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U.S. Electrical Vehicle Sales Rose by 30 Percent in November, Likely to Hit Near 200,000 by Year End

Good news continues in the U.S. on the renewable energy front where electrical vehicle sales increased by about 30 percent in November of 2017 vs November of 2016.

In all, 17,178 electrical vehicles sold on the U.S. market in November. This number compares to 13,327 sold during November of 2016. Top selling brands for the month were the Chevy Bolt EV, The Tesla Model X, the Chevy Volt, the Toyota Prius Prime, and the Tesla Model S. The Chevy Bolt topped the list of monthly best sellers with nearly 3,000 vehicles going to owners during the month. The top annual seller remains the Model S (at 22,085 estimated sales so far) — which the lower-priced Bolt is unlikely to surpass this year.

(Over the past few years, the performance of electrical vehicles has been steadily catching up to or outpacing that of conventional fossil fuel vehicles. The Tesla Roadster by 2019-2020 will have a 620 mile range, hyperfast charging, a top speed of 250 mph, and be able to go from 0-60 in 1.9 seconds. A combined set of specs that no gas guzzler could hope to match. By 2022, most EVs will cost less and perform better than their comparable fossil fuel counterparts. Image source: Tesla.)

Total electrical vehicle sales for the year so far has hit nearly 174,000 through November. This compares to 158,614 for all of 2016. Given that December is often a top sales month and that Model 3 production is continuing to ramp, it’s likely that final sales for 2017 will hit close to or exceed the 200,000 mark for the year in the U.S.

Model 3 Production Ramp Rate Still a Mystery

Model 3 sales will likely continue to ramp through December as Tesla works through scaling production. Considering the fact that there are more than 500,000 Model 3s on order, the big question is — how fast? For even if Tesla were able to produce 10,000 Model 3s per week, it would take more than a year to fill all the orders.

Production is presently considerably lower. But it more than doubled in November to an estimated 345. A similar rate of increase would result in 800 of the vehicles being sold in December. Meanwhile, the company plans to be making 5,000 Model 3s per week by Q1 of 2018.

There are some indications that Tesla is preparing for a start of mass market releases. It is filling an LA Model 3 distribution site even as it has opened up ordering to customers outside of employees. Meanwhile, Panasonic recently announced that battery production issues will soon clear. Which raises the possibility of a faster ramp going forward.

Updated Nissan Leaf Begins Mass Production

New developments also include the start to mass production of the 2018 Nissan Leaf in the U.S during December. The 2018 Leaf features longer range (150 miles), lower cost (700 dollars less) and higher performance (more horsepower) than the previous Leaf. And it will be followed on by a (higher-priced) 225 mile range version in 2019 which will put it in a distance capability class similar to that of the Bolt and the base line Model 3.

Electrical Vehicles — Key Aspect of the Renewable Energy Transition

In context, solar energy, wind, and battery storage are the triad of new renewable energy systems that have the serious potential to really start cutting down global carbon emissions as they replace fossil fuels.

All these energy systems are getting less expensive. All have what they call a positive learning curve. And all can work together in a synergistic fashion while leveraging technological advances. Economic advantages that fossil fuel based systems lack.

In addition, renewable energy sources help to drive efficiency, even as they clean up transportation, power generation, and manufacturing chains they are linked to by producing zero carbon emissions in use.

(By transitioning to renewable energy as the basis for economic systems, we can dramatically reduce global carbon emissions. In order to stave off very harmful impacts from climate change, this transition will have to be very rapid. In the best case, more rapid than the scenario depicted above. Video source: IRENA.)

On the battery storage side, electrical vehicles are a crucial link in the battery development chain. As electrical vehicles are mass produced, this process drives down the cost of batteries which can then be used to store electricity and to replace base-load fossil fuel power generators like coal and gas plants. Meanwhile, battery electrical vehicles are considerably more efficient than gas or diesel powered vehicles and those linked to wind and solar or other renewable energy sources emit zero carbon in use.

Both electrical vehicles and other renewable energy systems have a long way to grow before they provide the same level of energy produced by dirty fossil fuels today. This large gap represents a great opportunity to cut back on the volume of harmful gasses hitting our atmosphere in the near future.

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Tesla Model 3 Production More than Doubled During November

Hands down, no other electrical vehicle company possesses the charging infrastructure, the high quality electrical vehicles, and the production infrastructure that’s now in Tesla’s hands. This system synergy provides unparalleled value to Tesla customers. Enabling them to use and improve their electrical vehicles with far greater ease than offerings from other automakers.

So when one reads about rising sales of the Chevy Bolt or how Volkswagen plans to sell 100,000 EVs per year by 2020 (Tesla sells that many now, in 2017), one should realize that both of these companies, though presently producing or planning to produce high-quality EVs, are behind in a race to catch Tesla. The Bolt, which sells for around 36,000 dollars hasn’t even yet caught up with the Tesla Model S — which costs more than twice as much. And Volkswagen is still waiting for its signature EV brands to be built over the next two years.

(Tesla deposits are an indicator of customer interest. Model 3 has been a primary driver of deposit increases since openings for reservations began in Q1 of 2016. Image source: Bloomberg.)

Struggles by Tesla to hit a rapid Model 3 production ramp, however, have caused some to question whether the revolutionary EV manufacturer and renewable energy company would hold on to that lead. Whether the delay would allow others to start to catch up. And of course some of this conjecture was puffed up by traditional Tesla bears and opponents — grasping at any bad news to spin against a rising green energy giant.

To be very clear, Tesla is at least 1-2 years ahead of the competition. So a month or two or three delay for the Model 3 production ramp — a vehicle which more than half a million customers have reserved — is not going to knock it out of its present leadership status. Longer term problems — lasting for more than 6 months — would be more telling, especially if reservation holders began to drift away. But Tesla’s present advantage is so significant at this time that the production fail on the Model 3 would have to be pretty monumental to provide any serious opening for the competition.

(Model 3 starting to break out of the pack. The vehicle is now the #21 best selling EV for all of 2017 and probably #11-12 for November. If the production ramp continues, the car will easily break the top 10 in December and probably become the best-selling EV in the U.S. by January or February. Image source: Inside EVs.)

To this point, according to reports from Inside EVs, Tesla produced and sold an additional 345 Model 3s during the month of November. This number is up 200 from the estimated 145 produced and sold during October. In total, Inside EVs estimates that 712 Model 3s had been sold by end of November.

Number sold is not number produced. So if Inside EVs estimates are correct, then Tesla has likely built over 800 Model 3s so far. And present trends make it likely that Tesla will complete between 1300 and 3000 of these revolutionary new vehicles by year-end. If this is ultimately the case, then the Model 3 production ramp is 2-3 months behind schedule. Disappointing to the hundreds of thousands waiting to get their hands on a Model 3, for sure. But not a crisis set to break the back of Tesla — as some have implied.

The Global Smack-down Against the Infernal Combustion Engine Achieves Full Charge

As the climate-wrecking fossil fuel age was climbing to dominance in 1943, Winston Churchill perhaps made the most famously telling Freudian slip of all time. In an attempt to laud the transition from the horse and buggy to the fossil-fuel driven car, he said to an audience at Harvard:

“Man has parted company with his trusty friend the horse and has sailed into the azure with the eagles, eagles being represented by the infernal combustion engine–er er, internal combustion engine. [loud laughter] Internal combustion engine! Engine!”

And as people from the Arctic to the Maldives to Bangladesh to the U.S. territory of Puerto Rico can now attest, the effects of the gasses produced by internal combustion have indeed started to become quite infernal as the leading edge of climate change related disasters begins to take hold.

(The LA auto show this week was dominated by new electrical vehicles.)

But at the same time that seas are rising and the weather is worsening, there is renewed hope that all this infernal combustion and related climate wrecking carbon dioxide spewing into the atmosphere may start to taper off. For if the age of unsustainable fossil fuels was heralded by an infernal engine, then the age of sustainability itself is being heralded by blessed batteries and the cars they power.

UBS — 1 in 6 New Cars to be Electric by 2025

For the electrical transition is happening now. And it’s charging up as we speak.

According to a recent report by UBS, the number of affordable, desirable electrical vehicles will vastly expand between now and 2020. Multiple vehicles that are competitive with, if not matching the performance of, Tesla’s Model 3 will be available by that time. These models will continue to proliferate through 2025.

(UBS estimates rapid increases in EV market share. This is bad news for fossil fuels and good news for sustainability.)

At the same time, prices for both batteries and vehicles are expected to fall. Total cost of ownership for electrical vehicles is already less than a comparable fossil fuel based car for a number of models. This is due to lower fuel and maintenance costs. However, overall total cost of ownership is expected to be less on average than fossil fuel cars by the early 2020s. Meanwhile, base price for EVs is expected to out-compete that of fossil fuel based cars by 2025 even as EVs are expected to consistently outperform ICE vehicles by that time.

As a result, UBS expects that between 6 and 25 percent of all new cars will be electric by 2025 with the average between these two predicted ranges hitting 16 percent or 1 in 6 of all new cars sold.

Volkswagen Invests More than $12 Billion in EVs

Tesla, presently the global EV market leader, is today’s company to beat. And Volkswagen, recently stung by an emissions scandal, appears to be stepping up to the plate as a serious challenger.

The company, this month, decided to invest 12 billion dollars to build as many as 40 electrical vehicle models in China. A market that by itself may support as many as 6-9 million EV sales per year by 2025. Volkswagen, in total, aims to sell 1.5 million electrical vehicles per year at that time.

(Volkswagen electrical car, SUV and Hippie Van spotted in California on November 27th. Image source: Clean Technica.)

Already, the company is developing multiple high-quality models to include an electric version of its iconic hippie bus, an electric car based on traditional Volkswagen styling, and a new SUV crossover called the CROZZ. All are expected to have a 200+ mile electric range and feature better performance than their fossil fuel counterparts.

Movement Toward Electrification Across Entire Industry

But it’s not just Volkswagen that appears ready to move aggressively toward electrification, pretty much every major automaker is adding new EVs between now and 2022 — with a number focused on total or near total electrification (see Jaguar video at top of post).

To name just a few, GM plans 20 new electrical models over the next six years, Ford plans 13 by 2020, and both Daimler and Renault plan to have 8 BEVs on the road by 2022. New entrants like BYD and Tata are also advancing electrical vehicles in their home markets of India and China. And the above-mentioned Jaguar expects all its new vehicles to have electric or hybrid electric drive trains by 2020.

Tesla Still Leading the Charge, But Will that Last?

Though numerous factors have driven the industry toward electrification to include falling battery costs, concerns about mass devastation from human-caused climate change, and drives by cities like Paris and nations like China to clean up air quality, it was Tesla, primarily, that proved to the world that EVs could be mass produced at market-setting quality and performance.

Tesla advances continue today with news reports indicating that the Model 3’s performance beats pretty much all of the BMW 3 series internal combustion engine cars hands down. And reviewers over at Motor Trend have gone so far as to call the Model 3 a BMW 3 series killer.

Meanwhile, indications are that production bottle necks may be starting to clear for the market-setting Model 3. Panasonic recently announced that battery production for the vehicle is about to speed up even as the company introduced reservation options for non employees this past week. If this is the case, Tesla is in the process of securing at least a 1-2 year jump on most major automakers.

(The new Tesla Roadster. Image source: Tesla.)

Tesla has also not let its various aspirational goals slip. Its offering of a 500 mile range long-haul truck by 2020 at $180,000 is yet another trend-setter. And the new Tesla Roadster with a 250 mile top speed, a 600 mile range, and featuring hyper-fast charging will basically far outperform even the top fossil fueled vehicles in pretty much every metric.

As the race between Tesla and the rest of the auto industry to produce the next trend-setting EV ramps up, it looks like the main loser will be that old pollution-belching infernal combustion engine. Good riddance.

Just One More Reason Why Fossil Fuels Suck Tailpipe — The Cost of Wind and Solar is Now Lower Than Pretty Much Everything Else

During October, in Australia, something rather strange and hopeful happened. Grid prices for electricity rose. Power customers, fed up with this, en masse decided to purchase 100 megawatts of rooftop solar in a single month.

How and why did this come to pass?

Conservative allies of fossil fuel based utilities are currently in control of the Australian federal government. And they have been working to provide captive grid-tied energy consumers for their political backers — polluting power system owners. Because these systems are more expensive than their renewable energy counterparts, the price of electricity went up.

The Australian public, who generally supports renewables and who likes to pay less for electricity, wouldn’t have any of it. They didn’t like being forced to purchase more expensive, polluting energy. So more than 15,000 of them decided to tell fossil fuel backers to go suck tailpipe and went on ahead and bought solar energy directly.

(Guess what? That green glass you see on the school in this image comes from hundreds of solar panels. Solar is versatile and increasingly inexpensive. You can put it on rooftops, building sides, car roofs, fuel station overheads, build it in traditional utility arrays, construct it on co-generating farms, or float it on reservoir surfaces. Image source: Inhabitat and EPFL.)

This choice, enabled by falling renewable energy prices, is one that people around the world will be more and more able to make as time moves forward. And it’s the case even in instances where national governments of western democracies are heavily influenced by fossil fuel special interests — as is presently the case in Australia. The primary reason is that when conservative governments support fossil fuels and nuclear over renewables, power prices to society rise.

The cost of both wind and solar energy are now less than every traditional power source even in more mature markets like the United States. In this major market, according to Lazard, the levelized price of nuclear is 14.8 cents per kWh, coal is 10.2 cents per kWh, gas is 6 cents per kWh, solar is 5 cents per kWh, and wind is 4.5 cents per kWh. That’s right. Renewables are about 1/3 the price of nuclear, half that of coal, and 10-20 percent less than gas in the U.S.

 

(The levelized cost of wind and solar energy keeps falling. This is making continued fossil fuel development an expensive and untenable prospect. Image source: Lazard.)

But in places like Australia and in the developing world, this price difference is even greater. In the developing world, there are less legacy fossil fuel power systems — which makes it a no-brainer just to go ahead and build less expensive renewables. And islands like Australia traditionally suffer from higher import costs for fossil fuels and clunky or inefficient fossil fuel energy system components.

Levelized cost is a way of measuring total life-cycle costs. It includes such costs as fuel, transmission and construction. Because renewables do not require fuel and because they are based on technologies that benefit from both advancement and economies of scale, they are able to continuously increase efficiency and reduce cost over time. Fossil fuel based power systems are mated to very inefficient combustion and to mining and extraction of fuels that grow more scarce over time. As such, the power systems they are based on tend to have difficulty reducing costs  and are subject to market shocks and scarcity of feedstocks.

These simple economic facts put the political backers of fossil fuels at a disadvantage on the issue of base economics. But these direct cost related factors don’t even begin to count in the terrible external costs of fossil fuels ranging from ramping damages due to climate change and direct health impacts by adding toxic particles to the air and water. As such, fossil fuels are both economically and morally untenable. But such simple and easy to understand facts haven’t stopped republicans like Trump in the U.S. and LNP members like Turnbull in Australia from trying to ram these harmful and expensive energy sources down the throat of an increasingly outraged public.

Global Electrical Vehicle Sales Grew by 63 Percent in the Third Quarter, But Model 3, Leaf, and Bolt Say You Ain’t Seen Nothing Yet

Tesla may still be the industry leader in global electrical vehicle sales. And though a very important player — primarily as a gadfly that’s helping to spur key renewable energy innovation through clean energy business models and competition — this story of a breakout in new energy production isn’t just about Tesla.

During July, August and September of 2017, according to Bloomberg, 287,000 electrical vehicles were sold worldwide. This is some pretty stunning growth equaling 63 percent more than during the same period of 2016 and 23 percent more than during April, May and June of 2017.

Electrical vehicle sales saw broad growth in all major markets. However, China experienced very rapid expansion of EV sales and was the primary driver of such a large jump with 160,000 electrical cars sold there in the 3rd quarter alone. Europe came in second with around 70,000 EV sales with North America following third with more than 55,000 EV sales. Since Bloomberg only tracked these major markets, total global EV sales were likely even higher, particularly when you consider that EV sales in places like Japan, India, other parts of Southeast Asia, and Australia are also on the rise.

China’s incentives aimed at cleaning up dirty air through EV purchases weighed strongly. In addition, pledges by various cities, states and nations to fully transition to electrical vehicles coupled with numerous policy incentives are helping to produce a ground swell of rising EV demand. However, EVs are also increasingly available, lower cost, and feature an expanding array of capabilities that are often competitive with or superior to their global warming producing fossil fuel competitors. And a number of new developments indicate that EV sales will continue to rapidly expand in the near term.

Signs the Model 3 Production Log Jam May Be Starting to Clear, Serious Competition on the Rise

During 2017, primarily on the strength of Model S and X sales, Tesla is the global sales leader for EVs at 73,227 cars sold through September. Chevy, runs a distant 7th with 36,963 EV sales through same period. While BYD, BMW, BAIC, Nissan and Toyota fall 2-6th in the global sales rankings thus far.

In the coming months, Tesla plans to be adding thousands of high-quality, lower cost Model 3s to its trend-setting volume. For 2017, the company is likely to hit near 100,000 sales in total. But if Tesla is able to achieve 5,000 Model 3 per week production by early 2018, that number could more than double in the follow-on year.

Presently, Tesla represents 10 percent of global electrical vehicle sales. And Bloomberg expects 1 million electrical vehicles to be sold globally during 2017. Yet during 2018, vehicles like the Leaf, the Model 3, and Chevy’s Bolt really have the potential to blow the lid off even these far-stronger numbers.

(The 2018 Nissan Leaf sold a pheonomenal 14,000 units during October of 2017. A record setting number of an all-electrical vehicle launch. Image source: Nissan.)

Nissan launched its longer range Leaf on October 1 of 2017 in Japan and Europe. And early reports indicate that sales of this model have just been going gangbusters. In total, 14,000 of the vehicles are reported to have moved in just one month — close to Tesla’s goal of hitting 20,000 per month by early 2018. The 2018 Leaf features a shorter range than the Model 3 (150 miles vs 210 for the base Model 3). But it also has a more attractive base price of 30,000 dollars (5,000 dollars lower than the base Model 3). And though not as zippy or sporty as the Model 3, the Leaf’s new design and 147 horsepower are nothing to shake a stick at. In total, for the same price, Leaf buyers are now getting a far more attractive and capable zero emissions vehicle. And though not in the same class as the Model 3, the Leaf is a serious competitor for those without the extra cash.

Hunger for lower cost EVs was also evident in Chevy’s sales of 2,871 Bolts in the U.S. during October. Though nowhere near the pheonomenal Leaf sales totals, the Bolt is giving Tesla a serious run for its money on its home turf in the U.S. And the high quality, 238 mile range Bolt is certainly a competitor of note. Priced about the same as the Model 3’s base vehicle at around 36,000 dollars, the Bolt is unable to compete on performance in any measure other than range. And its economy styling is certainly less appealing. However, the Bolt is nonetheless capable of capturing serious market share. Probably at least in the range of 30,000 to 50,000 annual sales.

With 500,000 pre-orders, the lower cost, longer range EV market still appears to be the Model 3’s to lose. And with a production ramp struggling to reach 440 vehicles by end October, Tesla looked like it was in a bit of a bind as competitors circled in. Yet some clouds appear to be readying to clear for Tesla as lots swell with Model 3s and the company opens up Model 3 orders to regular reservation holders. An indicator that production may finally be starting to ramp.

Understanding the Context — Sooner or Later, Model 3 Ramp is Imminent

In other words, the fact that Tesla is now transferring reservations into orders is an indicator that Tesla is now more confident in its ability to clear bottle necks and to rapidly ramp production. With a large number of employee pre-orders that need to be completed before it starts to meet regular customer orders, it appears that Tesla may be set to hit in excess of 1,000 Model 3s produced per week sooner than feared. However, we’ve seen hopeful signs of Tesla hitting an early production ramp disappointed before. So this news may just be another false signal.

What do you think? Will Tesla meet new competition coming from Chevy and Nissan by hitting a faster production ramp soon? Or are the Tesla woes of September and October here to stay for at least another few months? Please feel free to provide your take in the comments section below.

Another Record Month for U.S. Electrical Vehicle Sales as Tesla Struggles with Model 3 Ramp

Electrical vehicles are a key element of the clean energy revolution. They are more efficient than fossil fuel driven vehicles; they produce zero particulate tailpipe emissions. When mated with solar and wind, they produce zero carbon emissions in operation. And they can serve as storage units for renewable energy sources all as their mass production drives the net cost of batteries continually lower.

So if you’re worried about climate change, and you’re well informed (not misinformed, confused, or focused on various shiny objects presently circulating the media), then you’re really interested in seeing electrical vehicle adoption hitting a high ramp in the near future. For those in this group, the October U.S. electrical vehicle report should serve as some hopeful news even as federal action under President Trump tilts more and more toward extreme anti-climate change response policy.

25th Consecutive Month of Record U.S. EV Sales

According to Inside EVs, plug-in electrical vehicle and hybrid sales saw their 25th month of consecutive record gains. About 14,598 electrical vehicles sold during October — which was 33 percent greater than during October of 2016. The yearly total for the U.S. during 2017 is now 157,039. This roughly matches 2016’s accumulated sales from January to December of 158,614. Given present trends, and given the fact that EV sales tend to ramp up during November and December, it is likely that U.S. numbers will hit near or slightly above the 200,000 mark by year end.

(U.S. Electrical Vehicle Sales During October. Image source: Inside EVs.)

GM’s Chevy Bolt rocketed to the top of the list for the month with 2,781 sales. The Bolt has benefited from broader dealer availability and appears to be riding the wave of excitement produced by the Model 3, which is still not available in the mass market. The car is also low-cost, long range, and extraordinarily well reviewed — despite lacking the larger charging network support available to Tesla owners. Annual Chevy Bolt 2017 sales still lag behind that of Tesla’s market-leading Model S — with 20,750 sales for the Model S and 17,083 sales for the Bolt.

The second best-selling plug-in car during October was Toyota’s Prius Prime at 1,626. Toyota’s plug-in electric hybrid has also been very well reviewed by buyers and features a range extending gas engine that completely removes range anxiety (although this is less of an issue for Teslas and the Bolt which presently boast ranges in excess of 200 miles).

Chevy’s Volt takes up the third spot on the heels of the Prius Prime with 1,362 sales. This hybrid boasts a longer electrical range than Toyota’s Prime and the position of an established leader in the field. However, the Prime’s popularity is now giving the Volt a run as top plug-in-hybrid with annual sales neck-and-neck between the two at 16,710 (Volt) and 16,682 (Prime) respectively.

Tesla’s Model S and X vehicles rounded out the 4th and 5th spots for the month with 1,120 (S) and 850 (X) U.S. sales. For the year, Tesla’s Model S is still the top selling EV with 20,750 U.S. sales and the Model X is the 4th best selling U.S. EV with 16,140 total sales. Tesla sales efforts tend to follow an uneven track with greater sales pushes toward end-quarter. So Tesla’s October lag is par for the course for the company which saw a record 3rd quarter of 2017 with 26,150 cars sold globally during July, August and September. To match this level, Tesla total sales will have to ramp during November and December. However, it is worth noting that sales of Tesla EVs have grown significantly in places like Europe during recent months — hitting 4,662 in Europe during September alone.

Aspirational Tesla Struggles to Meet Vision of Mass EV Production

Tesla is presently struggling to ramp up production of its highly sought-after, signature Model 3. With upwards of 500,000 reservations, the nascent company is seeking to make a leap to major automaker status on the platform of an electrical-vehicle-only line. Tesla bet on a highly automated line and a simplified design to achieve a rapid Model 3 ramp to meet this demand and to ensure cash flow into 2018. However, issues with suppliers and with managing such a high level of automation has caused the Model 3 production ramp to splutter. In total, reports estimate that around 405 Model 3s have been produced through the end of October with 145 produced that month. Tesla, acknowledging difficulties, has rolled back its production ramp by 3 months — aiming for 5,000 Model 3s per week by March.

(The Tesla Model 3. Image source: Tesla.)

Our forecast for Model 3 production by end year has dropped to 2,000 with between 75,000 and 200,000 Model 3s produced for 2018. However, if problems with Model 3 production do not soon clear, the total for 2017 could drop to between 700 and 1,000. Hopefully, Tesla can transport itself out of its various circles of mass production hell and avoid such a lag.

Tesla has a history of missing ambitious targets and then catching up with time. Tesla’s Model X production ramp also encountered difficulties, but the all-electric SUV swiftly became a global best seller once production bottlenecks cleared. That said, these are tough signs in a tough time for Tesla, and for those (like this writer) who support the spirit of Tesla’s fully-integrated all-renewable based business model. Renewable energy foes have been emboldened by Tesla’s struggle with Tesla bears making rabid statements almost daily. The next 3-6 months will be make or break for Tesla — determining whether the company falls behind a growing pack of high-quality electrical vehicle producers or whether it continues to be an industry leader. And, in so many ways, Tesla’s success or failure will help to make or break U.S. global renewable energy leadership. For EVs, as a whole, have found new sources of leadership coming from China and Europe even as many automakers invest more heavily in electrical vehicle lines.

Links:

October 2017 U.S. Plug-in Vehicle Sales Report Card

Tesla Record Month in Europe

Tesla Model 3 Delivery Delays

 

Republicans Seek to Use Tax Bill to Suppress Climate and Clean Air Saving Electrical Vehicles

Republicans in Congress seem more concerned with cutting taxes for the rich than dealing with present and worsening problems like Russian interference in U.S. democracy or the ever-escalating damages coming from human-caused climate change related to fossil fuel burning. In fact, the Republican Party today signaled its intent to use the presently proposed tax bill in a manner that would make one of these problems dramatically worse.

According to news reports, Republicans intend to use their tax cut plan to remove incentives for electrical vehicle ownership by the end of 2017. Presently, buyers of all-electric vehicles enjoy a $7,500 tax credit. An incentive that helps the U.S. clean up its air and reduce the kinds of greenhouse gas emissions that fuel sea level rise, more powerful storms, and worsening droughts, deluges, and wildfires.

(In the U.S., more than 200,000 people die every year as a result of outdoor air pollution to which vehicle transportation is now the primary contributor resulting in 53,000 such deaths per year. That’s more deaths than from vehicle accidents. Moreover, air pollution impacts like asthma, stroke, heart attacks, and reduced lung function are far more widespread. Image source: EPA.)

Though such a policy might not be much of a surprise coming from the party of a Rick Perry, who today falsely claimed that fossil fuel burning prevented sexual assault against women, climate change denier Inhoffe, and tilting at windmills Donald Trump, it would have wide-ranging negative impacts for every American. Impacts like bad air quality which is a health risk for everyone, worsening climate change which is now causing many Americans to lose their homes or be forcibly displaced, and loss of economic advantage coming from new jobs and new industry.

Presently, U.S. automakers hold a global edge in high quality electrical vehicle adoption due to this and other related policy supports. Top EV automakers like Tesla, GM and Ford who produce renowned vehicles like the Model S, Model 3, and the Chevy Bolt. But, apparently, it looks like Republicans are now using tax policy as a means to legislate an attack on this innovation, which result in reduced fossil fuel demand, more energy independence for the U.S., and far less in the way of harmful particulate and greenhouse gas emissions.

(Tesla stock reacts negatively to news that Republicans are adding a provision to remove electrical vehicle incentives to their tax bill. Image source: Google Finance.)

Tesla bears, who have been rabidly consuming and perpetuating bad news (a good portion of it exaggerated or invented) about the leading U.S. electrical vehicle manufacturer, went nuts over the Republican announcement today. Tesla share prices dropped from around $320 to $296 following the move. More than a bit of this investor flight appears to be irrational. Ironically, Tesla is less exposed to risk from removal of this tax cut than automakers like GM due to the fact that it is already approaching the 200,000 EV limit under the tax credit. After this point, tax incentives for EVs from individual automakers drop off. And Tesla has already sold 250,000 vehicles globally with more than 150,000 of those sales coming from the U.S.

Republicans have once again proven that they are the anti-renewable energy, pro harmful impacts from climate change party. They have also once again proven that their capacity to use tax policy to greatly increase a variety of bad effects — ranging from worsening inequality in the U.S., to undercutting innovation and American technological leadership, to fighting directly against the very solutions and mitigations for a rapidly worsening climate situation.

RELATED STATEMENTS AND INFORMATION:

Links:

Republican Tax Plan Kills Electrical Vehicle Credit

EPA

Air Pollution Causes 200,000 Early Deaths in the U.S. Each Year

Rich Perry Says Fossil Fuels Will Prevent Sexual Assault in Africa (Hint: FALSE)

Hat tip to Suzanne

This post is dedicated to DT Lange

Watts Up With Renewables? According to IEA, About a Thousand Billion More in Capacity by 2022

The big word around the block is that solar is presently changing the global energy game — and rapidly.

The major driver of this global sea change is presently China. But it appears that India is also about to play a substantial role. The U.S., depending on the policy choices of the Trump Administration, can remain a renewable energy leader or turn into a laggard. It all just depends on the whims of a man who has shown a quixotic propensity for pushing terrible policies and then, somehow, self-sabotaging at least half of them.

(Many locations around the world are rapidly transitioning to renewable energy. The destructive impacts of human caused climate change may well serve to speed that process as we see here with Tesla providing solar power generation to Puerto Rico hospitals following the terrible impacts of Hurricane Maria.)

Back to China, the country now holds about 110 billion watts (gigawatts) of annual practical solar panel manufacturing capacity. This is about 66 percent of the world total. From this capacity, it appears that China will itself add around 50 gigawatts of installed solar this year alone — pushing the cumulative to around 125 to 130 gigawatts by year end. China had already, as of September, added 34 gigawatts during 2017 with an overall installed generation capacity at 111 Gigawatts as of about a month ago.

Such a massive add by China will likely drive global new solar capacity in 2017 to around 80 to 100 gigawatts. Add in wind and hydro and that high number probably hits close to 150 billion watts in just one year.

The massive new solar additions are now helping renewables to swamp dirty energy sources like coal and somewhat less dirty though still very carbon intensive sources like gas. This remarkable achievement is primarily due to the fact that solar is now presently cost competitive with these older, more traditional energy sources. And the price of solar energy worldwide is expected to continue to fall over the coming years. According to a recent report — by a further 60 percent within the next decade.

Major energy think tanks are starting to take notice. And it is on the basis of solar, wind, and hydro’s relative economic strengths due to growing price advantages (particularly for solar), that the International Energy Agency (IEA) has predicted a 1,000 gigawatt addition of new renewable energy sources through 2022. Such an addition, in just five years, according to IEA’s Dr Fatih Birol, would amount to “half of the current global capacity in coal power, which took 80 years to build.” The agency also notes that renewable capacity additions will effectively double additions from sources like gas and coal.

(New study shows the cost of solar will fall by another 60 percent over the next ten years.)

IEA recognizes that China, the U.S. and India will be primary drivers of this large renewable energy gain. Though the agency points out that detrimental U.S. policy choices could put a damper on renewable energy additions in that key market. However, IEA also notes that more positive policy choices by China, India, the U.S. and others could result in a more than doubling of the new capacity add for renewables to 2,155 GW. Such policies not only result in major renewable energy growth. They would also produce wholesale replacement of fossil fuel and carbon emissions based power sources. A considerable boon to the global climate.

Even IEA’s base five year scenario shows renewable electrical power generation growing to compose 30 percent of the global market. This up from 26 percent during 2016. Though still not as high a percentage as coal, IEA predicts that renewables will make up half the difference with that dirtiest of power sources by 2022.

(With atmospheric CO2 levels likely to hit between 411 and 412 parts per million by May of 2018, global carbon emissions cuts due to fossil fuel energy replacement by renewables couldn’t come sooner. Image source: The Keeling Curve.)

IEA also predicts that power consumption from electrical vehicles will double from now to 2022. A somewhat conservative estimate considering the fact that the number of EVs on the road will likely double by 2019 to 2020 and that battery sizes for EVs are rapidly growing. IEA’s more conservative base scenario projection continues in that it sees renewables’ contribution to transportation energy sources only growing from 4 to 5 percent by 2022.

Taking this analysis a step further and applying it to the potential for global carbon emissions reductions we should point out that renewables taking up a larger portion of both power generation and transportation through 2022 will present an opportunity to start bending the carbon curve downward. The adoption range in which renewables begin to replace fossil fuels at a rapid enough pace to strongly impact global carbon emissions is 150 to 250 GW added per year + a net replacement of the fossil fuel based transportation fleets with EVs and other alternative fuel vehicles. Given IEA’s forecast, it appears that there’s a decent likelihood that this will happen over then next five years — barring any major numb-skullery by the present U.S. President and his sometimes-enabling fellow republicans in the U.S. Congress.

Tesla Under Fire as Renewables Rise: China, Consumer Reports, and the Ailing ICE Industry

With major renewable energy and automotive media now obsessed with the success or failure of Tesla’s zero emissions Model 3, it’s helpful to understand the larger context in which a monumental conflict between an old, mostly dirty industry and new clean energy players is occurring. To this particular point, we should take the opportunity to step back for a moment from the day-to-day minutiae of business activities and related media campaigns to ask this single essential question:

In the present day’s ever-worsening and warming climate, what does a wise, forward-looking national energy policy look like?

Such a question may seem out of context until one considers the fact that the object of so much media and industry drama — Tesla — operates in what can best be described as a conflicted policy environment. In the U.S., Tesla enjoys a dwindling subsidy in the form of tax breaks going to purchasers of zero highway emissions electric vehicles (EVs). This subsidy was intended to incentivize zero emission vehicle adoption and thus enable the numerous health and environmental benefits that would result from taking more polluting automobiles off the road.

(One of Tesla’s main advantages has always been aspirational vision. Part of that vision involves a systemic approach to clean energy production. In one example, Tesla not only produces electrical vehicles, it owns a large and expanding global EV charging infrastructure. The future is electric and Tesla is vertically integrated.)

Such a subsidy also pushes for the replacement, ultimately en-masse, of dirtier vehicles upon which an old and thus more easy to profit from industry presently relies. And in Western democracies, this looming replacement has resulted in a number of political and media firestorms as the old industry tries to delay or deny the pathway for new energy leaders like Tesla. These old industry players — ranging from traditional automakers to fossil fuel behemoths — have managed to place barriers to electrical vehicle adoption in many regions. The upshot is a kind of energy policy (and related media) gridlock where the old industry attempts to hamstring the new, aspirational, more helpful industry at every possible turn.

In this very serious game with ultimately extraordinary consequences for everyone living on the planet, this increasingly polarized policy posture results in serious delays of an essential energy transition. It also leaves wide open the door for outside competitors to take advantage of what can well be described as western balking and intransigence at a critical moment in global history.

China’s Drive for Global Energy Leadership

For a China observing a West consumed by in-fighting and division over energy and climate futures, wise policy involves a rapid move to cut coal burning and shift to becoming a global renewable energy leader. To do this, China has funneled billions of dollars of aid and incentives to solar production, to battery production, and to electrical vehicle manufacturing. It has protected these markets, which it invests heavily in, by both tariffs and trade laws. Some of these laws encourage the transfer of technical knowledge to local companies by requiring foreign companies wishing to produce EVs on Chinese soil to partner with indigenous industry and share information.

For China, these policies are not simply altruistic. Though they will result in considerably less greenhouse gas emissions on net and help to drive the world to reduce harms from both air pollution and climate change, they are also aimed at global energy leadership and, perhaps, dominance. They grant China both moral authority and economic might that leverages the powerful economies of scale a massive manufacturing base provides. Such clear-focused policies aimed directly at both moral and strategic energy goals are largely lacking in the polarized West. And this consistent organization and follow-through produces a growing moral and economic advantage for China. For the prize of renewable energy leadership or dominance is huge — ranging in the trillions of dollars.

(China leaving the U.S. behind on green energy. This is largely and ironically due to increasingly backward climate policy promoted by the Trump Administration.)

In the global solar industry, such renewable energy focused polices have resulted in the majority of world solar manufacturing being housed in China. This development, in turn, has produced a considerable price advantage for solar panels manufactured by large Chinese facilities that can leverage expanding economies of scale.

In the U.S., this advantage has produced a flood of cheap solar panels coming from foreign shores. Such a flood helped to enable the building of a massive industry that now directly employs more than 370,000 people — which is about seven times the number of people employed by the coal industry and about double those employed in the oil, gas, and coal based electricity generation industry combined. But cheap Chinese imports have also put a big dent in direct solar manufacturing in the states. In reaction, we are now seeing a trade case that will have far-reaching impacts on the U.S. solar industry presented to the unwise and irrational Trump Administration. And it is, perhaps, the irony of all ironies that a Chinese solar manufacturer operating on American shores was one of the key plaintiffs in a case that could dramatically undercut solar adoption rates while also removing thousands of renewable energy related jobs if handled poorly.

Though China’s solar industry is well ahead, its related electrical vehicle industry is rapidly catching up. Last month (September of 2017), fully 59,000 electrical vehicles sold in China. This represents about half of all electrical vehicles sold across the world during that month. It is 80 percent more EVs than were sold in China during September of 2016. So far in 2017, 338,000 EVs have sold in China, which is a 48 percent growth year-on-year. Globally, due in part to these considerable advancements by China, it is likely that total EV sales will well exceed the 1 million mark for the first time with growth into 2018 easily likely to exceed 50 percent.

Tesla as Global Gadfly vs Ailing ICE Industry

And here we return, at last, to Tesla and its imminently controversial Model 3. For what China is doing on a massive national scale, Tesla is attempting to do through business and related capital investment alone. Tesla is a renewable energy only company — offering battery storage for clean power systems, electrical vehicles, and solar panels. And it is presently the only large western automobile and energy company to operate under an all-renewable products banner.

Tesla’s mission from jump was to attempt to spur widespread electrical vehicle production and a related renewable energy revolution. To disrupt the automobile market enough to spur the entry of serious competitors and to, through such competitive incentive, drive a global industry sea change. And the Model 3 was at the center of Tesla’s plans.

Tesla’s successful Model S and X were intended, in other words, to enable Tesla to mass produce a high-quality, lower cost, long-range electrical vehicle that, by itself, would be capable of selling 200,000 to 500,000 units or more per year. This vehicle, in turn, was meant to help Tesla produce an even lower cost, high quality EV that would be capable of selling even more.

Looking at numbers alone, it is difficult to conceptualize what such sales would mean for the global automobile industry. But digging a bit further, we find that the Model 3 represents a serious threat to a large lower-end luxury and sport vehicle market presently dominated by major ICE automakers such as GM, Audi, Porsche, Volvo, Mercedes, Jaguar, Toyota, and BMW. IF the Model 3 achieves its sales goals, well-selling vehicles like BMW’s 3 series or the Audi A3 or A4 could be decimated. Such automakers would be largely forced to react by producing high quality EVs to compete with the Model 3 and hopefully blunt some of its impact on traditional auto industry profits. Which is exactly what is now happening as we see Chevy’s Bolt, an up-ranged Nissan Leaf, and numerous other higher-quality, longer-range, lower-priced EVs on the way or already on the market.

ICE Industry Critics 

So even without large Model 3 production, Tesla has already played a major role in forcing traditional fossil fuel based automakers to react. However, the success of the Model 3 is of key importance to the speed of market transition. A less successful Model 3, for example, would take the pressure off traditional automakers — perhaps allowing room for backsliding and ICE market retrenchment. A more successful Model 3 would force more rapid responses — goading automakers not just to produce compliance EVs, but high-quality EVs capable of competing with what is likely to be an amazing vehicle on all counts.

Considering these very high stakes, it is easy to understand the present media hyper-focus on the Model 3 production ramp. And it is also easier to comprehend the cause of an emerging public war of words between major traditional auto industry stake holders and Tesla. For in the past six months we have seen CEOs from GM, Volkswagen, and others decry, mis-characterize, or otherwise seek to blunt support for Tesla’s rise.

Conflicts with Workers

Tesla, like any other company, is staffed by human beings possessed of various human limitations. And in its Herculean push for rapid expansion, Tesla is also likely driving these employees rather hard. So we would be remiss not to illuminate the sacrifices, conflicts, and casualties that are often produced in the quest to achieve lofty goals.

Musk himself operates under a puritan work ethic in which his observed or reported work encompasses 60-100 hours per week. An example which he appears to expect his employees to emulate. Given his company’s aspirational aims and the stakes involved, this serious drive is understandable. However, such an extreme work ethic has clashed with the values of U.S. unions who attempt to protect employees from over-work and all the risks of injury such a higher stress work environment entails.

This is one reason for the growing friction between Tesla and some of its employees. It is also worth noting that the UAW, which is attempting to organize workers at Tesla plants, is a political organization with deep-seated ties to the traditional ICE manufacturing structure in the U.S. So it’s also possible that motivations for union opposition to Tesla may exceed those of a traditional workplace conflict with management. One would hope, in an ideal world, that UAW workers would share the aspirational goals aimed at speeding advancement of clean energy and transportation systems while differing with Tesla management workplace practices. However, institutional knowledge of workers is presently more largely tied to the fossil fuel based vehicle production chain. And such ties represent a higher likelihood of producing traditional industry biases that are difficult to overcome.

In the absence of government leadership and communication addressing both fair workplace practices and a larger recognition of the need to re-train workers steeped in a systemic ICE production tradition, such an interests-based-conflict is probably unavoidable. And it appears that we are seeing it emerge now with the hard-charging Tesla. Such a systemic conflict with traditional institutions within the U.S. may well be just one more reason why Tesla is now planning to build a large manufacturing facility in more institutionally EV-friendly Shanghai, despite facing high tariff barriers on vehicles built there for the Chinese market.

Consumer Reports

Assaulted by traditional automakers, a large and vocal subset of institutionally biased fossil fuel based investors, and embroiled in an escalating conflict with factory workers in the U.S. while attempting to achieve aspirational and ultimately helpful goals, it is understandable why Tesla executives might feel emotionally raw when reading daily news and market reports. To these executives and to company leader Elon Musk, it is, indeed, understandable that they would feel at least some of the cards have been stacked unfairly against Tesla’s needed success.

So when Consumer Reports last week issued an expected ‘average’ reliability rating for the otherwise fantastically reviewed Model 3, it is also understandable why Tesla executives reacted with criticism of the major consumer watch-dog agency.

Overall, Consumer Reports ratings of Tesla vehicles have been mixed. The Model S, for example, received glowing ratings. The Model X, troubled at times by the complexity of its falcon wing doors, has received somewhat more qualified ratings. It is worth noting that both vehicles maintain the advantages of a drive train that is basically an order of magnitude more reliable than a traditional ICE and first in class Tesla acceleration and top-notch handling. So Model X critiques are primarily due to body design elements as reported by Consumer Reports.

That said, some EV owners have criticized Consumer Reports for what they perceive as reviews of the Model X and other EVs that do not take into account inherent EV benefits. Consumer Reports, for example, had reportedly issued a somewhat negative review of the low-cost Mitsubishi MiEV. But it is worth noting that Consumer Reports has also provided a glowing review of the Chevy Bolt EV which the agency has given top reliability ratings. So it’s unreasonable to say that Consumer Reports trashes all EVs.

Returning to the Model 3, the Consumer watchdog agency, which has yet to actually get its hands on a Model 3 for an actual review, has noted that it issued its forecast in the understanding that first model year vehicles tend to be somewhat less reliable as production kinks are addressed. Such a forecast can be chalked up to informed speculation by an expert agency that, though authoritative, is not infallible. But given the massive barrage by traditional fossil fuel industry and ICE supporters against Tesla in the Model 3 production ramp up, it is understandable why Tesla execs might be miffed by a less than stellar, if speculative, Consumer Reports announcement.

The Model 3 Tsunami is Still Coming

Despite Tesla taking so much fire and sometimes apparently over-reacting, every indication points toward a tsunami of high quality Model 3s still coming — if, perhaps, a bit slower than many of us had hoped. Production has continued to ramp up through September, though on a slower ramp than initially targeted. Meanwhile, Tesla has presently filed for VIN numbers up to 2,136 as of last week.

As we learned a couple of weeks ago, VIN numbers are not a reliable indicator of present Tesla production. However, it is still an indicator of expected production. So it appears that Musk’s Tesla is continuing to navigate Model 3 production difficulties in a highly challenging environment for the new company. Speculative reports have indicated that Tesla may be having difficulty with both parts suppliers and high speed welds for its new production of a steel-based vehicle (past vehicles were made from aluminum or other materials).

That said, even on a slower ramp, Tesla appears likely to produce at least 3,000 Model 3s by year end and in the range of 100,000 to 200,000 or more of the highly-sought-after vehicle during 2018. This expected 2018 production is still 4-8 times the likely sales of Chevy’s Bolt which entered the market nearly a year ago and has slowly ramped up to selling in the range of 2,500 vehicles per month. It also rivals, for a single model vehicle, the entire EV sales of a very EV ambitious China during 2016.

Given both the need for a rapid energy transition and for strong renewable industry leadership to be held by a western auto-maker vs a rising wave of competition aimed at new energy dominance coming from China, this is still good news for those of us who support renewable energy as a necessary solution to the problem of human-forced climate change and for those promoting American innovation and leadership alike. But we should be very clear that the global energy game is rapidly changing and increasingly complex. So, as ever, watch this space…

(UPDATED)

Links:

7 Million Deaths Annually Linked to Air Pollution

Widespread Adoption of Electrical Vehicles Would Curb Greenhouse Gas Emissions and Improve Air Quality

Solar Employs More People in U.S. Electrical Generation Than Oil, Coal and Gas Combined

China is Crushing the U.S. in Renewable Energy

Solar Power in China

China-Owned U.S. Solar Maker Seeks Tariffs on China Imports

Tesla Could Have Millions of Cars on the Road by 2023

Model 3 Production Bottlenecks are Due to Suppliers Says Oppenheimer

Led By Tesla, September U.S. Electrical Vehicle Sales Surge

The month of September was another big one for U.S. electrical vehicle sales. And, once again, despite a growing barrage from its increasingly irrational detractors, Tesla just keeps crushing it as a U.S. and global clean energy leader.

Tesla Leads Record September EV Sales

In total, 21,325 plug-in vehicles were sold in the U.S. during September. This sales rate represented a 24 percent growth over September of 2016 and amounted to the second highest number of electrical vehicles sold in the U.S. during any month on record. Total annual sales are now 142,514 and appear ready to approach or exceed the 200,000 mark by year-end.

(Strong electrical vehicle sales growth in the U.S. continued during September — with Tesla remaining ahead of the pack. Image source: Inside EVs.)

Tesla again showed itself as a strong market leader with combined Model S and X sales of 7,980. These models, respectively, held the top two sales spots for the month — followed closely by the long-range Chevy Bolt EV at 2,632 sales after nearly a year on the market. The Toyota Prius Prime and Chevy Volt plug-in hybrids rounded out the top five spots at 1,899 and 1,453 sales, respectively.

The main story of these best-sellers appears to be range — with all of these vehicles boasting long range electric or plug-in-hybrid capability. But Tesla’s high quality luxury offerings still hold an edge due to better technology, better charging infrastructure support, and superior overall capabilities. What’s even more ironic is that Tesla’s vehicles — that often sell for upwards of 100,000 dollars each — are still moving at greater volumes than the 35,000 dollar Chevy Bolt.

Chevy Bolt and Model 3 — Place-Holder vs Industry-Mover

The Bolt has a 238 mile range, which is a bit shorter than the higher-end Teslas which now can travel for between around 250 and 315 miles on a single charge. The Bolt’s quality is also considerably lower than the higher-priced Teslas — with slower acceleration, economy body styling, inferior handling and less features. As noted above, the Bolt also does not enjoy the support of Tesla’s large and expanding charging infrastructure. All that said, the Bolt remains an excellent EV for the price. It’s just that one wonders if GM’s heart is really in it to go all-in to sell the vehicle. Or is GM just placing a necessary high-quality competitor in a strategic attempt to stymie enthusiasm for the upcoming, trend-setting, Tesla Model 3?

(Obama-era CAFE standards are a major driver for auto industry transformation away from polluting fossil fuels and toward zero-emissions electric vehicles. Industry leaders like GM have long fought a policy that incentives electrical vehicle production and ultimately produces the combined benefits of moving the country toward energy independence, renewable energy, healthier air, and a less hostile climate. This year, the Trump Administration has sided with fossil-fuel based automakers and moved to roll back Obama’s helpful CAFE standards. Image source: Alternative Energy Stocks.)

A big hint comes in the form of continued opposition by major automakers like GM to increasing CAFE standards. From Electrek earlier this week:

In a time where a surprising number of major automakers are announcing that they believe electric cars are the future of the auto industry, we are still seeing them complaining about, and in some cases lobbying against, the fuel emission standards.

Now trade groups representing virtually the entire auto industry are again putting pressure on U.S. regulators to weaken rules that would force them to produce more electric cars.

So the rational question arises — would an automaker who really believes that the future is electric, who is really dedicated to the success of vehicles like the Bolt and the Volt also be fighting to remove fuel economy standards? If this appears like hypocrisy to some, then it probably is. A duck, after all, does quack from time to time.

Moving Economic Eggs into the All-Electric Basket = No Harmful Fossil Fuel Conflict of Interest

Tesla, on the other hand, only produces electrical vehicles. So, unlike GM, it doesn’t have a gigantic fossil fuel burning vehicle production infrastructure hanging around its neck and dragging it back down into the vast ocean of structural industry contributors to worsening climate change impacts.

And while critics decry production delays for the Model 3, GM’s own ambitions for the Bolt were comparatively modest — aiming for around 50,000 sales per year vs Tesla’s ultimate goal of 400,000 to 500,000 for the Model 3. One of these cars, therefore, looks like a shot at an industry defender while the other appears to be aimed directly at transformation. And who wins out in this David and Goliath struggle will have far-reaching energy, climate, and vehicle industry repercussions.

(Total U.S. EV sales for the year of 2017. Image source: Inside EVs.)

Sales of the key vehicle in question, the Model 3, remained slow at 115 units in September. This following 30 and 75 sales respectively during July and August. Tesla admitted facing production bottlenecks in its planned massive ramp up for the Model 3 aimed at meeting the demand of an amazing 500,000 pre-orders. Tesla critics have had a field day as the all-electric automaker struggles in its attempts to get its famed ‘alien dreadnought’ production of all-electric vehicles up and running.

The slower ramp in Model 3 production, so far, is admittedly a bit of a bump in the road for Tesla. But critics’ claims of Tesla’s ‘imminent demise’ have become a common and hackneyed cry over recent years. So we can take the present brouhaha with a couple of grains of salt and view any major downward moves in Tesla stock as a panic-induced opportunity for more steady, savvy, and environmentally conscious investors.

Investing in Clean Energy Future Makes Moral and Economic Sense

To this point, Tesla uses its stock market capitalization to help fund its energy transformation efforts. So Tesla investors are helping to fund a global move away from fossil fuels. And for putting their money on the line in this way, we should express to them our thanks and gratitude.

In the larger context, electrical vehicles, and more broadly, a related ramping battery storage production chain forms one of three key pillars to the global energy transition away from fossil fuels. The other two pillars are composed of wind and solar. All of these technologies produce zero carbon emissions in use. And due to their ability to hit economies of scale in production that result in reduced costs, higher efficiency, and higher energy densities over time, they have a demonstrated capability to increasingly out-compete dirty fossil fuels and rapidly reduce carbon emissions.

So when new clean industry leaders like Tesla are forcing laggards like GM to produce electrical vehicles and market them, even as market-defenders, then those of us who support clean energy and are worried about the threat of climate change should all be cheering.

RELATED INFORMATION AND STATEMENTS:

If true, then why continue to fight CAFE standards? —

DISCLOSURE:

I presently hold Tesla stock as part of a larger renewable energy and sustainable industry investment portfolio. For me, this is part of a morally driven choice to divest from fossil fuel based energy companies and invest in clean energy companies. Though these choices incur considerable financial risk, I believe that wholesale investment by society in fossil fuels results in severe ultimate harm — which I will not be a party to. I urge others to seriously consider joining the campaign to divest/invest.

Links:

Monthly Plug-in Sales Scorecard

Automakers Claiming to be ‘All-in on Electric Cars’ are Still Lobbying Against Stricter Fuel Standards

Aggressive New CAFE Standards

Tesla’s Electric Sales Explode Despite Slow Model 3 Production Ramp

Around the world, electric vehicle makers are starting to make serious inroads into the global auto market. And aspirational industry leader Tesla continues to break new ground and open new markets despite an increasing array of challenges.

Record Tesla Sales

During the third quarter of 2017, Tesla sold 26,150 all-electric vehicles. A new quarterly sales record for the company which included 14,065 super-fast luxury Model S sedans, 11,865 of the also super-fast and highly luxurious Model X SUV, and 220 of the mid-class luxury-sport Model 3. In total, during 2017, Tesla has sold more than 73,000 vehicles. Placing the all-electric vehicle and renewable energy systems manufacturer in a position to challenge the 100,000 cars sold mark by end of December.

(Tesla production and sales by Quarter shows that Q3 2017 beat Tesla’s previous record by more than 1,300 vehicles. Tesla appears on track to hit near 100,000 vehicle sales in 2017. Note that Model X production took 6 Quarters, or approximately 18 months to fully ramp to present sales rates above 10,000 per Quarter. Telsa ultimately expects to produce more than 60,000 Model 3s per Quarter by 2018. Investment analysts are more conservative — with Morgan Stanley targeting 30,000 Model 3s per Quarter. Image source: Commons.)

Surprises in Tesla’s Q3 report include greater than expected overall Model S and X sales. Pessimistic speculation about Tesla struggling to sell its higher-quality line as customers await the anticipated but less expensive and tweaked-out (but still bad-ass) Model 3 abounded throughout August and September. Those contributing to this brouhaha, however, did not appear to anticipate the excitement generated by Tesla’s Model 3 launch which appears to have spilled over to the more expensive line-up even as Tesla both offered incentives on some of its showroom vehicles and cut shorter range, lower cost versions of its Model S line-up.

Tesla Model 3 Production Ramp — A Miss, But Still in the Window

Tesla did, however, fail to meet Model 3 production ramp goals of 1,500 by the end of September. And this was one point where the Tesla pessimists ended up proving at least partly right. Citing production bottlenecks, the luxury EV manufacturer noted that it had produced only 260 Model 3s by end month — a 1,240 vehicle short-fall for the Quarter.

Overall vehicle production had still grown from July through September — hitting 30 in July, about 80 in August, and about 150 in September. This is still an exponential rate of expansion. But the more rapid anticipated ramp was not achieved. Tesla noted that most of their fast production chain was functioning as planned. But that a few bits of the complex and highly automated Model 3 manufacturing subsystems were taking “longer than expected to activate.”

(Tesla’s ground-breaking Model 3 missed company production targets by a fairly wide margin this month — triggering a big controversy among investors. Long term prospects for the Model 3 remain strong as Tesla works through what is, effectively, an employee beta testing period. Image source: Tesla.)

At first blush, this appears to be a fairly wide miss in Tesla’s planned production ramp. But if rapid production scaling is still achieved this fall, it will look like nothing more than a bit of a bump in the road. After the Q3 report, Elon Musk noted:

“I would simply urge people to not get too caught up in what exactly falls within the exact calendar boundaries of a quarter, one quarter or the next, because when you have an exponentially growing production ramp, slight changes of a few weeks here or there can appear to have dramatic changes.”

In other words, we are still in the window for rapid production scaling, even if the earlier, more rapid, ramp was missed by a few weeks.

The company previously struggled with its very complex production of the ultimately popular Model X. To address production challenges, Tesla aimed to simplify production for the Model 3. But integration of new automated equipment into large manufacturing chains as the vehicle is built and product-tested by employee-customers is proving to again pose a few challenges. Challenges that, at this time, do not appear to be anywhere near as serious as those encountered during the Model X production ramp, but are still enough to produce delays.

Tesla Model 3 Production Still About to Explode as EV Maker Enjoys Serious Structural Advantages

Keeping these facts in mind, we can take some of the overly negative reports following Tesla’s failure to hit early Model 3 production targets with a lump of salt. The company still produces amazing cars, is still going to flood the world with high-quality and much more affordable all-electric Model 3s. The company owns a massive manufacturing apparatus in the form if its Freemont plant and Nevada Gigafactory. An apparatus that is rapidly growing. Outside this expanding manufacturing chain, the company is the only major automaker to seriously invest in and rapidly expand crucial EV charging infrastructure. All of these are systemic underlying strengths that the electric automaker will continue to leverage and expand on.

(Tesla battery sales help to reduce EV battery pack costs by producing economies of scale in production. The reverse is also true. With demand for Tesla’s powerwall and powerpacks on the rise, the company possesses a number of systemic advantages that most automobile manufacturers lack. Image source: Tesla.)

Tesla is in the process of transitioning from an automaker that produces a moderate number of vehicles each year to a major automaker that produces more than half a million vehicles each year. And it’s bound to encounter a bump or two in the road from time-to-time. Ultimately, the Model 3 production ramp will hit its stride as Tesla works out the kinks. Around 500,000 reservation-holders will still get their cars.

Analysts at Morgan Stanley recently:

warned investors against “micro-analyzing the monthly ramp of the Model 3.” Most vehicle launches have hiccups, and quality and attractiveness count for far more importance than quantity “at least for now,” they said in a note.

Tesla was quick to stress that it foresaw no serious issues with the Model 3 production. That the company understood what needed to be fixed in the manufacturing chain and was working to address those issues. If this is the case, we should see Model 3 production start to ramp more swiftly over the coming weeks. But even without rapidly ramping Model 3 production — which is on the way sooner or later — Tesla is still smashing previously held all-electric sales records.

And for those of us concerned about climate change, that’s good news.

Links:

Tesla Shares Shake off Bad News of Model 3 Deliveries

Tesla

Tesla Q3 Report

 

 

Tesla’s All-Electrical Spark is About to Grow Much, Much Brighter

Can a single venture born out of one man’s vision for a more sustainable future help to spark the complete transformation of global automobile markets, aid the U.S. and other nations moves toward energy independence, help tamp down the problem of human-caused climate change, spur a rapid influx of renewables in the electrical generation sector, and, all the while, compete toe-to-toe with nationally funded battery, automobile, and renewable energy companies emerging in China?

We’re about to find out.

Tesla, Daimler, China Invest in Gigafactories; Musk and Daimler Spar on Twitter

This week, large German automaker Daimler announced that it would invest 1 billion dollars in an EV battery production plant in Alabama. The move followed very heavy similar investment and policy announcements by China and a multi-billion dollar investment by all-electric automaker Tesla in the first of a number of planned battery gigafactories.

Elon Musk, noting the size of Daimler’s available capital for investment, made the following pithy remark on Twitter:

Daimler, appearing more than a little sensitive to the remark, replied that it would be investing 10 billion in EV development in total, with 1 billion going to batteries. Musk replied — “Good” — with Daimler stating that it had been developing electrical vehicles for more than 100 years.

Of course, Daimler, unlike Tesla, still primarily produces fossil fuel based vehicles. The company’s planned launch of EVs capable of competing with Tesla’s present offerings are slated for around 2020. By that time, Tesla is likely to be producing well north of half a million all-electric vehicles per year. Daimler would have to significantly increase investment to adequately meet such a major challenge by Tesla.

The history of Daimler is one in which it has mostly dabbled in electrical car production while instead dedicating the lion’s share of its efforts to producing unsustainable carbon emitting cars and trucks. In 2016, Daimlier sold 3 million vehicles — the vast majority of which were ICE-based. With Tesla gobbling up larger and larger market share as an electric-only vehicle supplier, that may soon change. A result that would be “Good” for everyone on the planet. Especially in the present situation where harms from human-caused climate change are rapidly ramping higher.

But despite Daimler’s 100 year history of experimenting with electrical vehicle designs, it has a lot of catching up to do when it comes to confronting a serious market competitor in the form of the all-electric Tesla.

Tesla Ahead in the Electric Race

To understand how serious, we need only look at Tesla’s growing suite of top-in-class vehicle offerings combined with an emerging fierce logistics chain of increasingly low-cost EV batteries.

Part of this story begins at Tesla’s Nevada Gigafactory 1. To look at even the 1/3 complete Gigafactory is to behold the awesome potential of mass production writ large. Back in 2014 when Gigafactory 1 began construction under a partnership with Panasonic, the ultimate aim was to build a facility capable of producing 35 gigawatt-hours of batteries per year by 2018. That number has been raised to 50 gigawatt-hours — with an ultimate goal for this single factory in the range of 100 to 150 gigawatt-hours. By comparison, the entire global total of battery production in 2014 was around 35 gigawatt-hours. And total national production by battery giant China is presently at around 125 gigawatt hours — set to hit around 230 gigawatt-hours by 2023.

(Tesla Gigafactory 1 shows 9 of 21 planned modules complete by late August of 2017. Image source: Commons.)

Producing so many batteries in one facility will enable Tesla to leverage some serious economies of scale. This, in turn, will result in lower prices for the batteries it produces — allowing the automaker to sell electrical vehicles for less or make higher profits on models that are produced. Already, with about 15 percent of the planned gigafactory now producing batteries, Tesla is starting to see the benefits of this scaling. And recent reports indicate that it has pushed battery prices to below 140 dollars per kilowatt hour during 2017. Ultimately, many industry analysts expect the Gigafactory 1 to enable Tesla to produce batteries at near the 100 dollar per kilowatt hour mark before 2020 — substantially reducing base production costs for EVs in total.

Masses of Model 3s

This mass production of batteries is the cornerstone for Tesla’s expected mass release of its Model 3 vehicle.

To be very clear, Tesla’s spearhead Model 3 is the ultimate aim of all of the company’s efforts thus far. Each sale of the more expensive luxury Model X and Model S versions have gone to fund the more mass market Model 3. And recent cancellations of lower cost, shorter range Model S versions appear to have been aimed at creating space for the Model 3 in the 35,000 to 59,000 dollar market segment.

(This week’s Tesla Model 3 news.)

Present production of the Model 3 appears to be ramping up according to Tesla’s plans. More and more of the vehicles have been sighted on California highways. A forward-shifted delivery date spurred a rumor that the Model 3 was being produced faster than expected. Texas has already started to receive some of its Tesla employee-ordered Model 3s. Rising rates of battery production at the Nevada Gigafactory 1 site have been observed. And the appearance of VIN numbers above 700 earlier this week roughly jibe with a planned ramp to 1,500 Model 3s produced by end September.

A clearer picture of this critical production ramp may emerge over the next couple of weeks as Tesla analysts pick up on monthly Model 3 production information and the Tesla Q3 report begins to take shape.

Tesla All Electric Sales Tracking Toward 230,000 to 500,000 in 2018

By end of this year, Tesla expects to be producing 20,000 of these vehicles per month. By end 2018, Tesla is aiming for 40,000 Model 3s per month. Pre-orders in the range of 500,000 vehicles show that demand support for this level of production exists. And even conservative forecasts by investment firms like Morgan Stanley show Tesla vehicle production and sales more than doubling from an expected 90,000 to 100,000 in 2017 to over 230,000 in 2018.

Already Tesla sales appear to be edging higher — with Q3 expected sales in the range of 24,000 to 25,000 including the ramping Model 3 production. Meanwhile, Tesla’s own goals far outstrip expectations by forecasters like Morgan Stanley with the company aiming for 500,000 total sales in 2018.

(Tesla’s Model 3 planned production timeline. Image source: Tesla.)

Regardless of whether Tesla sells 230,000 cars or 500,000 cars in 2018, it will be the first automaker in a long time to see such rapid sales growth. According to Adam Jonas at Morgan Stanley, it has been generations since we’ve seen growth like this. It’s not just 2018 that forecasters like Stanley are looking at. By 2023, the investment firm expects 3 million Tesla cars to be ranging the world’s highways with that number growing to 32 million by 2040.

Tesla’s own goals appear to be significantly more ambitious. The expected 150 gwh ultimate production capacity of Tesla’s Gigafactory 1 alone could support an annual production of 2-3 million Model 3 type vehicles. And earlier this year Tesla announced plans to construct 3 more similar facilities with an ultimate goal of 10-20. Locations for the 3 new expected Gigafactories are set to be announced later in 2017.

Given the totality of this amazing undertaking, it’s unlikely that any present individual vehicle manufacturer is pursuing mass EV production at a quality and scale comparable to that of Tesla. Daimler may now be spending billions, but they are in a race to catch up. Meanwhile, it appears that Tesla may even rival China in its ultimate ability to scale battery production.

Energy World Rocked as China Cuts Coal Imports, Aims for Fossil Fuel Car Ban

The global energy posture is changing almost as rapidly as a climate increasingly choked with greenhouse gas emissions. And few parts of the world show this emerging trend more clearly than China. In short, China is adding restrictions to both domestic coal production and coal imports even as it is rapidly building new solar generation capacity and moving to ban domestic fossil fuel based vehicle sales.

Cutting Coal as Solar Grows

Recently, China made two major policy moves that have rocked the global energy markets. The first was its recent closing of terminals to coal imports — which may result in a net reduction of imported coal by 10 percent during 2017. Since July, China has closed approximately 150 smaller facilities to coal imports. These ports, which China has designated as tier two, are less able to test coal for compliance with China’s new emissions standards. As a result, coal imports have re-routed to larger (tier 1) facilities. A move that has created a backlog of coal off-loading ships.

In early September, China then closed the major port of Guangzhou to coal imports ahead of a cyclone. Guangzhou is one of China’s largest ports — capable of handling 60 million tons of coal per year. The closure sent shivers through coal exporters like Australia as the line of ships waiting to off-load coal lengthened. This port has since re-opened but larger constraints to China’s coal import market remain.

(China is defying all expectations with regards to the rate at which it is adding new solar electrical generation capacity. Such a strong renewable energy addition is coming in conjunction with far more restrictive domestic and import policies aimed at reducing coal burning and improving air quality. Image source: Renew Economy.)

Recently, China imposed caps on domestic coal production and aimed to reduce total coal generating capacity. These caps and cuts led some coal exporters to believe that China’s large fleet of coal plants would require more imports to fill a perceived demand gap. But China’s new, more restrictive import policies are belying those earlier notions.

In the larger context, China is engaged in a major shift toward renewable energy production. Through July, China had added approximately 35 gigawatts of new solar electrical generation capacity — with 24 gigawatts of that capacity being added in June and July alone. By early August, China’s total solar electrical generating capacity had exceeded 112 gigawatts. Strong adds that have to be putting more than just a little bit of pressure on traditional and dirty generating sources like coal. Add in China’s more restrictive policies and the picture for coal in the country during 2017 doesn’t look very rosy.

Fossil Fuel Vehicle Ban

After imposing tougher restrictions on coal imports, China’s second major policy move involves a recent statement that it will declare a ban date for all fossil fuel based vehicles. During the weekend of September 10th, Xin Guobin, China’s industry and information technology vice minister, announced that China would set a deadline for car makers to stop selling vehicles that run exclusively on diesel and gasoline.

Though no deadline has presently been announced, the move has resulted in a big freak-out by majority fossil fuel vehicle producers like General Motors.

(National polices are aiding a rapid transition away from fossil fuel based vehicles. These actions are enabling the goals of the Paris Climate Agreement and providing hope for reducing the terrible impacts of human-forced climate change. See interactive graphic of above image here: Bloomberg.)

China’s announcement comes alongside similar moves by Britain, France, Norway, the Netherlands, and India. France and Britain both plan to ban fossil fuel based vehicle sales by 2040. Meanwhile, the Netherlands and India have announced their own plans to phase out carbon-emitting cars. And, according to Bloomberg, countries accounting for 80 percent of the global vehicle market are now undertaking polices pushing toward the phase out of petroleum vehicles and the adoption of electrical vehicles.

China’s 28 million per year automobile sales, however, is a huge addition. And if the country imposes a deadline, it will force major automakers to further accelerate electrical vehicle production plans or become basically irrelevant as the fossil fuel vehicle market disappears.

(Rapid transition away from fossil fuel vehicles means declining prospects for oil just as a rapid transition to wind, solar, and battery based storage means declining prospects for coal and gas. Do we really want to be putting economic eggs into shrinking fossil fuel baskets? Image source: IEA, Bloomberg.)

Ironically, China’s move appears to be mirroring similar policies already put in place by U.S. states like California and U.S. technology leaders like Tesla. Sophie Lu, a Beijing-based China researcher for Bloomberg New Energy finance recently noted that: “Chinese regulators see the success of Tesla and other Californian companies, and want to promote the same success amongst Chinese car manufacturers.”

The fact that the world is following in the footsteps of both California and Tesla should set off a loud ringing in the otherwise deaf to new energy ears of the present administration in Washington. More to the point, valid analysis shows that China is setting itself up to dominate the newer, cleaner, less harmful to climates, and more appealing energy and technology markets of the future. And a failure to successfully engage in what is an emerging global competition at the federal level sets the U.S. up for a serious future failure and ultimate energy market irrelevance.

Links:

China is Banning Traditional Auto Engines: It’s Aim — Electric Car Domination

China Port Halts Coal Imports

China Announces Intention to Ban Fossil Fuel Vehicles

Fears Raised as China Cuts Coal Imports

Electric Cars Reach Tipping Point

 

U.S. Electrical Vehicle Sales Growth Continues Ahead of Model 3 Tsunami

During August of 2017, U.S. electrical vehicle sales continued to increase at a respectable pace year-on-year.

According to Inside EVs, total sales for electric-powered cars in the U.S. totaled 16,624 during August. This represents another record — growing by 2,032 or 12.2 percent above 2016’s previous record August total of 14,592.

The Tesla Model S and Chevy Bolt EV held the first and second rank among individual model sales by sending 2150 and 2107 vehicles out to new owners respectively. The 238 mile range Bolt priced at $36,000 before incentives continued to show strong sales growth as Chevy accelerated expanding offerings to new states across the U.S. Model S sales, while holding top position, were down year-on-year — likely in part due to anticipation of the Model 3 ramp-up.

(Elon Musk recently reassured investors that the Model 3 will achieve its 10,000 per week production target in 2018. Image source: EV Network.)

Inside EVs estimates that 75 of the game-changing Model 3 — with best in class features, a 220 to 310 mile range, and a 126 MPGe fuel efficiency rating — were produced and sent to customers during August. If this number is correct, it would signify a somewhat slower ramp than the expected 100 sales for the month. However, this report is preliminary and may be subject to revision. And there have been more than one or two hints circulating around the web that Tesla is actually ahead of its production goals — hitting 200 vehicles by end August (see tweet below).

Presently ranked 30th on the EV sales chart for all of 2017, the Model 3 (with its approximate half-million reservations) is likely to climb into the top 20 by end September. At that point, Tesla expects about 1,500 Model 3s to be produced monthly. By October, monthly sales of the Model 3 may eclipse all other U.S. EVs as production exceeds 5,000.

At this point, the Model 3 will likely start having a noticeable influence on overall U.S. EV sales — with that impact further dilating during November and December. And if Tesla meets its December sales goal of 20,000 units for the Model 3, then the U.S. overall may see December 2017 total EV sales from all models nearly double December 2016 numbers (of nearly 25,000 units).  Meanwhile, through 2018, the Model 3 could help to drive total U.S. EV sales to around half a million or more.

In other words, the U.S. EV market is about to be hit by a tidal wave of very high quality and relatively low cost Model 3s — with profound and long-lasting results. This is good news for renewable energy and climate change response advocates. For such a large wave of electrical vehicles coming to market provides considerable opportunity for reduced carbon emissions from both vehicle based fossil fuel burning and from the ancillary electrical power market where batteries used for EVs can also replace base load coal and gas fired power stations with energy storage linked to wind and solar.

Links:

Monthly Plug-in Sales Scorecard

Plug In Electric Car Sales for August

Tesla Model 3 Production

Tesla Model 3 Information

Nearing a Trillion Watts: By End 2017, Global Wind + Solar Capacity Will be 2.4 Times That of Nuclear

In 2017, the world will add about 80 gigawatts of new solar capacity. It will also add another 60 gigawatts of new wind capacity. This combined 140 gigawatts will push wind and solar to 940 gigawatts of global capacity — or nearly one trillion watts. A pace that’s ahead of even recent optimistic projections by about 25 gigawatts:

(Historic and projected global wind and solar capacity. Image source: Forecast International.)

Such a total renewable energy generation capability compares to a global 391.5 gigawatts of nuclear energy now in use around the world. In other words, solar energy by end 2017 will come close to surpassing total global nuclear energy capacity. And wind and solar combined will account for 2.4 times the amount of installed nuclear around the world.

The reason wind and solar are now rapidly eclipsing global nuclear capacity is due to simple economic competitiveness alone. By 2022, wind + solar is now expected to exceed 1,600 gigawatts. Or more than 4 times present nuclear capacity. Such a strong build rate comes on the back of rapidly falling costs for renewable energy systems. With wind and solar’s levelized costs of production now below that of all other new power sources in many places and with prices bound to continue falling through 2030, base economic incentives for adding renewable energy are now quite high. Add in the fact that these systems produce no harmful particulate or greenhouse gas pollution in use, and the appeal of such clean energy systems is difficult to contest.

(In the U.S. unsubsidized levelized costs of energy vastly favor wind and utility scale solar. And indication that other utility sources such as coal and gas are over subsidized by society. Image source: Clean Technica.)

Increasingly, coal and even gas fired power generation relies on subsidies and an uneven playing field to compete with renewable energy systems. With research from John Abraham indicating that from 2013 to 2015, global fossil fuel subsidies rose from a staggering 4.9 trillion dollars to an astounding 5.3 trillion dollars. And backwards-looking political bodies like the Trump Administration are increasing this highly distorting and harmful subsidy allotment still further.

There’s really no excuse for such an unequal and continuously tilting playing field considering the fact that fossil fuels are the main driver of a climate change that is contributing to catastrophic storms like Harvey and a rising ocean that is now threatening hundreds of cities around the globe. Considering the fact that about 7 million people die each year from air pollution primarily related to fossil fuel burning each year alone. With inexpensive and much cleaner alternatives now available, and with these alternatives proving increasingly competitive with the rickety and harmful old energy sources that the world’s tax payers unjustly prop up, there’s really no excuse in creating further delays for the far less dangerous and harmful clean energy systems we all deserve.

Links:

Forecast International

Clean Technica

Global Solar Capacity Set to Surpass Nuclear

Wind Energy Cost Reductions of 50 Percent Possible by 2030

Global Wind Energy Insight

Global Cumulative Installed Wind Capacity

7 Million Premature Deaths Annually Linked to Air Pollution

Trump Moves to Increase Subsidy for Coal on Federal Lands

 

South Miami’s Solar Mandate Sets Example for Other Coastal Cities Facing Existential Threat From Sea Level Rise

Back in July, South Miami decided to require that all new homes built within city limits place solar panels on their roofs. The decision was made in an attempt to help slake the warming related impacts of sea level rise on the city by working to reduce carbon emissions.

South Miami Mayor Philip Stoddard recently noted:

“We’re down in South Florida where climate change and sea level rise are existential threats, so we’re looking for every opportunity to promote renewable energy. It’s carbon reduction, plain and simple. We have a pledge for carbon neutrality. We support the Paris Climate Agreement.”

South Miami joins six California cities now also providing rooftop solar mandates. These include San Francisco, Culver City, Santa Monica, San Mateo, Lancaster, and Sebastapol.

(How quickly greenhouse gas emissions are reduced has a considerable impact on the level of harm caused by future sea level rise. South Miami gets it. But what about the rest of the U.S. East and Gulf Coasts?)

With threats from rising oceans to coastal cities worsening, Miami’s decision is one that resonates with the interests of thousands of communities around the world. Nuisance flooding and increased instances of tidal flooding are on the rise pretty much everywhere. Meanwhile, some cities and island nations are in the process of being wiped off the map entirely as the pace of sea level rise quickens globally.

Coastal cities now have a vested interest in reducing carbon emissions as swiftly as possible. And Miami, like a number of cities in California, recognize that smart policy moves by municipalities can help to speed an energy transition away from the fossil fuels that now account for the vast majority of global carbon emissions.

Links:

South Miami Just Made a Huge Solar Rooftop Decision

South Miami is Going Solar

The Present Threat to Coastal Cities From Antarctic and Greenland Melt

Alaska Towns at Risk From Rising Seas Sound Alarm as Trump Pulls Federal Help

The Economist Sounds Death Knell for the Internal Combustion Engine as Pathway Toward Carbon Emission Reductions Opens Wide

Earlier this month, The Economist prophetically declared that the “death of the internal combustion engine” is at hand. That the end for this inefficient fossil fuel burning monstrosity was “in sight.” And that, ultimately, “days were numbered” for a design that has so efficiently and so harmfully injected billions of tons of pollution into the Earth’s atmosphere.

(Gigafactories like this one being built in Nevada and numerous others being built in Southeast Asia are helping to enable a combined electrical vehicle and grid based renewable power revolution. Note that the Tesla gigafactory is still far from complete even though it is currently producing 5 GWh of lithium batteries per year. Production by end 2018 is expected to hit 35 GWh per year and ultimate production could hit as high as 150 GWh per year.)

The Economist notes that performance gains for electrical vehicles are quickly outpacing those of internal combustion engine based vehicles. That “today’s electric cars, powered by lithium-ion batteries, can do much better.” It finds that electrical vehicles are simpler to manufacture, easier to maintain, and easier to improve than traditional vehicles. It points to the fact that transportation based emissions alone result in 53,000 premature deaths each year in the U.S. vs the 34,000 who die due to car related collisions. And it cites research showing that transferring existing vehicles to electrical vehicles would reduce vehicle based carbon emissions by 54 percent using present grid sourced electricity generation. But it also rightly notes that as the grid becomes more and more dominated by renewable based energy systems, vehicle-based emissions will fall further — eventually reaching zero on a grid fully supplied by sources like wind and solar. Finally, The Economist notes that when mated with automation and ride share, EVs have the potential to reduce the number of vehicles on the road upwards of 90 percent (in the most optimistic assessments).

EVs are disruptive in that they’re becoming increasingly easy for start-up companies to produce — even if they are more difficult for traditional auto manufacturers who have heavily invested in fossil fuel based vehicle production infrastructure and parts chains. The result is that numerous independent EV shops are cropping up and that countries and industries who were not traditionally auto manufacturers are capable of making serious new entries. Tesla was an industry leader in this regard. But many such businesses are emerging all over the world from the U.S. to China to Europe to India and beyond.

(Increasing predictions for rate of EV build through 2040. Image source: The Economist.)

Moreover, the predicted rate of EV adoption just keeps rising. The Economist points out that UBS expects that 14 percent of all new vehicles in 2025 will be electric. And while UBS is among the more optimistic prognosticators, even traditional oil companies like Exxon are being forced to acknowledge that EVs will take larger and larger portions of the auto market. In just one year, from 2016 to 2017, Bloomberg adjusted its expected rate of new EV sales in 2040 upward from 400 million to 520 million, OPEC from 50 million to 250 million, and Exxon from 80 million to 100 million (see graphic above).

Such large and expanding build rates will certainly enable more and more rapid rates of global carbon emissions reductions. Not just through direct carbon emissions removal by replacing ICE based vehicles with EVs. But also by enabling the mating of batteries with renewable energy systems around the world. Tesla, which is today producing 5 gigawatt hours of battery storage in 2017 from its Gigafactory in Nevada is now starting to do just that. In South Australia, Tesla is involved in mating wind energy with battery storage even as it pursues a similar project in New Zealand and following its completion of a solar and battery based storage system for Kauai Hawaii.

(The amount of batteries available for both EVs and grid based storage is set to rapidly expand. Note that Tesla recently announced that its Nevada Gigafactory could eventually produce 150 GWh per year of battery storage. Image source: The Economist.)

By 2018, rate of battery production at the Tesla plant will accelerate to 35 GWh per year with the plant ultimately able to achieve near 150 GWh per year (according to Musk). Similar very large battery production plants are being built in Europe and China, with a number likely also slated for India in the near future. And the batteries produced in these plants can be used either in EVs or as a massive and growing energy storage pool that’s already capable of directly replacing coal and gas plants now operating on electrical grids.

Such was the economic reality for the Liddel Coal Plant in New South Wales Australia when AGL Energy decided it was more economic to replace the plant with wind, solar and batteries than to continue to burn coal and gas as a baseload energy supply. And this decision was made under present economic realities. Now imagine what those economic realities will look like when the world is producing more than an order of magnitude more battery storage each year at much lower cost and as wind and solar costs continue to fall. In other words, the electrical vehicle revolution is enabling the renewable power revolution and vice versa. And both are bringing forward the time when global carbon emissions start to consistently drop off. To support the advancement of one is to support the advancement of both — to the larger overall benefit of more rapid global carbon emissions reductions and a quickening ability to address the very serious issue that is human-forced climate change.

Links:

The Death of the Internal Combustion Engine

After Electric Cars, What Will it Take For Batteries to Change the Face of Energy?

Tesla Could Triple Planned Battery Output of Gigafactory 1 to 150 GWh

China is About to Bury Elon Musk in Batteries

Tesla to Build World’s Largest Lithium Ion Battery Plant in South Australia

The Economist Announces Death of the ICE

Liddel Coal Plant in New South Wales Will be Replaced By Wind, Solar and Batteries

Tesla Powerpack Will Join Wind Turbine at New Zealand Salt Factory

Renewables Boom as China Halts or Eliminates Another 170 Gigawatts of Coal Power Plants

On Monday, China announced that it was halting or delaying another 150 gigawatts worth of new coal power plant construction through 2020. In addition, the world’s largest coal user also announced that it would eliminate 20 gigawatts of present coal burning capacity. These moves come on the back of China’s previous cancellation and closure of 103 coal-fired plants coordinate with three consecutive years of falling coal consumption from 2014 through 2016.

(China’s annual CO2 emissions primarily come from coal use. Rapidly reducing that coal use is essential to addressing global climate change. Image source: NRDC.)

According to the China News press release, the move was aimed at both avoiding overcapacity and ensuring a cleaner energy mix. China’s National Development Reform Commission went on to state that: “New capacity will be strictly controlled. All illegal coal-burning power projects will be halted.”

China alone burns about half of all the coal converted into carbon dioxide each year globally. So if the world is to effectively address climate change, then China’s massive coal consumption needs to start tapering downward. And the faster it does, the better things will be for us all. Outwardly, the country appears dedicated both to the notion of becoming a global climate leader while also working to address its serious air and water pollution issues. And to the latter point, China plans to revamp its existing coal plants in order to lower harmful particulate emissions. Digging a bit deeper we find that a worrisome high level of coal burning is slated to remain in place at least over the next decade. Even if the trend is moving in a generally helpful direction and even as renewable energy platforms popping up across China may enable the country to further cut its harmful greenhouse gas emissions.

(China’s coal targets through 2020 show continued steady reductions. Image source: NRDC.)

China’s move to halt or eliminate 170 gigawatts of coal burning follows a larger plan to keep total coal capacity below 1,100 gigawatts by 2020. How much below is still somewhat up in the air. But it’s worth noting that present coal burning capacity in China is 900 gigawatts and the best news for all involved would be if this capacity did not increase and that China’s rate of overall coal use continued to fall. This action is in keeping with a stated goal to reduce coal’s portion of the Chinese electrical power supply to 58 percent by the same year (down from 70 percent in 2010).

It’s a trend that follows major renewable energy build outs. A build that, taking into account China’s past economic over-achievements could accelerate to replace coal capacity at a faster than expected pace. Solar alone is well ahead of plan and is now expected to reach 230 gigawatts worth of capacity by 2020. Meanwhile, China is on track to have about 250 gigawatts of wind capacity installed by the same year. But there, too, an acceleration in off-shore wind capacity that could spike this number may also be in the offing. And as of August, China was selling about 45,000 zero-emitting electrical vehicles each month with a goal to have around 3 million EVs per year by 2020.

All serious trends that will, hopefully, further accelerate China’s rate of greenhouse gas emissions reductions. Given Trump’s various attempts to sabotage Obama’s positive legacy of climate response and renewable energy production here in the U.S., somebody in the world needs to take the role of global climate leader. Trump’s vacuous vision and overtly divisive nature has given China the opportunity to step it up.

Links:

China Halts Building Coal Power Plants

NRDC

Global and China Wind Turbine Industry Report 2016-2020

China’s Strict Electric Car Quotas

India Utility Plans to Build EVs, Startup Bollinger Motors Launches Gritty Electric Truck, Wind Energy Boosters Push Europe to Meet Paris Goals Faster

Internal combustion engine automobile manufacturers and fossil fuel investors, eat your hearts out…

Indian electrical power generation utility JSW has decided to throw its weight behind building electrical vehicles for the larger Southeast Asian market. On the other side of the world, a small U.S. EV startup plans to sell 10,000 to 20,000 off-road all-electric SUVs each year. Meanwhile, still further east in Europe, an industry consulting group is recommending a rapid off-shore wind energy build-out to help address human-caused climate change.

An Indian Electrical Power Company Decides to take a Shot at EV Manufacturing

According to reports from The Economic Times of India, the utility JSW plans to pursue an electrical vehicle (EV) build-out as part of a larger drive by India’s government to have all new vehicles sold in the country be electrified by 2030. The company is outlaying 3,000 to 4,000 crore, or more than half a billion dollars, as an investment to jumpstart its EV manufacturing by 2020.

Though JSW’s previous economic interests have primarily focused on electrical power generation, steel, and mining, the group appears to be adopting a Tesla-like business model going forward by integrating energy storage, charging infrastructure, and electrical vehicles. Prashant Jain, JSW’s chief executive officer noted to ET that:

“India is at an inflexion point and the three businesses that we have identified offer growth. While battery storage and charging infrastructure would be a forward integration for us, electric vehicle is an adjacent business, but we believe it’s a huge opportunity as it will offer level playing field to new entrants.”

Upstart Bollinger Motors’ Serious Off-Road SUV

Across the Pacific in the U.S. a small company out of Hobart, New York, population 47,000, has produced a serious EV sport utility vehicle prototype. The Jeep-Hummer mashup looking thing has an impressive 362 horsepower and can be configured with 120 or 200 miles of all-electric range. A 6100 lb towing capacity and massive wheel base communicate an underlying attitude of grit that’s something entirely new in the electrical auto world and, well, for lack of a better set of descriptors, rough and rugged.

(With the advent of less expensive and more widely available battery packs and electrical drive trains, EV and energy storage companies are starting to pop up all over the place. The above video shows Bollinger Motor’s planned EV off-road truck — which it hopes to produce at a rate of 10,000 to 20,000 per year. JSW, a traditional India-based utility, just threw its own hat into the EV ring this week. With so few EVs available and so much demand for clean energy alternatives, the market at this time appears to be wide open. Video source: Bollinger Motors.)

At $60,000 per truck, it’s well within the traditional off-road market. And Bollinger ultimately plans to sell between 10,000 and 20,000 copies of this mean machine each year — if it can make the regulatory hurdles for U.S. auto manufacturing and find a partner that will help it produce all those thousands of units. A big if — but one that achieved could really help to jump-start the off-road EV market in the U.S.

Looking at traditional auto manufacturers, you kind of have to shrug and say — why didn’t they think of this? But one industry’s apathy is another entrepreneur’s opportunity. Or at least so thinks Bollinger.

Big Wind Energy Build Recommended for North Sea

Electrical vehicles are a key element of a synergistic suite of renewable energy technologies including wind, solar and energy storage that are increasingly capable of replacing fossil fuel burning infrastructure and removing harmful carbon emissions. Rapid growth in these industries enables swift reductions in the amount of heat-trapping gasses from human sources presently hitting the atmosphere.

Facts that were obviously on the minds of wind energy boosters in Europe during recent days as Michiel Muller of energy and climate consulting group Ecofys published a new report recommending a rapid increase in offshore wind development in order for Europe to meet Paris Climate Agreement goals. Muller noted that to prevent increasingly harmful warming, “Europe will need a fully decarbonized electricity supply by 2045. Renewables are essential to making this happen.”

(A graphic description of a large wind energy build-out recommended to help Europe meet its Paris Climate Agreement goals. Image source: Europe’s Growth Rate in Offshore Energy Must Triple to Get Paris Goals in Reach.)

Muller recommends adding significant new off-shore wind energy supplies from North Sea countries like France, Belgium, the Netherlands, Luxembourg, Germany, Denmark, Sweden, Norway, Ireland, and the United Kingdom.

During recent years, turbine size increases and industrial mass production efficiency gains have resulted in falling costs for both onshore and offshore wind generation. Offshore wind, which in the past has been somewhat more expensive than onshore wind or other traditional power sources, is becoming more cost-competitive. And it’s a power source that suffers less intermittency than its onshore brethren. However, lower solar and onshore wind prices present additional renewable energy and carbon emission reduction options for European states.

Links:

Europe Must Triple Off-Shore Wind to Bring Paris Goals Within Reach

Europe’s Growth Rate in Offshore Energy Must Triple to Get Paris Goals in Reach

JSW Energy Plans Electric Vehicles Manufacturing by 2020

JSW Energy

The Bollinger B1 is an All-Electric Truck with 360 Horsepower and up to 200 Miles of Range

Bollinger Motors

Hat tip to Suzanne

India and China Building Solar Like Gangbusters, Electric Revolution Continues as GM Sells EV for $5,300 in China, Tesla Plans 700,000 Model 3s Per Year

If we’re going to halt destructive carbon emissions now hitting the atmosphere, then the world is going to have to swiftly stop burning oil, gas and coal. And the most effective and economic pathway for achieving this removal of harmful present and future atmospheric carbon emissions is a rapid renewable energy build-out to replace fossil fuel energy coupled by increases in energy efficiency.

(To halt and reverse climate change related damages, fossil fuel based greenhouse gas emissions into the atmosphere need to stop.)

This week, major advances in the present renewable energy build and introduction rate were reported. Chiefly, India and China are rapidly adding new solar panels to their grid, the monthly rate of global EV sales surpassed 100,000 in June, GM is offering a very inexpensive electrical vehicle in China, and Tesla has ramped up plans for Model 3 EV production from 500,000 vehicles per year to 700,000 vehicles per year.

India and China Solar Gangbusters

In the first half of 2017, India is reported to have built 4.8 gigawatts (GW) of new solar energy capacity. This construction has already exceeded all 2016 additions. The country is presently projected to build more than 10 GW of new solar energy capacity by year-end. Large solar additions are essential to India meeting its goal of having 100 GW of solar electrical generation available by 2022. It is also crucial for reducing carbon emissions from fossil fuel fired power plants (coal and gas).

(Total solar capacity in India could hit 30 GW by end 2018. India will need to add solar more rapidly if it is to achieve its goal of 100 GW by 2022. Image source: Clean Technica.)

Further east, China added 24.4 Gigawatts of new solar energy in just the first half of this year. This pushed China’s total solar energy generating capacity to a staggering 101 GW. It also puts China firmly in a position to surpass last year’s strong rate of solar growth of 34 GW. China’s previous goal was to achieve 105 GW of solar production by 2020. One it will hit three and a half years ahead of schedule. China now appears to be on track to overwhelm that goal by achieving between 190 and 230 GW of solar generation by decade’s end.

(China has already overwhelmed its 2020 target for added solar capacity. Recalculating based on present build rates finds that end 2020 solar generation levels are likely to hit between 190 and 230 GW for this global economic powerhouse. Image source: China National Energy Administration.)

Such strong solar growth numbers in traditional coal-burning regions provides some hope that carbon emissions growth rates in these countries will continue to level off or possibly start to fall in the near future. Adding in ambitious wind energy and electrical vehicle build-outs in these regions provides synergy to the larger trend. If an early carbon emissions plateau were to be achieved due to rapid renewable energy build-outs in China and India, it would be very helpful in reducing overall levels of global warming during the 21st Century.

GM’s $5,300 EV for the Chinese Market

Adding to the trend of growing movement toward an energy switch in Asia this week was GM’s introduction of a small, medium-range electrical vehicle for the Chinese auto market. GM is partnering with China’s Baojun to produce the E100. A small EV that’s about the size of the U.S. Smart Car. The E100 has about a 96 mile all-electric range, a 62 mph top speed, and goes for $14,000 dollars before China’s generous EV incentives. After incentives, a person in China can purchase the vehicle for $5,300. GM states that 5,000 buyers registered to purchase the first 200 E100s hitting the market last month, while a second batch of 500 vehicles will be made available soon.

100,000 Electrical Vehicle Sales Per Month by Mid 2017

Globally, electrical vehicle sales have ramped up to 100,000 per month during June of 2017. This growth is being driven primarily by increased sales volumes in China, India, Japan, Australia, Europe and the U.S. as more and more attractive EV models are becoming available and as governments seek to limit the sale of petroleum-burning vehicles in some regions.

(Projected growth rates for EV sales appear likely to surpass present projections through 2020. Image source: Cleantechnica.)

Meanwhile range, recharge rates, acceleration, and other capabilities for these vehicles continue to rapidly improve. This compares to fossil fuel vehicles which have been basically stuck in plateauing performance ranges for decades. 2017 will represent the first year when sales of all EV models globally surpass 1 million per year. With a possible doubling to tripling of EV production through 2020.

Telsa Aiming for 700,000 Per Year Model 3 Sales

2018 will likely see continued growth as new vehicles like the Model 3, the Chevy Bolt, and Toyota Prius Prime provide more competitive and attractive offerings. This past month, the Chevy Bolt logged more than 1,900 vehicles sold in the U.S. in one month. If GM continues to ramp production, marketing, and availability of this high-quality, long range electrical vehicle, the model could easily sell between 3,000 and 5,000 per month to the U.S. market. Another vehicle — the plug in electric hybrid Toyota Prius Prime — is also capable of achieving high sales rates in the range of 5,000 per month or more on the U.S. market due to a combined high quality and low price so long as production for this model also rapidly ramps up.

But the big outlier here is the Tesla Model 3. By end 2017, Tesla is aiming to ramp Model 3 production to 5,000 vehicles per week. It plans to hit more than 40,000 vehicles per month by end of 2018. And, according to Elon Musk’s recent announcement, will ultimately aim to achieve 700,000 Model 3 sales per year. If such a rapid ramp appears, the Model 3 along with other increasingly attractive EVs could hit close to 2 million per year annual combined sales in 2018 and surpass 3 million at some time between 2019 and 2020. This is well ahead of past projections of around 2.2 million EV sales per year by 2020. Representing yet another early opportunity to reduce massive global carbon emissions coming from oil, gas, and coal.

Links:

India Installs 4.8 GW of Solar During First Half of 2017

China’s New 190 GW Solar Guiding Opinion Wows

China Could Reach 230 GW Solar by end 2020

GM Should Bring Baojun E100 EV to USA

EV News for the Month

Joint Venture for Baojun E100

Model 3 Annual Demand Could Surpass 700,000

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