Greek law gives strong push for electromobility

Automotive Industry

Source: Euractiv, 2020-06-22

The Greek government has put forward a new bill which speeds up the electrification of transport through a number of incentives, Greek media reported.

“In its recent announcements about the Recovery Fund, the European Commission embraces electromobility and provides funding for 1m chargers across Europe. We therefore look forward to funding from EU resources to continue this effort,” Environment Minister Costis Chatzidakis said.

With subsidies, the final price of an electric car is expected to be reduced by an average of 25%, while the number is even higher for motorcycles, scooters and bicycles.

The law provides a discount equal to 15% of the retail price of cars (with a limit of €5,500), 20% for scooters and 40% for bicycles.

In addition to the purchase of a vehicle, the law also provides €500 for those who will install a home charger, the cost of which is estimated at €1,000.

Meanwhile, new public and private buildings will be obliged to install electric car chargers. The draft bill also foresees that owners charging their car batteries at low-demand times (e.g. overnight) may sell excess electric power to the market, according to Athens-Macedonian News Agency.

The government estimates that the cost of the use and maintenance of electric cars is 80% lower compared to conventional vehicles.

“The cost of fuel for a conventional vehicle that travels 10,000 km per year is €1,200. For an electric vehicle, the cost of electricity for the same distance is €420, while with a night tariff the cost drops to €220, i.e. 80% lower than the conventional one.”

The law is ambitious; however, it is hard to see that many Greek citizens with an average income will be able to buy an electric car, considering that purchasing power has been significantly reduced due to the economic crisis.

After the pandemic, public debt is projected to reach 196% of the country’s GDP.

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