Public-Private Partnership in EVehicle Charging System in China
Simon Yin
6th Workshop on EU-Asia Relations in
Global Politics
16 March, 2017
Abstract
• As China tries to build an innovation-based and environmentfriendly economy amid economic slowdown, E-vehicle system has
been a bright spot and deserves serious study. The E-vehicle
charging system is in the initial development period in China,
where there is an imbalanced supply and demand structure, an
increasingly mature institutional environment, and an imperfect
support system. The infrastructure is critical for supplying energy
to E-vehicles.
• The public–private partnership (PPP) model is an effective supply
channel for the infrastructure. Introducing the PPP model into the
charging system utilizes private capital, eases the burden on local
government finance, strengthens project management and
profitability, and reduces construction and operation risks.
• This paper discusses the support mechanisms required by the
government, society, and agents for implementing PPP projects
for an effective charging system in China.
Background
• Dense urban population, passion with cars,
exacerbating air pollution, and shortage of energy
resources have encouraged the Chinese
government to promote the development and
sales of E-vehicle.
• The E-vehicle charging system dominated by
State Grid Corporation has taken shape.
• In 2016, the Chinese government has decided to
accelerate the construction of electric vehicle
charging facilities in residential areas to boost
production and sales of green cars.
Global outlook
• In the USA, from 2010 through 2016, the number of charging stations
has increased by 125% per year. Retailers and hotel owners are installing
charging stations to attract customers. More than 100 metropolitan
cities in the USA have formed Clean Cities Coalitions — PPP that
promotes a clean environment — and are encouraging the installation of
more chargers.
• In Japan, there are more than 40,000 places nationwide where electric
car owners could recharge their vehicles, compared with fewer than
35,000 petrol stations.
• In 2017, Germany's transport ministry has launched a 300 million Euro
(318 million USD) support scheme to install a network of 15,000
charging points for E-vehicles by 2020.
• Norway today has more than 10,000 E-vehicles. Key factors in explaining
this success are infrastructure, incentives and a fruitful collaboration
between public and private actors. Norway’s E-vehicle fleet is served by
an infrastructure of 3770 public charging points at approximately 1100
charging stations. Seventy percent of these stations are quick-charging
stations, where the E-vehicles can be charged up to 80% capacity within
20-30 minutes.
Status Quo of E-vehicle Charging
System Construction
•
•
•
•
Supply Continuously Fails to Meet Demand
Technology Keeps Advancing
Intensive Promulgation of Policies
Private Capital is Abundant
Annual production and sales of E- vehicles
Goals (2015-2020)
Number of charging stations (accumulative)
Number of charging piles (accumulative)
Relevant policies to support the construction of the E-vehicle
charging infrastructure in 2015
Time
Document name
Issuing organ
30 January Regulation on the Implementation of
2015
Government Procurement Law
No. 658 Decree by the State
Council
18 March
2015
Opinions on Accelerating Promotion of
Application of New Energy Vehicles in
Transportation Industry
Ministry of Transport
7 April
2015
Guidelines on Demonstration of Financial Ministry of Finance
Capacity of Government and Private
Capital Cooperation Projects
22 April
2015
Notice on the Promotion of Financial
Support Policies by New Energy Vehicles
in 2016–2020
Ministry of Finance, Ministry of
Science and Technology, Ministry of
Industry and IT, Development and
Reform Commission
7 May
2015
Notice on Vehicle and Vessel Tax
Incentive Policies on Energy-saving or
New Energy Vehicles and Vessels
Ministry of Finance, Ministry of
Industry and IT, National Tax
Bureau
Relevant policies to support the construction of the E-vehicle
charging infrastructure in 2016
Time
Document name
11 January Notice on Incentive Policies on New
2016
Energy Vehicle Charging Infrastructure
and Strengthening the Application
of New Energy Vehicles during the
Thirteenth-Five Year Plan Period
Issuing organ
Ministry of Finance, the Ministry
of Science and Technology, Ministry
of Industry and IT, Development
and Reform Commission, National
Energy Administration
11 January Implementation Plan for Speeding up the Municipal Government Office of
2016
Construction of Electric Car Charging
Chongqing
Infrastructure in Chongqing City
12 January Government Office of Anhui Province’s
2016
Opinions on Accelerating Construction of
Electric Vehicle Charging Infrastructure
Government Office of Anhui
Province
19 January Opinions on Accelerating the
Government Office of Hebei
2016
Construction of Provincial Electric Vehicle Province
Charging Infrastructure
Reasons behind Backward Charging
System Construction
• Huge Investment (natural monopoly)
• Unclear Rights and Liabilitie
• A Single Body for Construction and Operation
of Charging System
• Various Risks Co-exist
• Support Systems Need Strong Coordination
Creative Application of PPP Model to
Charging System Construction
• Government Mechanisms for Encouraging the
Use of the PPP Model for Charging System
Construction
• Mechanisms for Operating Private Capital to
Apply the PPP Model to Charging system
Construction
• Intermediary Support Mechanisms for Private
Capital to Encourage the Application of the
PPP Model to Charging system Construction
PPP projects related to construction of
charging infrastructure
Location
Date
Term
(years)
Investment Target
(Bn Yuan)
Tianjin
28 October
2014
20
516
Charging piles: 2000
Bus charging stations: 40
Xuzhou
1 March 2015
15
138
Bus charging stations: 27
Anqing
18 January
2016
13
818
Charging piles: 1700
Bus charging stations: 4
Zunyi
1 October
2015
15
50
Replace or add 20 new
energy buses,
build three parking lots
Xining
1 January
2016
30
50
Build charging station in
Xining City and Qinghai Lake
Kuerle
17 November
2015
30
300
Charging piles: 170
Charging stations: 3
Hetian
21 September
2015
30
55
Five large urban public
charging infrastructure
systems
Conclusions
• The PPP model fosters the E-vehicle charging system
greatly. In this paper, I discuss the application of the
PPP model in building the charging system in order to
achieve a win–win situation. I discuss how to construct
a great charging system. I stress the decisive role of the
market in resource allocation and how the government
can make sure that the market functions properly. I
analyze the bodies involved in the construction of the
PPP model for the charging system and propose a
creative mechanism for stimulating the application of
the PPP model.
Thank you!