How one country set aside nearly $500M for electric vehicle subsidies, but not for cars
The age of electric vehicles is upon us, and has been for years now. Electric cars have received most of the attention, but in many countries, it is actually electric two-wheelers like e-motorcycles and e-bikes that are silently revolutionizing the way people commute.
As people become increasingly aware of the economic, environmental, and health benefits of e-motorcycles, especially in countries that are dominated by two-wheeled transportation, more individuals and governments have begun embracing them as an alternative to traditional combustion cars and motorcycles.
Indonesia is one such country, and its government has already made significant strides in urging its citizens toward electric motorcycle adoption.
Motorcycle use in Indonesia is exceptionally prevalent, making it an indispensable mode of transportation for millions of people. In fact, while there are only around 20 million cars in the country, Indonesia is home to around 125 million motorcycles.
As the world’s fourth most populous country, Indonesia’s dense urban areas and underdeveloped public transportation systems have led to a surge in motorcycle ownership and usage. Motorcycles serve as a cost-effective, convenient, and time-saving alternative to cars, which often struggle to navigate through traffic-congested streets. In recent years, the rise of motorcycle taxi services, known as “ojek,” has further cemented the importance of motorcycles in Indonesia’s daily life. These motorcycle taxis provide essential transportation services to countless individuals while also offering employment opportunities for many drivers. Overall, motorcycles have become deeply ingrained in Indonesian culture, shaping both the urban landscape and the everyday lives of its citizens.
But with the masses of motorcycles thronging Indonesian streets has also come huge emissions problems. And so Indonesia has recently pushed hard to convert its massive 125 million fleet of motorcycles toward electrification.
Late last year the country announced a plan to put 2 million electric motorcycles on the road in the next three years. To help expedite that massive movement toward emissions-free motorcycles, Indonesia has now announced 7 trillion rupiahs (approximately US $460M) in subsidies for electric motorcycle purchases through the end of next year.
Indonesian Finance Minister Sri Mulyani Indrawati expected the subsidies to cover sales of around 800,000 new electric motorcycles as well as the conversion of 200,000 combustion engine motorcycles to electric drive.
The move is designed to jump-start the adoption of electric motorcycles, especially in light of the rather small number currently in the country. According to the Association of the Indonesian Motorcycle Industry, there were just over 30,000 electric motorbike owners in the country as of October 2022.
That puts electric motorcycles at a fraction of a percent of total motorcycles, though the Indonesian government has been promoting electrification of motorcycles on many fronts.
This new subsidy marks the government’s strongest push yet, but it follows other efforts, such as the approval of a pilot partnering with Gogoro’s swappable battery electric scooters, as well as using fleets of electric motorcycles from Zero Motorcycles, Energica, Gogoro, and NIU during the recent G20 summit.
Electric motorcycles may only make up a tiny fraction of overall motorcycles in Indonesia today, but with nearly a half billion US dollars in subsidies, that figure is sure to grow considerably.
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Wind energy powered 20% of all electricity consumed in Europe (19% in the EU) in 2024, and the EU has set a goal to grow this share to 34% by 2030 and more than 50% by 2050.
To stay on track, the EU needs to install 30 GW of new wind farms annually, but it only managed 13 GW in 2024 – 11.4 GW onshore and 1.4 GW offshore. This is what’s holding the EU back from achieving its wind growth goals.
Three big problems holding Europe’s wind power back
Europe’s wind power growth is stalling for three key reasons:
Permitting delays. Many governments haven’t implemented the EU’s new permitting rules, making it harder for projects to move forward.
Grid connection bottlenecks. Over 500 GW(!) of potential wind capacity is stuck in grid connection queues.
Slow electrification. Europe’s economy isn’t electrifying fast enough to drive demand for more renewable energy.
Brussels-based trade association WindEurope CEO Giles Dickson summed it up: “The EU must urgently tackle all three problems. More wind means cheaper power, which means increased competitiveness.”
Permitting: Germany sets the standard
Permitting remains a massive roadblock, despite new EU rules aimed at streamlining the process. In fact, the situation worsened in 2024 in many countries. The bright spot? Germany. By embracing the EU’s permitting rules — with measures like binding deadlines and treating wind energy as a public interest priority — Germany approved a record 15 GW of new onshore wind in 2024. That’s seven times more than five years ago.
If other governments follow Germany’s lead, Europe could unlock the full potential of wind energy and bolster energy security.
Grid connections: a growing crisis
Access to the electricity grid is now the biggest obstacle to deploying wind energy. And it’s not just about long queues — Europe’s grid infrastructure isn’t expanding fast enough to keep up with demand. A glaring example is Germany’s 900-megawatt (MW) Borkum Riffgrund 3 offshore wind farm. The turbines are ready to go, but the grid connection won’t be in place until 2026.
This issue isn’t isolated. Governments need to accelerate grid expansion if they’re serious about meeting renewable energy targets.
Electrification: falling behind
Wind energy’s growth is also tied to how quickly Europe electrifies its economy. Right now, electricity accounts for just 23% of the EU’s total energy consumption. That needs to jump to 61% by 2050 to align with climate goals. However, electrification efforts in key sectors like transportation, heating, and industry are moving too slowly.
European Commission president Ursula von der Leyen has tasked Energy Commissioner Dan Jørgensen with crafting an Electrification Action Plan. That can’t come soon enough.
More wind farms awarded, but challenges persist
On a positive note, governments across Europe awarded a record 37 GW of new wind capacity (29 GW in the EU) in 2024. But without faster permitting, better grid connections, and increased electrification, these awards won’t translate into the clean energy-producing wind farms Europe desperately needs.
Investments and corporate interest
Investments in wind energy totaled €31 billion in 2024, financing 19 GW of new capacity. While onshore wind investments remained strong at €24 billion, offshore wind funding saw a dip. Final investment decisions for offshore projects remain challenging due to slow permitting and grid delays.
Corporate consumers continue to show strong interest in wind energy. Half of all electricity contracted under Power Purchase Agreements (PPAs) in 2024 was wind. Dedicated wind PPAs were 4 GW out of a total of 12 GW of renewable PPAs.
Read more: Renewables could meet almost half of global electricity demand by 2030 – IEA
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the official unveiling of the new Tesla Model Y, Mazda 6e, Aptera solar car production-intent, and more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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Here are a few of the articles that we will discuss during the podcast:
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The Chinese EV leader is launching a new flagship electric sedan. BYD’s new Han L EV leaked in China on Friday, revealing a potential Tesla Model S Plaid challenger.
What we know about the BYD Han L EV so far
We knew it was coming soon after BYD teased the Han L on social media a few days ago. Now, we are learning more about what to expect.
BYD’s new electric sedan appeared in China’s latest Ministry of Industry and Information Tech (MIIT) filing, a catalog of new vehicles that will soon be sold.
The filing revealed four versions, including two EV and two PHEV models. The Han L EV will be available in single- and dual-motor configurations. With a peak power of 580 kW (777 hp), the single-motor model packs more power than expected.
BYD’s dual-motor Han L gains an additional 230 kW (308 hp) front-mounted motor. As CnEVPost pointed out, the vehicle’s back has a “2.7S” badge, which suggests a 0 to 100 km/h (0 to 62 mph) sprint time of just 2.7 seconds.
To put that into perspective, the Tesla Model S Plaid can accelerate from 0 to 100 km in 2.1 seconds. In China, the Model S Plaid starts at RBM 814,900, or over $110,000. Speaking of Tesla, the EV leader just unveiled its highly anticipated Model Y “Juniper” refresh in China on Thursday. It starts at RMB 263,500 ($36,000).
BYD already sells the Han EV in China, starting at around RMB 200,000. However, the single front motor, with a peak power of 180 kW, is much less potent than the “L” model. The Han EV can accelerate from 0 to 100 km/h in 7.9 seconds.
At 5,050 mm long, 1,960 mm wide, and 1,505 mm tall with a wheelbase of 2,970 mm, BYD’s new Han L is roughly the size of the Model Y (4,970 mm long, 1,964 mm wide, 1,445 mm tall, wheelbase of 2,960 mm).
Other than that it will use a lithium iron phosphate (LFP) pack from BYD’s FinDreams unit, no other battery specs were revealed. Check back soon for the full rundown.
Source: CnEVPost, China MIIT
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