Global energy crisis: how the demand for energy sources is influencing electric vehicles

MOSCOW, February 1. /TASS/. Despite the global rise in electricity prices, the expansion of the electric transmission market is inevitable, but it will require huge investments and state support. According to experts interviewed by TASS, it would be beneficial to start with commercial modes of transport such as passenger buses, trucks, car sharing and taxis.

Experts say rising global energy prices will only temporarily lower customer demand for electric vehicles – even at high electricity prices, electric vehicle charging is still much higher viable than traditional gasoline or diesel refueling.

CEO of L-Charge, maker of mobile charging stations for electric vehicles, Dmitry Lashin attributes the global rise in energy prices to geopolitical threats and supply chain disruptions caused by the coronavirus pandemic. According to him, the scenario is in line with the general trend.

“For the foreseeable future, the cost of all energy sources will increase, including renewable energy sources, which will become the main source of energy production in Europe in the future. In turn, the global transition towards a new environmentally friendly energy requires significant capital investments, which will be repaid mainly at the expense of consumers,” he said.

At the same time, the rising cost of energy resources will have no effect on the growth rate of the number of electric vehicles in the future, since the majority of developed countries have already adopted and intend to adhere to strategies for the development of electric vehicles transportation, added Lashin.

According to the CEO of Drive Electro, manufacturer of electric and hybrid systems for commercial vehicles, Sergey Ivanov, the demand for electric vehicles in Russia is currently low, which makes the manufacture and use of these vehicles unprofitable. Other countries of the world solve this problem with the help of state subsidies.

Meanwhile, “green” energy in Europe has already caught up with the cost of traditional energy, and subsidies have become unnecessary, he added. Therefore, forming the market for electric vehicles and developing the charging infrastructure without state subsidies and the interest of governments at this stage is simply impossible, the expert noted.

“A small number of electric vehicles are still sold in Russia. Nevertheless, this field will develop. From a technological point of view, the barriers to entry into this market are lower compared to cars with internal combustion engines. Russia also has good potential to create the necessary software,” said VTB Capital analyst Vladimir Bespalov.

Cost reduction, adoption of technologies, especially those that increase mileage on a single charge, creation of infrastructure and state support, he said, are driving the development of electric transport.

The main negative element affecting the development of the electric vehicle segment in Russia, according to the expert, is the underdeveloped infrastructure, while huge distances hinder the creation of such infrastructure across the country. In addition, the relatively high price of electric vehicles and their limited availability, as well as maintenance difficulties, have a negative influence.

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