Written answers

Thursday, 13 April 2017

Department of Communications, Energy and Natural Resources

Electric Vehicle Grants

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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326. To ask the Minister for Communications, Energy and Natural Resources the amount of funding provided under the capital plan for the electric vehicle subsidy; the amount spent to date; the progress made to date; and if he will make a statement on the matter. [18793/17]

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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334. To ask the Minister for Communications, Energy and Natural Resources the cost of extending the Sustainable Energy Authority of Ireland electric vehicle grant until 2018 and 2020, respectively (details supplied). [19022/17]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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I propose to take Questions Nos. 326 and 334 together.  

The 2009 Renewable Energy Directive sets all Member States a binding target that at least 10% of the energy used in the transport sector must come from renewable sources by 2020. To-date, Ireland has sought to meet the use of renewable energy in the transport sector mainly through the increased use of sustainable biofuels, with electric vehicles also making a small contribution.  The Sustainable Energy Authority of Ireland (SEAI) has calculated that 5.7% of transport energy requirements were met from renewable sources at end 2015.

Apart from general macroeconomic considerations, technology advancement, affordability and consumer choice are the most important levers in triggering consumers to move from petrol and diesel to electric vehicles.  Notwithstanding substantial exchequer support available for new electric vehicles, the reality of a halving of the price of oil and the pace of technology improvement has very significantly impacted electric vehicle market penetration. Nevertheless we have seen increasing numbers of EVs registered in Ireland particularly in the last two years.

Ireland's third National Energy Efficiency Action Plan to 2020, published in 2014, estimated that approximately 50,000 electric vehicles (EVs) could form part of the transport fleet in 2020.  This figure, in light of technology and fuel price evolution, has since been revised downwards as analysis underpinning the draft National Policy Framework for the alternative fuels infrastructure for transport in Ireland, published in October 2016, forecast that there will be in the region of 20,000 electric vehicles (EVs) in Ireland by 2020.

The Electric Vehicle Grant Scheme supports and incentivises, through grants of up to €5,000, the deployment of electric vehicles (EVs) in Ireland. These grants are in addition to the Vehicle Registration Tax reliefs of up to €5,000 which apply to EVs.  Budget 2017 extended VRT reliefs on Battery Electric Vehicles to 2021 and on Plugin Hybrid Electric Vehicles to end 2018.

To date, the purchase of over 1,900 new electric vehicles has been supported under the scheme. Over 9 million euro has been spent since the scheme was introduced. The number of grants paid and the total value of such grants for the purchase of electric vehicles in each year from 2011 to the end of March 2017 is set out in the table:

YearNo of GrantsAmount (Euro)
201142198,000
2012183767,400
201353242,200
20142571,203,400
20155552,647,800
20166383,038,800
2017 (to 28/3)2181,045,000
Total 1,9469,142,600

The Capital Plan 2016 - 2021 commits to making funding available for subsidies for Electric Vehicles (EVs) to help make EVs more affordable. The scheme, which will be kept under review, is continuing this year and an allocation of €5 million has been provided in my Department’s Vote for this purpose; the final cost out to 2020 will depend on the number of electric vehicles and mix of  private and commercial purchases.

In accordance with the commitment in the Programme for Government, my Department and the Department of Transport, Tourism and Sport are co-chairing a Low Emission Vehicles (LEV) Task Force involving relevant Government Departments and agencies. The work of the task force has been divided into two phases with the first phase focusing solely on EVs. The Task Force expects to report on an interim basis to Government on the first phase by June 2017, with associated recommendations. These recommendations will suggest a range of options for facilitating greater uptake of EVs in the coming years.

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