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Electric cars fail to gain traction in Germany

Germany plans to have one million electric vehicles on its roads by 2020, but so far that goal seems remote as the nation's motorists have shown little love for the quietly humming vehicles.

Electric cars fail to gain traction in Germany
Photo: DPA

The number of electric vehicles registered in Germany is just some 7,000.

But Chancellor Angela Merkel put on a brave face in light of the statistics,

speaking this week at a government-organised international forum in Berlin, where she affirmed that she is a believer in electric mobility.

“Our plans are ambitious,” she conceded about the one-million goal pronounced by her government in 2009. “But we have a good chance of sticking to the timetable.”

Her government has spent almost €1.5 billion ($1.9 billion) to subsidise research and development in electric mobility and is promoting the models by scrapping car registration tax for the first 10 years.

However, unlike neighbouring France, Germany does not offer bonuses for the purchase of electric vehicles.

Electric cars produce no exhaust pipe emissions and can help clear the air in congested cities, while their carbon footprint ultimately depends on the type of energy used to charge their batteries.

Problems so far include the high cost of the batteries, usually lithium-ion types, and limited networks of charging stations, which make drivers fear being left on the side of the road with dead batteries.

After Japan’s 2011 Fukushima nuclear accident, Merkel rang in an ambitious energy transition away from fossil fuels and nuclear power towards renewables such as wind, solar and biofuels.

Speaking on Monday, she said the push for electric cars would dovetail with that plan, to ensure that the power that drives electric cars is produced from clean, alternative energy sources.

She said electric cars could be a “core sector of our industrial production,” with the auto sector making up one quarter of Germany’s exports. But so far Germans, used to putting their gas pedals to the floor on the famous autobahn highways, have been slow to accept electric cars.

In the first four months the year, only about 1,500 electric cars were newly registered, after a total of about 3,000 last year. There are also 65,000 registered hybrid vehicles with both electric and fuel engines.

Henning Kagermann, coordinator of the Platform for Electric Mobility that evaluates the electric car strategy, said that, under current conditions, 600,000 electric vehicles is a more realistic figure for 2020.

“Electromobility is treading water,” said Ferdinand Dudenhöffer, director of the automotive research centre of the University of Duisburg-Essen.

He said so far the market share of electric and hybrid cars is just 0.13 percent, calling it “less than a niche of a niche market.”

But proponents say the boom is just around the corner. German carmakers plan to launch about 15 electric car models by late 2014, with plans to move into mass production by 2017.

Over the next three to four years, German industry is set to invest about €12 billion to develop alternative fuel engines.

VW chief Martin Winterkorn — whose company this year launches its new electric Golf — said at the weekend that the government must help by improving infrastructure, such as a network of charging stations and incentives such as electric-car-only lanes.

In comments to the newspaper Bild am Sonntag, he said the one-million goal was realistic if prices fall with mass production, adding: “I am convinced

that that can happen.”

Transport Minister Peter Ramsauer also insisted “the government sees no reason to step back from the goal of one million electric cars by 2020. The first steps are usually the hardest, but sales will increase rapidly.”

Philippe Varin, chief executive of PSA Peugeot Citroen, said “it will be a gradual process over 10 years” to convince consumers to embrace first hybrids and plug-in hybrids and finally 100 percent electric vehicles.

AFP/gfb

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ENERGY

EXPLAINED: How high will heating bills be this winter in Germany?

The cost of energy is expected to rise again this coming winter, even though the government's price cap is supposed to be in effect until April 2024. Here's what households can expect.

EXPLAINED: How high will heating bills be this winter in Germany?

The onset of winter will raise concerns for many in Germany about the cost of heating their homes, with memories of last year’s rocketing prices and concerns over domestic gas supply resurfacing. 

But, compared to last year, the energy prices have now largely stabilised, though they are still higher than in 2021.

The stabilisation in prices is partly thanks to the government’s energy price cap which came into force earlier this year to cushion the blow of soaring energy prices by capping electricity costs at 40 cents per kilowatt-hour and natural gas at 12 cents.

READ ALSO: Germany looks to extend energy price cap until April 2024

The federal government plans to maintain this cap until the end of April, though this could be extended even longer, if necessary. 

How high are heating costs expected to go this year?

For the current year, experts from co2online expect somewhat lower heating costs than last year.

Heating with gas, for example, is expected to be 11 percent cheaper in 2023 than in 2022, costing €1,310 per year for a flat of 70 square metres. 

The cost of heating with wood pellets will drop by 17 percent to €870 per year, and heating with heating oil will cost 19 percent less and amount to €1,130.

According to co2online, the costs for heating with a heat pump will drop the most – by 20 percent to €1,1105. The reason for this, according to co2online, is a wider range of heat pump electricity tariffs.

Tax hikes in January

Starting January next year, the government will raise the value-added tax on natural gas from seven to nineteen percent.

Alongside this, the CO2 price, applicable when refuelling and heating, will also increase.

According to energy expert Thomas Engelke from the Federal Consumer Association, these increases will mean that a small single-family household with three or four people that heats with gas would then pay about €240 more per year for gas.

“That’s a lot”, he said. 

Another additional cost factor to consider is that network operators also want to raise prices. However, the federal government plans to allocate €5.5 billion to cushion this increase for consumers as much as possible, so how such cost increases will ultimately affect consumers is currently hard to estimate.

READ ALSO: Why people in Germany are being advised to switch energy suppliers

Overall, it can be said that, from January, consumers will have to brace themselves for higher energy costs, even though massive increases are currently not expected.

Consumer advocate Engelke advised customers to closely examine where potential savings could be made this upcoming winter: “Those who are now signing a new gas or electricity contract should inform themselves and possibly switch. Currently, you can save a few hundred euros. It’s worth it. On the other hand, you should also try to save as much energy as possible this winter.”

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