Why does Norway lead the way in adopting electric vehicles?

Norway has the highest growth in electric vehicle sales per capita worldwide. By the end of 2018, 200,192 electric passenger cars and vans were registered in Norway. In just one year the figure has increased by 41 per cent, demonstrated by statistics the Norwegian Electric Car Association obtained from the Motor Vehicle Register.

Number of registered electric cars in Norway

Number of registered electric cars in Norway

Why is Norway ahead of the curve?

The Norwegian Government has committed to an aggressive environmental and sustainable transport policy, setting an ambitious goal to stop selling gasoline and diesel passenger cars and vans by 2025.

Electric vehicles (EVs) help reduce local air pollution, noise and zero greenhouse gas emissions, provided the electricity comes from renewable sources such as water, sun and wind. Guarantees of Origin allow any EV charging station or individual to access 100% renewable electricity to ensure that the electricity consumed comes from a renewable source.

The Government has recognized that with more EVs on the road, the more advanced the technology will become. EVs are currently expensive to manufacture due to the battery pack. With technological development, however, battery packs will become cheaper and more efficient, allowing EVs to compete with traditional gasoline and diesel cars.

Electric motors in EVs are also very energy efficient and use only one third of the energy compared to gasoline and diesel cars with internal combustion engines, making EVs a more cost-effective option. With an average consumption of around 2 kWh per mile, you can save at least fifty pence per mile when running on electricity instead of gasoline or diesel.

What are the benefits for Norwegian EV users?

A number of incentives have been introduced to get more Norwegian citizens to opt for EVs over traditional gas-powered engines, these include:

●        Tolls: drive for free or with reduced fare through toll stations.

●        Parking: park for free or half price on municipal parking lots.

●        Ferries: travel for free or get half price on most ferries.

●        Collective lanes: drive in public transport lanes and save time in rush hour traffic. Some restrictions are implemented in certain areas.

●        Fees: The purchase of a new electric vehicle is exempt from a one-time registration fee and VAT. The purchase of a used electric vehicle is exempt from re-registration fee.

●        Annual fee: EVs are exempt from the annual traffic insurance fee.

●        Increased wreckage: If you wreck a van that uses fossil fuels and buy or lease an emission-free van, you get NOK 13,000 in grants.

Number of public charging points in Norway

Number of public charging points in Norway

Kjartan Aastvedt is a Norwegian citizen and drives a Tesla model X, which has been sold over 12,000 times in Norway so far. “The benefits are mainly financial. It is cheaper to operate and it became an easy option when I had to replace my old car. The model X has a shorter range when its winter, but the huge network of Tesla charging points makes it very easy to overcome,” Kjartan explains.

For companies, the Norwegian government has implemented further incentives. If you have an EV as a company car, you get a reduction in the company car taxation of 40 per cent. In addition to this, companies that offer charging services for EVs do not have to apply for a sales license, which everyone else who sells electricity must do.

Number of charging points per county

Number of charging points per county

Denmark saw a drastic drop in EV sales after cutting the governmental incentives and are now considering reintroducing the success of its previous EV benefits. Consumer trends linked to EVs must be driven and boosted by various governmental and political incentives, which seems to be the driving force of the Norwegian EV trend.

To find out more about how to ensure your business is positioned to capture the benefits of the transition to EVs, whatever country you are based in, read our recent blog [link to blog].

Our experts can help prepare and build your EV energy strategy. To find out more, contact us at info@kinectenergy.com

*All statistics are found on the website of the Norwegian Electric Car Association