Facilitation of use of green transport - electromobility Ministry of Transport Ministry of environmental protection and regional development of the republic of Latvia

Main issues and challenges  Road transport is the second biggest emitter of greenhouse effect gases, causing 24.4% of total GHG national emissions (EU %).  Low number of electrical vehicles (EVs) in use is due to lack of infrastructure and support for promoting the use of EVs to reduce GHG emissions.  Low number of new vehicles sold because of the recent economic crisis, high number of old used vehicles with highest pollution in EU (176.9 g CO2/km).

Main issues and challenges  According to EC proposal for a directive on the deployment of alternative fuels infrastructure 2013/0012 COD, there should be ~2000 publicly available charging stations throughout the territory of Latvia.  Current number of EVs and infrastructure Item2013 Lorries2 Passanger vehicles10 Buses0 Total EVs12 Slow - charging stations (Type 1)40 Fast - charging stations0 Total charging stations complying with alternative fuel directive 0

Main issues and challenges (2)  A comprehensive national policy of electromobility is under development by Ministry of Transportation by April 2013  There is an insufficient support for promoting the use EVs and renewable energy, incl. the development of associated infrastructure and support measures may lead to increased pollution levels and accelerate the pace of climate change;  Due to the limitations of currently available technologies, fossil fuel driven vehicles are a considerably cheaper transportation option. 4

Summary of the proposal  Objectives: To promote eco-friendly transportation alternatives and reduce the associated environmental risks through the development of adequate infrastructure To develop e-mobility industry by facilitating investments in innovation and cooperation between enterprises and scientific institutions  Proposed activity  Separate activity: development of competitive and knowledge based e- mobility industry in Latvia  Responsible governmental institution for policy: Ministry of Transport

Summary of the proposal  Specific tasks  To develop the network of charging stations to ensure the access and availability for the all users, including general public and businesses;  To develop EV support program aimed to facilitate purchase of EVs especially in governmental and business sectors.  To facilitate innovation and development of new products in electric vehicle industry, stimulating cooperation between businesses and universities and research organizations 6

Summary of the proposal  Planned output result  1350 public charging stations throughout the territory of Latvia integrated into national and regional networks and main towns and cities of national and regional importance; state-of-the-art network operating center providing seamless EV usage in Latvia and roaming with other EU countries.  6000 private charging points throughout the territory of Latvia by introducing match-funding scheme between country and businesses  4400 EVs on road by 2020; 900 feasibility studies for businesses to introduce EVs in their vehicle fleet.  Created E-mobility competency center facilitating development of at least 20 new products in electric vehicle industry by cooperation between companies and research institutions; and at least 10 highly innovative technology demonstration projects

Summary of the proposal  Estimated investments for implementation of policy  50.7 millions LVL, including ERDF/CF (as part of the total investments within the transport, environment protection and economic support sector activities), including:  3.6 million LVL for EV purchase stimulation program (climate instrument);  24.2 million LVL for e-mobility infrastructure and development of network operation center (ERDF/other) ;  23.0 million LVL for support for innovation in e-mobility and facilitation of cooperation between businesses and scientific institutions, including pilot projects for innovative e-mobility technologies (climate instrument/ within ERDF R&D activities).

Summary of the proposal  Target groups: Residents and enterprises in development centers within the territories of municipalities.  Type of support:  Purchase and installation of charging stations for electrical vehicles and their connection to the electricity distribution network within the projects supported under transport activities  Subsidies for EV purchase (climate instrument only)  Subsidies for feasibility studies for introduction of EVs in companies  E-mobility product development grants distributed through competency center  E-mobility pilot projects for highly innovative projects that will facilitate introduction of environmentally friendly transport.

Summary of the proposal  Target territory (best demonstration effect):  Whole territory of Latvia, focusing on territories of development centers, main transport roads well as road-side businesses (shopping malls, recreational & catering industries), and residential areas.  Beneficiaries:  Companies and individual EV users  According to the transport sector activities, municipalities, possible partners – enterprises,  Innovative enterprises in e-mobility industry, educational and research institutes.

As Horisontal priority within MoEPRD  Target groups: Residents and enterprises in development centers within the territories of municipalities.  Type of support: Purchase and installation of charging stations for electrical vehicles and their connection to the electricity distribution network within the projects supported under transport activities  Target territory (best demonstration effect): Territories of development centers (9 cities and 21 towns), main transport roads well as food retail operators (shopping malls, recreational & catering industries), petrol distributors (petrol station networks) and residential areas.  Beneficiaries: According to the transport sector activities, possible partners - enterprises

Direct benefits from implementation  Forecast for 2020: 4400 EVs or 7% of the total number of sold vehicles  Forecast for 2030: Evs (6% of total number of vehicles on road)  Forecast for 2050: EVs or roughly one half of the total number of vehicles sold

Environmental benefits  Increase use of EVs will contribute to improvement of environmental quality through the mitigation of climate changes and reduction of polluting substances;  Underlying assumptions for estimates: If 100 EVs are used, each of them consumes 22 kWh per 100 km, and is used to travel km a year, then the reduction of specific CO 2 emissions would be 51,48 tCO 2. EVs will potentially replace traditional vehicles and reduce emissions totally by 370 tCO 2.  Spillover effects: Increase of incentives for purchase and use of electrical vehicles both in commercial and residential sector. Estimated reduction of CO2 emissions based on the above assumptions and number of EVs in use YearReduction of CO2 emissions (millions tons) 20200,

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