Electric Vehicles: Manufacturing and Infrastructure

KEY CONCLUSIONS

The Russian power network is ready to support a large number of electric vehicles, but the issue of their safety remains

“The Russian Federation’s energy system is one of the most reliable, technologically advanced power systems in the world. <...> The increase in consumption shows that our economy is growing, our services are growing. <...> If we’re talking about the energy system, I think our networks and our generation, and the global management of all these processes are already at such a level that fundamentally deep changes are not required,” said Anton Kolyhalov, Director of the Digital Transformation Department, Ministry of Energy of the Russian Federation.

“If you look at OPEC’s global forecast for the oil markets, you will see that... internal combustion engines will stay with us. Who can afford electric vehicles at the moment? They are often 40–50% more expensive than conventional diesel-powered cars. Can you force companies to change their fleets? The question will be how safe the process of decommissioning electric vehicles is – this is still debatable. Too many electric vehicles have combusted while in use,” said Karin Kneissl, Head, Center G.O.R.K.I. (Geopolitical Observatory on Key Issues in Russia); Minister of Foreign Affairs of the Republic of Austria (2017–2019).

PROBLEM

Creating charging stations for electric vehicles is unprofitable because Russia has few electric cars

“We met with colleagues from Yandex – they have colossal analytical capabilities. They calculated how many electric vehicles there are in Russia now: 32,000. <...> The network load of the Rosseti group of companies is now 2%. The average cost of a kilowatt-hour is 18 roubles. <...> This is an extremely unprofitable project for us. In order for the plant to pay for itself in 5–7 years, one kilowatt-hour should cost 300 roubles. It is clear that then no one will charge. <...> Our charging stations have low utilization: there are simply not enough electric vehicles,” said Konstantin Kravchenko, Deputy General Director for Digital Transformation, Rosseti.

“For this year, compared to 2022, we saw 77% growth in the number of electric vehicles in Russia, i.e. 30,000 – 0.1% of the total number. According to various forecasts, by 2030 [there will be 1.5 million electric vehicles in Russia – Ed.]. <...> Even with such a large number of cars, refuelling becomes profitable. There are now 4,300 charging stations, [and their number will increase – Ed.] up to 72,000,” said Alexander Khvalko, Director, Digital Energy Association, Deputy General Director and Sales Director, Rosenergoatom.

SOLUTION

Creating infrastructure for electric vehicles and a single operator for network charging stations

“The user behaviour pattern has to change. Currently, it’s hard to imagine that a person will arrive and that for 51 minutes they’ll sit and charge. It’s probably possible on highways where one can, for example, put the car on charge and have a cup of coffee and a break. If I’m in the city and I need to recharge, even for 30 minutes, not until I have a full battery [then probably not – Ed.]. You need to be able to charge in 8–10 minutes. <...> Alternatively, there are what are known as slow charging stations, using an alternating current, in places where there is mass parking. <...> There is a problem with the cost of technical connection. This issue is mainly related to the historical centres of large cities, where there are paving stones and horizontal drilling is required. Of course, this kills the whole economy. There should be some kind of state subsidy programme. <...> If we are talking about network development, there should probably be a network operator that will look at the network of charging stations in terms of understanding where these stations should be placed,” said Konstantin Kravchenko, Deputy Director General for Digital Transformation, Rosseti.

“The generating part of our power system, in my understanding, is more prepared [for the sudden appearance of a large number of electric vehicles – Ed.] than the network part. Simply by virtue of the fact that we were pulling megawatt cables for our ships [water buses – Ed.], for charging stations, to the historic centre of the city. The problem was not that we didn’t have these megawatts, but that we had to pull them into the historic centre of Moscow. A number of large cities – St. Petersburg, Nizhny Novgorod, Kazan – have similar difficulties. The question is not that we don’t have the capacity to provide for a million electric vehicles, the issue is about the right organization, regulation by the state, and the regulator, who is responsible for the process,” said Nikolay Pozhidaev, President, Chairman of the Management Board, Sitronics.

“What do we need to boost electric transportation? The most important thing is to create a culture in which the electric car is a way of life. [We need – Ed.] popularization, the environment, usability, infrastructure, standards, rules, and a digital ecosystem for the market. In fact, this [electric transportation – Ed.] is the future,” said Alexander Khvalko, Director, Digital Energy Association, Deputy General Director and Sales Director, Rosenergoatom.

For more information, visit the Roscongress Foundation’s Information and Analytical System at roscongress.org/en.

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