The true economics of electric vehicles

Electric vehicles (EVs) are often sold to us as the greener, more efficient alternative to traditional gasoline and diesel cars. But beneath that glossy promise lies a critical question: what is the real cost—and the real emissions—if our electricity still comes from fossil fuels?

Let’s start with a cold, practical truth: in the Philippines, more than 60 percent of our electricity is generated by coal. The International Energy Agency (IEA) notes that in 2024, coal made up around 62 percent of the country’s power mix—and projections suggest it will barely dip to 60 percent by 2027. Department of Energy data confirm this: fossil fuels (coal, natural gas, oil) still dominate, while renewables contribute a much smaller share.

 

Globe Telecom’s shift: Good, but not enough?

Globe Telecom recently announced a plan to roll out 20 hybrid electric vehicles (HEVs) in its fleet, aiming to save at least ₱100 million in fuel costs in the long run. This is part of a larger plan: by 2028, Globe intends to transition up to 500 vehicles to electric or hybrid models, potentially avoiding 5 million kilos of carbon emissions.

On the surface, these are commendable steps. But here’s the catch: even if Globe dramatically reduces its gasoline or diesel expenses, the electricity used to charge its HEVs (or EVs) is still largely produced by burning coal or other fossil fuels.

So yes, Globe may save money at the pump—or rather, at the charging station—but the underlying emissions problem remains unresolved. We risk creating a self-defeating cycle: more EVs and HEVs could mean higher electricity demand powered by the same dirty grid.

 

What’s the real solution? Renewable power first.

To make EVs truly meaningful, we need to fix the energy that powers them. Otherwise, we’re merely shifting pollution from the tailpipe to the power plant.

Here’s what should happen:

Fast-track renewable energy investments: The government must accelerate solar, wind, geothermal, and other clean projects so that EVs draw power from zero-carbon sources.

Encourage distributed clean charging: Promote solar charging stations, especially in areas where rooftop solar or microgrids can feed EV demand directly.

Support EV-adopters with green incentives: Not just tax breaks for buying EVs or HEVs, but rebates or incentives tied to clean-charging behavior.

Set a clear, ambitious national goal: Aim for EVs charged exclusively by renewables as the long-term target—not just electrification, but clean electrification.

 

A vision of real independence

Imagine a future where your EV doesn’t just free you from gasoline bills—it also runs on electricity produced by your rooftop solar or your community microgrid. That’s not just energy efficiency. That’s energy sovereignty.

EVs powered by fossil fuels may reduce dependence on imported oil—but they don’t reduce dependence on carbon. What we need is an EV ecosystem fully integrated with a decarbonized grid.

 

My final thoughts

There’s nothing wrong with Globe’s move toward hybrids or EVs—it’s a step in the right direction. But without a parallel shift in how we generate electricity, the environmental promise of EVs will always fall short.

To make the true economics of electric vehicles real, we must treat energy generation and vehicle adoption as inseparable. Only then will EVs be more than a gimmick; only then will they be a real pillar of our clean-energy future.