Michael Noonan (Limerick East, Fine Gael)
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Question 31: To ask the Minister for Communications, Energy and Natural Resources the details of the new memorandum of understanding signed with a company (details supplied) on the supply of new electric cars here; the details on the roll out of a charging infrastructure. [23114/10]

Kathleen Lynch (Cork North Central, Labour)
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Question 54: To ask the Minister for Communications, Energy and Natural Resources if the infrastructure for electric vehicles will also support plug in hybrid vehicles; and if he will make a statement on the matter. [23033/10]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Question Nos. 31 and 54 together.

The Government has set a target of 10% of all vehicles to be powered by electricity by 2020, which equates to around 225,000 vehicles.

On 24 May I signed a Memorandum of Understanding (MOU) with Mitsubishi which will ensure that Ireland will be one of the first countries in the world to be supplied with Mitsubishi electric cars. Under the terms of the MOU my Department and ESB will be able to avail of a range of technical and market information on developments in electric vehicles. Similar to the previous Memorandum and Agreement with Renault-Nissan, this MOU does not convey any exclusive rights for the company in relation to the provision of electric cars.

Progress has also been made in discussions with other major motor manufacturers to make other early production vehicles available to the Irish market and I expect that other agreements will be developed in the foreseeable future.

Electric vehicles will play an important role in reducing the transport sector's Greenhouse Gas Emissions and in reducing our reliance on imported fossil fuels. There is now very significant global investment underway in research and development in this area. The technology is maturing to a point where large scale commercial deployment appears feasible in the short to medium term. There is keen interest internationally in Ireland's decision to be an early mover in this field, particularly in our decision to go with a national rollout of charging infrastructure. Ireland is seen as an excellent test-bed particularly in relation to network infrastructure development.

We already have a number of incentives in place which demonstrate the Government's commitment to promoting electric vehicles in Ireland. The VRT exemption for electric vehicles and the VRT reliefs of up to €2,500 for plug-in hybrid vehicles, which were due to end in Dec 2010, have been extended in the Budget for a further two year period. I have also announced the introduction of a grant scheme for up to 6,000 vehicles over a two year period from January 2011, which will provide grants of up to €5,000 for full battery electric vehicles and up to €2,500 for plug in hybrid electric vehicles. The grant scheme will be administered by the Sustainable Energy Authority of Ireland and full details will be published well in advance of the scheme commencement date of Jan 2011.

The support schemes are non exclusive and will be open to any vehicle from any manufacturer, which meets the qualifying criteria.

ESB is planning to roll out up to 1,500 charge points nationwide by December 2011. The rollout has already begun in Dublin and charging points will also be installed in Cork, Galway, Waterford and Limerick. ESB also plans to install up to 30 fast charge points across Ireland by the end of 2011, with nine expected to be set up by the end of this year. The same infrastructure will of course support plug in hybrid vehicles.

My Department, the Commission for Energy Regulation (CER) and ESB Networks are also discussing the electric vehicle infrastructure network build out programme including cost recovery and access arrangements.