MANILA, Philippines - Local start-up QEV Philippines Electromobility Solutions and Consulting Group Inc. (QEV Philippines) is seeking government assistance to convert 10,000 jeepneys to electric-jeepneys, estimated to cost P6 billion, starting 2018.
QEV Philippines, a joint-venture between Spanish and Filipino businessmen Endika Aboitiz and Enrique Bañuelos, is proposing the conversion of an initial 50,000 jeepneys over five years, or 10,000 jeepneys annually starting next year, by replacing their diesel engines with lithium-ion batteries.
“What we propose is not replacement, but rehabilitation. Rehabilitate old jeepneys and make them like new, complete with electrical motors that will make it run on electricity instead of diesel. Help drivers pay for the rehabilitation, through a special program that the Philippine government will make out for them—and in the end put more money in their pockets because the costs of charging with electricity would be so much cheaper than filling it up with diesel,” Bañuelos said.
If the proposal is adopted, electrification or reconversion will be undertaken by QEV Philippines affiliate QEV Technologies and local jeepney manufacturers such as Sarao Motors in four local facilities.
During the green jeepney launch, Aboitiz said the conversion plan was presented to Finance Secretary Carlos Dominguez six months ago, which was warmly welcomed by the government official.
Meanwhile, he said the Department of Transportation and Department of Energy would have to configure regulation to speed things up for drivers.
Dominguez said the government is supporting this endeavor since it reduces the country’s carbon footprint, but he needs to see how and the cost of the jeepney conversion.
“We’re considering it. What you’re buying is less carbon, less pollution. It’s really justifiable for us to consider some kind of incentive. But when we’re ready to finance, we’re going to determine what kind of incentive we’re going to provide… we don’t know the exact cost of conversion,” he said.
Apart from jeepney conversion, QEV Philippines will provide charging stations in partnership with Manila Electric Co. (Meralco), Shell, Ayala Group and the SM Group. These will be powered by Aboitiz Power Corp. from its clean and renewable energy brand “Cleanergy.”
QEV Philippines general manager Audrey Peñaranda said its partnership with Shell for charging stations in its gas stations is being finalized, while SM has expressed willingness to host charging stations starting September.
“AboitizPower will take a little bit of the cost of electricity as CSR (corporate social responsibility). Meralco will also be taking a little bit of that as CSR. So we can lower the cost by 30 percent against diesel. If diesel is at P31 per liter, it will be 30 percent lower,” she said.