Alternative Fuel Vehicle & Fueling Infrastructure Deployment Barriers & the Potential Role of Private Sector Financial Solutions

Alternative fuel vehicles (AFVs) are a small but increasingly important part of the U.S. transportation system. Powered by rechargeable batteries, natural gas, hydrogen, or other non-petroleum-based fuels, AFVs hold the potential to provide public benefits by reducing greenhouse gas emissions that are warming the planet, improving energy security, and improving air quality. This paper makes the case that the benefits of AFVs are theoretically attainable today, but that due to the relative immaturity of the sector and market failures, deployment is unlikely to occur in a timely manner. Increased investment in deployment is essential to further improve the technology, increase scale to reduce per unit production costs, and catalyze the distribution of infrastructure. These factors are all critical to accelerate the adoption of AFVs. With the goal of increased deployment in mind, the Center for Climate and Energy Solutions (C2ES) and the National Association of State Energy Officials (NASEO), with guidance from the AFV Finance Advisory Group, have started the AFV Finance Initiative to identify options for increasing private investment in AFVs and fueling infrastructure deployment. Private investment, as used in this paper, is funding provided by investors with the intention of earning a positive rate of return. It does not include public money, ratepayer funds from electric or natural gas utilities, or investment by a company in their own primary business line. This paper examines how private financing can address the barriers to demand facing electric, natural gas, and hydrogen fuel cell AFVs and their related fueling infrastructure. Starting with a review of the state of the market, it covers significant barriers to market demand and barriers for private investors and concludes with a review of innovative finance options used in other sectors that could be applied to the AFV market.

Language

  • English

Media Info

  • Media Type: Digital/other
  • Features: Appendices; Figures; Photos; References; Tables;
  • Pagination: 33p

Subject/Index Terms

Filing Info

  • Accession Number: 01529467
  • Record Type: Publication
  • Report/Paper Numbers: DOE / EE-1069
  • Contract Numbers: DE-EE0006085
  • Files: TRIS
  • Created Date: Jun 17 2014 9:19AM