Greece looks at incentives to produce equipment for electric vehicles

Greece will table legislation in parliament next month introducing incentives to promote the use of electric vehicles, such as subsidizing the purchase cost, providing tax exemptions, free parking, and tolls in a series of changes that will be of interest to a large number of people.

In addition to this, the government is examining a series of incentives to help boost the production of electric vehicles, scooters, and bicycles in Greece.

According to sources, investments related to the construction of components and equipment for electric vehicles, ie batteries, transformers, chargers and general components related to this particular supply will be subject to low tax rates and reduced employer contributions.

It is unknown how generous these incentives may be and whether they will be able to attract investor interest from Greeks and foreign players for new production units. The only sure thing is that investments based on the lignite fields of Western Macedonia and Megalopolis will be subsidized.

The vast lignite fields, especially those of Western Macedonia, are considered to be suitable for similar investments, such as plans for hydrogen production plants or waste combustion energy plants.

In terms of incentives for the purchase of electric vehicles, the government seems to have decided on a subsidy of between 4,500-5,000 euros, which will be across the board, as reported previously by Businessdaily. 

This means that an expensive electric vehicle, such as an Audi worth 50,000 euros, will be subsidized the same as a Peugeot, worth 25,000 euros. Additionally, the aid for the purchase of scooters or electric bicycles will be a percentage of the purchase price, higher than that offered on cars, as stated by Energy Minister Kostis Hatzidakis.

At the same time, the package will include free parking and tolls, while the Finance Ministry is also promoting different tax incentives (such as discounts on car tax and road registration fees). With the development of the market, the owners of such vehicles will also benefit from their participation in the electricity market, by having the ability to sell electricity to the network during peak hours.

In regards to the big question of whether the funds for this big project been found, responses so far say that package is still being put together. Some resources have been found which will come from the Pollutants Fund, however, discussions remain regarding the large expenditure item concerning the NSRF.