Transportation is among the most severely affected sectors at the height of the pandemic. In the Philippines’ case, this was exacerbated due to the implementation of the longest lockdown in the world.
When mobility started increasing and the sector was finally starting its recoup, the Russia-Ukraine war sent countries into economic turmoil, with week-on-week massive increases in domestic fuel prices.
According to Statista, during the first half of the year, the average retail price of one liter of gas in the Philippines rose by 36.9 percent compared to the same period in 2021. The transportation industry is again in a crisis — one that needs to be solved efficiently and immediately, as it is a crisis that Filipinos are confronted with every day.
President Ferdinand Marcos Jr. made a firm commitment that the transportation sector is included in the priority agenda of his government. In his State of the Nation Address, he said he will focus on developing the railway system, building on the previous infrastructure program. During President Marcos Jr.’s campaign, there were also statements assuring improvements in the mass transport system.
The Philippine government has been spearheading the promotion of electric vehicles for more than a decade now, with the goal of sustainable development. In 2006, Executive Order 488 was issued to support the manufacturing of EVs. With it, the tariff rate for e-vehicle components was reduced, consequently allowing e-vehicle manufacturers to import components at a more affordable price. Also, in April this year, Republic Act 11697, or the Electric Vehicle Industry Development Act, was signed into law, providing a national policy framework to develop the electric vehicle industry in the Philippines.
There is increasing interest in EVs in the country. Compared to vehicles with combustion engines, EVs are more eco-friendly as they do not emit carbon dioxide that is harmful to the environment and are considerably more economical. A report said that the energy consumption cost of using an EV or electric public utility jeepney is roughly 39 percent as against the diesel-fueled conventional PUJ.
Many companies have also incorporated EVs into their sustainability agenda. One of which is the Manila Electric Company, the largest distribution utility in the Philippines.
Over the last two years, Meralco has launched its Green Mobility Program which aimed to electrify its entire vehicle fleet. As of this writing, Meralco has successfully converted the entire fleet of its Metro Manila Business Centers into EVs.
To support the program, Meralco installed five fast chargers in strategic locations across its franchise area and looking to more than double the number over the next three months. Four more charging stations will be put up at its Power Tech facility at the Meralco Compound which can cater to almost all major commercially available protocols to date. It is also expected to feature a vehicle-to-home bidirectional charging station that will allow customers to use their EVs to supply power to their appliances.
Technology-wise, new models continue to evolve. According to Raymond Ravelo, Meralco Chief Sustainability Officer, EVs could barely run 100 kilometers on a full charge just over a decade ago. Now, new models can reach over 800 kilometers on only a single charge — roughly the distance between Pasay City and Banaue, Ifugao, and back.
In addition, Ravelo says EVs have likewise improved greatly, especially as lithium-ion battery pack prices have gone down by already 90 percent from over $1,200 per kWh in 2010 to just around $130 last year. This has consequently driven down the price of an EV with a comparable range to almost a third of price points a decade ago.
Compared to neighboring countries such as Thailand and Singapore, PH’s development of the EV industry is relatively curbed. This is where government participation plays a very crucial role. EV industry acceleration will happen given enough government support through policies as well as the provision of subsidies or incentives. Manufacturers will be encouraged to ramp up production, thereby bringing down the prices and having an impact on job creation.
Just as the whole world goes in the same direction, EV adoption in the Philippines is inevitable, it is just a matter of when. Best that we adapt early on, and educate ourselves and others on the benefits of an electrified and green future.