Economic analysis of dynamic inductive power transfer roadway charging system under public-private partnership–Evidence from New Zealand

Abstract

Electric vehicles (EVs) are contributing to a decarbonisation of conventional Internal Combustion Engines (ICEs) in the transport sector. With recent technological advancements in Dynamic Inductive Power Transfer (DIPT) system, EVs can be energised wirelessly by embedding a roadway charging network while travelling in-motion. However, the provision of a viable DIPT system still remains challenging, given the large-scaled investment required and some potential risks involved. This study assesses the economic viability of a DIPT system for EVs through public–private partnership (PPP), by employing a net present value (NPV) framework, to determine the optimal PPP ratio. The PPP model could be considered an effective pathway for leveraging capital, alleviating uncertainties associated with construction and operation, and achieving a nation's Sustainable Development Goals (SDGs). New Zealand is used as a real-world case study. Our results indicate that, for a 15-year concession period under PPP where the private investor is expecting a 12.5% return, the government can contribute 9.46% towards the initial investment and charging roadway users a toll of 37 cents/kWh. By implementing the DIPT system, EVs could achieve a significant reduction in carbon dioxide (CO2) emissions compared to ICEs. The robustness of the model is validated through Monto Carlo sensitivity analysis.