Amsterdam launches electric vehicle grant scheme

It may be more famous for its canals than its roads, but that has not stopped the city of Amsterdam moving forward with plans to establish itself as the global capital for electric cars.

The city has this week announced plans for a new €3m (£2.6m) fund designed to offer grants to businesses that replace their conventional vehicles with electric ones.

Under the scheme, grants of between €15,000 and €45,000 per vehicle will be made available to cover up to 50 per cent of the additional costs of buying electric vehicles compared with conventional alternatives. Meanwhile, grants of up to €250,000 will be on offer to businesses that commit to buying fleets of 20 electric vehicles or more.

The grant scheme is the latest initiative to support the city council's goal of having 200,000 battery-driven vehicles on Amsterdam's roads by 2040.

The city's electric vehicle scheme will also be supported by the allocation of reserved parking spaces for electric vehicles and the installation of 45 charging stations, rising to 200 charge points by 2012. Energy firm Nuon will provide renewable energy for the charging stations, which will be installed by Coulomb technologies.

Drivers of electric vehicles will be able subscribe to the network through a web site and will receive a smart card that allows them to charge their car at any charging station.

Owners of electric cars will also be able to park at a reduced fee, and will be given priority when applying for residents' parking permits – for which there is currently a five-year waiting list.

Richard Canny, chief executive of electric vehicle manufacturer Think, which signed a deal to deliver up to 500 of its cars to the Dutch government last year, welcomed news of the grant scheme.

"Business and enterprise is at the heart of any major city, and targeting this sector with such generous subsidies we think will change the face of business transport in the city," he said. "We are increasing our EV sales forecasts in the Netherlands on the back of this announcement, and urge other forward-thinking, green European cities to follow Amsterdam’s lead with this marvellous initiative."

Amsterdam's canals could also yet get in on the electric vehicle act with the council pursuing plans to switch its tourist sightseeing boats to electric power over the next five years.

However, the Dutch city could yet face a challenge to its dream of becoming the world's largest electric vehicle hub from the unlikeliest of sources: Houston.

Annise Parker, the newly elected mayor of the city at the heart of the US oil industry, told reporters last week that she was committed to establishing Houston as one of the leading markets for electric vehicles.

Speaking at an event to promote the imminent launch of Nissan's Leaf electric vehicle, Parker said she was keen to see more electric vehicles deployed in the city.

"We are the 'Petro Metro', but we are also a car city," she said. "To have an electric vehicle that appeals to a car culture will make the real difference for market penetration."

Houston has already signed a deal with a consortium featuring Nissan that will begin rolling out an electric car recharging network, and Texas is expected to be at the centre of plans to roll out charging points across the south east of the country.