Saturday, May 21, 2022

How Norway became the EV centre of the world

Norway is widely regarded as the world leader in electric vehicle (EV) adoption. In 2021, almost 65% of cars sold in Norway were electric, and an additional 22% were plug-in hybrids. That's nearly 9 new cars out of ten that have a plug. It took only ten years to move from 1% adoption to 65%. No other country comes close, although Sweden, New Zealand, Germany and even the UK are making a good go at catching up.

Many articles have been written about how Norway has achieved this. Essentially, it has been through tax breaks and other incentives. Buying or leasing a new or pre-owned EV is exempt from puchase tax and VAT (sales tax); there is no road traffic insurance tax on EVs; company car taxes are also discounted for EVs; road tolls are at least 50% off for EVs; bus and taxi lanes in cities are also accessible for EVs; parking fees are reduced for EVs, and often complete waived in many major cities; the government has established fast chargers at least every 50km on major roads, reducing range anxiety, and many of them are also subsidized; housing association can get substantial grants to install charging stations; the list goes on.

All of this amounts to a pretty substantial package, and has the effect of making EVs cheaper to buy and run than gas and diesel vehicles in Norway. This is not the case in Canada, and most other countries for that matter, where EVs are sold at a pretty hefty premuim. Yes, Norway is a rich country, and generally used to high taxation. But Canada is hardly a global pauper, and the difference is mainly due to political will and a compliant population.

Norway is a cold, mountainous land, with some long distances between population centres (sound familiar?) It's also a major, though fading, oil producer. Nevertheless, it is has quite deliberately established itself as a global leader in electrified transportation. Arguably, if Norway can do it, any country can.

The only thing I have not been able to glean - and the reason I started looking into it in the first place - is how Norway deals with the problem of home charging for cars that are parked on the street. Not everyone has a garage, driveway or parking pad that lends itself to a home charging station like I have - Britain is a good exampe of a country where a huge proportion of people do not have their own garage, and park on the street instead - and I have always wondered how these people are supposed to charge their electric cars. (I do more than 90% of my charging home, and so I'm imagine do most EV owners, at least here in Canada.)

My suspicion is that a good percentage of Norwegians live in tower blocks with undergroud parking, where charging stations could be practically installed (I have no evidence of this, it is just conjecture). Or maybe the public charging network is just so good that people don't need to charge at home? I'd be intrigued to know.

No comments: