Electric Buses Are Hurting the Oil Industry

April 24th, 2018

Disclosure: I sell solar power systems in New Zealand.

Where’s the electricity coming from to charge up those buses?

A lot of it is still coming from coal, but China’s coal use has peaked:

The real game changer is clean energy. The price of solar photovoltaic is at an all-time low, enough to compete against coal for power generation. Additionally, wind power is well positioned to play an even bigger role.

Nevertheless, China is still the single largest coal user in the world, and coal represents more than 60 percent of its energy mix. But in the long run, coal consumption will continue declining – with current policies and the structural transformation of the economy from being a heavy industry-led, export-driven model to one sustained by services and domestic consumption – despite the annual and seasonal fluctuations.

We have no doubt that China’s coal consumption has peaked and coal-fired economic growth has come to an end.

Via: Bloomberg:

Electric buses were seen as a joke at an industry conference in Belgium seven years ago when the Chinese manufacturer BYD Co. showed an early model.

“Everyone was laughing at BYD for making a toy,” recalled Isbrand Ho, the Shenzhen-based company’s managing director in Europe. “And look now. Everyone has one.”

Suddenly, buses with battery-powered motors are a serious matter with the potential to revolutionize city transport—and add to the forces reshaping the energy industry. With China leading the way, making the traditional smog-belching diesel behemoth run on electricity is starting to eat away at fossil fuel demand.

The numbers are staggering. China had about 99 percent of the 385,000 electric buses on the roads worldwide in 2017, accounting for 17 percent of the country’s entire fleet. Every five weeks, Chinese cities add 9,500 of the zero-emissions transporters—the equivalent of London’s entire working fleet, according Bloomberg New Energy Finance.

All this is starting to make an observable reduction in fuel demand. And because they consume 30 times more fuel than average sized cars, their impact on energy use so far has become much greater than the than the passenger sedans produced companies from Tesla Inc. to Toyota Motor Corp.

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