Conversion of ICE vehicles to EV: The need for prospects, challenges and policy restraint

By this time, Nepal is entering a crucial phase of energy transition. It is worth recalling that the use of electric vehicles has seen a massive increase in the last three to four years in Nepal, with the objective of reducing dependence on fossil fuels, reducing air pollution and developing a sustainable transportation system. Moreover, the price of fossil fuels has been on the rise in the international market which is at the increasing trend these days in the wake of the escalating conflict in the Gulf region.

The Government of Nepal by issuing a notice in the gazette on March 15, 2021, informed officially opening the way for the conversion by relaxing the restrictions to allow the conversion of petrol / diesel vehicles to electric or alternative fuel systems. But due to the lack of technical standards, technical guidelines, standards for the testing of converted vehicles and the lack of testing centers, and the legal complexity of the registration process, it did not make much impact on the public. In the wake of the current Iran-Israel-US war, the availability and price of petroleum fuels in the international market has caused a major upheaval in the debate on the conversion of petroleum-based vehicles to electric vehicles. Attempts to convert old petrol and diesel vehicles into electric systems appear to be commercially not-fit so far. despite some initial efforts by individuals and research institutions, including the Nepal Academy of Science and Technology(NAST). A thorough study and a balanced policy are required before implementing this concept in a comprehensive manner.

The use of electric vehicles, especially privately owned, has increased significantly in Nepal in recent years. Some statistics show Nepal as one of the leading countries in the world in terms of electric vehicle sales in the country’s market. However, the question of how much of this growth is structural and how much is based on practical needs to be seriously analyzed. Are Nepalese consumers opting for electric vehicles based on actual needs for its real benefits, or is this growth driven by social prestige, competitive attitude and fashion? An in-depth study on this topic is indispensable will be instrumental in getting the fact. Similarly, there is a need for clarity in the long-term public transportation policy of the Government of Nepal and whether it has been implemented or not, it also needs to be studied. Despite the high growth in the use of small personal electric vehicles, the number of electric vehicles in public vehicles used by the general public is very low.

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The average daily travel distance in a certain geography, such as the Kathmandu Valley, is only 10-15 km. The use of electric vehicles for such short distances is likely to reduce operating costs. However, some important aspects of cost-benefit analysis need to be clarified before it can be taken to a fully profitable conclusion. In particular, how long the economic benefits of electric vehicles last depends on the life of the battery. If the battery life is limited and has to be replaced within a few years, its cost can be very expensive.

This raises the important question, is an electric vehicle for short distances (10-15 km daily) really a cheap option in the long term? Although fuel expenses are saved, if the cost of battery replacement remains high, the overall expense may not be as high as expected. Whether an electric vehicle is affordable or not is determined not only by the daily fuel savings, but also by the overall lifecycle cost analysis of the battery life, including battery life, replacement costs, charging costs, and other maintenance costs. Therefore, a more in-depth study of the real economic benefits of electric vehicles for short distances seems to be needed.

It is in this context that the debate on vehicle conversion becomes more complex. While there are various challenges in the process of adopting a new electric vehicle and its cost-benefit aspect is not completely clear, the question of how practical it is to convert an old vehicle into a high-cost vehicle arises even more strongly. In the current situation, the cost of conversion seems to reach one-third to one-half of the price of the original vehicle, which is a huge investment for the ordinary consumer.

Conversion is a complex process. The motor, battery, control system, gear system and structural balance have to be reassembled. If these actions are not carried out in accordance with the standards, the safety and long-term performance of the vehicle may be seriously affected. In particular, the issues of battery management, thermal control and charging safety are very sensitive. Nepal has not yet developed a clear national standard and certification system for such conversions.

Socialization is also a major challenge. Vehicles are a matter of prestige and long-term investment in Nepali society. The role of social influence and competitive thinking is also seen in the increasing use of electric vehicles. It will still take time to build trust in the converted vehicle. It requires clarity regarding resale value, sustainability and safety.

As a policy, the government is taking positive steps to promote electric vehicles. However, clear policies, standards and legal frameworks for vehicle conversion are still lacking. It is necessary to manage the matters related to registration, insurance, testing and operation of the converted vehicles.

The security aspect is more sensitive

The converted vehicle may have risks such as battery overheating, electrical failure or fire in the event of an accident. Reducing these risks requires international testing and skilled manpower.

However, the conversion of vehicles is not a completely unacceptable option. This is especially true for public transport and long-distance travel. Since buses, microbuses and freight vehicles have a high fuel consumption, the conversion can provide long-term benefits. Also, there may be some technical ease as there will be relatively more space available to install the necessary equipment in such vehicles.

However, implementing the transformation in a sensitive sector such as public transport is not an easy decision. Aspects such as passenger safety, operating costs, charging infrastructure, technical manpower and maintenance systems need to be studied in depth. Although the government’s thinking is positive, it is not appropriate to rush into large vehicle conversions. For this, detailed research, test planning and socio-economic analysis are necessary.

Institutions like Nepal Academy of Science and Technology(NAST) can play the role of “knowledge centre” in this field. Through initial testing, research and technical analysis, such institutions can give fact-based suggestions to the government.

Ultimately, vehicle conversion is a viable option in Nepal’s journey towards a sustainable transport system, but it is not a solution. Considering the challenges seen in the adoption of electric vehicles, especially in the Kathmandu Valley, it does not seem appropriate to move the conversion as a solution immediately.

Although Nepal has seen a high use rate of electric vehicles, there is a need to rethink the underlying causes, economic benefits, availability of infrastructure or social impact. Electric vehicles for short distances may offer some operating benefits, but further studies are still needed to reach a clear conclusion as its long-term economic benefits will depend on the life of the battery, replacement costs and form of use.

Therefore, even if the government’s initiative is positive, the decision should be based on research and socio-economic analysis, not in haste. The impact, cost and long-term viability of the transition, especially in public transport and large vehicles, need to be thoroughly studied before coming into effect.

By maintaining a balance between science, technology and policy, Nepal can build a sustainable, safe and viable transportation system through evidence-based decisions.