Energy savings potential and targeting for battery electric vehicle grants in Ireland

Extended abstract 6-191-26

The decarbonisation of Ireland’s passenger vehicle fleet is a key component of its strategy to meet its climate targets. Since 2017, Ireland’s EV grants have provided an added incentive to new vehicle purchasers to choose an electric vehicle, with the grant restricted to full Battery-Electric Vehicles (BEVs) since 2022. The grant amount is fixed at €3500 for passenger vehicles valued between €14,000 and €60,000. While grant-aided BEVs are expected to decarbonise transport in the long-run, the carbon savings in the medium term depend critically on the emissions expected from a reference vehicle, on the carbon factor for electricity used to charge the BEVs,  and on any behavioural responses, such as driving a BEV for more, or fewer, kilometres per year than the reference vehicle would have been driven.

This paper presents the results of a survey carried out in January 2025, with supplemental data to be collected in 2026, to interrogate each of those aspects of new BEV purchase, when compared to a reference new vehicle. The analysis will quantify the implied energy and carbon savings and compare the implied energy and carbon savings for different segments of the Irish population. The results will provide insights on the distribution of those potential savings, on the fair – or unfair – distribution of those savings, and on the potential for a modified grant scheme to achieve greater or more fairly distributed savings through targeting.

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