Conversion of the Icelandic vehicle fleet to renewable energy

ICI 28-08-2017

“It is without a doubt reasonable to convert the vehicle fleet in Iceland” is the opening sentence in Visir news media from Bjarni Már Júlíusson CEO of ON Power.

The Minister of Environment and Natural Resources Björt Ólafsdóttir recently reported that they expect to see the entire vehicle fleet converted to renewable energy by the year 2030. To be able to achieve those goals the government would have to encourage further construction of electrical power stations.

Bjarni also stated an important issue in this debate is that nearly 100% energy is derived from domestically produced renewable energy and 70-80% of the population live in specific areas.

Bjarni talks about the “devils circle”. Individuals who do not change to electrical cars because there are too few power stations in the countryside and the power stations are not in the countryside because of lack of demand. Bjarni stated that this situation needs to change.

He stated that the government needs to walk the talk when it comes to this and reassure increased capital to the energy fund. The governments needs to balance the ratio between tax collections from gas and diesel against construction of power stations. In 2016 they collected around 1,9 billion ISK meanwhile energy fund spent around 200 million ISK in constructions of powerstations. “They should spent a ceartain percentage of these tax collections on the conversion process” reports Bjarni.

ICI 28-08-2017 - V2
Özur Lárusson

Özur Lárusson, CEO of the automotive trade association has another view on the time of the full conversion. Too many cars have too much lifespan left and individuals not ready to throw their fossil fuel cars for an electrical one if the former still is running. He reports that too many challenges are to be solved until we are fully ready for the conversion.

The Visir Daily News article concludes on the matters that both Özur and Bjarni agree upon. They see the development towards electrical cars is fast and see great possibilities in starting conversion of the public bus and coach transport. Stræto Ltd. for example has already ordered five buses and even though they do not have as good a range on the power supply as fossil fuel equivalents, this is a certain development in the right direction. “We just need to put more power into the process” says Bjarni.

Source from Visir daily news 5. ágúst 2017 http://www.visir.is/g/2017170809456/langskynsamlegast-ad-breyta-bilaflotanum-

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Icelandic government invests in infrastructure for electric cars

hradhledsla

The Icelandic government will soon advertise special subsidies for business that want to install fast charging stations for electric cars. The state intends to put 67 million Icelandic krona per year, over the next three years, to increase the number of charging stations in Iceland.

It is not yet clear whether the first grants will go to setting up charging stations on Route 1 or Ring Road, the national road in Iceland, or to enhance electric car infrastructure for certain communities.

This is done to accelerate the energy exchange which is the government policy and reduce the use of fossil fuels. The electric cars adoption has long begun in Iceland and many think it´s rational that households’ second car is driven by electricity, but the shortage of fast charging stations prevents further development. The government will release their plan on increasing the number the charging station soon, says Ms. Ragnheiður Elín Árnadóttir Minister of Industry and Commerce, in an interview with the Icelandic National Broadcasting Service on 16th May. (http://www.ruv.is/frett/rikid-styrkir-fjolgun-rafhledslustodva)

“In connection with the climate summit in Paris the Icelandic government aims to achieve specific targets to reduce net emissions and one of the projects which is covered by my ministry is precisely to encourage further investment in the infrastructure for electric cars and in order to do so we set aside 67 million ikr. per year for three years ” says Ragnheiður Elín.

The grants are not just intended to set up charging stations but also for marketing and awareness campaigns. The Icelandic Energy Fund will allocate the projects but the priorities are still unclear.  “We are still looking at how it´s best do this. Whether we will begin with the Ring road or certain towns remains to be seen. But we need to start this project to encourage and perhaps assist entrepreneurs and businesses to get started “.