Portugal to open electric vehicle network in 2011

Imported fossil fuel dependent Portugal plans to replace 10 percent of all vehicles with electric cars by 2020, to cut imports and help manage variable supply from a rapidly growing wind power industry.

"In the first half of 2011 in Portugal we will have a national network to charge these vehicles, it will be possible to go through the whole country without problems of charging electric vehicles," he told Reuters on the sidelines of the European Future Energy Forum in London.

The MOBI.E charging network -- 51 controlled by Energias de Portugal -- will include 1,300 normal and 50 fast charging stations at shopping centers, car parks, petrol stations and hotels in 25 towns and cities around Portugal.

The open system of charging points will be compatible with all electric vehicle brands, including electric motorbikes and heavy goods vehicles when they become available.

Portugal is hoping wide use of electric cars can slash imports of fuels and help absorb some of the extra green electricity that will be generated over the next few decades.

With plans to increase its wind power capacity from around 5 gigawatts by the end of 2010 to 8.50 GW by 2020, Portugal's isolation from the rest of continental Europe because of a lack of grid connections between Spain and France is a big problem.

Construction of power lines across the Pyrenees to France has been delayed for years, trapping vast amounts of renewable energy output in the Iberian Peninsula. nLDE68R11Q

"This is perhaps the main fragility of Europe now to be competitive in the world," Zorrinho said. "The energy networks are not developed and it's not possible to have an internal energy market ... there are physical barriers."

Lisbon is offering 5,000 euros ($6,951) to buyers of the first 5,000 EVs sold in Portugal, with further tax breaks and old combustion engine trade in values adding another 2,300 euros.

The high price of electric vehicles compared to petrol and diesel fueled cars is a major obstacle to EV sales in other European countries.

But very high taxes on conventional cars in Portugal means subsidized EVs are only slightly more expensive than their carbon-emitting competitors, making EVs an attractive option for consumers.

SOLAR SUPPORT

Portugal has one of the largest solar power sectors in the world, supported by big government incentives, but unlike Spain and Germany which are looking to trim support for solar projects, Lisbon has no plans to slash subsidies.

"We have no plans to cut ... It is crucial to develop this sector," Zorrinho said. "We will maintain all the commitments that we have with the industry."

He said financial support for existing projects was assured, but that as technology costs fall less support should be needed to make solar power competitive in future.