Portugal sees mass use of electric cars in 2011

Reuters, Saturday November 22 2008
By Shrikesh Laxmidas and Andrei Khalip

LISBON, Nov 22 (Reuters) - Portugal will build 1,300 charging stations for electric cars by the end of 2011 as part of a deal with Renault and Nissan to promote zero-emission vehicles, the government and the auto makers said on Saturday.
As part of the agreement with France's Renault and its Japanese partner Nissan, Portugal will also decree that one-fifth of all its public fleet vehicle purchases be zero-emission starting in 2011.
Renault-Nissan will start deliveries to Portugal of its electric cars in early 2011, making Portugal the first European country to be supplied with electric vehicles from the alliance. In 2012, Nissan and Renault will mass-market electric vehicles globally.
The financing and operation terms for the charging network are still being negotiated with the government and the private sector, officials said, without providing any cost estimates.
Prime Minister Jose Socrates said Portugal would offer tax incentives to make electric cars more attractive to buyers.
"The two main obstacles until now for people to choose electric cars were the price and autonomy. What the government decided to do is to create a framework in order to exclude these two inconveniences for buyers," he said.
The state will provide an income tax benefit for private buyers of about 800 euros ($1,000) and also tax incentives for companies that convert to electric-powered vehicles. These benefits will start in late 2010 and will last at least five years.
Additional measures, such as reduced parking rates, preferential access and financing subsidies are being studied.
Carlos Tavares, executive vice president of Nissan Motor Co, said the design of the electric car was concluded in September. He said the car would be able to run 160 km on one charge, "sufficient for most people's daily needs".
"It is too early to announce a price, but we can say that taking into account the total cost of buying, maintaining and running the electric car, the cost will be the same or lower compared to a conventional car." Renault-Nissan is preparing a range of cars fitting different market segments.
Tavares said the electric car project remained attractive despite the recent steep fall in oil prices.
The alliance has announced similar electric car partnerships with Kanagawa Prefecture in Japan, the U.S. states of Tennessee and Oregon, Sonoma County in northern California, as well as with French utility company EDF. (Editing by Matthew Jones)