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The reasons
such as lower prices and less need for extensive charging infrastructure has led
to BEVs and PHEVs to be lower hanging fruits for governments to incentivize
compared to FCVs. The introduction of FCVs
is also more complex than BEVs and PHEVs not only because of reasons above but also because of its use of a
new energy carrier (hydrogen) which needs not
only specific technology for production but also needs specific
technology for storage and new infrastructure for distribution. BEVs are fueled by electricity which has had
established generation, transmission and distribution infrastructure for many
years. However, as explained in the following paragraphs, the support for the
deployment of FCV is very important in the long-term and government should be
able to come-up with incentivizing methods that incentivize BEVs and FCVs at a
level degree.

Some countries
that provide more subsidy to FCVs are considering FCVs and hydrogen mobility as
a piece of the big picture of the widespread
use of hydrogen in a country/jurisdiction’s energy system due to its potential
for reducing GHG emissions in a cost-effective
way 81.

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For instance,
Japan not only has targets for the number
of FCVs on the road and number of HRSs developed
but also has target numbers for the number
of stationary fuel cell for residential application. Japan has the target of
installing 1.4 million and 5.3 million small stationary fuel-cells (<5kW) by 2020 and 2030, respectively 78. In other words, the incentive for the use of hydrogen in mobility is a part of a bigger picture which aims the widespread diffusion of hydrogen in Japan's energy system. In South Korea, hydrogen fuel cell was chosen as one of the four promising renewable energy technologies alongside with solar, wind and biofuel. South Korea is advancing research for increasing the efficiency of fuel cells for residential applications 79. South Korea also has an 1190 MW target for stationary fuel cells by 2029 80. Having a goal of full decarburization by 2050 62, Norway, Sweden, and Denmark  have partnered to form Scandinavian Hydrogen Highway Partnership, SHHP, since 2006. The aim of this partnership is the deployment of FCVs and development of HRS infrastructure to form one of the first regions in the world with hydrogen availability through a network of HRSs. This partnership connects industries, research institutions and local and national government findings from these three countries 82. The planning for widespread of hydrogen is not limited to countries which have allocated higher incentives to FCVs compared to BEVs. For instance, Germany which has one of the most ambitious targets for the number of FCVs, started The National Innovation Programme Hydrogen and Fuel Cell Technology (NIP) to support the development of hydrogen energy technologies and infrastructure. This program was a common program of the Federal Ministry of Transport and Digital Infrastructure (BMVI), Federal Ministry for Economic Affairs and Energy (BMWi), the Federal Ministry of Education and Research (BMBF) and the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety d(BMUB) 83. NIP seen as a success for Germany, as Phase 2 plan was established (NIP II). This program not only focuses on hydrogen fuel cell application in road, rail, shipping and aviation but also has programs on application of fuel cell combined heat and power systems for household energy supply and installing more than 100,000 fuel cell systems( a total of about 50 MW capacity) for critical infrastructures by 2025. These systems will be uninterruptible and grid-independent 83. As stated earlier, the policies in support of a certain vehicle technology doesn't only affect the deployment of that certain technology but also affects other technologies. This is why it is crucial to design incentives in such a way that all technologies can be developed on a level playing field. The reason for the need for the development of all vehicle technologies is that although these technologies may be considered as competitive technologies, based on the unique characteristics of each of them, they can act a complementary technologies. The complementary characteristic of these technologies can be explained in three areas. Complementary in energy supply side: The time of charging of BEVs may affect the electricity grid of a country/jurisdiction significantly. This means that if BEV and PHEV owners decide to charge their vehicles in a time of peak demand, the electricity system has to provide more peak electricity generation capacity. Additionally, the widespread use of BEVs and PHEVs in a country/jurisdiction may lead to a need for the upgrade in electricity transmission, distribution, and transformation infrastructure. However, the time of refueling of FCVs will not have a significant effect on the electricity system as hydrogen can be produced using off-peak electricity and be used at any time without affecting the demand. In other words, there is the possibility of producing hydrogen using off-peak electricity, storing hydrogen and skip producing hydrogen needed to fuel FCVs in the times of peak electricity demand. Although smart devices that control the time of charging for BEVs and PHEVs can address these challenges to some extent, having a fleet that is a mix of BEVs and FCVs also makes sense as it can reduce the burden on the electricity grid. In this sense, PHEVs are also useful as most of their driving range is supplied by gasoline. So they can use gasoline in times of peak electricity demand and be charged in times of low demand. 

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