Electric Mobility Programme for Estonia
At the beginning of March the Government of the Republic of Estonia decided to conclude a contract with the Mitsubishi Corporation on the sale of emission allowances to the amount of 10 million AAU to launch the Electric Mobility Programme for Estonia.
The Programme includes three parts:
- the Ministry of Social Affairs will take into use 507 Mitsubishi iMiev electric cars as samples,
- the Ministry of Economic Affairs and Communications will develop the grant scheme to support acquisition of electric cars, a
- nd charging infrastructure for electric cars, covering the whole territory of Estonia, will be built.
Both the grant scheme and the building of infrastructure will be administered by the Foundation KredEx.
The Programme period is 2011-2012 proceeding from the periods of trading in emission allowances pursuant to the Kyoto Protocol. By agreement with the purchaser of emission allowances Estonia undertakes to implement the programme in the above period.
Grants for Electric Cars
Objective
The support measure for acquisition of electric cars will be developed to accelerate introduction of electric cars in Estonia. The basic technology of electric cars or batteries form a considerable addition to the price in comparison to conventional cars.
Overview of conditions for the measure
Acquisition and financial/operational lease of electrical vehicles by private persons and companies will receive support within the framework of the support measure. Grants are awarded to new cars that are pure electric vehicles, i.e. different types of hybrid cars, including chargeable hybrid vehicles, will not be supported.
Grant rates
- Private persons and companies not-eligible for VAT deductions: 50% of the car price with VAT, maximum 18000EUR per car
- Companies eligible for VAT deductions: 35% of the car price with VAT, maximum 18000EUR per car
- Maximum 1000EUR for setting up the Mode 3 AC charging equipment for electric car
- Total grant per grantee cannot exceed 200 000EUR.
Green Certificates
To ensure that the acquired cars use green energy the grants provided prescribe obligations to buy green certificates in accordance to the number of kilometres driven annually.
Green certificates help to calculate the amount of renewable energy used in transport. This is not the package of green energy trading by energy suppliers nor the quantity of purchased green energy. Consequently green certificates do not mean the payment of price difference of the so-called green energy by consumers.
An international system, RECS International ( http://www.recs.org ), is operating to issue and trade such certificates and 220 producers from 22 countries have joined it. Historically (2010) the price range has been 1-2 EUR per MWh of green energy certificates. It is estimated that the owner of an electric car might use 1-2 MWh of electricity a year.
Car owners are not required to join the market, green certificates will be offered by KredEx.
Charging Infrastructure
The aim of the charging infrastructure project is to create a national network of charging points (both for fast charging and conventional charging). The following are the initial principles for infrastructure development.
Distribution plan of charging stations
Both the fast and conventional chargers will be installed all over Estonia to ensure confidence for all users driving electric cars.
To ensure that the location of charging points will meet the transport flows and user needs, the Ministry of Economic Affairs and Communications and KredEx will carry out a relevant analysis and prepare the required distribution plan.
In addition to transport flows and existing transport infrastructure the distribution plan must take into consideration energy transmission capacities.
According to the initial scenario the charging points could be distributed as follows:
• All roads of high volume of traffic will be covered.
• The distance between fast charging stations may not exceed ca 50 km. However, the distribution plan of locations will take into account suitable sites, e.g. places of interest, tourist sites, petrol stations, etc).
• Both the ports providing services to international private transport and internal passenger ports.
• All settlements where the number of population is over 5000.
• We will analyse the possibilities in cities how to connect the charging points with so-called conventional routes of movement and other services, e.g. shopping centres, petrol stations, bank or post office networks, parking services.
The planned number of fast charging stations is approximately 200-250.
Network development and operation
International public procurement procedures will be launched for building, development and maintenance of the network and for provision of services.
The Ministry of Economic Affairs and Communications and KredEx will make a system analysis for the analysis phase before public procurement and for the development of functional and non-functional conditions for the charging infrastructure, involving experts both from Estonia and abroad.
The preparatory phase will be completed by technical documentation based on which it is possible to launch public procurement. The technical documentation will be ready at some time at the end of July 2011.
Based on the technical documentation the invitation to tender will be launched for building and maintenance of charging infrastructure and provision of services as soon as possible. We presume that the procurement contract will be awarded at the beginning of the fourth quarter of 2011 and installation work will be carried out in 2012. The building of charging infrastructure should be completed by the end of 2012.
Additional information:
Heikki Parve
Foundation KredEx
heikki dot parve at kredex dot ee
+372 6 674 114
Jarmo Tuisk
Ministry of Economic Affairs and Communications
jarmo dot tuisk at mkm dot ee
+372 6 256 417
