83.7% of cars sold in Norway in January 2022 were electric. What’s the secret to Norway’s success?
In this article
Despite being one of the world’s coldest countries, and therefore not very suitable for battery operated electric vehicles (EVs), Norway has defied the odds to become the first country to see the sale of EVs overtake those powered by petrol, diesel and hybrid engines.No other country has more EVs per capita.
The Norwegian government was also the first to announce a ban on the sale of new ICE vehicles by 2025.
2021 sales data reveals another record year in sales – with 64.5% of all new cars sold being fully electric. Tesla overtook Volkswagen as the number one selling car brand after an 11 year reign.
And in January of this year EVs took a massive 83.7% share, with plug-in models representing 19/20 of the top vehicles sold. Despite prior competition between fully electric and hybrid models, Norway’s 2022 budget reducing the tax benefit for hybrids, resulted in drivers moving towards pure electric – with hybrid sales market share falling from 19% to 6.6% in the same month.
So, are Norwegians more passionate about going green than the rest of the world – or do they just like the incentives?
Incentivising behaviour change
One of the key tools helping the country establish EVs as the new normal is government incentives.
In 1990 Norway removed purchase and import tax for zero emission vehicles, and in 2001, introduced a VAT exemption (yet to be lifted) – setting the market up perfectly for a revolution.
The biggest impact on such rapid buyer behaviour change however is likely to have been Norway’s relatively high taxation of petrol and diesel vehicles – at 25%. Making zero emission vehicles the natural and more affordable choice than their counterparts, even if the import price is much higher.
A host of other local and national government incentives for zero emission vehicle drivers have also no doubt helped with uptake, such as reduced road and ferry tolls, discounted public parking, widely available free public charging, use of the bus lanes, no registration tax on used car sales, no annual ownership tax, and no fuel tax.
Education & Accessibility
The Norwegian government actively promotes the country’s many sustainable travel options to locals and visitors through state owned travel board Innovation Norway.
And it’s easy to rent an EV from most car rental firms throughout the country. You can even cruise the fjords, or go whale watching on electric powered boats, and use an electric cable car up a mountain.
Investment in infrastructure
Norway’s excellent charge point network has also aided EV uptake – easing range anxiety and enabling drivers to visit most points of interest in the country without concern. Given the mountainous and often isolated terrain, this is particularly important. To support a network of more than 480,000 EVs there are now almost 17,000 charging stations across Norway, including more than 3,000 fast chargers. And you wont need to travel more than 30 miles to find your nearest rapid charge point.
A fast charging station has been installed on every main road in the country. More than 4,000 cars can fast charge at the same time – removing any concerns around queuing.
Enova, the Norwegian government body responsible for providing funding and advice for energy and climate projects, initially funded a 7 million euro EV infrastructure programme providing 1,900 charging points by 2011. And has provided support to charging infrastructure projects since. Most recently allocating NOK 50.5 million for fast charging infrastructure – with 230 stations installed so far.
A large part of Norway’s EVSE investment strategy is also providing financial support for housing associations to buy and install chargers – with grants of 20-50% of the cost offered in several cities.
The majority of charge point operators provide 24/7 year-round support for customers and many now allow drivers to use the same RFID cards to roam between charge points, use payment terminals, QR-codes and offer drop-in solutions such as start/stop charging via SMS.
The Norwegian Electric Car Association also provides members with a black charging chip, in action since 2014, making it possible to start, stop and pay for charging with many operators across the country – and is cheaper than using SMS.
“Norway is a country with a widespread population, high mountains and a climate with snow and ice in the winters […] but it really does work, we have been able to build the (EV charging) infrastructure”
Nicholai Jorgensen, Mer Norway AS
Cheap & renewable energy
Norway’s national grid is powered by 99% renewable energy (wind, solar and hydro electric). Therefore the country’s EV charging infrastructure is powered by renewable energy.
And Norway’s energy is not only clean, but cheap. The county’s low electricity prices result in further savings throughout EV ownership. You can expect to pay roughly 7.3 pence per Kwh versus around £1.46 per litre for petrol.
What can the UK learn from Norway?
Charge point operators (CPOs) acting in the UK can take learnings around user experience. There have been technical difficulties with Norway’s public charging network, and limitations around payment options and ability to roam. Participating in roaming agreements is essential for widespread adoption.
The UK government and public sector bodies also stand to learn a great deal from Norway.
It clearly pays to offer consistent government grants, and tax incentives for EVs, rather than changing the rules every few years. In particular, increasing tax on fossil fuel vehicles is a successful way to make EVs fully cost competitive.
The UK is in need of a national plan to increase the number of public charge points, ensuring the right chargers are in the right places – and also giving local authorities official guidance on how to support efforts. With another record year in EV sales in the UK – the charging infrastructure has fallen behind, with an average of just 16 cars to one standard street charger. As shown in Norway, installing plenty of public fast and rapid charging sites mitigates both queue and range anxiety – core barriers to widespread adoption.
Installing EV infrastructure in the UK
With recent studies such as Mer’s customer survey finding that almost 30% of drivers don’t have access to a home charger – there’s a clear need for an enhanced public network.
Public sector bodies should look to work with a charge point operator committed to the intelligent development of the market, aiming for sustainable growth and with a strong financial background.
As the charging operator market is still very young and changeable, certain operators may change mid contract due to buyout – local authorities should consider this when agreeing a long-term contract.
Contact us to learn more about successful public EV charging infrastructure
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