Part 4. The relationship between clean energy and EV

    

China is currently in a crucial period of economic transformation, and the development of electrical vehicles (EV) plays an irreplaceable role in improving the energy consumption structure. The World Bank (2011) investigated China's new energy vehicle projects and found that in recent years, EVs have achieved initial results in the transformation and growth of China's auto industry. Kendall (2018) believes that economic development and the progress of clean energy technology are the main reasons for the Chinese government to vigorously develop new energy vehicles. For example, the smart power grid and China's photovoltaic industry have laid a foundation for the new energy vehicles in China and created a good atmosphere. Hence, the development of EV and the clean energy layout in China show an interactive relationship, which is considered to be positive. To sum up, this blog will examine the relationship between the development of clean energy and new energy vehicles in China.

Figure 9: Geographical distribution of vehicle sales in China

Source: China Automobile Dealers Association (CADA), Cars sales in China by province

The spatial distribution of China's new energy vehicle industry is similar to that of the traditional fuel vehicle production base to a certain extent, but there are great differences. China's new energy vehicle production base has an obvious trend of concentration, generally concentrated in the eastern region with strong purchasing power. As shown in Figure 1, they are mainly concentrated in East China, southwest China, and South China. It is worth mentioning that East China has the largest number of new energy vehicle production bases. The central and southern regions are mainly concentrated in Henan, Hubei, Guangdong, and other provinces. At the same time, the southwest is concentrated in Sichuan province and Chongqing Municipality.

Figure 10: Electric Vehicle Charging Infrastructure in China

At present, the main consumption areas of EV in China are in the economically developed areas, because the local finance has enough funds to invest in public facilities. Supporting facilities for new energy vehicles represented by charging piles also need strong public finance. As shown in Figure 2, charging piles in southeast coastal areas of China develop rapidly and form a certain scale. At the same time, charging piles have been popularized and applied in central China and gradually promoted and operated charging facilities in western China. In addition, according to the data analysis of the Charging Alliance at the beginning of 2019, the national electric vehicle sales in 2019 increased by more than 400,000 vehicles compared with 2018, and the number of charging infrastructure installations also increased significantly compared with previous years. As of December 2019, the sales volume of electric vehicles has reached more than 4 million, and the cumulative number of charging piles has reached nearly 1.23 million, reaching the ratio that every 3.5 electric vehicles can match one charging facility to charge (Yan, 2020). 

Some current research also suggests that in order to achieve SDG 7, developing countries need to increase infrastructure development related to electricity and promote sustainable technology upgrades, while sustainable economic development can promote economic growth while balancing a reduced environmental impact (Hillerbrand, 2018). Although nuclear power is still in its infancy in China, the cost of clean energy in China, particularly photovoltaic power, has fallen further, with 53 million kilowatts of photovoltaic power installed nationwide in 2017, and the industrialisation of photovoltaic power is growing rapidly in China (Liu and Shiroyama, 2013). As a result, a very large number of PV manufacturing companies have been created in China.

In short, the rapid spread of electric vehicles in China will accelerate the achievement of sustainable development goals. The increase in demand for electricity brought about by the increase in EVs will positively drive the deployment of clean energy in China. Both will continue to have an impact in the future and may of course put some pressure on each other.

Like to know more? Watch the video below:  

-Nianqing Wan

11, October, 2021

Reference

Hillerbrand, R. (2018) “Why Affordable Clean Energy Is Not Enough. A Capability Perspective on the Sustainable Development Goals”, Sustainability, 10, 2485. 

Kendall, M. (2018) “Fuel cell development for New Energy Vehicles (NEVs) and clean air in China”, Elsevier, 28, 2, pp. 113-120. 

Liu, D. and Shiroyama, H. (2013) “Development of photovoltaic power generation in China: A transition perspective”, Elsevier, 25, pp. 782-792. 

World Bank. (2011). The China New Energy Vehicles Program. New York: World Bank. 

Yan, M. (2020) “In 2019, the number of charging piles nationwide was 1.219 million, and the vehicle-to-pile ratio reached 3.4:1”, Charging Alliance.