Mr. Denis O'Leary:

I will cover electric vehicles from the ESB's point of view.

Climate change is a significant threat facing society. Ireland has committed to an 80% to 95% reduction, when compared to 1990 levels, in emissions from the energy system by 2050. For it to meet this goal which is a European Union obligation, the decarbonisation of the heat and transport sectors needs to proceed rapidly. Greenhouse gas emissions are increasing as more and more journeys are taken by car. Ireland needs to reduce emissions without interfering with the competitiveness of the economy. Even at present, when using electricity generated from the current mix of fuels, electric vehicles are far more carbon-efficient than internal combustion engines and can play a huge part in reducing greenhouse gas emissions. With zero tailpipe emissions, electric vehicles also reduce air pollution which is a major health issue in urban areas. Four major capital cities - Paris, Mexico City, Madrid and Athens - are to ban diesel vehicles by 2025 for air quality reasons. Electric vehicles, because they can use energy generated from renewable sources such as wind and solar power, will allow Ireland to strengthen its fuel security and reduce dependence on imported fossil fuels. A further major benefit of electric vehicles is the ability to recharge at home using cheap night-rate electricity, thus cutting motoring costs.

Since 2010, the ESB has been deploying and operating Ireland's world-class national EV infrastructure. The provision of nationwide and publicly available charging services to EV drivers is a multi-faceted task that requires the following interrelated and interdependent components: a national network of physical charge points, each having its own operating software; ensuring continuous "always on" telecoms connectivity to and from these charge points; a charge point management system; customer support services - for example, a call centre and online access; operations and maintenance systems and contractors to respond to and prevent outages; the provision of digital tools to provide real time charger status data for drivers; secure customer billing and payments systems; and education and marketing. The Irish charging infrastructure of almost 1,000 charge points enables EV drivers to travel nationwide. With a presence in almost every community with more than 1,500 inhabitants and fast charger coverage every 60 km on Ireland's main arterial routes, the network provides a highly visible signal for potential buyers of electric vehicles that they will be able to use a robust network of charging points across Ireland. This is a necessary precursor to the widespread adoption of electric vehicles.

While the infrastructure roll-out was initiated by the ESB with some funding from the European Union, the bulk of support for the network, as Mr. Melvin said, has come from the Commission for Energy Regulation which supported the research and development in order to understand the long-term impact the mass adoption of electric vehicles would have on the electricity grid. The pilot phase, as Mr. Melvin and Mr. Blaney said, was completed with the production by the ESB of a 600-page report covering both the technical and economic aspects of electric transportation. The work detailed findings and recommendations across 43 areas, grouped into seven work packages. The project will assist the future planning of the Irish electricity transmission and distribution networks to accommodate electric transportation. This work has been recognised internationally as being at the cutting edge and components of it are already being referenced by the likes of the Electric Power Research Institute in the United States. However, since completion of the pilot phase, the ESB has been funding the network's operation and maintenance from its own resources. At the request of the CER, in late 2015 the ESB suspended the introduction of driver fees for use of the infrastructure and it remains free for users. The future ownership and regulatory and funding model for this national EV infrastructure also remain uncertain, pending the completion of the aforementioned public consultation process. The process closed in November 2016, but the lack of a determination on ownership is creating great uncertainty which impedes future investment plans for the network, including its operation and maintenance. Given the limited number of electric vehicles in use in Ireland, the continued operation of the EV charging network is not viable on a commercial basis at this stage.

There are more than 4,500 battery electric vehicles and plug-in hybrids across Ireland, North and South, with 2,800 in the Republic. In addition, the choice and range of electric vehicles have expanded greatly. More than 15 EV models are now available in Ireland. However, like any new technology, consumer acceptance takes time. That is why Government intervention is necessary to kick-start the market. Infrastructure is a necessary but not sufficient condition to drive EV uptake. In countries that have achieved much greater uptake of electric vehicles, for example, Norway with 140,000, the United Kingdom with more than 100,000 and the Netherlands with more than 110,000, a greater range of policy incentives has been employed. The Dutch, for example, have indicated that they will ban the sale of internal combustion engine cars in 2025. However, these measures do not necessarily have to be particularly expensive or in place for a long time. A three-year period with free parking while charging and free or reduced tolls coupled with an information campaign on the benefits of electric vehicles could potentially have a dramatic impact on EV sales. These policy changes, coupled with the rapid advancement in battery and car technology, could drive a major shift in consumer behaviour. Given that the average car journey distance in Ireland is 26.4 km per day, according to CSO figures from 2014, and the distances between cities are quite short, electric vehicles are perfectly suitable for the majority of people.

While there are a number of incentives already in place, as mentioned, to support the adoption of electric vehicles, there are a number of additional incentives which could be very helpful in increasing electric vehicle sales in Ireland and they have worked well in other jurisdictions.

These might include free tolls on Government-owned roads - the M50, port tunnel and East Link in Dublin - either for a period of three years or until we have an EV fleet of more than 30,000 cars in Ireland; instituting a grant programme for EV home charges similar to that available in the United Kingdom; the creation of a stable regulatory and funding model to support investment in public EV infrastructure; zero emissions leading to zero road tax - there is currently reduced road tax of €120 but that could be further reduced; and CO2 benefit in kind taxation for company vehicles with a reduced rate for EV as is employed in the UK.

ESB believes that the electrification of transport using clean indigenous energy will be a part of tackling climate change as well as meeting other societal needs. International experience shows that the mass adoption of EVs can be achieved if appropriate supportive public policies are put in place. However, confidence at consumer and industry level is critical. A robust and extensive national public EV charging network is necessary but by itself will not be sufficient to achieve a long-term transformation. Working with other stakeholders such as the Commission for Energy Regulation, CER, ESB has put in place an advanced nationwide network that can provide one of the foundations for EV adoption and it is continuing to operate and provide service on this network on a short-term basis. However, a sustainable business model that covers the costs of running the network is needed. This will necessarily include some combination of user subscription and public funding underpinning its operations. The current situation is not sustainable and it is critical that appropriate arrangements are put in place in a timely manner that will support investment and innovation and, in so doing, allow Ireland to maintain its pioneering position in this area.