Peru gears up for electric vehicles
To evolve into the world of electric vehicles (EV), it is essential that countries throughout South America overcome the challenges of costly vehicles, limited recharging infrastructure, and long recharging times.
This can be supported by the approval of public policies and action plans aimed at overcoming these challenges and stimulating EV commercialization, something that is slowing taking place in Peru.
While there are 5.1 million electric cars in the world, since 2016, Peru has only imported 32 EVs and 519 hybrids, according to the country's automobile association AAP (Asociación Automotriz del Perú).
Starting in December, the country is set to kick off new regulations aimed at promoting electric and hybrid vehicles and power supply infrastructure.
Part of the government’s 2019-30 national competitiveness and productivity plan, the regulations set subsequent electromobility milestones that envision decentralized pilot projects by 2021, Peruvian technical standards for charging stations by 2025 and electric buses operating in Lima, Arequipa and Trujillo by 2030.
all-electric bus in Peru (source: Engie)
To jump start hybrid and EV sales, the ministry of energy and mining is awarding bonuses to individuals or companies acquiring these types of vehicles. The ministry of economy and finance has also passed a decree which eliminates the ISC excise tax for those renewing their car parks with hybrids or EVs.
“in addition to the zero rate to the ISC, it is important that the government implement a bond that subsidizes the purchase of electric vehicles and a regulatory framework that regulates their use,” says Eddy Morris who is an information technologies lecturer at local graduate business school ESAN.
To advance on this front, the energy and mines ministry has published for consultation a supreme decree bill to promote the development of this market by declaring the use of electric and hybrid vehicles of national interest. The proposal covers charging stations, the role of power distributors and energy efficiency, among other areas.
In the meantime, companies linked to the local energy sector are seeking long-term regulatory changes and public-private partnerships aimed at harmonizing the basic fundamentals of the industry, including aspects such as developing a standard connection for vehicles wanting to recharge on the electricity grid.