Rising oil prices have made zero emissions more attractive
There’s no turning back. Europe is going electric. This year, the ‘Fit for 55’ package of environmental measures presented by the European Commission in 2021 will be approved, among which it will put a counter on the car industry: the ban on the sale of thermal engines by 2035.
The route is clear and it is becoming more common to find zero-emission taxis, which seems to indicate that the economic case is solid. It is already possible to find these models on the market from 18,000 euros – the upper limit reaches to millions of supercars – but limiting yourself only to the purchase price would be a mistake.
There are costs associated with every vehicle that can easily be obscured: insurance, taxes, maintenance or especially energy costs are all factors to take into account, as their sum can mean the same amount as buying the vehicle, according to the data of the Dutch investment Robeco. The analysts compared the total cost of ownership (TCO) of two comparable Skoda SUVs, the electric Enyaq and the Kodiaq with combustion engine, over a six-year period. The first achieved a saving of approximately 8,200 euros compared to its competitor, despite a higher starting price.
European governments have introduced incentives to make electric vehicles more affordable, but these vary in quantity and complexity: in Germany they are up to €9,500, while in Spain the Moves III is subject to conditions such as scrapping a thermal car. Sector associations such as Aedive or Anfac argue in favor of abolishing VAT from zero emissions. However, they confirm from Robeco that “the costs for the administrations of this aid are high and that they will eventually disappear”, as has already happened in Switzerland.
The price of energy is the main factor driving up a vehicle’s cost of ownership, especially after the war in Ukraine pushed the price of a Brent barrel up 57.4%. According to data from the Ministry of Ecological Transition, gasoline costs an average of 9.18 euros per 100 km, diesel 6.65 and electricity between 2.53 and 6.16, depending on whether charging becomes public or domestic.
Taking this data as an example, with an 11 year old car and 14,000 miles per year they would have spent 14,137 respectively; 10,241 and between 9,486 and 3,896 euros over the lifetime, with a clear benefit for zero emissions.
But the price of electricity is very variable and everything comes down to the price of the contracted kWh. Since the average consumption of electric cars is 15 kWh per 100 kilometers and the current average kWh is 23 cents, the price to drive is 3.45 euros. With the off-peak rates, of 9 cents per kWh, they are reduced to 1.35 euros -2,079 in 11 years.
These figures are for domestic fares only —with a maximum power of 7.4 kW — as public points increase their price significantly. In 50 kW semi-fast chargers, the kWh can go up to 40 cents (Endesa); while in the 150 kW rapids the kWh can go up to 79 cents (Ionity).
Assuming that the installation of the charge point has already been done. Manufacturers can use it as a service when buying one of their electric cars, but the prices are around 1,500 euros, which can be subsidized up to 70% by the Moves III plan.
This interest in saving on charging has led to companies specializing in energy advice such as Emovili, whose CEO, Paco Casas, confirms that up to 70% can be solved with the installation of solar panels. According to him, “the help is important to change the mindset of the clients, but they need to get more money.”
However, they are optimistic: “Using renewable energy sources, along with bi-directional charging, which allows the energy from the car to be used for the house, there would be no need to depend on an external power supply,” he says.
depreciation
Another hidden cost of electrics is that they don’t store their value as well as thermal ones right now. After the first 15,000 kilometers, a combustion model has lost 25% of its value, while an electric model has lost twice as fast, about 50%, according to the German consultancy Bähr & Fess.
While it is true that they require less maintenance, the main reason they blame is battery deterioration as it is easy to mistreat them with careless charging. Accumulators generally come with an eight-year warranty, and the closer you get to that threshold, the less attractive it becomes to a second-hand buyer.
Battery replacement is possibly the most dreaded aftermarket operation for electric vehicle customers. It is true that the cars that have passed that age had to be registered in 2014 and then the current offer did not exist either, but the prices in the official workshops – the only ones that can make the change – are around 8,000 euros.
Source: La Verdad
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
