Fuel for transport accounts for some 32% of final energy use. Almost all of this energy is in the form of oil and transport accounts for 60 per cent of total oil usage. Of this, road transport accounts for 83 per cent. Hybrid and electric vehicles offer an opportunity to reduce the dependence of transport on oil and at the same time, can offer the potential to reduce adverse environmental impacts of energy supply and use.

The use of hybrid drive systems incorporating an electric motor together with another power source may be the best way to capitalise on the potential benefits of electric traction systems. The objective of the Implementing Agreement on Hybrid and Electric Vehicles is to help hybrid and electric vehicle technologies reach their full market potential, with attendant advantages for diversification of energy supplies and environmental protection.

The work programme includes extensive information exchange about the electric vehicle programmes and technologies in each country; studies of the energy and environmental impacts of electric vehicles (including development of a model for the assessment of large scale market penetration of electric vehicles; data collection on the environmental impacts of battery systems; and characterisation of alternative transport chains, impacts on local urban environments); studies on infrastructure (covering such issues as standardisation, comparison of technical features, cost and deployment across participating countries); and exploratory research in batteries and supercapacitors (including organisation of expert workshops, outlook/appraisal of long-term research aspects for different battery technologies).

Assessment and evaluation of trends and technological needs for hybrid vehicles are a new area of activity. The work programme is conducted through informal co-ordination of activities by participants; formal co-ordination or initiation of activities to achieve shared objectives through shared tasks and information exchange; and formal co-ordination of activities based on cost sharing.

01. Information Exchange on EV Technologies and Programmes
Collect and exchange information on EV technologies and programmes, which will help participants formulate policies and technical development initiatives.

07. Hybrid Vehicles Information Exchange
Information excahnge and analysis of technologies and systems, and evaluation of current hybrid vehicles.

10. Electrochemical Power Sources and Energy Storage Systems for Electric and Hybrid Vehicles
Establish priorities for co-operative exploratory R&D on advanced batteries and capacitors. Provide framework for co-operation on specific R&D projects.

11. Annex on Electric Two Wheelers
The kick-off meeting of this Annex will be held on March 10 & 11, 2006. The planned subtasks are as follows: - Energy saving and market potential - Market introduction - Vehicle technology - Infrastructure - Experience exchange

12. Heavy Duty Hybrid Vehicles
Annex XII will investigate available and emerging hybrid technologies for trucks, buses, dedicated heavy-duty vehicles, and possibly off-road mobile machinery such as forklifts, construction equipment or military equipment. It will also report on technology and market status/trends.

13. Fuel Cells for Vehicles
Annex XIII will focus on mobile application of fuel cells, including use as auxiliary power units (APUs) and hybridisation of the fuel cell with on-board energy storage devices like batteries or super-caps. The emphasis will be on technology assessment and foresight activities from an international perspective, and on advising industrial and public decision takers on R&D and market introduction.

14. Market Deployment of Hybrid & Electric Vehicles: Lessons Learned
The last 20 years saw a coming and going of new electric vehicle models and EV manufacturers in diverse markets such as Japan, USA and Europe, with diverse industrial conditions such as Germany and Switzerland, and diverse regulatory context such as the Zero Emission Vehicle process in California or projects such as Mendrisio in Switzerland or Gothenburg in Sweden. Small EV start-ups launch with huge optimism, but without enough financial backup, the cars are technically promising, but the production has never exceeded a small number of pre-serial vehicles (examples: SAM by Cree Switzerland, Hotzenblitz Germany). The cars are technically enough reliable for pioneer customers but not necessarily for a mass market (examples: TH!NK Norway/Ford USA, SOLEC France/Switzerland, City-el Denmark/Germany). Some of these vehicles are still manufactured with limited market success but most of the manufacturers/ vehicle makes disappeared. In certain cases major automotive manufacturers have begun EV projects with good financial backup, the vehicles are technically good but the batteries fail, the production has never been started or has been stopped (examples: BMW E1 Germany, Ford Ecostar USA, Audi Duo, VW Golf City Stromer, FIAT Panda). In other cases the vehicles and batteries are mainly technically good but an internal strategic decision stops the manufacturing (examples: Honda EV plus, GM Impact). Finally, in a few other cases, the vehicles and batteries are technically good but the customer did not buy them in satisfying numbers, expectations?) (examples: EVs by PSA, Renault). With the concern about climate change, the emergence of hybrid success in the market, and new plug-in hybrid designs, it appears that we are entering a new phase of electric vehicle startups and OEM electric cars and market planning. Renault, Mitsubishi, Nissan, and Smart/Daimler are investigating market opportunities and demonstrating City EVs. There are some new EV companies from the high tech community, like Wright, Zenn, and Tesla and some Chinese auto companies are also investigating. So it appears that we are moving to a second era of EVs. What lessons were learned in past deployments of electric vehicles that are of value in this new era? The incomplete list of "cases" above results in a lot of open questions about the experiences from this past era. - What are the best company conditions to develop and commercialize EVs? A dedicated start-up with good financial backing, but without legacy and competing product investments or is the only firm capable of developing a reliable vehicle, wide distribution and engendering consumer confidence a major automotive company. - How do policies, such as ZEV mandate or incentives and other promotional activities shape R&D, product commitments and deployment decisions in small and large firms? - How did the charging infrastructure affect market opportunities? - Was dependence on expensive components not produced by the vehicle manufacturer a show stopper? (Storage systems like batteries or fuel cells). - Did automotive engineers have fixed ideas about car design and consumers, and not much interest in smaller markets? Are the ideas of specialists in composite materials, lightweight design, in electronics too radical for the conservative car market? - Was the problem simply that range and recharging of EVs limits the market so severely that EVs cannot compete despite other attractive features like environmental benefits and drive feel? - Was the problem simply that the batteries have limited design to small vehicles that limit their practicality for cargo, passenger loads and safety? Answers can be found in questioning the manufacturers, salespeople, regulators, industry historians, technicians that have been involved in vehicle and battery technology development for decades. The real strength of our analysis will derive from comparing experiences, stories and lessons across international and regional contexts.

15. Plug-in Hybrid Electric Vehicles
This Annex was formally started in December 2007 and held its kick-off meeting in February 2008. The first phase of this Annex is scheduled to run until February 2011. The objectives of Annex XV are to provide essential information for member countries to better understand the current situation related to plug-in hybrid electric vehicles (PHEVs) and their related prospects. Five subtasks have been identified and form the basis of work for this Annex: (1) advanced battery technologies, (2) PHEV components, (3) policy issues and marketability, (4) utilities and the grid, (5) group administration and communication. At the time of writing, Annex XV has held but one meeting -its inaugural session- during IA-HEV phase 3. The most important achievement to date is establishing an Annex group that incorporates members with backgrounds and knowledge in modelling, economics, automotive and battery research and development, as well as experts from the electricity generation sector. Having such a variety of experts working together and providing different points of view ensures a better understanding of the issues related to PHEV technology. With this important accomplishment, Annex XV is well on its way to meet its objectives, to identify and address the R&D needs as well as issues related to the manufacturing, introduction and use of PHEVs as they relate to the identified subtasks of this group.