Armenia’s inventory of passenger cars is among the oldest in the region, with an average vehicle age of 15-20 years. Recently the government has implemented a number of measures aimed at stimulating the purchase of newer and eco-friendlier cars, and in this way has also starting to improve the framework conditions for electric vehicles (EVs). Apart from VAT exemptions on the import of EVs until the end of 2021, such cars are exempt from parking fees in the capital.
EVs in particular show great promise in helping meet CO2 reduction targets in the transport domain and in reducing local air pollution. These vehicles have become increasingly popular, now that the main barriers – the purchase price and their limited range due to high battery costs – have been overcome through the introduction of more affordable, long-range EVs into the Armenian market.
Despite growth in recent years, fully electric car ownership is low overall in the country, with only around 450 EVs registered as of November 2020, up from only a small number of vehicles five years ago. Accordingly, the government is planning to introduce further measures to incentivise the purchase of these cars, such as supporting the development of charging infrastructure and additional free parking facilities for electric vehicles. There are even plans to produce electric cars in the country; remember, the first Armenian-made electric car was presented at the DigiTec Expo in 2017.
One of the advantages EVs offer in comparison to cars that run on fossil fuels (gas, petrol and diesel) is the ability to charge the car while parked, thus reducing the need for fast refuelling stations. Cars are parked 90-95% of the time, offsetting the issues of limited range and long recharging times, even with currently available short-range vehicles. However, this requires charging infrastructure at places where users park their cars, including at home, work or in public facilities such as shopping centres. Investments in the necessary charging infrastructure have been slow due to “chicken or egg” reluctance where investors would prefer to see EVs first become more prevalent.
Currently, there is no specific regulation on EV charging stations in Armenia, unlike fossil fuel filling stations. Accordingly, all construction and operation of charging stations for EVs is subject to general technical and other requirements. Since there are no local manufacturers of EV charging stations yet, the equipment is imported and needs to pass the necessary certification for compliance with local standards for electrical installations. As a result, now it is most likely for legal entities to purchase a charging station for the needs of their own vehicle fleet.
The public network of EV charging stations in Armenia consists of fewer than 30 stations with medium-level charging speed. Almost 90% of EVs are charged at home. In order to start developing commercial EV charging stations, a critical number of 4,000 EVs would be required, according to the “plug.am” project. It can therefore be concluded that the local EV market has thus far only been developed by independent enthusiasts.
It should also be noted that there are different types of charging stations. On the one hand, the charging capacity is an important consideration, as it has a direct bearing on how fast the batteries can be recharged. Apart from this, there are two competing standards for vehicle connectors: CHAdeMO and SAE J1772 Combo. In practice, both connectors work very well and almost all EVs are equipped to utilise either connector.
Source: www.evscharging.com
Finally, the engine of an electric car is much simpler than one powered by fossil fuels, as it has fewer moving parts and no gears. Therefore, the scope for malfunction or breakage is far smaller, and the actual number of parts which may need to be replaced or repaired is also lower. A positive outlook: maintenance and repair will be much lower than for conventionally fuelled cars.
In summary: yes, electric vehicles are one of the most talked about topics in the motor industry today, and not only in terms of technical issues. Further growth in the use of electric cars will also depend on their affordability, so dedicated financing schemes and services targeting these types of cars could be very attractive for potential buyers and will have significant impact. It is clear that the current and future development of EVs will have long-lasting effects on the country and that demand will gradually increase, as demonstrated by the current trend.
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