New electric vehicle numbers shot up five times in Luxembourg in the last three years

The government wants to ensure it can provide enough coverage during the transition to sustainable mobility and is offering subsidies for building charging stations

According to a report by the Luxembourgish Ministry of Mobility and Public Works, the number of newly registered 100% electric vehicles has quintupled in the past three years. The ministry explained that the sharp rise in new vehicles is due to the government’s financial aid for drivers in what can be described as a stepping stone programme for weaning personal transportation off oil.

Now, the government wants to accelerate the construction of charging stations, setting up the subsidy plans to pre-empt a spike in demand. The new initiative is spearheaded by Claude Trumes, the Minister of Energy and Franz Fayot, the Minister of the Economy.

Electric cars are bursting onto the scene in the Grand Duchy

In 2019, a total of 857 electric vehicles were registered in Luxembourg or roughly 71 per month. In 2020, that number more than doubled to 188 vehicles per month. This year, between January and September, the government reports 344 new electric vehicles registered every month. In the span of three years and during the economic pressure of the pandemic, the amount of electric vehicles has registered a remarkable growth.

The government report attributes this success to a programme of direct subsidies to citizens who want to buy an electric vehicle. From 1 January 2019 to 10 May 10 2020, authorities have paid out around 5.5 million euros or more than 1,000 citizens requests.

From 11 May 2020 to 31 March 2021, they paid out around 10 million euros in subsidies. The government offered 5,000 euros per vehicle on average.

Despite favourable growth, electric cars still make up a minority in the total mix, but that minority is getting bigger. Around 5.4 of all the vehicles in the Grand Duchy were electric in 2020, but that number has gone up to 8.2 until September 2021, possibly showing signs of a shift in consumer behaviour.

When you are ahead, get more ahead

The new charging station subsidy programme envisions two pillar of subsidies, one aimed at larger energy providers, capable of building large infrastructure and the other – at small providers.

The first pillar is geared towards companies that can provide a carrying capacity of at least 175 kilowatts. The subsidy applicant can ask for up to 50% of the investment cost to the project. After submission, all projects will be evaluated by a special committee that will determine which are of the highest public interest.

The second pillar, directed at small and medium-sized businesses will allow for financial aid of up to 50% of the construction cost and 60% of the cost related to connecting the new stations to the electricity network. Notably, a single grant is capped at 60,000 euros for connecting to the grid and 40,000 for building the stations.

Minister of Energy, Claude Turmes, was quoted in a press release saying: "The decarbonisation of transport is conditional on the existence of an efficient infrastructure of charging points on the national territory. Luxembourg already has a very dense network of charging points. By allowing more players to benefit from subsidies for the establishment of charging infrastructures for electric vehicles, we are accelerating the development of electric mobility."