30 per tonne of CO2 — but a carbon mechanism may well provide the impetus to foster a new and better European energy paradigm.

No matter the how the equation looks, it is sometimes only the answer that matters. A cleaner energy mix and reasonable electricity rates within a stable electricity grid is something that all sides can cheer for. How very European!

See the Accenture video (click here)