The Government has set a target of 10% of all vehicles to be powered by electricity by 2020, which equates to around 225,000 vehicles.
Electric vehicles are an increasingly realistic option to the challenge of reducing the transport sector's greenhouse gas emissions and reducing our reliance on imported fossil fuels. There is now very significant global investment under way in research and development in this area. The technology is maturing to a point where large scale commercial deployment appears feasible in the short to medium term. There is keen interest internationally in Ireland's decision to be an early mover in this field. Ireland is seen as an excellent test-bed, particularly in terms of network infrastructure development.
In the European Union context, electric vehicles are now firmly on the EU energy policy agenda. We agreed at the informal meeting of energy Ministers in Seville last January that electric vehicles technology and common standards should be progressed by the European Union as part of delivery of energy efficient and low carbon systems.
Reflecting these discussions, the Commission is currently finalising a policy communication on green vehicles, which will be published shortly.
The Energy Council of Ministers has also recently agreed to the inclusion of electric vehicles as a priority technology sector under the strategic energy technology plan. ESB, through its membership of Eurelectric, is also playing a leading role in work by European utilities and car manufacturers to progress essential technical standardisation across Europe.
On 12 April last I signed an agreement with the Renault Nissan alliance and ESB which underpins Ireland as one of the European leaders in electric transport. The agreement, building on the memorandum of understanding last year, includes the development of a national electric car charging infrastructure, the continued sharing of technical and market data between the parties and the early supply of electric cars into the Irish market by Renault and Nissan from next year.
Under the agreement, ESB will roll out 1,500 charge points nationwide by December 2011. The roll-out has already begun in Dublin and charging points will also be installed in Cork, Galway, Waterford and Limerick. ESB also plans to install 30 fast charge points across Ireland by the end of 2011, with nine expected to be set up by the end of this year.
Progress has been made in discussions with other major motor manufacturers to make early production vehicles available to the Irish market and I expect that other agreements will be developed in the foreseeable future.
Additional information not given on the floor of the House.
My Department, the Commission for Energy Regulation, CER, and ESB Networks are also discussing the electric vehicle infrastructure network build out programme including cost recovery and access arrangements. The potential emergence of other parties with an interest in providing infrastructure is an issue for consideration in that context.
There is general agreement to the principle that the infrastructure being provided by ESB Networks will be non-exclusive and it will be readily accessible by all electricity supply companies. The infrastructure will need to be built on an open access basis to avoid needless duplication of charging points.
We already have a number of incentives in place which demonstrate the Government's commitment to promoting electric vehicles in Ireland. The VRT exemption for electric vehicles and the VRT reliefs of up to €2,500 for plug-in hybrid vehicles, which were due to end in December 2010, have been extended in the budget for a further two year period. At the launch of the agreement last week, I announced the introduction of a grant scheme for up to 6,000 vehicles over a two year period from January 2011, which will provide grants of up to €5,000 for full battery electric vehicles and up to €2,500 for plug in hybrid electric vehicles. The grant scheme will be administered by the Sustainable Energy Authority of Ireland and full details will be published well in advance of the scheme commencement date of January 2011.
The support schemes are non-exclusive and will be open to any vehicle from any manufacturer which meets the qualifying criteria.