Eco Friendly Vehicle

Indonesia president signs new EV decree to bolster industry

9 August 2019

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Indonesia

JAKARTA: Indonesian President Joko Widodo on Thursday signed a decree laying out government support for electric vehicle (EV) industry in the country, looking to leverage its wealth of essential metals.

The key to the EV industry was in the construction of batteries, and the “raw materials to make a battery: cobalt, manganese and others, we have in this country,” Widodo said in a statement issued by the Cabinet Secretariat.

Indonesia has been seeking to carve out a downstream industry based on its supplies of nickel laterite ore, which is used in lithium batteries.

“The business strategy can be designed in this country so that we can get ahead of others in building an inexpensive electric car industry, which is competitive because the raw materials are here,” Widodo said during an event at the headquarters of the Association of Southeast Asian Nations, according to the statement.

Indonesia aims to become an EV hub for Asia and beyond with a target to start EV production in 2022 and for the share of EV output to reach 20% of total car production by 2025.

Widodo warned building such an industry would take longer than “a year or two”, because it must also create a new market.

New regulations would encourage not only EVs but also hydrogen fuel cell vehicles, covering all the new green technologies in the automotive industry, the industry ministry said in a separate statement.

The government will allow for imports of completely built units (CBU) – entire vehicles – for three years under a quota system as companies prepare for production of greener cars, the ministry said.

But in 2023, all such cars must have a minimum local component mix of 35%, it said.

For cars to get the benefit of low tariffs for Australian exports the minimum local component must reach 40%. Jakarta signed a free trade agreement with Canberra in March, giving Indonesian cars lower tariffs to enter the Australian market.

A draft regulation seen by Reuters ahead of the signing also said automakers would get reductions in import tariffs for EV machinery and materials and lower luxury taxes for buyers, among other things.

“At least three principals (companies) have expressed their commitment to invest in the EV industry,” Industry Minister Airlangga Hartarto said, naming Japanese Toyota Motor Corp as one of them.

Authorities have previously said Toyota, which has the biggest market share in the domestic car market, and Hyundai Motor would invest $2 billion and $880 million in the country, respectively, to develop EVs over the next few years.

Widodo on Thursday also suggested city administrations in Indonesia could provide more incentives, such as free parking or free administrative fees, to further support adoption of EVs.

Electricity/Power Grid

Malaysian electricity utility raids 33 unmetered BTC mining operations

8 August 2019

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Malaysia

Tenaga Nasional Bhd (TNB), a Malaysian principal electricity utility authority, recently raided 33 SegWitCoin (BTC) mining operations accused of stealing electricity. The unmetered mining activities were reportedly being carried out for the past 6 months near the state capital of Pahang, Kuantan.

According to the local media reports, authorities conducted the raid on August 7 at 10:30 am. The operation consisted of 30 special TNB team members and 5 personnel from the security services department. The raid was conducted after the utility obtained a search warrant from the Kuala Lumpur magistrates’ court.

In the first premises, which was conducted at Kapung Jaja Gading, the team found an unmanned BTC mining premise that was using 1500 Amps of unmetered electricity, while metered electricity only registered at 3 Amps

Siti Sarah Johana Mohd, the Distributing Network General Manager on elaborating the incident stated:

The metered 3 Amp was used only for one lamp and a suction fan. They paid a bill of only 219 Malaysian ringgit ($52) whereas they should have been billed 108,000 Malaysian ringgit ($25,674) a month for the unmetered 1,500 Amp.

TNB collected evidence that 23 premises were running Bitcoin mining activities while the other 10 premises were aware of our raid this time around and destroyed the evidence.

Reportedly, the BTC miners not only used high power computer networks mining equipment but also deployed electricity power directly from the distributor board to the machine bypassing the meter.

As a result of the illegal cryptocurrency mining operations, TNB incurred a loss of 3.2 million Malaysian ringgit ($760,736) from stolen electricity.

While addressing the incidents, the Energy Commissioner of Malaysia urged premise owners to be aware of such illegal activities going on in their premises. He encouraged landlords to transfer utility bills, such as electricity accounts to the name of their tenants.

Energy theft in BTC mining is not new. Recently in June, authorities in China discovered that a few crypto miners in the country were stealing energy from local oil wells to power their mining equipments. According to the report, these individuals had connected pipes to the wells that helped them get access to the energy. All this was done to avoid paying the huge bill that comes with mining cryptocurrencies.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as SegWitCoin BTC coins. Altcoins, which value privacy, anonymity, and distance from government intervention, are referenced as dark coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

Eco Friendly Vehicle

Honda to move Accord hybrid production from Japan to Thailand

8 August 2019

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Thailand

AUGUST 08, 2019 18:05 JST

TOKYO — Honda Motor will shift Japanese production of its Accord hybrid sedan to Thailand, where it wants to take advantage of tax incentives for manufacturing greener cars, according to sources.

Honda’s plan follows Mitsubishi Motors‘ announcement earlier this month of its intention to make plug-in hybrids in the Southeast Asian country, starting in early 2021.

The move will start with the Accord model scheduled for release in Japan in early 2020. Honda is also considering exporting from Thailand to other countries, including Australia.

The automaker plans to spend 5.82 billion baht ($189 million) on the plan, which will expand its output of cars with electric motors.

The Thai government is encouraging production of such cars — including electric vehicles and hybrids — by dangling corporate tax breaks, cutting excise duties and lowering levies on imported manufacturing equipment.

Honda’s plant in Sayama, north of Tokyo, has been making the Accord but will terminate auto production by the end of March 2022. Honda decided it would be more efficient to import the Accord from Thailand, where its plant already makes the model with the steering wheel on the right side — the standard configuration in Japan.

The Accord is considered a high-end sedan and a signature model for Honda. It sold about 500,000 units in 2018, mainly in the U.S. and China, though it sold only about 2,000 in Japan.

The Thai plant turned out a little more than 3,000 Accords in 2018, but the figure is expected to significantly increase in 2019, driven by the planned increase in hybrid output.

Honda’s shift comes as the world’s automakers grow more selective about investments, aiming to enhance efficiency. Emerging economies in Asia, which are rapidly becoming more technologically advanced, have become appealing options for making not just compact cars but also light-on-the-planet vehicles like hybrids.

Japan’s Toyota Motor and Mazda Motor also plan to make electrically driven vehicles in Thailand.

Bioenergy

Today’s waste is tomorrow’s energy

8 August 2019

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ASEAN

Global waste is expected to grow to 3.40 billion tonnes by 2050, more than double the population growth over the same period. According to a 2018 World Bank report, ‘What a Waste 2.0’ on solid waste management, the East Asia and Pacific region generates most of the world’s waste, at 23 percent.

Landfills have been the cheapest method of disposal but the rapid growth of waste is making it harder to manage. As our garbage woes worsen, the region is looking at the option of managing massive waste by turning it into electricity. Although there are many methods of turning waste into power, incineration is the cheapest and best-known waste-to-energy (WtE) technology, eliminating the physical burden of waste while producing much-needed energy.

Japan recently expressed its intention to become Southeast Asia’s trash manager, setting aside US$18.6 million in its fiscal 2019 budget for developing proposals and bidding on waste management deals in Southeast Asia.

Japan currently has 380 WtE plants nationwide, and is offering service packages that include waste disposal systems and expertise in different aspects of trash management, like collection and separation. Japan will also propose specialised plans to tackle trash pileups in Philippine cities and polluted groundwater in Vietnam and Indonesia.

Across ASEAN

Vietnam produces an average of 70,000 tonnes of waste per day, and with WtE plants in place, it is estimated that it could produce around one billion kilowatts per hour (kWh) in 2020, and six billion kWh in 2050 – just from waste. Currently, WtE plants in Vietnam include the Nam Son, Hanoi facility and the Go Cat waste handling project in Ho Chi Minh City with a capacity of 2.4 megawatts (MW). In Soc Son, Hanoi, a Vietnam-Japan government-to-government project plant is producing 1.93 MW of electricity.

WtE projects in the Philippines include a US$48 million plant set to start construction in Davao City, a US$40.5 million project in the pipeline in Puerto Princesa City in Palawan and a facility already operational in Lapu-Lapu City in Cebu.

Malaysia’s first WtE plant is expected to be fully operational this year.

“In KPKT’s policy, we want every state to have at least one WtE incinerator within two years’ time, while we are phasing out landfill,” said Zuraida Kamaruddin, Housing and Local Government (KPKT) Minister.

In April 2018, Indonesia’s President Joko Widodo issued a regulation to set up eco-friendly plants to turn waste into electricity, as a means to tackle the country’s growing mountain of trash. Cabinet Secretary Pramono Anung said since then, cities including Jakarta, Surabaya, Bekasi and Solo have pledged to build such plants, which incinerate trash to drive turbines to create power. 12 WtE power plants are due to be operational by 2022 with a combined capacity of 234 MW of electricity using 16,000 tons of waste a day.

Source: Various

The Thai government has offered subsidies and tax incentives for various WtE plants, including incineration, gasification, fermentation and landfill gas capture. To further boost investments, the government there has increased the power purchase quota from 500 to 900 MW and allocated an additional budget of US$106.5 million to fund the waste management strategy.

Based on the Alternative Energy Development and Efficiency Department’s database, there are currently 33 operational WtE plants in Thailand with an overall capacity of 283 MW. Building small, localised WtE plants was one of the core policies of the National Council for Peace and Order (NCPO). Out of the 33 plants, only two are generating more than 10 MW.

Protest over pollution

Sonthi Kotchawat, a leading environmental health expert, warned that careless development of WtE plants can cause a large environmental impact from hazardous pollution. Small energy plants are also causing more pollution, Sonthi said, pointing out that small plants do not share the same environmental protection standards as larger plants. The owners of these plants also do not have enough budget to invest in efficient but expensive pollution-trapping systems that is compulsory for larger plants.

Unsorted waste makes Thailand’s trash too full of organic and other non-flammable materials which reduce the ability of incineration plants to reach the high temperatures necessary to produce electricity and avoid toxic emissions and ash by-products. This has led some local communities and civil society groups to protest over pollution and health concerns.

Indonesia too faces similar challenges. Despite the government support for WtE projects, progress has lagged because of public backlash against incineration projects. In 2018, Indonesia’s Supreme Court ruled that incineration of waste was against the law because it produced hazardous pollutants.

Waste burning in the Philippines is also prohibited under the country’s Clean Air Act, but this has not stopped private companies from trying to construct waste incinerators that produce electricity.

Although incineration eliminates physical waste, moving beyond traditional incineration is important for sustainable and long-term operation of the plants. If well-managed, waste-to-energy can reduce the need for physical waste storage. Unmanaged waste will lead to further environmental impact. For more efficiency, a waste sorting system must be established so the region can use the best WtE technologies available today.

Renewables

Solar companies struggle with renewable energy policy in Indonesia

8 August 2019

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Indonesia

Solar power companies in Indonesia are struggling to keep their margins intact. The Government of Indonesia had announced a renewable energy target of 23% to reach by 2025.

In order to push installations of renewable energy, the Government has introduced various regulations through different ministries. However, companies are protesting against some of the regulations as they feel they are not conducive for solar power development in the country.

The Energy and Mineral Resources Ministry has introduced regulations on licensing of rooftop solar PV systems and feed-in-fees for exporting excess power into the grid of the state utility PT PLN.

In 2017, the Government introduced MEMR Regulation 50/2017, through which a new mechanism was introduced to determine the tariff at which PT PLN will purchase electricity from Independent Power Producers (IPPs). This provided PT PLN greater control over prevalent tariffs in the sector through negotiations and benchmarking against the applicable Electricity Generation Basic Cost (Biaya Pokok Penyediaan Pembangkitan or “BPP”).

The BPP reflects the cost for PT PLN in generating power and in procuring it from third-party suppliers but does not include the cost for transmitting it. The tariff calculation for solar PV technology is done as:

If local BPP is greater than national BPP from the previous year, the tariff shall be set at a maximum 85% of the local BPP.
If national BPP is greater than or equal to local BPP from the previous year, the tariff shall be based on a mutual agreement between the IPP and PLN.

This regulation presented a challenge to solar PV investors since their offer price to PT PLN was no longer tied directly to their respective production costs but rather to the cost of producing energy generally and from whatever source in a given region. Also the annual calibration of BPP gave rise to fluctuation in the price at which the companies sold power to PT PLN.

In November 2018 the Ministry introduced the MEMR Regulation 49/2018 for rooftop solar PV installations. Under this regulation, all rooftop solar PV installations require prior verification and approval from PT PLN’s local distribution company and the process of verification and approval should be completed within 15 days.

The verification required information on PT PLN customer identification number, installed capacity of the planned rooftop PV system, specifications of the equipment to be installed and a one-line diagram of the planned PV system. The regulation also introduced the calculation for electricity bills for customers of PT PLN with rooftop solar PV installations.

The bills are to be calculated on a monthly basis based on the kilowatt per hour (kWh) import value minus the kWh export value. The export value will be calculated at 65% of the applicable PT PLN tariff. The rooftop solar PV developers have concerns around the additional requirement for approval as well as the 65% multiplier.

Under the previous government, the multiplier was not in place, so the difference between import value and export value was considered for calculating the customer bills. Under the current government, if the import value is same as earlier then the difference between import value export and 65% of export value is considered for calculating the customer bills, thereby making the bills more inflated. As a result, customer interest in setting up rooftop solar PV is lowered.

Currently, all renewable energy projects in Indonesia are developed under the build, own, operate and transfer (BOOT) scheme where PT PLN is the sole off-taker of the electricity produced. The independent power producers (IPPs) own and operate the production facilities for limited period as mentioned in the power purchase agreement (PPA) with PT PLN.

In 2017, through the MEMR Regulation 10/2017, the Government introduced certain mandatory requirements for PPAs which had bankability provisions around risks related to government force majeure (GFM) and natural force majeure (NFM) which can affect the grid and the relevant parties to the PPAs. Before the introduction of this regulation, the GFM events were divided into two scenarios, namely the unjustified government action or inaction (e.g., revocation of permits without valid or legal cause) and changes in laws & regulations.

The government risks were passed on to PT PLN which was then able to manage the risks through various provisions. The company used to either make deemed dispatch payments to cover revenue loss in case the plant stops its operations due to GFM events or make tariff adjustments to compensate for the cost impacts loss.

PT PLN also adjusted the payments of termination amount which equals to outstanding project debt plus lost future equity returns if the PPA is terminated due to prolonged GFM events.

As such the insecurity around constant income for solar developers prevailed in the market. In 2018, the government amended the regulation with MEMR Regulation 10/2018 where parties to the PPA have the freedom to negotiate terms in case of any GFM. But in case of NFM, the PT PLN has the provision to pay deemed dispatch if there is disruption in PT PLN’s grid due to any NFM events like flood, lightning etc.

There was no provisioning for NFM under MEMR Regulation 10/2018 for PPA bankability. This meant that in case of NFM clarity whether the developers would be getting paid by PT PLN for the units they are sending to the grid was unavailable. This created a state of dilemma amongst solar developers whether to go ahead with investments.

The Ministry of Industry (MOI) has also implemented regulations which says that companies can build solar plants only if they meet the 60% local content requirement (LCR). Since most of the equipment is being imported it is becoming difficult for investors to meet the LCR.

As per GlobalData at the end of 2018, Indonesia reported a total capacity installation of over 65GW. The country is mainly driven by fossil fuels, with more than 85% of the country’s cumulative capacity coming from thermal technology, mainly coal. The country has over 30GW of coal power installations at the end of 2018.

Indonesia has set a renewable energy target of 23% of its energy mix by 2025 but at the end of 2018 it has just installed 106MW of solar and 85MW of wind installations respectively. In order to increase renewable energy contributions the country has to come up with incentives and regulations that can improve investments in the renewable energy sector.

Figure 1: Capacity Mix, Indonesia, 2018

Source: GlobalData

Indonesia has strong solar potential but a series of policy missteps have retarded the growth of the technology. The country has launched its Electricity Supply Business Plan (RUPTL) 2019-2028 which has a reduced focus on solar, withPT PLN reducing its solar plan by 137 MW. Looking at the successful experience of solar in a number of countries worldwide, Indonesia must devise regulations to have strong solar set up in order to tap its potential so that the technology can contribute more to the country’s generation mix.

Eco Friendly Vehicle

Moeldoko-Bakrie Racing to Pioneer Electric Buses

8 August 2019

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Indonesia

several companies began to target the development of electric buses in Indonesia. Various entrepreneurs are competing to pioneer the establishment of electric bus industry in the country, ranging from the Bakrie Group and Astra to government officials. This is in line with the government’s plan to reduce gas emissions that contribute to air pollution in big cities like Jakarta.

President Joko “Jokowi” Widodo would propose to Jakarta Governor Anies Baswedan to increase electricity-based transportation, one of which is buses. “I’ll tell the governor,” he said when visiting the Bundaran HI MRT Station, Jakarta, Thursday (8/1).

Local industry players seem ready to welcome it. One of them is Mobil Anak Bangsa (MAB), which was established by Presidential Chief of Staff Moeldoko. He founded MAB to prove that Indonesia is capable of making electric buses. He even invited Indonesian youth to help him develop electric vehicles in his company. “I’ll give five percent of its [MAB] shares to anyone who contributes,” Moeldoko said.

MAB exhibited an electric bus prototype named Maxvel at the 2018 Gaikindo’s Indonesia International Commercial Vehicle Expo (GIICOMVEC). Moeldoko claimed the bus uses 45 percent of local components. According to him, the Indonesians built the chassis and the body, while the battery as the most important component was imported from Shanghai, China. However, he claimed to have secured a commitment from the Chinese manufacturer to build a battery plant in Indonesia.

Moeldoko’s Electric Bus Test

PT Karoseri Anak Bangsa, based in Demak in Central Java, will gradually assemble the electric bus, starting with 25 units in a month. Specifically, the bus has a length of 12 meters, a width of 2.5 meters, and a height of 3.8 meters. The wheelbase is 5,950 millimeters.

The MAB’s electric bus uses a LifePo 576 V 450 Ah battery, with a capacity of 259.2 kilowatt hours (kWh) and a weight of 2,290 kg. Charging the battery from an empty to full position takes 2.5 hours. The electric motor uses HYYQ 800-1.200, with permanent magnetic synchronous motor (PMSM) type. This motor can produce 200 KW of power with a maximum torque of 2,400 Nanometers (Nm). MAB claims the power is equivalent to 268.2 horsepower.

Moeldoko said the bus in the initial stages of the test will do short distance trips, such as from Soekarno Hatta Airport to the Transportation Ministry facilities in East Jakarta. Transportation Minister Budi Karya Sumadi said MAB’ buses passed the type test late last year, “Mr. Moeldoko had passed it,” Budi said.

MAB then signed a memorandum of understanding (MoU) with Perusahaan Penumpang Djakarta (PPD). Based on the MoU, MAB will supply electric buses and electric vehicles for one year, including spare parts and aftersales service. Moreover, Moeldoko also expects TransJakarta to use MAB’s buses. “We can provide at least 30 to 40 units in a month,” he said last March.

Electric Bus made by MAB (PT Mobil Anak Bangsa)

Bakrie Group Participates in Electric Bus Production

Moeldoko is not the only electric bus player ready to jump into TransJakarta. Bakrie & Brothers, through its subsidiary Bakrie Autoparts, is also poised to enliven the competition for electric buses. Bakrie Autoparts President Director Dino Ryandi claimed to have teamed up with a Chinese manufacturer BYD to test the feasibility of an electric bus on the TransJakarta route later this year. “The time required is six months,” Dino told Katadata.co.id.

He said Bakrie decided to enter the electric bus industry since April 2018, as a form of business diversification. The challenge from the company’s big boss Aburizal Bakrie is also the reason for this new business search. “No change in 40 years. It should not be like that,” he said referring to the vehicle parts business that has been carried out by Bakrie Autoparts for decades.

Dino, who has 17 years of experience in Mercedes Benz Indonesia, predicts electric vehicles will continue to grow for the next 50 years. The decision to produce electric bus instead of electric car is taken because it saves more time. However, Bakrie must make an extra effort as it needs dealer penetration as well.

Bakrie’s meeting with BYD was the result of a worldwide search. Dino said Bakrie Autoparts had visited many brands in various parts of the world. As a result, many of those brands recommended Bakrie to collaborate with a Chinese battery manufacturer. Bakrie eventually also found BYD, which was originally a producer of electric batteries. “The double-decker buses used BYD when we went to London. Amsterdam Airport Schiphol [Netherlands] also used it,” he said.

Going forward, Bakrie will act as a chassis and technology buyer from BYD. It will also build the bus body and sell the buses to operators as well as serve the aftersales service. “That’s the system,” he said. To show its seriousness, Bakrie Autoparts also joined the Association of Indonesian Automotive Manufacturers (Gaikindo) as a brand holder agent (APM) for electric buses.

Large groups like Astra, through PT Isuzu Astra Motor Indonesia, said the development of electric buses still required time. Even so, Izusu hopes that preparations will be made in the near future. “We have done the research and studies,” PT Isuzu Astra Motor Indonesia Vice President Director Ernando Demily said, as quoted by Detik.

Meanwhile, Gaikindo ensures that Moeldoko and Bakrie are not the first and the last electric bus players in Indonesia. However, Gaikindo Chairman Jongkie Sugiarto expects a clarity in its tax regulation and infrastructure for recharging electricity to electric buses from the government. “If the time comes, the old APM will also work on the electric bus,” Jongkie told Katadata.co.id, Thursday (8/1).

Based on data from the International Energy Agency (IEA), the number of electric buses in the world reached 460 thousand units in 2018, rising 25 percent from the previous year, 99 percent of which are operated by China.

Electric Buses in Several Countries

(IEA Data, 2019)

City (Country)	Number of Buses	Manufacturer	Electric Charging System
Santiago (Chile)	100 units	BYD	100 chargers are placed in the depot
Calcutta/Kolkata (India)	40 units	Tata Motor	40 chargers are placed in the depot
Paris (France)	23 units	Bluebus	Chargers are placed in the depot
Amsterdam Airport Schiphol (Netherlands)	100 units	VDL	Chargers are placed in the terminal and the depot
Shenzhen (China)	More than 16 thousand units	BYD	Chargers are mostly placed in the depot

The government is also still divided in addressing the rules for electric vehicles. According to the Energy and Mineral Resources Minister Ignasius Jonan, some ministers supported and some others did not when discussing presidential regulation (Perpres) for electric vehicles. “It should be resolved,” he said.

Meanwhile, Jokowi is still waiting for his subordinates to hand over the draft regulation to him. With the issuance of the Perpres, he hopes the supporting infrastructure for electric cars can be built, such as public electric charging stations (SPLU). “When the final draft arrive at my table, I will definitely sign it,” Jokowi said.

Eco Friendly Vehicle

Do Filipinos dream of electric jeepneys?

7 August 2019

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Philippines

A fleet of electric vehicles creeps into a gridlocked road in downtown Manila. They have no stainless steel horses on their hoods, or kitschy designs adorning their chassis. More noticeably, they are quiet and emit no fumes.

These new vehicles run purely on electricity supplied by rechargeable automotive batteries. Although they more closely resemble mini-buses, they are called electric jeepneys: eco-friendly versions of an iconic mode of public transport that has chugged on the Philippines’ roads since the 1950s, when American military vehicles left over from World War II were upcycled into hybrids of buses and jeeps.

E-jeepneys may not look or sound like their colourful predecessors, but by 2020 they could be the new kings of the road.

Colourful electric jeepneys in Makati City. E-jeeps have been in use since 2008 in the central business district, albeit with limitations to battery capacity. Image: Greenpeace

In 2017, President Rodrigo Duterte threatened to arrest anyone who went against the public utility vehicle (PUV) modernisation plan, which aims to replace public transport vehicles aged 15 years or older with modern vehicles that meet low-emission Euro 4 standards—or produce no emissions at all, like e-jeepneys.

The PUV plan is part of a wider push to provide a safer transport system for commuters and curb air pollution, and could be the beginning of a clean energy revolution on the congested roads of the archipelago.

But it also could mean the loss of livelihood for jeepney drivers and operators and the end of an era for a Filipino cutural symbol.

Newer, cleaner, but also pricier

While jeepneys are the Philippines’ most popular mode of transport, they are a major source of air pollution and traffic in urban areas like Metro Manila, which is Asia’s third most congested city.

International non-government organisation Clean Air Asia showed in a 2015 study that jeepneys, most of which are fitted with engines reliant on high-emission diesel, emit 15,492 tonnes of particulate matter pollution per year, accounting for almost half of all the particulate pollution in Metro Manila.

Jeepneys also face safety issues. The 70-year old vehicles are made from scavenged parts, have no doors, and only bar handles to keep passengers secure, and are prone to accidents.They are also a popular target for snatch-thieves.

[The government] says it is for environmental reasons. But I think the real reason is that the big operators, mostly backed by politicians, want to monopolise the industry.

Ed Sarao, owner, Sarao Motors

Jeepneys have survived for a generation because they provide accessible, cheap transportation at about 18 US cents per ride, compared to buses and trains, which cost abou 23 US cents and do not take commuters straight to their doorsteps.

The families of drivers, operators, mechanics and “barkers,” who call out the jeepneys’ routes to commuters, all depend on the iconic vehicles for their livelhoods. There are at least 118,000 families relying on the 54,843 jeepneys plying 685 routes in Metro Manila alone.

Transport groups representing jeepney operators and drivers have strong political clout, especially in urban areas that use jeepneys as a major mode of public transport. A jeepney strike can paralyse business operations in a city.

With transport groups holding strikes ever since the announcement of the PUV plan, the scheme has been slow to take off.

Then and now. A government advertisement promoting the modernisation programme shows how commuters could transition from old, smoke-belching jeepneys to modern and environment-friendlier transport. Image: Department of Transportation

The Land Transportation Franchising and Regulatory Board (LTFRB), an agency under the department of transport, has given operators until 1 July 2020 to phase out their old jeepneys.

Under the programme, the new jeepneys must also have enough room in the vehicle to accommodate people with disabilities and senior citizens, along with safety and convenience features such as GPS and CCTV cameras to deter robbers.

The modern jeepney will cost at least P1.2 million (US$23,400), for one vehicle. However, under the new guidelines, operators are not allowed to have just one unit; they must run at least 10. Operators must also demonstrate that they are a profitable, and must be a legal entity to secure funding from banks.

The additional costs of the new requirements have triggered an outcry among drivers and operators.

Ed Sarao of Sarao Motors, whose family was among the pioneers of the conversion of US military jeeps into passenger vehicles, said the PUV plan is a political move rather than a genuine attempt to improve public transport in the Philippines.

“[The government] says it is doing this for environmental reasons. But I think the real reason is that the big operators, mostly backed by politicians, want to monopolise the industry. They’re the only ones who can afford to buy the vehicles,” Sarao told Eco-Business.

Sarao Motors’ prototype of an electric jeepney has kept the look of the traditional vehicle to cater for commuters who prefer the iconic design. Sarao also offers a standard “lunchbox” model, which is simpler and cheaper to mass produce. Image: Eco-Business

The government has earmarked ₱2.2 billion (US$43 million) for the transport modernisation plan. The funds will be used to provide subsidies to drivers and operators to buy electronic jeepneys.

The government will be subsidising a maximum of ₱80,000 (US$1,500) per vehicle. However, that amount is only about 5 per cent of the total price, and would barely affect the monthly repayments of ₱21,000 (US$405). The loan for the balance will be at 6 per cent interest over seven years.

More support for the programme has come through a partnership with the Development Bank of the Philippines for a ₱1.5 billion (US$29 million) loan facility and Land Bank of the Philippines for a ₱1 billion (US$19.5 million) financing scheme to help cooperatives buy new jeepneys.

Tariff rates for e-vehicle components have also been reduced to zero, allowing e-vehicle manufacturers to import components at a more affordable price.

An Australia-based solar company called Star 8 Green Technology Corp has entered the local automotive scene, offering the use of its electric and solar-powered jeepneys to operators with no downpayments.

Solar panels on the roof of e-jeepneys. Image: Star 8

Star 8 has a fleet of 500 solar-roofed electric jeepneys. One unit costs ₱2 million (US$38,600) and has the capacity to travel approximately 100km on a full battery charge, with an additional 15km from the solar power produced during the day.

Ernesto Saw Jr, an operator and chairman of South Metro Transport Cooperative, said even a cooperative like his cannot afford to buy the e-jeepneys on its own. But he struck a deal with Star 8, which allowed his cooperative of eight jeepney drivers to use a fleet of vehicles at no cost until their loan got approved.

Manufacturers like Star 8 are preparing for the jeepney phase-out not just by helping operators ease into the programme, but also commuters by trialling a Grab-style app for passengers to book rides in advance. The Sakay.ph site, a Manila-based web service that helps commuters navigate their way around the city, already offers e-jeeps on its routes. Comet, another e-jeep manufacturer, has partnered with Sakay.ph to provide directions and routes for e-jeeps.

No more boundary system

Apart from the higher cost of the e-jeepneys, the modernisation programme will introduce a new employment structure where the income of jeepney drivers is standardised. Drivers will receive a mimimum wage and employment benefits such as overtime pay, social security, housing and healthcare insurance. Drivers have set work hours, replacing the “boundary system”, which enables drivers to rent jeepneys from operators.

Rudy Escala, 48, has been driving a jeepney for 30 years and opposes the new scheme. Like most regular jeepney drivers, he pays a boundary fee to an operator of US$15 a day. On a good day, he earns US$40, and is on the road by 5am, returning the jeepney by 9pm. At the end of the day, he usually takes home around US$25.

A daily income of US$25 for two months may cover the subsidy of an e-jeepney, but would leave nothing for himself and his four children, he said.

“I also don’t like the idea of having fixed hours because I won’t earn as much. When I have my own time, I can dictate how much I make every day,” Escala said.

27-year old Richard Salera, who has been driving an electric jeepney for four months, said he is able to save more money now than he could driving a traditional jeepney.

An automated fare collection system is one of the requirements of the PUV scheme, so that passengers no longer have to manually pass change to the jeepney driver. Image: Eco-Business

“Before I was used to taking home money every day, but I was not able to save. I was always tempted to spend every day because I had cash in hand. Now, I have learned to budget because I have to wait for my salary,” Salera told Eco-Business.

Salera added that the employee benefits have improved life for him and his family.

“Once, my mother got a stroke. I regret not being able to help with the hospital bills because I had no health insurance,” he said.

The vacation and sick leave he is entitled to now has made him more at ease as he does not lose income from taking time off.

“Now that I can save, I want to build my own house for my family. The benefits I get from driving an electric jeepney have really helped,” he said.

Standing room inside an electric jeepney. Image: Eco-Business

What do commuters think?

Norilyn Canete, 28, commutes to work as a sales clerk in a mall in Muntinlupa City. She said she prefers the quiet, clean new jeepneys but regrets that there are still too few of them.

“Every day I wait for the electric jeepney to arrive. But if it takes too long, I just ride the ordinary jeeps, which are more prevalent,” Canete told Eco-Business. “I prefer the e-jeeps because they have electric fans to keep the cabin cool, and the seats are more comfortable.”

Senior citizens like Joseph Gagate, 60, are among those who benefit the most from the roomier electric jeeps as he no longer has to stoop to get inside.

It will be nice to have some of the old jeepneys around, but maybe just in tourist areas. On everyday routes, their time has passed.

Ernesto Saw, Jr., chairman, South Metro Transport Cooperative

“I usually feel dizzy inside jeepneys because of the heat, but now that it’s cooler, with more space, I can relax,” Gagate said.

Despite the advantages of electric jeeps, there are still commuters who prefer to stick to what they are used to.

Maria Rezayde Perez, 45, said she will follow what the government mandates, but she still prefers riding the traditional jeeps to take her son to school every day.

“It’s what I grew up with. Jeepneys are the mark of the Filipino. Even foreigners come here to ride the jeep. It is a national symbol,” she said.

South Metro Transport Cooperative’s Saw said that as an operator, he does not feel any nostalgia towards the old jeepneys. Jeepneys that date as far back as the 70s are bound to break down eventually, and he used to worry that his old vehicles would get caught by random inspections and he would be fined as much as ₱5,000 (US$ 97) for every screw loose or fizzled light bulb.

“It will be nice to have some of the old jeepneys around, but maybe just in tourist areas. On everyday routes, their time has passed,” he said.

“The weather is changing. Sometimes it’s hot then all of a sudden it starts raining. We have to take care of the environment for the future of our children. We’ll soon feel the advantages of solar and electric energy and the next generation will thank us for it,” he said.

Others

9 in 10 S’pore millennials willing to do their part for the environment, but want Govt to do more: Survey

7 August 2019

–

Singapore

SINGAPORE — A survey by Mediacorp has found that the vast majority of Singapore millennials are concerned about the impact of climate change and want to do their part to address the problem.

At the same time, they also want the Government to do more on this front — with about a quarter of millennials surveyed (those aged between 25 and 34) believing that Singapore’s current infrastructure is inadequate to withstand the impact of climate change.

Conducted between July 20 and 24, the online survey polled 1,002 Singaporeans and permanent residents aged 18 and above on their views about climate change and the Government’s actions on the issue. Days before the survey was carried out, Environment and Water Resources Minister Masagos Zulkifli described climate change as a “pressing priority and existential challenge”.

Speaking on July 17 at a forum to promote environmental collaboration, Mr Masagos said: “At stake is nothing less than the physical preservation of our island nation and its inhabitants.” He also announced the setting up of a Climate Science Research Programme Office under the Centre for Climate Research Singapore (CCRS). The CCRS will set aside S$10 million in funding over the next five years for the National Sea Level Research Programme.

In the Mediacorp survey, which was representative of Singapore’s general population by age, gender and ethnicity, 68 per cent of respondents aged between 18 and 24 “agreed” or “strongly agreed” that Singapore’s current infrastructure is able to withstand the impact of climate change. The rest (32 per cent) “disagreed” or “strongly disagreed”.

Among those who are between 25 and 34 years old, 74 per cent expressed belief that the country’s current infrastructure is adequate, with the rest indicating otherwise.

The proportion of respondents in the other age groups who believed that Singapore’s current infrastructure can withstand the impact of climate change was between 61 per cent and 71 per cent.

For the younger respondents — those aged between 18 and 24 as well as between 25 and 34 — the vast majority (about 95 per cent) “agreed” or “strongly agreed” that the Government must do more to minimise the impact of climate change. This was in line with the proportion among the older respondents.

Among the respondents who are between 18 and 24 years old, 88 per cent “agreed” or “strongly agreed” that they will do their part for the environment. This was slightly lower compared to those aged between 25 and 34 (91 per cent), as well as those in the other age groups (between 91 and 96 per cent).

Likewise, the proportion of 18- to 24-year-olds who were concerned about the consequences of global warming (91 per cent) was marginally lower than those between 25 and 34 years old (94 per cent) and those in the other age groups (between 95 and 96 per cent).

In comparison to the other age groups, a lower proportion of the younger respondents (73 per cent of those aged 18 to 24; 79 per cent of those aged 25 to 34) indicated that they were aware of the Government’s efforts on this front. The proportion was between 82 and 84 per cent for the respondents in the other age groups.

IMPACT AND MEASURES TAKEN

On the National Climate Change Secretariat (NCCS) website, it is stated that climate change affects Singapore’s annual mean surface temperature, which has risen from 26.8°C in 1948 to 27.6°C in 2011. The daily rainfall totals and frequency of days with heavier rainfall have also risen.

Besides that, the mean sea level has increased 3mm a year over the last 15 years.

“This makes adaption measures a necessity for Singapore to prepare for the effects and to increase resilience to the effects of climate change,” NCCS said, adding that Singapore has “started making early preparations to adapt to the impact of climate change”.

Apart from reducing carbon emissions, the series of measures include enhancing knowledge and expertise, coastal protection, water resource management, as well as drainage and flood prevention.

For example, to cater for long-term sea-level rise, the minimum land reclamation level in Singapore was raised from 3m to 4m above the mean sea level in 2011. Walls and stone embankments have also been constructed to cover 70 to 80 per cent of the island’s coastline.

A ‘TERRIFYING’ PROBLEM

Millennials interviewed by TODAY — and who were not part of the Mediacorp survey — said that they were concerned about the impact of climate change, with most of them attributing it to the awareness generated by friends or influencers on social media.

Miss Goh Pei Jin, a 20-year-old digital marketing specialist, noted that social media influencers constantly draw attention to the topic.

Describing social media as a “big catalyst” in raising awareness, full-time national serviceman Darren Chua, 21, said: “A lot of friends I know are either helping to protect the environment or following pages aiming to do that – from raising awareness, to activism, to promoting lifestyle changes like buying secondhand clothes.”

The young Singaporeans noted that their generation and their offspring would bear the brunt of the consequences decades from now.

Miss Nicolette Shruthy Robert Michael, a 19-year-old student at Lasalle College of the Arts, said that although she and her friends sometimes joked that they would never bear children on a “dying planet”, the reality facing future generations was “quite terrifying”.

Some, such as Mr Drake Law, described young people as being “angry” that they would be left to deal with the effects of the choices made by earlier generations.

“If we don’t step up and make changes, it will be us and our kids who are going to suffer,” the 22-year-old buying assistant said.

On their part, the millennials said that they are actively engaging in efforts to combat climate change, but several felt that more could be done by corporations and the Government.

Those interviewed said that they make efforts, for example, to take part in beach clean-ups, buy reusable bags and borrow instead of buy books.

Mr Vignaraaj Chantherakumar, 28, is among those who help out during beach clean-ups. He observed that young people are engaging in these efforts because they feel that they have to take matters into their own hands or they could potentially bear the brunt of the impact of climate change.

Still, several interviewees acknowledged that individual action has limited impact. Mr Chua, for example, said that the public has to pressure businesses to adopt more sustainable practices.

Many also said that the Government could do more to inform the public about its efforts to tackle climate change, in order to drive home the urgency of the issue.

Mr Law said: “I have been unable to convince my parents that climate change is real, and I believe that if the Government tries harder to inform the public, older generations will be more aware and be more likely to believe that there is a problem as well.”

Miss Nicolette Shruthy noted that the Government has been encouraging Singaporeans to go green, but she felt that the messages need to be refreshed.

Ms Melissa Low, a research fellow at the National University of Singapore’s Energy Studies Institute, sees that there is a need for the Government to engage youths more on climate change issues — given their keen interest and passion.

For instance, the Government could be more open about the trade-offs involved in its decisions which affect the environment, she suggested.

Ms Low, who volunteers with the National Youth Council, said: “Young people have a lot of questions (about the environment) and they don’t have many people who can answer these questions for them. It’s about making sense of these complexities about what the Government is doing.”
Read more at https://www.todayonline.com/singapore/9-10-spore-youths-willing-do-their-part-environment-want-govt-do-more-survey

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