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Transport’s dependence on fossil fuels holding back the energy transition
24/7/2024
As one of the most energy intensive sectors, transport is still heavily dependent on fossil fuels, holding back the energy transition while exacerbating climate change, according to a new report by REN21. Meanwhile, a new partnership has unveiled the UK’s first EV charging station to be powered directly by on-site wind.
Transport consumes 30% of the world’s total final energy. Most of this (96%) comes from fossil fuels, to a large extent oil, and is responsible for 20% of global emissions, the report finds. Demand for transport is also rising, particularly in road, aviation, and marine sub-sectors, which have the lowest shares of renewable energy.
According to REN21, the renewable energy policy network, one of the major barriers responsible for the low uptake of renewables in transport is the current state of disconnect between the transport and energy sectors. This is reflected in the way that subsidies, infrastructure and the lack of integrated planning maintain the way transport is built around a fossil fuel system. The continued subsidisation of fossil fuels sends mixed signals and obstructs progress-oriented integrated planning with renewables, the report finds.
‘The energy transition and sustainable development are simply not possible without urgently decarbonising transport, especially in view of the sector’s chronic and structural dependence on fossil fuels and rising energy demand,’ notes REN21 Executive Director Rana Adib. ‘As things currently stand, the transport and energy sectors are operating in silos. Transport needs urgent and collective attention of both transport and energy policymakers. There needs to be rapid integration between both sectors to break transport’s dependence on fossil fuels and shift it to renewables,’ Adib adds.
Stronger integration is crucial as the choices of transport pathways and fuels solutions are interdependent, and have direct implications on infrastructure development and vehicle options. Governments’ policies to bolster the integration of renewables in transport, such as targets, fiscal incentives (tax rebates, grants) and blending mandates, are creating benefits, according to the report. For example, 74 countries set targets to promote electric vehicles (EVs) by end of 2023. This resulted in the quadrupling of the global stock of EVs between 2018 and 2023, reaching an overall share of 2%, up from 0.45% in 2018. Also, EV sales grew from 2.3% 2018 to 18% in 2023.
This also testifies to the fact that electrification is playing a key role in decarbonising transport and enabling the shift from fossil fuels to renewable electricity. However, for electrification to succeed in shifting transport to renewables, governments must ensure that the electricity is generated by renewable means, the report notes. In most cases, this is not happening, which impedes decarbonisation. For example, as of early 2024, India had electrified around 40,000 km of railway lines across 14 states and Union Territories. India’s rapid electrification of rail has not resulted in significant decarbonisation, however, as around 70% of the country’s electricity continues to come from coal rather than from renewable sources.
As of the end of 2023, only nine countries have set 100% renewable power targets and 100% EV targets, or complete internal combustion engine bans. These include Chile, Costa Rica, Denmark, Iceland, New Zealand, Spain, Sweden, the UK and Antigua.
‘At the moment, the critical conversations between transport and energy players are not happening, and each side is expecting solutions to come from the other. Transport players often assume that fuels are fully renewable, without specifying the types needed. Conversely, the energy community tends to overlook transport modes and vehicles, focusing instead on transforming feedstocks into usable fuels. This is the reason why collective strategies need to be developed and strengthened,’ Adib says.
The fact that policymakers are not enabling sectoral integration and energy players are not focusing on transport is leading to a sustained reliance on fossil fuels and low share of renewables, which is mainly coming from biofuels in most regions, the report notes. Latin America has the highest share of renewables, reaching 14.5%, owing by and large to dedicated biofuel policies in Brazil. Europe and North America follow with a 5.5% and 5.4% share respectively, driven by the EU Renewable Energy Directive and the US Renewable Fuel Standard. Biofuel mandates remain the most common regulatory policy for renewable transportation. In 2023, 64 countries had in place biofuel mandates, including the US, Brazil, South Africa, Indonesia, Malaysia and India. Meanwhile, global investments in biofuels dropped to its lowest level since 2016.
‘Transitioning the transport sector to renewables is critical. However, it cannot be limited to setting targets for EVs. We need holistic and collective strategic thinking and planning to wean transport off fossil fuels and shift it to renewables,’ concludes Adib.
UK’s first EV charging station to be powered directly by on-site wind
Meanwhile, in related news, Vital EV Solutions and AWEnergy have joined forces to unveil the UK’s first ever EV charging station powered directly by on-site wind power.
Located adjacent to the A5 trunk road between Dunstable and Milton Keynes, the charging station is powered by AWGroup’s 4.1 MW Checkley Wood wind turbine, which was commissioned in January 2024. It is equipped with 14 high-speed charging points specified by Vital EV, with a 900 kW total charging capacity that could be expanded to 1.6 MW, according to the partnership. Capable of delivering up to 300 kW of power to a single connector, the charging station supports both general public use and dedicated areas for buses and heavy goods vehicles.
With 56-metre-long blades and a total rotor diameter of 115 metres, the wind turbine has the capacity to produce over 10,150,000 kWh annually, enough to facilitate over 225,000 EV rapid charges per year, report the two companies.
‘The integration of direct wire technology from the turbine represents a significant leap forward in the EV charging landscape,’ says Alex Rae, Managing Director of Vital EV Solutions. John Fairlie, Managing Director of AWRenewables, continues: ‘Launching the UK’s first electric vehicle charging station powered directly by on-site wind energy is a landmark achievement for both renewable energy and the EV sectors.’
The UK’s first charging station to be directly powered by on-site wind power is located on the A5 trunk road between Dunstable and Milton Keynes and is powered by the nearby 4.1 MW Checkley Wood wind turbine
Photo: Vital EV Solutions/AWEnergy