Exploring Strategies to Support Net-Zero Emission Transitions through Battery Swapping Industry Development

Abstract

The Indonesian government has set a roadmap toward net-zero emissions by 2060, including accelerating the adoption of electric motorcycles. The government has assigned the state electricity company as a locomotive to accelerate adoption by optimizing the potential for internal combustion engine motorcycle and ride-hailing users. The battery swapping scheme is an attractive option for companies to increase profits. However, users still experience uncertainty when exchanging batteries at battery swapping stations, which can hinder the development of the battery swapping industry. Therefore, it is essential to make it easier for battery-swapping electric motorcycle users to exchange batteries. Nevertheless, the development of the battery swapping industry is complex and involves many interrelated elements. Developing a strategy to improve it requires a holistic view to understand the process and define relationships between elements. This research uses system dynamics modeling to explore strategies for improving battery swapping industry development. Criteria for improvement focus on the number of batteries swapping electric motorcycle users, CO2e emissions reduction, and profits. Three company interventions to achieve objectives are electricity tariffs, battery reservation fees, and battery swapping station constructions. The company's intervention was tested in three different scenarios. The results of the strategy exploration show that implementing battery reservations results in the highest number of electric motorcycle users, resulting in more significant emission reductions than others. However, in a different scenario, adding more battery-swapping stations each year results in better profits. Therefore, rather than focusing on one strategy, companies can integrate battery reservation strategies and the construction of battery exchange stations to eliminate the pain points electric motorcycle users feel, profit from battery reservations, and ultimately support the net-zero emission transitions.