Electric Mobility as Part of the German Energy Transition: Record Year 2023, Challenging Start into 2024, and the Contribution of Energy Suppliers

Press Release – Wednesday, April 24, 2024

Electric mobility plays an important role in the German energy transition and in achieving Germany's climate targets. Accordingly, the German government has committed to the goal of 15 million pure electric cars by 2030. Both record numbers of new registrations and some fundamental changes in the funding structure characterize the development of electric mobility in the year 2023. Energy suppliers can make an important contribution to electric mobility and thus to the energy transition. By offering end customers products and services in the field of electric mobility and expanding the public charging infrastructure, they simplify the transition to electric mobility. This commitment by energy suppliers will be awarded in the mobility category at the Energiewende Award ceremony on June 20, 2024, at The smarter E Europe, Europe’s largest alliance of exhibitions for the energy industry.

Bonn, April 24, 2024. Electric mobility is part of the German energy transition and, by connecting the electricity and transport sectors it is also part of the sector coupling. This makes electric mobility an important element in achieving the climate targets in Germany. Accordingly, the German government has committed to the goal of 15 million pure electric cars, so-called BEV (battery electric vehicles), by 2030.[1]

While the development of electric mobility in the past year shows positive developments, 2023 was also characterized by some turbulence for the sector.

Newly registered BEV Yearly numbers | 2019-2023 | in thousands

On the one hand, the number of newly registered BEV exceeded 500,000 for the first time in 2023 establishing a new record for new registrations of pure electric cars. Specifically, in 2023, Germany saw 526,493 newly registered BEV.

On the other hand, there were some fundamental changes in the funding structure last year. Since January 2023, the subsidy amount per electric car was reduced and plug-in hybrids electric cars are no longer eligible for subsidies. Furthermore, from September 1, the subsidy program known as the "Umweltbonus" (environmental bonus) ceased to provide subsidies to commercial BEV owners, limiting the availability of subsidies only to private individuals. This change was followed by the abrupt and complete termination of the “Umweltbonus” in December.[2]

Due to the sudden termination of the “Umweltbonus”, a significant decrease in new registrations starting from January 2024 was already anticipated at the end of the previous year. The graph compares the development of newly registered BEV in the first quarter of 2021 to 2024. So far, it has become quite clear that 2024 has got off to a rather weak start. In particular, the first quarter of this year was unable to keep pace with the first quarter of the record year 2023. Nevertheless, the current trend in newly registered BEV aligns closely with that of the first quarters of 2021 and 2022. It will be interesting to observe how the number of newly registered BEV will develop in the upcoming months and throughout 2024.

Newly registered BEV | 1st quarter | 2021 - 2024

At this point, energy suppliers also play an important role. Among other things, they can supply private households with electricity tariffs for their BEV or with a home charging station. Energy suppliers are also an important player in the rollout of public charging infrastructure. As such, they offer important incentives and simplify the switch to electric mobility. With their electric mobility offers for end customers, energy suppliers can thus contribute to promoting the energy transition.

The Energiewende Award examines energy suppliers for their commitment and services, and among others, awards those suppliers who are particularly active in promoting electric mobility. The upcoming award ceremony is scheduled for June 20, 2024, at The smarter E Europe in Munich.

Energiewende Award (Energy Transition Award) for energy suppliers

On June 20, 2024, the 8th Energiewende Award ceremony will take place at The smarter E Europe in Munich, Europe’s largest alliance of exhibitions for the energy industry, to celebrate and honor the most innovative energy suppliers who have shown exceptional commitment and progress in promoting the energy transition. The initiators of the project are The smarter E Europe and EUPD Research.

Further information on the Energiewende Award can be found at https://www.energiewende-award.de/en/home/ . If you have any questions, please contact Saif Islam (+49 (0) 228 504 36-20, islam@energiewende-award.de ) or Eva Benz (+49 (0) 228 504 35-46, e.benz@eupd-research.com ).

Further information on The smarter E Europe can be found at http://www.thesmartere.de .

[1] https://www.bundesregierung.de/breg-de/schwerpunkte/klimaschutz/nachhaltige-mobilitaet-2044132

[2] https://www.bafa.de/SharedDocs/Pressemitteilungen/DE/Energie/2022_15_emo_neue_foerderbedingungen.html

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