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Jamaica’s EV shift faces roadblocks
From left director, business development at Jamaica Public Service, Dionne Nugent; director of Plug In Jamaica, Danehue Collash; secretary of Jamaica Electric Vehicle Association Nikkolai Cowan; chief technical director at the Ministry of Science, Energy, Telecommunications and Technology Bryan Richardson; president and CEO of Evergo Wayne McKenzie; and group marketing manager, ATL Automotive Limited, Christina Taylor. (Photo: Joseph Wellington)
Business, Business Report
Karena Bennett | Senior Business Reporter | bennettk@jamaicaobserver.com  
September 6, 2024

Jamaica’s EV shift faces roadblocks

Stakeholders push for policy reforms and better tariffs to accelerate adoption

Jamaica stands on the brink of a transformative shift towards electric vehicles (EVs), fuelled by a global surge in sustainable transportation and a growing local appetite for cleaner, more efficient alternatives. Yet industry leaders warn that restrictive market conditions are slowing this momentum, risking the island’s potential to fully embrace the future of green mobility.

At the forefront of the push for change is the Jamaica Electric Vehicle Association, represented by Nikkolai Cowan, which is urging the Government to revise the restrictive age limit on imported EVs that currently hampers mass adoption by excluding affordable used options. Simultaneously, Wayne McKenzie, president and CEO of EverGo, is calling for more favourable electricity rates for EV owners charging at home. McKenzie argues that a dedicated concession rate would significantly boost the financial appeal of going electric and drive broader adoption across the island.

These recommendations emerged during a lively discussion on e-mobility in Jamaica, hosted by EverGo on Wednesday, under the theme “Charge Forward: Empowering Jamaica’s E-Mobility Vision.”

“The current policy limits imports to vehicles under three years old, which excludes many affordable used options that make up the bulk of our market,” Cowan explained. “In a country where 80 per cent of vehicle imports are used, this rule is a major barrier to mass adoption. We need to adjust our approach to match market realities and make EVs accessible to more Jamaicans.”

He added that while the EV market has seen significant growth in vehicle options over the past four years, a starting price point of $5 million remains out of reach for many Jamaicans.

“The average Jamaican buying a used car isn’t spending anywhere near $5 million; they’re looking at models like the Honda Fit or Suzuki Swift,” Cowan noted. “Without policy changes that support more affordable used EVs, we’re excluding a significant portion of potential buyers.”

Under current regulations, Jamaica restricts the importation of used EVs to those under three years old, a policy designed to avoid potential environmental and economic impacts from older, degraded batteries, chief technical director at the Ministry of Science, Energy, Telecommunications and Technology (MSETT), Bryan Richardson explained.

“When we developed the policy, one of the biggest challenges was the used market versus the battery life of imported EVs. We were concerned that older batteries could quickly become a solid waste management issue,” he said.

Beyond the age limit, battery life and performance were central to the debate. Danehue Collash, director of Plug In Jamaica, suggested that instead of focusing solely on the vehicle’s age, the Government could prioritise the battery’s state of health.

“The real issue isn’t just the age of the vehicle but the battery’s condition,” Collash said. “If the Government had a metric to ensure that batteries meet a certain health standard, it could open up the market to slightly older but still reliable used EVs.”

Collash’s perspective aligns with a growing sentiment among stakeholders: that Government’s policies should evolve alongside technological advancements in battery performance and recycling. “As battery technology improves, these concerns will diminish, and we need our policies to reflect that progress,” Cowan suggested. “Batteries are lasting longer, and recycling methods are improving, so our regulations should adapt accordingly.”

 

Infrastructure and Tariff Reforms

As EV adoption grows, the need for robust charging infrastructure and supportive tariffs becomes increasingly apparent. McKenzie noted that while there are now 70 charging stations across the island, grid stability, especially in the southern regions, remains a challenge.

He also proposed to Dionne Nugent, director of business development at Jamaica Public Service (JPS), that the company explore tariff adjustments to support greater EV adoption.

He said while the JPS’ ‘time and use’ initiative has been working, a dedicated rate for EV users that could provide additional financial incentives beyond just the differential between EV and gasoline vehicle costs and would provide additional support for EV adoption.

“There should be a concession rate specifically for EV charging — a rate lower than what standard residential or commercial customers pay,” McKenzie recommended.

Three years ago, JPS introduced time-of-use rates to manage the growing number of EV users. Last data presented estimates that JPS offers peak-hour rates at $51 per kilowatt hour, partial peak rates at $44.38 per kWh, and off-peak rates at $35.84 per kWh.

Further, industry stakeholders also emphasise the critical role of Government leadership in driving EV adoption. McKenzie believes that the Government must lead by example.

“We need to see more EVs in government fleets and public transport,” McKenzie urged. “It’s hard to convince taxi drivers or everyday Jamaicans to switch to EVs if they don’t see the Government making that same commitment.”

Echoing McKenzie’s sentiment, Cowan cited Barbados as a successful model, where the government transitioned its public transport fleet to electric buses, setting a clear example and boosting public confidence in the technology. “Barbados and Bermuda have shown that when the Government leads, the public follows. Jamaica needs to do the same,” Cowan stressed.

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