Norway to reconsider EV subsidies as sales soar
Wed 22 April 2015
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Norway is to reconsider the subsidies it offers on electric vehicles after the measure to encourage uptake started to dent state finances. A fifth of all new cars sold in Norway have been electric so far this year. The country, with just 5.1 million people, accounted for a third of all European battery-powered car sales last year. It is estimated EV incentives have cost the government around $660m (£430m).
Norway registered its 50,000th electric car three years after it put in place an incentive scheme for electric vehicle buyers. There was particular concern when the Tesla Model S was launched as the government came under criticism for 'subsidising the wealth'. Subsidies for EVs and PHEVs include free access to bus lanes, highway tolls, ferries and parking, not to mention a big tax rebate.
Norway generates nearly 100% of its electricity from hydropower so the shift to battery powered cars results in a net reduction in greenhouse gas emissions, part of the country’s plans to reduce emissions by at least 40% by 2030 compared to 1990 levels.
The Norwegian Electric Car Association argues that the benefits need to be maintained longer as only two percent of the cars on the road are electric which remains a relatively small figure.
Norwegian sales of EVs are well ahead of other European countries, as a proportion of total sales. By comparison in the UK - where EV sales have recently been rising fast - sales of plug-in models have recently represented around 2% of all new car sales.
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