Singapore has expressed its ambition to phase out internal combustion engine (ICE) vehicles by 2040 in consecutive budget announcements last year and this year.
To achieve this goal, the government announced a wide range of measures to accelerate the rate of adoption of electric vehicles (EVs) in Singapore.
For starters, the government has nearly tripled its initial target of setting 28,000 recharging points to 60,000 by 2030. Of that figure, 40,000 will be installed in public car parks and 20,000 in private premises.
To put these figures into context, there are only approximately 1,800 public electric vehicle chargers as of December 2020. This means that Singapore’s electric vehicle charging infrastructure will experience a massive 30-fold increase over the next decade.
In line with this, Singapore wants to establish eight cities ready for electric vehicles in Singapore by 2025. They will be located in Ang Mo Kio, Bedok, Choa Chu Kang, Jurong West, Punggol, Queenstown, Sembawang and Tengah.
These eight cities will be equipped with electric vehicle chargers and other cities will also be progressively prepared for electric vehicles by the 2030s.
Aid to encourage the adoption of electric vehicles
The government has also deployed a number of grants and incentives to increase the adoption of electric vehicles.
More recently, it introduced an EV Common Charger Grant (ECCG) for existing unearthed private residences to initiate the expansion of shared cargo infrastructure.
The ECCG will co-finance half of the installation costs of 2,000 chargers between July 2021 and December 2023, with an overall cap of $ 4,000 for each charger.
There are also many other grants for private and commercial vehicles:
- EV Early Incentive Incentive (EEAI)
To encourage the adoption of electric vehicles, the government has launched the EEAI for the next three years, from January 1, 2021 to December 31, 2023.
Owners who register fully electric cars will receive a 45% discount on the additional registration fees (ARF), with a limit of $ 20,000.
This scheme will apply to both individual and fleet vehicle owners, such as taxi and car rental companies.
In the 2021 budget, Minister Heng Swee Keat announced that the minimum value of ARF for electric cars will be reduced from $ 5,000 to zero from January 2022 to December 2023.
The EEAI will reduce the initial cost of an EV by 11% on average and reduce the initial cost difference between electric vehicles and ICEs.
2. Revised traffic taxes
From 1 January 2022, the 30-90 kW and 90-230 kW traffic tax sections will be merged and submitted to the 30 to 90 kW section traffic tax formula. .
This will lead to a reduction of up to 34 percent in the circulation tax for electric vehicles in the 90-230 kW section. These changes will also apply to PHEVs that currently pay road taxes based on their maximum electric power.
3. Vehicle emissions regime (VES)
To promote the adoption of cleaner vehicles and discourage the purchase of more polluting models, the current VES will be improved for new cars, taxis and imported used vehicles with higher discounts and higher surcharges.
The improved scheme will take effect on January 1, 2021 and will run until December 31, 2022.
Effective January 1, 2021, bonuses for vehicles in lanes A1 and A2 will increase by $ 5,000 S for cars and $ 7,500 for taxis. This means that a car in the A1 band will enjoy a discount of S $ 25,000 instead of S $ 20,000, and a car in the A2 band will enjoy a bonus of S $ 15,000 instead of $ 10,000 S.
With the improved VES, along with the EEAI, shoppers will be able to enjoy a combined cost savings of up to $ 45,000 Spanish when buying a new all-electric car and up to $ 57,500 for a new fully electric taxi.
Higher savings will favor the adoption of electric vehicles by further reducing the initial cost difference between electric cars and their ICE equivalents.
4. Commercial vehicle emissions regime (CVES)
Owners of Band A vehicles receive an incentive of S $ 30,000 disbursed annually in equal payment for three years. In the meantime, B-band vehicle owners will receive an initial US $ 10,000 incentive upon registration.
5. Improved Pre-Billing Scheme (ETS)
Existing owners of Cat 2/3/4 Euro C diesel vehicles will receive ETS and CVES incentives if they replace their vehicles with a Euro 6 (or equivalent) LGV classified in CVE band A or B.
A BEV-based LGV classified in CVE band A or B will be classified for ETS and CVES incentives.
To encourage the shift to cleaner alternatives, heavy vehicle owners can enjoy the maximum incentives if they transfer their existing Cat C diesel vehicle to a heavy vehicle that emits no outlet pipe.
The government is setting an example
“Over the next two decades, the shift to electric vehicles will gain significant momentum as prices fall and a greater variety of models become available. The entire value chain must adapt to this transition, from from vehicle sales and engineering, to charging infrastructure and user behavior, ”Transport Minister S. Iswaran said at the opening ceremony of the Sembwaste electric vehicle charging center on last week.
He added that the government has established key strategies to support the transformation of the electric vehicle, in areas such as vehicle costs, charging infrastructure and regulations.
The government has entrusted the Land Transport Authority (LTA) with new legal functions regulating electric vehicles and the charging of electric vehicles, including the establishment of technical standards for chargers. These will come into force on July 29, 2021.
A newly created National Center for Electric Vehicles (NEVC) will lead the unit to promote the wider adoption of electric vehicles.
In addition to planning the expansion of electric vehicle charging infrastructure across the country, NEVC will also lead efforts to review EV regulations and standards and develop a robust electric vehicle ecosystem in Singapore.
NEVC will work closely with relevant government agencies, industry stakeholders and unions to equip the local workforce with new capabilities, anchor new EV-related activities and facilitate the innovative and safe development of new EV-related technologies.
The government is also a leader in the example. Under the recently announced GreenGov.SG effort, all new cars purchased by the government will be cleaner energy models from 2023, seven years before national policy so that all new registration vehicles and taxi are cleaner energy models from 2030.
All government cars will also run on cleaner energy in 2035, more than five years ahead of the national EV vehicle in 2040.
Partnership with the private sector is key
Minister S. Iswaran stressed that the private sector is a key factor and an essential partner in driving the adoption of electric vehicles and expanding the charging network. As such, the government last week launched two new initiatives that will support and collaborate with the private sector to drive the adoption of electric vehicles.
The first is an EV charger regulator sandbox that will help foster a pro-innovation regulatory environment.
With the global shift to electric vehicles, the progress of charging technology has accelerated. New loading solutions have emerged and many fall outside the scope of our national loading standard, which is known as technical reference 25 (TR25).
LTA is leading a full overhaul of TR25 in collaboration with industry agents and technical experts, which will be completed by the end of the year. It will study the possible introduction of standards for newer fixed charging systems, such as high-power chargers and interchangeable batteries for electric motorcycles.
“The updated TR25 will help us to develop our network of load on a safe base and prepared for the future. Meanwhile, many companies are already making plans to introduce new charging technologies, ”he said.
“So earlier this month, LTA launched an EV charger regulator sandbox to accommodate new technologies that are on their way to being included in TR25.”
LTA has partnered with companies to submit specific sandbox applications for case-by-case evaluation and to develop detailed operating conditions.
One example is Tesla’s V3 supercharger, which would be a unique service offering for Tesla owners. With these new superchargers, Tesla expects charging times to drop by around 15 minutes.
The Tesla sandbox was launched last week with three recharging points at Orchard Central, and much more in the coming months.
Second, the government will launch a grant plan to boost the growth of Singapore’s electric vehicle charging network. In fact, work is already underway on the charging network in public car parks.
In the coming weeks, the Urban Redevelopment Authority (URA) and LTA hope to announce the results of the November 2020 pilot tender for the first 600 recharging points.
LTA has also just concluded an information request exercise and is studying the views of industry actors on the market structure for developing and operating cargo infrastructures.
In early April, it sought written responses from market participants on how best to structure electric vehicle charging point offerings. This will affect public car charging points, covering critical issues such as the price of charges to consumers and how charging points will be installed.
The operation of recharging points and the updating of the necessary infrastructure to support them, such as substations and chambers, will also be taken into account.
“As we shift gears and transition to a landscape of electrified vehicles, there will be many economic opportunities for our businesses and workers,” he said.
“From the incentives announced earlier this year, to the regulatory sandbox for charging and ECCG solutions, we will continue to work closely with companies on this electrification journey and achieve a cleaner transportation system and ecological for the benefit of all Singaporeans. ”
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