Electric Vehicles: Attitudes and economies are changing

The number of electric cars has increased steadily in recent years and, says Yiannis Nicolaides, Acting Permanent Secretary at the Ministry of Transport, Communications & Works, this is due to better technology, government incentives, greater manufacturing capacity and better infrastructure, plus a population willing to switch to vehicles with lower emissions. In other words, attitudes and economies are changing.

Does Cyprus have the infrastructure to support the growing number of electric vehicles?

The infrastructure to support electrification is developed in parallel with the growing number of electric vehicles (EVs). This has proved to be the most accepted and successful practice internationally. So, as expected, the market is developing the necessary infrastructure based on the estimated demand. At the same time, many incentive schemes are in place to encourage both an increase in the number of EVs and the accelerated development of infrastructure which is accessible to the public. It is a fact, however, that most EVs are charged on the owner’s premises, mostly at night. To this end, an incentive scheme also exists for the promotion of charging via renewable energy sources (RES). In the meantime, the private sector has already taken initiatives and proceeded with the installation of numerous EV charging stations while the main Cyprus-based oil companies have announced their own plans to enter the market. Other sectoral structural changes are also under way, with respect to training people and developing the necessary skills of technicians, rescue personnel and others. Additionally, the correct treatment of electric waste is a matter for discussion and further legislative regulation.

How much demand is there for electric vehicles in Cyprus and what is the main factor behind it? Can you give us an estimate of the current number of electric vehicles in Cyprus and how you expect it to grow?

In Cyprus, demand has been constantly increasing in recent years. In 2022, there were 736 new registrations of pure electric vehicles, compared to 313 in 2021, 270 in 2020 and 220 in 2019. So, last year the fleet of pure electric vehicles numbered 1,824 compared to 527 in 2019. Had problems in the international supply chain not arisen, the numbers for 2022 would have been much higher: more than 300 pure electric vehicles were approved under the relevant scheme in 2022 but they have not yet been delivered and registered, despite the fact that the orders were placed many months ago. These numbers do not include plug-in hybrid electric vehicles, which are also growing fast and are another indication of the trend towards electrification. The growing demand for electric vehicles stems from many factors, including the trend towards more sustainable transport, rising fuel prices and, most importantly, the impressive improvement of the relevant technology, especially with regard to electric battery life and range, which nowadays enables travel for over 500 km before recharging. Demand is expected to grow substantially in the next few years.

What can you tell us about the latest EV subsidy scheme?

The latest scheme for the subsidy of pure electric and plug-in hybrid electric vehicles was announced on 9 January 2023 and it follows the success of the 2022 scheme. It is 100% funded by the Cyprus Recovery and Resilience Plan (NextGenerationEU). Details can be found (in Greek only) on the website of the Department of Road Transport and applications will be accepted until 9 March 2023. The Ministry plans to continue the scheme in 2024 and 2025, as part of its efforts in support of electrification.

How does Cyprus compare with the rest of the EU in terms of how the market is changing for electric vehicles?

A number of countries, especially in Scandinavia, started earlier and are at a more advanced stage as far as their fleet and infrastructure are concerned. Cyprus compares well with other EU countries, especially those in the Mediterranean and Central European regions.

How do you expect the growth of the EV market to impact the Cyprus economy?

The electrification of mobility is a new and specialised sector and, as such, creates both challenges and opportunities. It is expected that enterprises will gradually adjust to the new product and take advantage of opportunities related to infrastructure and the energy sector, especially RES, and extending to commerce, training and the way businesses organise their operations and logistics.

(This interview first appeared in the February 2023 issue of GOLD magazine. Click here to view it.)