Spain Pledges EUR590m to Promote Electric Cars

The largest amount of aid included in the plan is a 20% subsidy of the purchase price of an electric car, up to a maximum amount of EUR6,000.

Other measures to boost sales include discounts on the price of recharging vehicles at night and credit lines aimed at companies that develop electric car technology.

Prime Minister Jose Luis Rodriguez Zapatero said Tuesday that Spain hoped to have 20,000 electrical and hybrid vehicles by 2011, 50,000 by 2012 and 250,000 in circulation by 2014. Spain now has 2,000 electric cars in circulation.

"The electric car can contribute to reduce the cost of power as it will increase the use of generation and distribution infrastructure," Zapatero said.

Renault agreed last year to make the Twizy-based electrical car in 2011 at its Valladolid plant.

Renault has also signed electric car partnerships with several Spain regions including Andalusia and Catalonia, as well as with renewable energy specialist Acciona.

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