TSKB Energy Working Group Publishes New Information Note on “Electric Vehicles and Storage Technologies in Türkiye”

Aiming both to internally utilize TSKB's research, engineering and finance experience in the energy sector and transfer the same to external stakeholders, TSKB Energy Working Group has published its most recent information note “Electric Vehicles and Storage Technologies”, the fourth this year, in July. The information note covers the global development of electric vehicles and the current situation of the electric and hybrid vehicle industry in Türkiye. Furthermore, it offers a comprehensive analysis of current practices, innovative technologies, legislation and taxation.

Keeping the pulse of the energy sector through its “Energy Outlook Report” published every year since its establishment in 2018, TSKB Energy Working Group (TSKB EWG) continues to focus on developments in the field of energy via the sectoral information notes, the first of which was published in March 2021. TSKB EWG shared the “Wind Power Plants Information Note” in March 2021, followed by the “Demand Side Management Information Note” in April and the “Hydrogen Power Information Note” in May.

Aiming both to internally utilize the Bank's well-established research, engineering and finance experience in the energy sector and transfer the same to external stakeholders, TSKB EWG has published its most recent information note “Electric Vehicles and Storage Technologies”, the fourth this year, in July.

The information note examines the global development of electric vehicles, the situation of the electric and hybrid vehicle industry in Türkiye, market expectations and energy storage technologies in detail. It also draws attention to current practices, innovative technologies, legislation and taxation.

The information note provides that the environmental perspective and sensitivity to global warming are supported by wider masses in the world, that conventional energy resources such as coal, natural gas and oil are limited and the growth trend regarding the use of these resources is decreasing due to the rising energy need. It also states that the emergence of electric vehicles as an alternative is supported in the quest for new technologies.

“There are certain obstacles to the spread of electric vehicles”

Electric vehicles will apparently play a key role in the imminent transformation of mobility and in reducing carbon emissions from transportation. They will also provide a quieter, more environmentally friendly and more economical means of transport. However, although their number has increased in various countries of the world, there are still certain obstacles to the widespread use of electric vehicles. Electric vehicles are more affordable than gasoline-fueled vehicles. There are reputable players in the market in terms of brands and models as well as manufacturers specializing in electric vehicles. There are suitable and sufficient charging stations available. Electric vehicles meet the expectation of reaching an average range of 400-450 km on a single charge. And the charging time is around 20-30 minutes. These are all priority reasons why electric vehicles will become more common. Among the factors affecting the demand for electric vehicles is the sales price.

“Battery costs in electric vehicles are high”

The key component that affects the cost in the manufacturing of electric vehicles as well as the sales price is battery technologies. Battery costs make up about 30 percent of the total cost of an electric vehicle, and electric vehicle battery costs remain high. Driven by reduced battery costs thanks to developing technologies, electric vehicle manufacturers are planning to offer longer-range vehicles at more affordable prices. Globally, electric vehicles industry is on the receiving end of various incentives including but not limited to purchasing subsidy, registration tax, VAT, scrap incentive, annual license plate tax, parking fees and tolls, and use of special lanes. It is reported that the recent growth in the global electric vehicle market has brought along the development of the lithium-ion (Li-ion) technology, and that the said developments have triggered a decrease in the costs of lithium-based battery technologies. It is estimated that the costs of lithium-based battery technologies, which are expected to drop further in parallel with technological developments in the coming period, will render investments in this field more financeable.

“Investments in energy storage systems are on the rise”

Rising energy demand, coupled with the intermittent nature of renewable energy resources and the need for storage, accelerates investments in this field as well as the expansion of government subsidies. As countries continue to set their energy storage policies, relevant government incentives are on the rise. In addition, there is an increase in the number of collaborations and projects between companies and public institutions in the sector. Furthermore, multiple investors are investing in the energy storage systems industry through mergers and acquisitions. There are energy storage projects in different fields in Türkiye, with both private and public investments being in progress.

For the report titled “Electric Vehicles and Storage Technologies” by TSKB EWG please click.

You can find below the links of other reports by TSKB EWG from 2021:

For the report titled “Off-Shore Wind Farms Information Note” March 2021 please click.

For the report titled “Demand Side Management Information Note” April 2021 please click.

For the report titled “Hydrogen Power Information Note” May 2021 please click.