Tommy Broughan (Dublin North East, Labour)
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Question 12: To ask the Minister for Communications, Energy and Natural Resources the outcomes of the electric vehicle grant scheme that was introduced in 2009; if the target of achieving 6,000 passenger vehicles in operation by 2012 will be achieved; the percentage of the national car fleet that is powered by electricity; the amount the scheme has cost since its introduction; and if he will make a statement on the matter. [35518/12]

Pat Rabbitte (Dublin South West, Labour)
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The EU Renewable Energy Directive requires Member states to meet a target of 10% of renewable energy in transport by 2020. The Government intends to meet the obligation through progressively increasing biofuel penetration and an ambition that 10% of all vehicles will be powered by electricity by 2020.

Though very challenging, I believe that this target can be achieved. Uptake over the next decade will be dependent on a range of factors including economic recovery, the price and range of electric vehicles progressively brought to market by manufacturers, the price of diesel and petroleum and overall consumer confidence. In addition, take-up in the technology will critically depend on global development in electric vehicle technology. The pace of that development was demonstrably evident at the E-Motion Conference hosted by ESB and which I launched last week. The level of international participation and interest was very high and a clear sign of the world wide trend.

Electric vehicles are still at the early stages of development. Government alone cannot ensure the development of the sector. It requires a coalition of partners and stakeholders from Government, energy, automotive, ICT industry and academia.

As part of encouraging market development I launched the electric vehicle grant scheme in 2011. The scheme is designed to incentivise and support, through grants of up to €5,000, the early deployment of electric and other low emission vehicles. The aim is to develop critical mass of such vehicles early on and build a stable market.

Electric vehicles in Ireland also benefit from relief from vehicle registration tax, accelerated capital allowances and the lowest road tax rate.

The grant scheme has a funding allocation of €1.5 million this year. To date, 97 grants totalling €456,000 have been made by Sustainable Energy Authority of Ireland (SEAI) under the scheme. This take up is broadly in line with experience in other EU Member States operating similar incentives.

SEAI expects that the take up will increase as car manufacturers steadily expand the range of electric vehicles available to the market, as prices come down and as confidence increases in the availability of infrastructure. There are approximately 300 electric vehicles in the country at this point.

Ireland's ambition to be an early mover in the electrification of transport has been endorsed by the International Energy Agency in its Review of Ireland's Energy Policy published on 11 July.