Category: innovation

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Charging Electric Vehicles: Pay-per-kWh vs Pay-per-Hour

Introduction

The advent of electric vehicles (EVs) has brought about a significant shift in the automotive industry. As the number of EVs on the road increases, so does the demand for charging stations. However, a debate has emerged regarding the most equitable way to charge for this service: pay-per-kWh or pay-per-hour. This article will explore both options and argue in favor of the pay-per-kWh model.

Pay-per-Hour Model

The pay-per-hour model charges EV owners based on the amount of time their vehicle is connected to the charging station. This model is simple and easy to understand, as it mirrors the way we pay for parking. However, it has several drawbacks.

Firstly, the speed at which different EVs charge can vary significantly. Some vehicles may be able to fully charge in an hour, while others may take several hours to reach the same level. This means that owners of faster-charging vehicles end up paying more for the same amount of energy.

Secondly, this model does not incentivize efficient use of charging stations. Once a vehicle is fully charged, the owner has no financial incentive to move their vehicle and free up the charging spot for others.

Pay-per-kWh Model

The pay-per-kWh model, on the other hand, charges based on the amount of energy consumed. This model is akin to how we pay for gasoline or home electricity, making it intuitive for consumers.

This model is fairer as it ensures that drivers pay for the exact amount of energy they consume, regardless of how long it takes their vehicle to charge. It also encourages efficient use of charging stations, as drivers are likely to unplug their vehicles once they are fully charged to avoid additional costs.

Moreover, the pay-per-kWh model aligns with the goal of promoting energy conservation. By making drivers aware of their energy consumption, it encourages them to adopt energy-efficient driving habits.

The Future of EV Charging

While both models have their merits, the pay-per-kWh model is arguably the better option. It is fairer, promotes efficient use of charging infrastructure, and encourages energy conservation.

However, implementing this model is not without challenges. Regulators must ensure that pricing is transparent and that consumers are protected from price gouging. Additionally, charging station operators will need to invest in metering technology that can accurately measure energy consumption.

Despite these challenges, the pay-per-kWh model is the way forward. As the EV market continues to grow, it is crucial that we adopt a charging model that is fair, encourages efficiency, and promotes sustainability. The pay-per-kWh model ticks all these boxes, making it the clear choice for the future of EV charging.

In conclusion, while the pay-per-hour model may seem simpler, the pay-per-kWh model is a more equitable and sustainable solution. As we navigate the transition to electric vehicles, it is crucial that we make decisions that not only serve the needs of EV drivers today but also pave the way for a more sustainable future.

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Electric Vehicles: What is the future? 

Quick Summary

EV Sales

What’s pushing the EV Marketing

Oil and Electricity demand

EVs in Developing Nations

Article

What are the odds of you driving an Electric vehicle by 2030 or ten years later? Do not worry because
the odds are getting better for you every year. BloombergNEF (BNEF) estimates that in 2025,2030 and
2040, electric vehicles EVs will hit 10%, 28% and 58% of worldwide passenger vehicle sales respectively.
The BMEF report currently puts electric vehicles global sales at 3%.
Do you know what Kodak, Xerox or Blockbuster have in common? Innovation absence. The incumbent
organization must always invest in innovation in order to maintain being at the top. Otherwise, they will
tend to fall. This is what is currently happening in the automotive industry.
After companies like Tesla made electric vehicles a common feature on the roads of developed
countries, other manufacturers have joined the race. Currently, the Tesla Model 3 heads the pack at top
position with over 365,000 units sold in 2020 yet was first launched in July 2017.
EV Sales
Currently there are over 500 electric vehicles model globally. As battery prices fall with an increase in
energy density improvement coupled with mushrooming of more charging stations, sales will continue
to rise for electric vehicles. In India, Electric vehicle sales are up 20% with listed electric vehicle
companies like TATA, Ashok Leyland, Ather Energy and Mahindra focusing on production. Over the
years, India has been a strategic market for most manufactures not just in the automotive industry. This
can be attributed to the population of over a billion providing vast markets.

Tesla has as a result registered a company in the country. According to India’s transport minister, Nitin
Gadkari, the giant electric vehicle company will start off with sales and thereafter may seek assembly
and manufacturing.
What’s pushing the EV market?
If you sat in an Advanced Macroeconomics class, you probably have heard of arguments that technology
is endogenous. Technological advancements occur as a result of intentional investment decisions. These
decisions are made by profit maximizing agents.
This is the case in the EV market. Batteries keep getting better every year. This is not by default but by
serious labor and financial investments. Battery average density keeps on rising at 4%-5% annually
while charging speeds are on the rise. For example, the Tesla supercharger 3 network can add about 75
miles of charge in just 5 minutes of charge for the Model 3.
Apart from technology, policy makers are also lobbying for significant reduction of emissions in the
automotive market. Another major concern for them are city policies, fuel economy regulations and
quota systems. Several countries have put in place mechanisms to encourage adoption of electric
vehicles through policy makers. Subsidies for example have encouraged purchase of battery electric
vehicles.
In 2016, countries like Norway, Korea, China, United States, France, UK and Japan offered national
subsidies of USD 20,000, 16,550, 10,000, 8,750, 7,100, 6,200, and 5,500 for battery electric vehicles per
vehicle respectively. With this effort, about 13 countries have announced their plans to eliminate the
sale of internal combustion vehicles (ICV). This has as a result led to rising policy pressure on
manufacturers. This is enough to educate manufacturers on the future of ICV’S.
Another contributor is the falling lithium-ion battery prices. From 2010 – 2019, lithium-ion battery packs
prices dropped 87%. This has been attributed to discoveries of new manufacturing techniques,
chemistries and introduction of simplified pack designs.
What it means for Energy and Electricity demand
Oil and Electricity Demand

Covid- 19 safety rules hit the passenger vehicles hard and the effects passed on to oil demand. 1 million
barrels of oil per day is already being replaced by EV’s around the world. What still gives hope to the
overall road transport oil demand for this decade is growth in heavy commercial vehicles. We have
however seen the likes of Elon Musk unveiling solutions for this such as the class 8 semi-truck. The truck
will come with 300-mile or 500-mile range. Tesla has also launched an eighteen-wheeler for cargo.
Multibillion-dollar organizations such as Amazon has also opted for electric vehicles for deliveries. This
clearly gives a clear picture of where things are headed. BNEF projects that by 2040, 17.6 million barrels
of oil demand will be displaced by EV’s per day.

By 2040, the overall consumption of electricity by EV’s across all segments will add just 5.2% to global
electricity demand. This EV’s will consume a total of 1,964TWh.
Why Electric Vehicles?
A global advantage of buying an electric vehicle is the absence of carbon emissions. They help reduce
global warming in the long run and as a result an investment to our future generations. EV’s also require
low maintenance compared to gasoline cars. There is no need to send your EV to the service station as
often as you would an ICE.
Savings is one of the most important selling points. EV’s can be charged for significantly very low prices
compared to ICE’s. Some countries also offer incentives for going green. On safety, EV’s have been
deemed safer to use due to their low center of gravity making them more stable. EV’s are even less
likely to burn or experience explosions given the absence of flammable fuel.
EV’s are revolutionizing driving by making it easier. They come without the clutch mechanism since EV’s
do not suffer from the problem of stalling. You basically operate the vehicle using acceleration pedal,
the steering wheel together with the brake pedal. In ICE’s the breaking process wastes kinetic energy
while in EV’s, regenerative breaking charges the battery.
As much as there are some disadvantages of using electric vehicles such as the issue of recharge points,
steep initial investment and driving range the advantages outweigh them. Most of the challenges are
being faced out by technological advancements and time. An example is the problem of driving range.

Improved battery technology has now seen EV’s with up to 412-mile range up from 100-mile range. It is
therefore possible in future to have 1000mile range EV’s given this trend.
EV’s in Developing Nations
The Kenyan government has set a goal of having 5% of all registered vehicles being EV’s by 2025.
Government strategies have been formulated in order to have new public buildings have charging
stations. Kenya has severally experienced fuel challenges for example the increase of public transport
costs by Ksh.15. This was as a result of increased fuel costs as a result of increased VAT.
Private transport companies such as Eco-rent have however invested in EV’s in the Kenya. The company
launched a digital application similar to uber called NopeaRide. The organization uses purely EV’s and
has also set up charging points for their vehicles. Other countries in Africa worth mentioning include
South Africa where out of more than ten million cars, a thousand are EV’s and Nigeria where the
Hyundai-Kona, a locally assembled EV is being set up.
Conclusion
Technology advancements are exponential and endogenous. It is on this basis that the EV markets
future is promising. The overwhelming support and interests from governments and other relevant
institutions have also seen EV’s market grow. Technological advancements will render the initial costs
for EV’s to be cheaper and as a result more affordable.
Moreover, having Solar Power your home together with an EV is significantly economical as witnessed
by a Tesla customer who installed the Solar roof and owns a Model Y. She was able to feed extra power
to the grid making savings of up to $415.50 and revenues of $92.12 from selling back to grid.
This therefore shows us the need to also adopt solar power for running homes from which could also
power the EV’s making it even more economical. It would then be possible to make savings in this harsh
covid-19 economic times.

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The Path to Carbon Neutrality: How Individuals and Businesses Can Make a Positive Impact

Monologue

How I wish all company Presidents, CEOs, MDs and Department Heads would be as nervous as I saw Apple Inc. management were in the previously released apple merchandise reveal 2023. Even Tim Cook was rehearsing what he would say when mother nature demanded accountability. Is that what we need in the real world, a real “watch dog” to keep us accountable or else?

Someone to follow up on the promises companies give when asked about carbon neutrality and sustainability, someone to keep us in check not to forget about the planet while we are busy chasing profits while being unsustainable. Judging from Apple Inc. entities can still be chasing carbon neutrality goal while still maintaining profitability.

Quick Summary

  • Carbon nuetrality’s role in addressing Climate Change
  • Role of Individuals
  • Role of Businesses
  • Innovations and Technologies
  • Benefits

Understanding the Importance of Carbon Neutrality and its Role in Addressing Climate Change

In an era marked by growing concerns about climate change, the concept of carbon neutrality has taken center stage. It represents a critical step in mitigating the environmental impacts of human activities, particularly the emission of greenhouse gases. As the world grapples with the consequences of climate change, understanding the significance of carbon neutrality and the role it plays in addressing these issues becomes paramount.

What is Carbon Neutrality and Why Should We Strive for It?

Carbon neutrality, often referred to as achieving “net-zero emissions,” is a state in which an entity, be it an individual, organization, or even a nation, balances the release of greenhouse gases into the atmosphere with actions that remove or offset an equivalent amount of these gases. The ultimate goal is to reach a point where the net emissions of carbon dioxide and other harmful gases are zero. Why is this goal so crucial?

Carbon dioxide, along with other greenhouse gases, traps heat in the Earth’s atmosphere, leading to global warming and climate change. These changes have far-reaching consequences, from more frequent and severe natural disasters to disruptions in ecosystems and threats to food security. Achieving carbon neutrality is not just an act of environmental responsibility; it’s a necessity to safeguard our planet for future generations.

The Role of Individuals in Achieving Carbon Neutrality: Small Changes That Make a Big Difference

Individuals have a significant role to play in the journey toward carbon neutrality. While the task may seem daunting, it’s essential to recognize that small changes in our daily lives can collectively make a substantial impact. Here are some practical steps individuals can take:

  1. Sustainable Lifestyle Choices: Adopting a more sustainable lifestyle involves reducing waste, conserving resources, and choosing eco-friendly products. Simple actions like reducing single-use plastic, conserving water, and supporting local, sustainable businesses can contribute to a lower carbon footprint.
  2. Energy-Efficient Practices at Home and Work: Switching to energy-efficient appliances, properly insulating homes, and using smart thermostats can significantly reduce energy consumption. Additionally, individuals can opt for renewable energy sources such as solar panels to power their homes.
  3. Transportation Alternatives: Reducing reliance on fossil fuel-powered vehicles by carpooling, biking, walking, or using public transportation can cut down personal carbon emissions. Electric vehicles (EVs) are also an eco-friendly option for those looking to make a more substantial impact.

How Businesses Can Drive the Transition to Carbon Neutrality: Strategies for Sustainable Operations

Businesses, as major contributors to greenhouse gas emissions, also bear a responsibility to lead in the transition to carbon neutrality. Implementing sustainable practices not only benefits the environment but also enhances a company’s reputation and profitability. Here are some strategies for businesses:

  1. Corporate Sustainability Initiatives: Establishing comprehensive sustainability initiatives that set clear goals for reducing emissions and improving environmental performance is vital. This includes measuring and reporting on carbon emissions transparently.
  2. Renewable Energy Adoption: Transitioning to renewable energy sources, such as wind, solar, and hydropower, reduces a business’s carbon footprint and can lead to substantial cost savings over time.
  3. Supply Chain Optimization: Examining and optimizing the supply chain can help reduce emissions associated with the production, transportation, and disposal of products. Collaboration with eco-conscious suppliers is essential.
  4. Green Building Design and Construction: When constructing or renovating facilities, businesses can incorporate green building practices and technologies that enhance energy efficiency and reduce environmental impact.

Innovations and Technologies that Support the Journey to Carbon Neutrality: From Renewable Energy to Carbon Capture

Innovations and technologies play a pivotal role in advancing the path to carbon neutrality. Some noteworthy solutions include:

  1. Sustainable Technologies: Advanced technologies like smart grids, energy storage systems, and more efficient HVAC systems contribute to reducing energy consumption and emissions.
  2. Clean Energy Solutions: Continued investment in renewable energy sources, such as offshore wind farms and next-generation solar panels, enables businesses and individuals to rely on cleaner power sources.
  3. Carbon Capture and Storage (CCS): CCS technologies capture and store carbon emissions from industrial processes, preventing them from entering the atmosphere.
  4. Circular Economy Practices: Promoting a circular economy, where products are designed for durability, repairability, and recycling, helps minimize waste and reduce carbon emissions associated with resource extraction and production.

The Benefits of Embracing Carbon Neutrality: Environmental Stewardship and Competitive Advantage

Embracing carbon neutrality brings forth a myriad of benefits, both for individuals and businesses:

  1. Positive Brand Image and Reputation: Individuals and companies committed to carbon neutrality are seen as environmental stewards, which can enhance their reputation and attract environmentally conscious consumers and clients.
  2. Cost Savings Through Energy Efficiency Measures: Transitioning to energy-efficient technologies and renewable energy sources can lead to significant long-term cost savings.
  3. Attracting Environmentally Conscious Consumers/Clients: As sustainability becomes a more significant factor in purchasing decisions, businesses that embrace carbon neutrality can tap into a growing market of environmentally conscious consumers.

Conclusion

The path to carbon neutrality is a collective effort that requires individuals, businesses, and governments to take action. By understanding the importance of carbon neutrality, making sustainable choices, and embracing innovative technologies, we can make a positive impact on our environment, combat climate change, and create a more sustainable future for generations to come. Committing to carbon neutrality today is not just an option; it’s a responsibility we all share in preserving our planet.

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“King Charles III’s Coronation Marks New Chapter in Monarchy’s Clean Energy Journey”

IRecco has received inquiries seeking clarification of job offers received in unsolicited fashion. These job offers appear to come from organisations falsely pretending to recruit on behalf, or by people…

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