The U.S. Department of Energy (DOE) will offer up to $2 million to support aggregated purchasing models for plug-in electric and other alternative fuel and advanced technology vehicles, subsystems, components, alternative fuels, and refueling/charging infrastructure.
Aggregated purchasing is when one central organization coordinates customers to maximize their collective buying power. By supporting a new type of buying system that could lower costs and expand product availability for alternative fuel and advanced technology vehicles, components, infrastructure, and fuels, this funding will help increase America’s economic, energy, and environmental security, according to a statement from the DOE.
This funding will address two major barriers to the growth in production and sales of alternative fuel and advanced vehicle technologies: manufacturers’ uncertainty around demand and buyers’ high up-front costs. In addition, this funding is designed to allow an entity to set up an aggregated purchasing system; work with fleets and other buyers to join the effort; consolidate participants’ vehicle, subsystems, component, fuel and infrastructure equipment orders; and develop best practices others can learn from, according to the DOE.
The DOE's funding instead aims to help original equipment manufacturers and suppliers increase production volumes, achieve economies of scale, and reduce incremental costs rather than paying for components, vehicles, fuel, or infrastructure.
The funding will be dispersed in a coordinated effort with Clean Cities groups. Click here for more information.