EXCLUSIVE: Romanian Govt To Introduce Fiscal Incentives For Electric Car Production, Purchase

Romania's Government will introduce a financial incentive package to encourage purchases of electric cars through an "ecologic bonus" for consumers and through tax deductions or state aid for producers.

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Imaginea articolului EXCLUSIVE: Romanian Govt To Introduce Fiscal Incentives For Electric Car Production, Purchase

EXCLUSIVE: Romanian Govt To Introduce Fiscal Incentives For Electric Car Production, Purchase

These facilities will be included in a government strategy, people close to the matter told MEDIAFAX.

The Government's intention is to develop and implement financial incentives for the purchase of electric vehicles, to encourage and create the recharging infrastructure required in the use of electric vehicles (bonuses or tax deductions), as well as increasing the production of electric vehicles and components in Romania (through state aid or de minimis aid schemes). The Government will also take steps to attract foreign investments in the production of electric cars and vehicles.

According to the sources, the Government wants old, discarded car batteries to be used for other purposes, such as storing energy in the household, with other "secondary use" systems to be analyzed in the future.

The National Platform for the Electric Vehicle (PNVE), a body under the authority of the Government and backed by industry and university officials, will be created to implement the strategy.

According to the Government, the advantages of electric vehicles include efficiency, low pollution and superior performance. The document also notes their drawbacks: long recharge times, battery costs, low range, as well as size and weight. Overall, these cars seem to be the most promising option for urban use, as their low range can be offset by the possibilities of better recharge infrastructure in cities. Since electric cars produce less pollution and noise, they bring higher social benefit, says the document.

The Government notes that research is underway to improve battery technology towards increasing range and lowering weight and costs. As this happens, the electric vehicle market might grow from their current niche status up to 1%-2% in 2020 and 11%-30% in 2030, according to some studies.

According to the document, individuals in developed European Union states spend around 13.5% of their income on goods and services related to transport. It is also estimated that about 40% of CO2 emissions and 70% of emissions of other pollutants are caused by urban traffic.

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