Higher price of electric cars a concern for more than half of UK consumers

Inflation Reduction Act Clean Energy drives EV adoption and renewable power, but grid interconnection, permitting, and supply chain bottlenecks slow wind, solar, and offshore projects, risking emissions targets despite domestic manufacturing growth and tax incentives.

Key Points

An IRA push to scale EVs and renewables, meeting EV goals but lagging wind and solar amid grid and permitting delays.

✅ EV sales up 50%, 9.2% of 2023 new cars; growth may moderate.

✅ 32.3 GW added, below 46-79 GW/year needed for climate targets.

✅ Grid, permitting, and supply chain delays bottleneck wind and solar.

A year and a half following President Biden's enactment of an ambitious climate change bill, the landscape of the United States' clean energy transition, shaped by 2021 electricity lessons, presents a mix of successes and challenges. A recent study by a consortium of research organizations highlights that while electric vehicle (EV) sales have surged, aligning with the law's projections, the expansion of renewable energy sources like wind and solar has encountered significant hurdles.

The legislation, known as the Inflation Reduction Act, aimed for a dual thrust in America's climate strategy: boosting EV adoption, alongside EPA emission limits, and significantly increasing the generation of electricity from renewable resources. The Act, passed in 2022, was anticipated to propel the United States toward reducing its greenhouse gas emissions by approximately 40 percent from 2005 levels by the end of this decade, backed by extensive financial incentives for clean energy advancements.

Electric vehicle sales have indeed seen a remarkable uptick, with a more than 50 percent increase over the past year, as EV sales surge into 2024 across the market, culminating in EVs comprising 9.2 percent of all new car sales in the United States in 2023. This growth trajectory met the upper range of analysts' predictions post-law enactment, signaling a strong start toward achieving the Act's emission reduction targets.

However, the EV market faces uncertainties regarding the sustainability of this rapid growth. The initial surge in sales was largely driven by early adopters, and the market now confronts challenges such as high prices and limited charging infrastructure, while EVs still trail gas cars in overall market share. Despite these concerns, projections suggest that even a slowdown to 30-40 percent growth in EV sales for 2024 would align with the law's emission goals.

The renewable energy sector's progress is less straightforward. Despite achieving a record addition of 32.3 gigawatts of clean electricity capacity in the past year, the pace falls short of the projected 46 to 79 gigawatts needed annually to meet the United States' climate objectives. While there is potential for about 60 gigawatts of projects in the pipeline for this year, not all are expected to materialize on schedule, indicating a lag in the deployment of new renewable energy sources.

Logistical challenges are a significant barrier to scaling up renewable energy, especially as EV-driven electricity demand rises in the coming years. Lengthy grid connection processes, permitting delays, and local opposition hinder wind and solar project developments. Moreover, ambitious plans for offshore wind farms are hampered by supply chain issues and regulatory constraints.

To achieve the Inflation Reduction Act's ambitious targets, the United States needs to add 70 to 126 gigawatts of renewable capacity annually from 2025 to 2030—a formidable task given the current logistical and regulatory bottlenecks. The analysis underscores the urgency of addressing these non-cost barriers to unlock the full potential of the law's clean energy and emissions reduction ambitions.

In addition to promoting clean energy generation and EV adoption, the Inflation Reduction Act has spurred domestic manufacturing of clean energy technologies. With $44 billion invested in U.S. clean-energy manufacturing last year, this aspect of the law has seen considerable success, and permanent clean energy tax credits are being debated to sustain momentum, demonstrating the Act's capacity to drive economic and industrial transformation.

The law's impact extends to emerging clean energy technologies, offering tax incentives for advanced nuclear reactors, renewable hydrogen production, and carbon capture and storage projects. While these initiatives hold promise for further emissions reductions, their development and deployment are still in the early stages, with tangible outcomes expected in the longer term.

While the Inflation Reduction Act has catalyzed significant strides in certain areas of the United States' clean energy transition, including an EV inflection point in adoption trends, it faces substantial hurdles in fully realizing its objectives. Overcoming logistical, regulatory, and market challenges will be crucial for the nation to stay on course toward its ambitious climate goals, underscoring the need for continued innovation, investment, and policy refinement in the journey toward a sustainable energy future.

Related News

• Electricity Forum News

• Energy Policy News

Harbour Air Electric Aircraft Project advances zero-emission aviation with CleanBC Go Electric ARC funding, converting seaplanes to battery-electric power, cutting emissions, enabling commercial passenger service, and creating skilled clean-tech jobs through R&D and electrification.

Key Points

Harbour Air's project electrifies seaplanes with CleanBC ARC support to enable zero-emission flights and cut emissions.

✅ $1.6M CleanBC ARC funds seaplane electrification retrofit

✅ Target: passenger-ready, zero-emission commercial service

✅ Creates 21 full-time clean-tech jobs in British Columbia

B.C.’s Harbour Air Seaplanes is building on its work in clean technology to decarbonize aviation, part of an aviation revolution underway, and create new jobs with support from the CleanBC Go Electric Advanced Research and Commercialization (ARC) program.

”Harbour Air is decarbonizing aviation and elevating the company to new altitudes as a clean-technology leader in B.C.'s transportation sector,” said Bruce Ralston, Minister of Energy, Mines and Low Carbon Innovation. “With support from our CleanBC Go Electric ARC program, Harbour Air's project not only supports our emission-reduction goals, but also creates good-paying clean-tech jobs, exemplifying the opportunities in the low-carbon economy.”

Harbour Air is receiving almost $1.6 million from the CleanBC Go Electric ARC program for its aircraft electrification project. The funding supports Harbour Air’s conversion of an existing aircraft to be fully electric-powered and builds on its successful December 2019 flight of the world’s first all-electric commercial aircraft, and subsequent first point-to-point electric flight milestones.

That flight marked the start of the third era in aviation: the electric age. Harbour Air is working on a new design of the electric motor installation and battery systems to gain efficiencies that will allow carrying commercial passengers, as it eyes first electric passenger flights in 2023. Approximately 21 full-time jobs will be created and sustained by the project.

“CleanBC is helping accelerate world-leading clean technology and innovation at Harbour Air that supports good jobs for people in our communities,” said George Heyman, Minister of Environment and Climate Change Strategy. “Once proven, the technology supports a switch from fossil fuels to advanced electric technology, and will provide a clean transportation option, such as electric ferries, that reduces pollution and shows the way forward for others in the sector.”

Harbour Air is a leader in clean-technology adoption. The company has also purchased a fully electric, zero-emission passenger shuttle bus to pick up and drop off passengers between Harbour Air’s downtown Vancouver and Richmond locations, and the Vancouver International Airport, where new EV chargers support travellers.

“It is great to see the Province stepping up to support innovation,” said Greg McDougall, Harbour Air CEO and ePlane test pilot. “This type of funding confirms the importance of encouraging companies in all sectors to focus on what they can be doing to look at more sustainable practices. We will use these resources to continue to develop and lead the transportation industry around the world in all-electric aviation.”

In total, $8.18 million is being distributed to 18 projects from the second round of CleanBC Go Electric ARC program funding. Recipients include Damon Motors and IRDI System, both based on the Lower Mainland. The 15 other successful projects will be announced this year.

The CleanBC Go Electric ARC program supports the electric vehicle (EV) sector in B.C., which leads the country in going electric, by providing reliable and targeted support for research and development, commercialization and demonstration of B.C.-based EV technologies, services and products.

“This project is a great example of the type of leading-edge innovation and tech advancements happening in our province,” said Brenda Bailey, Parliamentary Secretary for Technology and Innovation. “By further supporting the development of the first all-electric commercial aircraft, we are solidifying our position as world leaders in innovation and using technology to change what is possible.”

The CleanBC Roadmap to 2030 is B.C.’s plan to expand and accelerate climate action, including a major hydrogen project, building on the province’s natural advantages – abundant, clean electricity, high-value natural resources and a highly skilled workforce. It sets a path for increased collaboration to build a British Columbia that works for everyone.

Related News

• Electricity Forum News

• EV Infrastructure News

Canada EV Supply Chain aligns electric vehicle manufacturing, batteries, and autonomous tech with cross-border trade, leveraging lithium, cobalt, and rare earths as GM, Ford, and Project Arrow scale zero-emissions innovation and domestic sourcing.

Key Points

Canada's integrated resources, battery tech, and manufacturing network supporting EV production and cross-border trade.

✅ Leverages lithium, cobalt, and rare earths for battery supply

✅ Integrates GM, Ford, and Project Arrow manufacturing hubs

✅ Aligns with autonomous tech, hydrogen, and zero-emissions goals

The storied North American automotive industry, the ultimate showcase of Canada’s high-tensile trade ties with the United States, is about to navigate a dramatic hairpin turn.

But as the Big Three veer into the all-electric, autonomous era, some Canadians want to seize the moment to capitalize on the U.S. pivot and take the wheel.

“There’s a long shadow between the promise and the execution, but all the pieces are there,” says Flavio Volpe, president of the Automotive Parts Manufacturers’ Association.

“We went from a marriage on the rocks to one that both partners are committed to. It could be the best second chapter ever.”

Volpe is referring specifically to GM, which announced late last month an ambitious plan to convert its entire portfolio of vehicles to an all-electric platform by 2035, even as a 2035 EV mandate debate unfolds.

But that decision is just part of a market inflection point across the industry, with existential ramifications for one of the most tightly integrated cross-border manufacturing and supply-chain relationships in the world.

China is already working hard to become the “source of a new way” to power vehicles, President Joe Biden warned last week.

“We just have to step up.”

Canada has both the resources and expertise to do the same, says Volpe, whose ambitious Project Arrow concept — a homegrown zero-emissions vehicle named for the 1950s-era Avro interceptor jet — is designed to showcase exactly that.

“We’re going to prove to the market, we’re going to prove to the (manufacturers) around the planet, that everything that goes into your zero-emission vehicle can be made or sourced here in Canada,” he says.

“If somebody wants to bring what we did over the line and make 100,000 of them a year, I’ll hand it to them.”

GM earned the ire of Canadian auto workers in 2018 by announcing the closure of its assembly plant in Oshawa, Ont. It later resurrected the facility with a $170-million investment to retool it for autonomous vehicles.

“It was, ‘You closed Oshawa, how dare you?’ And I was one of the ‘How dare you’ people,” Volpe says.

“Well, now that they’ve reopened Oshawa, you sit there and you open your eyes to the commitment that General Motors made.”

Ford, too, has entered the fray, promising $1.8 billion to retool its sprawling landmark facility in Oakville, Ont., to build EVs, as EV assembly deals help put Canada in the race.

‘Range anxiety’
It’s a leap of faith of sorts, considering what market experts say is ongoing consumer doubt about EVs, including shortages and wait times that persist.

“Range anxiety” — the persistent fear of a depleted battery at the side of the road — remains a major concern, even though it’s less of a problem than most people think.

Consulting firm Deloitte Canada, which has been tracking automotive consumer trends for more than a decade, found three-quarters of future EV buyers it surveyed planned to charge their vehicles at home overnight.

“The difference between what is a perceived issue in a consumer’s mind and what is an actual issue is actually quite negligible,” Ryan Robinson, Deloitte’s automotive research leader, says in an interview.

“It’s still an issue, full stop, and that’s something that the industry is going to have to contend with.”

So, too, is price, especially with the end of the COVID-19 pandemic still a long way off. Deloitte’s latest survey, released last month, found 45 per cent of future buyers in Canada hope to spend less than $35,000 — a tall order when most base electric-vehicle models hover between $40,000 and $45,000.

“You put all of that together and there’s still some major challenges that a lot of stakeholders that touch the automotive industry face,” Robinson says.

“It’s not just government, it’s not just automakers, but there are a variety of stakeholders that have a role to play in making sure that Canadians are ready to make the transition over to electric mobility.”

With protectionism no longer a dirty word in the United States and Biden promising to prioritize American workers and suppliers, the Canadian government’s job remains the same as it ever was: making sure the U.S. understands Canada’s mission-critical role in its own economic priorities.

“We’re both going to be better off on both sides of the border, as we have been in the past, if we orient ourselves toward this global competition as one force,” says Gerald Butts, vice-chairman of the political-risk consultancy Eurasia Group and a former principal secretary to Prime Minister Justin Trudeau.

“It served us extraordinarily well in the past ... and I have no reason to believe it won’t serve us well in the future.”

EV battery industry
Last month, GM announced a billion-dollar plan to build its new all-electric BrightDrop EV600 van in Ingersoll, Ont., at Canada’s first large-scale EV manufacturing plant for delivery vehicles.

That investment, Volpe says, assumes Canada will take the steps necessary to help build a homegrown battery industry out of the country’s rare-earth resources like lithium and cobalt that are waiting to be extracted in northern Ontario, Quebec and elsewhere, including projects such as a $1.6B battery plant in Niagara that signal momentum.

Given that the EV industry is still in his infancy, the free market alone won’t be enough to ensure those resources can be extracted and developed, he says.

“General Motors made a billion-dollar bet on Canada because it’s going to assume that the Canadian government — this one or the next one — is going to commit” to building that business.

Such an investment would pay dividends well beyond the auto sector, considering the federal Liberal government’s commitment to lowering greenhouse gas-emissions and meeting targets set out in the Paris climate accord.

“If you make investments in renewable energy and energy storage in Ontario using battery technology, you can build an industry at scale that the auto industry can borrow,” Volpe says.

Major manufacturing, retail and office facilities would be able to use that technology to help “shave the peak” off Canada’s GHG emissions and achieve those targets, all the while paving the way for a self-sufficient electric-vehicle industry.

“You’d be investing in the exact same technology you’d use in a car.”

There’s one problem, says Robinson: the lithium-ion batteries on roads right now might not be where the industry ultimately lands.

“We’re not done with with battery technology,” Robinson says. “What you don’t want to do is invest in a technology that is that is rapidly evolving, and could potentially become obsolete going forward.”

Fuel cells — energy-efficient, hydrogen-powered units that work like batteries, but without the need for constant recharging — continue to be part of the conversation, he adds.

“The amount of investment is huge, and you want to be sure that you’re making the right decision, so you don’t find yourself behind the curve just as all that capacity is coming online.”

Related News

• Electricity Forum News

• EV Infrastructure News

California Iron-Air Battery Storage Project delivers 100-hour long-duration energy storage, supported by a $30 CEC grant, using Form Energy technology at a PG&E substation to boost grid reliability, integrate renewables, and cut fossil reliance.

Key Points

California's 5 MW/500 MWh iron-air battery delivers 100-hour discharge, boosting reliability and renewable integration.

✅ 5 MW/500 MWh iron-air system at a PG&E substation

✅ 100-hour multiday storage enhances grid reliability

✅ CEC $30M grant backs non-lithium, long-duration tech

The California Energy Commission (CEC) has given the green light to a $30 million grant to Form Energy for the construction of an extraordinary long-duration energy storage project that will offer an unparalleled 100 hours of continuous grid discharge.

This ambitious endeavor involves the development of a 5-megawatt (MW) / 500 megawatt-hour iron-air battery storage project, representing the largest long-duration energy storage initiative in California. It also marks the state's inaugural utilization of this cost-effective technology, and joins ongoing procurements by utilities such as San Diego Gas & Electric to expand storage capacity statewide. The project's location is set at a substation owned by the Pacific Gas and Electric Company in Mendocino County, where it will supply power to local residents. The system is scheduled to commence operation by the conclusion of 2025, contributing to grid reliability and showcasing solutions aligned with the state's climate and clean energy objectives.

CEC Chair David Hochschild commented, "A multiday battery system is transformational for California's energy mix. This project will enhance our ability to harness excess renewables during nonpeak hours for use during peak demand, especially as we work toward a goal of 100 percent clean electricity."

This grant award represents one of three approvals within the framework of the CEC's Long-Duration Energy Storage program, a part of Governor Gavin Newsom's historic multi-billion-dollar commitment to combat climate change. This program fosters investment in the demonstration of non-lithium-ion technologies across the state, including green hydrogen microgrids, contributing to the creation of a diverse portfolio of energy storage technologies.

As of August, California had 6,600 MW of battery storage actively deployed statewide, a trend mirrored in regions like Ontario as well, operating within the prevailing industry standard of 4 to 6 hours of discharge. By year-end, this figure is projected to expand to 8,600 MW. Longer-duration storage, spanning from 8 to 100 hours, holds the potential to expedite the state's shift away from fossil fuels while reinforcing grid stability. California estimates that more than 48 gigawatts (GW) of battery storage and 4 GW of long-duration storage will be requisite to achieve the objective of 100 percent clean electricity by 2045.

Energy storage serves as a cornerstone of California's clean energy future, offering a means to capture and store surplus power generated by renewable resources, including emerging virtual power plant models that aggregate distributed assets. The state's battery infrastructure plays a pivotal role during the summer when electricity demand peaks in the early evening hours as solar resources decline, preceding the later surge in wind energy.

Iron-air battery technology operates on the principle of reversible rusting. These battery cells contain iron and air electrodes and are filled with a water-based, nonflammable electrolyte solution. During discharge, the battery absorbs oxygen from the air, converting iron metal into rust. During the charging phase, the application of an electrical current converts the rust back into iron, releasing oxygen. This technology is cost-competitive compared to lithium-ion battery production and complements broader clean energy BESS initiatives seen in New York.

Related News

• Electricity Forum News

• EV Infrastructure News

UK Renewable Grid Connection Delays threaten the 2035 zero-carbon electricity target as National Grid queues stall wind and solar projects, investors, and infrastructure, slowing clean energy deployment, curtailing capacity build-out, and risking net-zero progress.

Key Points

Prolonged National Grid queues delaying wind and solar connections, jeopardizing the UK's 2035 clean power target.

✅ Up to 15-year waits for grid connections

✅ Over £200bn projects stuck in the queue

✅ Threatens zero-carbon electricity by 2035

The UK currently has a 2035 target for 100% of its electricity to be produced without carbon emissions, while Ireland's green electricity progress offers a nearby benchmark within the next four years.

But meeting the target will require a big increase in the number of renewable projects across the country. It is estimated as much as five times more solar and four times as much wind is needed, with growth in UK offshore wind expected to play a key role here.

The government and private investors have spent £198bn on renewable power infrastructure since 2010, alongside European wind investments recorded last year. But now energy companies are warning that significant delays to connect their green energy projects to the system will threaten their ability to bring more green power online.

A new wind farm or solar site can only start supplying energy to people's homes once it has been plugged into the grid.

Energy companies like Octopus Energy, one of Europe's largest investors in renewable energy, say they have been told by National Grid that they need to wait up to 15 years for some connections, even as a new 10 GW contract aims to speed UK grid additions - far beyond the government's 2035 target.

'Longest grid queues in Europe'
There are currently more than £200bn worth of projects sitting in the connections queue, the BBC has calculated.

Around 40% of them face a connection wait of at least a year, according to National Grid's own figures. That represents delayed investments worth tens of billions of pounds, reflecting stalled grid spending that slows renewable rollouts.

"We currently have one of the longest grid queues in Europe," according to Zoisa North-Bond, chief executive of Octopus Energy Generation.

The problem is so many new renewable projects are applying for connections, the grid cannot keep up with required network expansion such as new pylons in Scotland being discussed nationwide.

The system was built when just a few fossil fuel power plants were requesting a connection each year, but now there are 1,100 projects in the queue, a challenge mirrored by U.S. grid hurdles in moving toward 100% renewables today.

Related News

• Electricity Forum News

• Renewable Energy News

EV Battery Manufacturing Emissions debunk viral claims with lifecycle analysis, showing lithium-ion production CO2 depends on grid mix and is offset by zero tailpipe emissions and renewable-energy charging over typical vehicle miles.

Key Points

EV lithium-ion pack production varies by grid mix; ~1-2 years of driving, then offset by zero tailpipe emissions.

✅ Battery CO2 depends on electricity mix and factory efficiency.

✅ 75 kWh pack ~4.5-7.5 t CO2; not equal to 8 years of driving.

✅ Lifecycle analysis: EVs cut GHG vs gas, especially with renewables.

Electric vehicles are touted as an environmentally friendly alternative to gasoline powered cars, but one Facebook post claims that the benefits are overblown, despite fact-checks of charging math to the contrary, and the vehicles are much more harmful to the planet than people assume.

A cartoon posted to Facebook on April 29, amid signs the EV era is arriving in many markets, shows a car in one panel with "diesel" written on the side and the driver thinking "I feel so dirty." In another panel, a car has "electric" written on its side with the driver thinking "I feel so clean."

However, the electric vehicle is shown connected to what appears to be a factory that’s blowing dark smoke into the air.

Below the cartoon is a caption that claims "manufacturing the battery for one electric car produces the same amount of CO2 as running a petrol car for eight years."

This isn’t a new line of criticism against electric vehicles, and reflects ongoing opinion on the EV revolution in the media. Similar Facebook posts have taken aim at the carbon dioxide produced in the manufacturing of electric cars — specifically the batteries — to make the case that zero emissions vehicles aren’t necessarily clean.

Full electric vehicles require a large lithium-ion battery to store energy and power the motor that propels the car, according to Insider. The lithium-ion battery packs in an electric car are chemically similar to the ones found in cell phones and laptops.

Because they require a mix of metals that need to be extracted and refined, lithium-ion batteries take more energy to produce than the common lead-acid batteries used in gasoline cars to help start the engine.

How much CO2 is emitted in the production depends on where the lithium-ion battery is made — or specifically, how the electricity powering the factory is generated, and national electricity profiles such as Canada's 2019 mix help illustrate regional differences — according to Zeke Hausfather, a climate scientist and director of climate and energy at the Breakthrough Institute, an environmental research think tank.

Producing a 75 kilowatt-hour battery for a Tesla Model 3, considered on the larger end of batteries for electric vehicles, would result in the emission of 4,500 kilograms of CO2 if it was made at Tesla's battery factory in Nevada. That’s the emissions equivalent to driving a gas-powered sedan for 1.4 years, at a yearly average distance of 12,000 miles, Hausfather said.

If the battery were made in Asia, manufacturing it would produce 7,500 kg of carbon dioxide, or the equivalent of driving a gasoline-powered sedan for 2.4 years — but still nowhere near the eight years claimed in the Facebook post. Hausfather said the larger emission amount in Asia can be attributed to its "higher carbon electricity mix." The continent relies more on coal for energy production, while Tesla’s Nevada factory uses some solar energy. 

"More than half the emissions associated with manufacturing the battery are associated with electricity use," Hausfather said in an email to PolitiFact. "So, as the electricity grid decarbonizes, emissions associated with battery production will decline. The same is not true for sedan tailpipe emissions."

The Facebook post does not mention the electricity needs and CO2 impact of factories that build gasoline or diesel cars and their components. 

Another thing the Facebook post omits is that the CO2 emitted in the production of the battery can be offset over a short time in an electric car by the lack of tailpipe emissions when it’s in operation. 

The Union of Concerned Scientists found in a 2015 report that taking into account electricity sources for charging, which have become greener in all states since then, an electric vehicle ends up reducing greenhouse gas emissions by about 50% compared with a similar size gas-powered car.

A midsize vehicle completely negates the carbon dioxide its production emits by the time it travels 4,900 miles, according to the report. For full size cars, it takes 19,000 miles of driving.

The U.S. Energy Department’s Office of Energy Efficiency and Renewable Energy also looked at the life cycle of electric vehicles — which includes a car’s production, use and disposal — and concluded they produce less greenhouse gases and smog than gasoline-powered vehicles, a conclusion consistent with independent analyses from consumer and energy groups.

The agency also found drivers could further lower CO2 emissions by charging with power generated by a renewable energy source, and drivers can also save money in the long run with EV ownership. 

Our ruling
A cartoon shared on Facebook claims the carbon dioxide emitted from the production of one electric car battery is the equivalent to driving a gas-powered vehicle for eight years.

The production of lithium-ion batteries for electric cars emits a significant amount of carbon dioxide, but nowhere near the level claimed in the cartoon. The emissions from battery production are equivalent to driving a gasoline car for one or two years, depending on where it’s produced, and those emissions are effectively offset over time by the lack of tailpipe emissions when the car is on the road. 

We rate this claim Mostly False.    

Related News

• Electricity Forum News

• EV Infrastructure News