Spain Uses Subsidies to promote Alt-Fuel Acquisitions

| Spain, Madrid

Gas Natural Fenosa LNG Station BarcelonaLate last year Spain adopted a plan to promote sustainable mobility using alternative energy vehicles (MOVEA 2016), a measure that is part of the broader Strategy to Promote Alternative Energy Vehicles (VEA) in Spain from 2014 to 2020. Designed and implemented by the Ministry of Industry, Energy and Tourism in collaboration with other agencies and ministries, the plan seeks to unify the various programs and plans aimed at supporting the purchase of more efficient vehicles that have been developed so far.

Considering the high cost to buy these types of vehicles compared to conventionally fuelled vehicles, the government argues it is appropriate and necessary to continue incentive programs aimed at promoting increased acquisition, such as direct grants.

Consequently, Royal Decree 1078/2015 now regulates the bases for direct grant aid for the purchase of compressed natural gas (CNG) and liquefied (LNG) vehicles and other vehicles, scooters and bicycles deriving energy from alternative fuels.

To this end, subsidies shall be provided for the acquisition or lease (minimum two years) in Spain of new alt-fuel vehicles that include:

  • Category M (intended primarily for transporting passengers and their baggage) and cars up to 9 seater buses or coaches;
  • Category N (intended mainly for freight vans, light trucks, vans and trucks)
  • Categories M1 and N1 (up to nine passenger seats, including ducts and vans or light trucks with MMTA no greater than 3.5 tonne)

provided they emit no more than 160 g / km CO2, according to the information contained in the database “fuel consumption and CO2 emissions new cars”, developed by the IDAE.

No entity can buy more than 35 vehicles and individuals can only buy one vehicle.

A budget of EUR 16.6 million (USD 18.6m) has been provided and  purchases of vehicles that meet the above criteria will be eligible.  The scheme will remain operable until October 15, 2016, or at an earlier date if the budget is exhausted.

Purchases subsidies vary according to category:

  • M1 natural gas or bi-fuel vehicles qualify for EUR 3,000 plus an additional EUR 1,000 from the vehicle dealer.
  • Owners of new N1 natural gas or bi-fuel vehicles under 2,500 kgs receive EUR 2,700; vehicles equal to or over 2,500 kgs receive EUR 5,500, and 1,000 concession from the dealer.
  • M2 and N2 vehicles — natural gas or bi-fuel qualify for EUR 10,000.
  • M3 and N3 vehicles attract a subsidy of EUR 10,000 for less than 18 tonnes and EUR 20,000 for 18 tonne and over.

(Source: Ministry of industry, Energy and Tourism)

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