Energy Efficient Propulsion Systems (PROMOB-e)

Context

Following the United Nations (UN) Paris Climate Conference (COP21), Brazil announced its intention to reduce its greenhouse gas emissions by 43 per cent compared to 2005 levels by 2030. In addition to increased use of renewable energy, the country is striving to improve its energy efficiency by 10 per cent. Currently, the transportation sector accounts for more than half of Brazil’s consumption of fossil fuels and for 46 per cent of greenhouse gas emissions by the energy sector. The Brazilian Energy Research Company (EPE) forecasts that the country’s car fleet will triple in size by 2050, of which 10 per cent are expected to be battery-powered electric vehicles. The growth of battery-powered vehicles and plug-in hybrids in the Brazilian market, however, has not been living up to its potential. So far, only six battery-powered models are offered, which, as in other markets, are comparatively more expensive than models with internal combustion engines. The number of new hybrid cars, plug-in hybrid, and battery electric licensing remains low at around 4,000 units in 2018 and 2019 (a 0.2 per cent market share). In public transport so far, only a few electric buses have been tested in pilot projects. Many cities are interested in the introduction of electric buses and are preparing to integrate this new technology, but there are still no continuous operating experiences and no specific financial support mechanisms.

Objective

The conditions to consolidate electrical mobility in Brazil have been strengthened.

Approach

Under the German Climate Technology Initiative (DKTI), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH works on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) to implement the DKTI Energy Efficient Propulsion Systems project in cooperation with the Brazilian Ministry of Economy (ME).

PROMOB-e focuses on three areas of intervention:

• Developing public policy and strategies to promote energy efficient propulsion systems;
• Articulating proposals for norms and regulations applicable to electric mobility; and
• Developing and spearheading business models and pilot projects. 

As a central element, Brazilian government, business and civil society partners are working towards the establishment of the National Electric Mobility Platform (PNME), which aims to develop policy proposals and implement technical studies and financing instruments.

Results

The Brazilian Electricity Regulatory Agency (ANEEL) passed the country’s first regulation on e-vehicle recharging in June 2018, whereby utilities, gas stations, shopping centres and other enterprises may offer commercial recharge services at prices freely negotiated in the market. 

In May 2019, ANEEL published the strategic research and development (R&D) project call - Developing Efficient Electric Mobility Solutions. In September 2019, 30 projects were approved by ANEEL, with a total volume of 468 million Brazilian Real (approximately 104 million Euros). The newly created Electric Sector Innovation Network (RISE) aims to promote networking between applied research projects and the development of products and services to offer in the market.

The Ministry of Regional Development discusses different criteria for electric buses as part of the Urban Collective Public Transportation Fleet Renewal Program. In September 2019, the São Paulo Transport Authority signed contracts for the operation of about 14,000 city buses. The concessions set ambitious targets for reducing emissions of greenhouse gases, nitrogen oxides and particulate matter between 2028 and 2038. To achieve these goals, public bus operators will use low emission technologies, including electric buses, in the coming years. The Brazilian Association of Technical Standards (ABNT) has developed a project for the classification of light vehicles, including electric bicycles, electric scooters and new electric vehicles such as scooters and unicycles, which is pending publication approval. ABNT has also participated in discussions on the new ISO 4210-10 Bicycles (Bicycle Safety Requirements - Part 10: Electric Bicycle Safety Requirements (EPACs)) to create a national standard for electric bicycles.