1. Public-Private Partnership in E-Vehicle Charging System in China
Simon Yin
6th Workshop on EU-Asia Relations in Global Politics
16 March, 2017

2. Abstract
As China tries to build an innovation-based and environment-friendly economy amid economic slowdown, E-vehicle system has been a bright spot and deserves serious study. The E-vehicle charging system is in the initial development period in China, where there is an imbalanced supply and demand structure, an increasingly mature institutional environment, and an imperfect support system. The infrastructure is critical for supplying energy to E-vehicles.
The public–private partnership (PPP) model is an effective supply channel for the infrastructure. Introducing the PPP model into the charging system utilizes private capital, eases the burden on local government finance, strengthens project management and profitability, and reduces construction and operation risks.
This paper discusses the support mechanisms required by the government, society, and agents for implementing PPP projects for an effective charging system in China.

3. Background
Dense urban population, passion with cars, exacerbating air pollution, and shortage of energy resources have encouraged the Chinese government to promote the development and sales of E-vehicle.
The E-vehicle charging system dominated by State Grid Corporation has taken shape.
In 2016, the Chinese government has decided to accelerate the construction of electric vehicle charging facilities in residential areas to boost production and sales of green cars.

4. Global outlook
In the USA, from 2010 through 2016, the number of charging stations has increased by 125% per year. Retailers and hotel owners are installing charging stations to attract customers. More than 100 metropolitan cities in the USA have formed Clean Cities Coalitions — PPP that promotes a clean environment — and are encouraging the installation of more chargers.
In Japan, there are more than 40,000 places nationwide where electric car owners could recharge their vehicles, compared with fewer than 35,000 petrol stations.
In 2017, Germany's transport ministry has launched a 300 million Euro (318 million USD) support scheme to install a network of 15,000 charging points for E-vehicles by 2020.
Norway today has more than 10,000 E-vehicles. Key factors in explaining this success are infrastructure, incentives and a fruitful collaboration between public and private actors. Norway’s E-vehicle fleet is served by an infrastructure of 3770 public charging points at approximately 1100 charging stations. Seventy percent of these stations are quick-charging stations, where the E-vehicles can be charged up to 80% capacity within minutes.

5. Status Quo of E-vehicle Charging System Construction
Supply Continuously Fails to Meet Demand
Technology Keeps Advancing
Intensive Promulgation of Policies
Private Capital is Abundant

6. Annual production and sales of E- vehicles

7. Goals ( )

8. Number of charging stations (accumulative)

9. Number of charging piles (accumulative)

10. Relevant policies to support the construction of the E-vehicle charging infrastructure in 2015
Time
Document name
Issuing organ
30 January 2015
Regulation on the Implementation of Government Procurement Law
No. 658 Decree by the State Council
18 March 2015
Opinions on Accelerating Promotion of Application of New Energy Vehicles in Transportation Industry
Ministry of Transport
7 April 2015
Guidelines on Demonstration of Financial Capacity of Government and Private Capital Cooperation Projects
Ministry of Finance
22 April 2015
Notice on the Promotion of Financial Support Policies by New Energy Vehicles in 2016–2020
Ministry of Finance, Ministry of Science and Technology, Ministry of Industry and IT, Development and Reform Commission
7 May 2015
Notice on Vehicle and Vessel Tax Incentive Policies on Energy-saving or New Energy Vehicles and Vessels
Ministry of Finance, Ministry of Industry and IT, National Tax Bureau

11. Relevant policies to support the construction of the E-vehicle charging infrastructure in 2016
Time
Document name
Issuing organ
11 January 2016
Notice on Incentive Policies on New Energy Vehicle Charging Infrastructure and Strengthening the Application
of New Energy Vehicles during the Thirteenth-Five Year Plan Period
Ministry of Finance, the Ministry
of Science and Technology, Ministry of Industry and IT, Development and Reform Commission, National Energy Administration
Implementation Plan for Speeding up the Construction of Electric Car Charging Infrastructure in Chongqing City
Municipal Government Office of
Chongqing
12 January 2016
Government Office of Anhui Province’s Opinions on Accelerating Construction of Electric Vehicle Charging Infrastructure
Government Office of Anhui Province
19 January 2016
Opinions on Accelerating the Construction of Provincial Electric Vehicle Charging Infrastructure
Government Office of Hebei Province

12. Reasons behind Backward Charging System Construction
Huge Investment (natural monopoly)
Unclear Rights and Liabilitie
A Single Body for Construction and Operation of Charging System
Various Risks Co-exist
Support Systems Need Strong Coordination

13. Creative Application of PPP Model to Charging System Construction
Government Mechanisms for Encouraging the Use of the PPP Model for Charging System Construction
Mechanisms for Operating Private Capital to Apply the PPP Model to Charging system Construction
Intermediary Support Mechanisms for Private Capital to Encourage the Application of the PPP Model to Charging system Construction

14. PPP projects related to construction of charging infrastructure
Location
Date
Term (years)
Investment (Bn Yuan)
Target
Tianjin
28 October 2014 20
516
Charging piles: 2000
Bus charging stations: 40
Xuzhou
1 March 2015 15
138
Bus charging stations: 27
Anqing
18 January 2016 13
818
Charging piles: 1700
Bus charging stations: 4
Zunyi
1 October 2015 50
Replace or add 20 new energy buses,
build three parking lots
Xining
1 January 2016 30
Build charging station in Xining City and Qinghai Lake
Kuerle
17 November 2015
300
Charging piles: 170
Charging stations: 3
Hetian
21 September 2015 55
Five large urban public charging infrastructure systems

15. Conclusions
The PPP model fosters the E-vehicle charging system greatly. In this paper, I discuss the application of the PPP model in building the charging system in order to achieve a win–win situation. I discuss how to construct a great charging system. I stress the decisive role of the market in resource allocation and how the government can make sure that the market functions properly. I analyze the bodies involved in the construction of the PPP model for the charging system and propose a creative mechanism for stimulating the application of the PPP model.

16. Thank you!