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The reasonssuch as lower prices and less need for extensive charging infrastructure has ledto BEVs and PHEVs to be lower hanging fruits for governments to incentivizecompared to FCVs. The introduction of FCVsis also more complex than BEVs and PHEVs not only because of reasons above but also because of its use of anew energy carrier (hydrogen) which needs notonly specific technology for production but also needs specifictechnology for storage and new infrastructure for distribution. BEVs are fueled by electricity which has hadestablished generation, transmission and distribution infrastructure for manyyears.

However, as explained in the following paragraphs, the support for thedeployment of FCV is very important in the long-term and government should beable to come-up with incentivizing methods that incentivize BEVs and FCVs at alevel degree.Some countriesthat provide more subsidy to FCVs are considering FCVs and hydrogen mobility asa piece of the big picture of the widespreaduse of hydrogen in a country/jurisdiction’s energy system due to its potentialfor reducing GHG emissions in a cost-effectiveway 81.For instance,Japan not only has targets for the numberof FCVs on the road and number of HRSs developedbut also has target numbers for the numberof stationary fuel cell for residential application. Japan has the target ofinstalling 1.4 million and 5.3 million small stationary fuel-cells (<5kW) by2020 and 2030, respectively 78.In other words, the incentive for the use of hydrogen in mobility is a partof a bigger picture which aims the widespread diffusion of hydrogen in Japan'senergy system.

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InSouth Korea, hydrogen fuel cell was chosen as one of the four promising renewable energytechnologies alongside with solar, wind and biofuel. South Korea is advancingresearch for increasing the efficiency of fuel cellsfor residential applications 79. South Koreaalso has an 1190 MW target for stationaryfuel cells by 2029 80.

Having a goal of fulldecarburization by 2050 62, Norway, Sweden,and Denmark have partnered to form Scandinavian HydrogenHighway Partnership, SHHP, since 2006. The aim of this partnership is the deployment of FCVs and development of HRSinfrastructure to form one of the first regions in the world with hydrogenavailability through a network of HRSs. This partnership connects industries,research institutions and local and national government findings from thesethree countries 82.

The planning for widespread of hydrogen is not limited to countrieswhich have allocated higher incentives to FCVs compared to BEVs. For instance, Germany which has oneof the most ambitious targets for the number of FCVs, started The National Innovation Programme Hydrogen and FuelCell Technology (NIP) to support the development of hydrogen energytechnologies and infrastructure. Thisprogram was a common program of the Federal Ministry of Transport and DigitalInfrastructure (BMVI), Federal Ministry for Economic Affairs and Energy (BMWi),the Federal Ministry of Education and Research (BMBF) and the Federal Ministryfor the Environment, Nature Conservation, Building and Nuclear Safety d(BMUB) 83. NIP seen as a success for Germany, as Phase2 plan was established (NIP II). This program not only focuses onhydrogen fuel cell application in road,rail, shipping and aviation but also has programs on application of fuel cell combined heat and power systems forhousehold energy supply and installing more than 100,000 fuel cell systems( atotal of about 50 MW capacity) for critical infrastructures by 2025. Thesesystems will be uninterruptible and grid-independent 83.As statedearlier, the policies in support of a certain vehicle technology doesn’t only affect the deployment of thatcertain technology but also affects other technologies. This is why it is crucial to design incentives in such a way thatall technologies can be developed on alevel playing field.

The reason for the need for the development of all vehicletechnologies 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 complementarycharacteristic of these technologies can beexplained in three areas.Complementary in energy supply side: The time of charging of BEVs may affect theelectricity grid of a country/jurisdiction significantly. This means that if BEV and PHEV owners decideto charge their vehicles in a time of peak demand, the electricity system hasto provide more peak electricity generation capacity. Additionally, thewidespread use of BEVs and PHEVs in a country/jurisdiction may lead to a needfor the upgrade in electricity transmission, distribution, and transformationinfrastructure.

However, the time of refueling of FCVs will nothave a significant effect on the electricity system as hydrogen can be producedusing off-peak electricity and be used at any time without affecting thedemand. In other words, there is the possibility of producing hydrogen usingoff-peak electricity, storing hydrogen and skip producing hydrogen needed tofuel FCVs in the times of peak electricity demand. Although smart devices that control the time ofcharging for BEVs and PHEVs can address these challenges to some extent, havinga fleet that is a mix of BEVs and FCVs also makes sense as it can reduce theburden on the electricity grid. In thissense, PHEVs are also useful as most of theirdriving range is supplied by gasoline. So they can use gasoline in timesof peak electricity demand and be charged in times of low demand.

 

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