Volvo teams up with dealers across Taiwan to reduce carbon emissions by nearly 15% by 2023. (Photo: Volvo)
Swedish luxury carmaker Volvo is set to cut carbon emissions by 30% in Taiwan by 2024, collaborating with 21 dealerships to implement energy-saving measures and install solar panels. The company also plans to expand its energy management systems and energy storage solutions to further enhance its carbon reduction efforts.
Leveraging government resources for carbon inventory
Volvo begins carbon inventory in 2018 and sets it as the base year for emissions reduction. In 2023, Volvo engaged a third-party organization, the Small and Medium Energy User Energy Efficiency Diagnosis Service Center, using government resources to conduct energy audits for its dealerships.
Following the implementation of improvement measures, there was a notable reduction in carbon emissions, particularly in business electricity use, which dropped from 71% to 57.8%.
Fang Pin-chi (方品淇), Volvo’s Channel Development Manager, revealed that adjusting each dealership’s contract capacity with the power company and avoiding overage fines saved TWD 1.8 million (about USD 56,600) in a year.
Additionally, switching to LED lighting and replacing old air conditioning units led to a savings of nearly 700,000 kilowatt-hours of electricity across all service locations.
However, convincing dealerships to adopt these measures has not been easy, especially since significant upfront costs are often required.
Fang acknowledged that business owners focus on numbers and need clear benefits, especially regarding potential savings on electricity bills. “Once you overcome the psychological barrier and take the first step, you’ll see significant results,” Fang noted.
The warranty area of the Volvo Xinchuang Exhibition Center adopts high standards of energy saving and carbon reduction. (Photo: Bo-yu Lin)
Implementing energy management systems for real-time adjustments
The Kairui Auto Showroom in Xinzhuang is Volvo Taiwan’s flagship example of energy efficiency and carbon reduction.
Spanning over 3,000 ping, the showroom features extensive lighting and a well-equipped service area, with a prominent solar panel installation on its roof. The five-story building has also received the Taiwan Green Building Mark.
Since its opening in 2020, the Xinzhuang showroom has implemented strict energy management protocols. Each vehicle display area requires ten lights, but areas like customer lounges near windows do not need constant high lighting. The showroom adjusts lumens (brightness) between 800 and 1000 based on sunlight intensity and optimizes air conditioning operations by season. Large windows are fitted with insulating film to enhance cooling efficiency.
The showroom’s precise control and real-time adjustment of electricity usage are due to the early adoption of an Energy Management System (EMS). This system issues immediate alerts when thresholds are exceeded and allows for remote control to address issues promptly.
Management can also develop energy-saving strategies based on reports. Due to the system’s success, Volvo plans to expand its use to other dealerships.
Encouraging solar energy and planning for storage, charging solutions
In addition to carbon audits and improving energy efficiency, Volvo is now incorporating solar power.
Solar installations are relatively easy to set up, and given the ample sunlight in dealership locations, solar panels are a preferred choice for green energy transformation.
Currently, seven dealerships have adopted solar power, with Fu Wang Motors in Hualien achieving a generation of 212,320 kWh, surpassing the total electricity consumption of the showroom.
While the Xinzhuang showroom’s solar output is lower than Hualien’s, General Manager Lu Shi-wei (呂詩偉) revealed that the rooftop was designed to accommodate solar panels, with pre-installed conduits and support columns to avoid costly renovations.
Currently, 90% of the showroom’s annual 200,000 kWh output is sold to the power company, with only a small portion used in-house.
Future plans include acquiring renewable energy certificates to advance towards Volvo’s 2040 carbon neutrality goal.
Volvo’s next step involves integrating energy storage solutions to enhance the benefits of charging stations. The company is negotiating with Taiwan Cement and discussing options with various dealerships.
Despite the high costs and considerations regarding fire safety and space, Fang expects that if storage solutions can also earn carbon credits, dealership interest in adopting these systems will likely increase.
With its comprehensive approach to reducing carbon emissions, Volvo is setting a precedent in the automotive industry, demonstrating a commitment to sustainability and innovative energy management.
Volvo's Xinzhuang Exhibition & Sales Center plans for rooftop solar energy during the design phase. (Photo: Volvo)
