Ireland Set to Become a European Leader in Electric Transport

The amount of electrification in the motor industry is set to increase steadily over the next few years, with more and more vehicles being powered partly or fully by electricity in the future.

Structural changes are unlikely to happen quickly though, as many general problems surrounding electro-mobility are still to be resolved. The greatest challenge appears to be the high cost of the electric batteries, which are currently priced at €10,000 to €15,000.

There are claims that Ireland is set to become a European leader in electric transport, following the announcement of a €5,000 grant and car registrations being exempt from vehicle registration tax (VRT), for people purchasing electric cars.

The target is for 10 per cent of Ireland’s vehicles to be electric by 2020, with 2,000 electric cars on the roads of the country by 2011. There is also the aim to have 3,500 charging points available nationwide by December 2011, increasing to 30,000 in 2020.

Green Minister Eamon Ryan said, “Ireland will be among the first in the world with this kind of nationwide infrastructure. It is bold, ambitious and will show Ireland as a global leader in the green economy.”

However, sceptics’ seem unsure about the claims, arguing that the electric cars will be manufactured elsewhere, more efficient batteries are being designed by others, and that the electricity that will need to be generated will still use fossil fuels.

One Deutsche Bank economist, Eric Heymann commented that there was no doubt that times are changing in the manufacture of vehicles. A steady increase in vehicle electrification will be witnessed over the coming years, with a share of mild-hybrid and micro-hybrid vehicles rising worldwide. Soon he says there will be small numbers of plug-in hybrid cars and purely battery-powered vehicles launched into the market.

All the major global carmakers have strengthened their research and development efforts in the electrification area, with parts suppliers looking for ways to benefit from the progress and companies with knowledge of battery technology sensing big business opportunities too.

Changes in consumer preferences as well as competition in the car industry has help to trigger this move away from fossil fuels to electro-mobility, helped by the rising oil and petrol prices and a stricter regulation of CO2 emissions of cars, particularly in the EU.

Author: Lee Sibbald, June 1st, 2010
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