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State Measures in Support of Sustainable Mobility Infrastructure: The Case of Estonia, the Netherlands, and Norway

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Energy Law and Economics

Part of the book series: Economic Analysis of Law in European Legal Scholarship ((EALELS,volume 5))

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Abstract

This paper explores the legal instruments Member States can use to accomplish supranational targets to encourage the development of infrastructure for the refuelling and recharging of clean and efficient vehicles for road transportation. The case study examines in depth the concrete legal measures taken by Estonia, the Netherlands and Norway, which are particularly successful in the electrification of road transport , and analyses the supranational assessment of these strategies under state aid law.

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Notes

  1. 1.

    Estonian World (20 February 2013) Estonia becomes the first in the world to open a nationwide electric vehicle fast-charging network. http://estonianworld.com/technology/estonia-becomes-the-first-in-the-world-to-open-a-nationwide-electric-vehicle-fast-charging-network [accessed 29 May 2017]; Reuters (20 February 2013) Estonia goes electric with new car charger network. http://www.reuters.com/article/us-estonia-environment-cars-idUSBRE91J1EM20130220 [accessed 29 May 2017]; Forbes (20 February 2013) Estonia Launches Nationwide Electric Vehicle Fast-Charging Network. http:/www.forbes.com/sites/justingerdes/2013/02/26/estonia-launches-nationwide-electric-vehicle-fast-charging-network/#2610e3782610 [accessed 29 May 2017].

  2. 2.

    Hybridcars (16 January 2014) Top 6 Plug-In Vehicle Adopting Countries—2013. http://www.hybridcars.com/top-6-plug-in-car-adopting-countries [accessed 29 May 2017].

  3. 3.

    Hybridcars (16 January 2014) Top 6 Plug-In Vehicle Adopting Countries—2013. http://www.hybridcars.com/top-6-plug-in-car-adopting-countries [accessed 29 May 2017].

  4. 4.

    It should be noted that GDP is not a totally accurate or reliable indicator in the energy and climate policy sectors, since it does not account for depreciation of assets and depletion of natural resources. Nevertheless, it helps determine the availability of funds to rollout networks, as well as Member States’ access to cohesion funds.

  5. 5.

    Vehicles of categories M2, M3 and N2, N3 as defined in Directive 2007/46/EC of the European Parliament and of the Council of 5 September 2007 establishing a framework for the approval of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles.

  6. 6.

    Vehicles of categories M1 and N1 as defined in Directive in Directive 2007/46/EC of the European Parliament and of the Council of 5 September 2007 establishing a framework for the approval of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles; Vehicles of category L as defined in Vehicles of category L as defined in Directive 2002/24/EC of the European Parliament and of the Council of 18 March 2002 relating to the type-approval of two or three-wheel motor vehicles and repealing Council Directive 92/61/EEC.

  7. 7.

    Directive 2014/94/EU of the European Parliament and of the Council of 22 October 2014 on the Deployment of Alternative Fuels Infrastructure.

  8. 8.

    The only exception is biofuel blended into a conventional fuel at a level compatible with traditional vehicles (less than 7% for biodiesel and less than 10% for bioethanol); Cf. European Free Trade Association Surveillance Authority, Decision of 16 September 2015 raising no objections to the programme for alternative fuels infrastructure (Norway), 336/1 5/COL, 6 [31]. The impact of overlaying charging networks on the design and capacity of current road transport and energy infrastructure systems will not be studied here.

  9. 9.

    Alternative Fuels Data Center of the US Department of Energy, Developing Infrastructure to Charge Plug-In Electric Vehicles. http://www.afdc.energy.gov/fuels/electricity_infrastructure.html [accessed 12 June 2017].

  10. 10.

    The Engineer (2010) Unplugged: inductive charging on the road. http://www.theengineer.co.uk/unplugged-inductive-charging-on-the-road [accessed 6 April 2017].

  11. 11.

    This is not only the case of PEV; the EU experience with carbon capture and storage (CCS) also exemplifies the need for state intervention. CCS “consists of the capture of carbon dioxide (CO2) from industrial installations, its transport to a storage site and its injection into a suitable underground geo­ logical formation for the purposes of permanent storage.” After Directive 2009 in support of CCS entered into force, the Commission issued a Communication summarising the state of CCS development in 2013. In this document, the Commission identifies barriers for CCS development, including the lack of adequate transport infrastructure. Similarly, experts point out that “A strategic and pan-European approach should be taken to developing Europe’s CO2 transport infrastructure, both pipelines and ships, which should be on a par with critical developments in Europe’s electricity grid and natural gas pipeline networks in respect of policy attention, EU support and enabling mechanisms” (EASAC 2013). Without state intervention in support of a CCS network, the technology has not developed as expected.

  12. 12.

    EFTA Surveillance Authority Decision No 77595 of 16 September 2015 raising no objections to the programme for alternative fuels infrastructure (Norway).

  13. 13.

    European Commission (2013c).

  14. 14.

    European Commission (2010a).

  15. 15.

    Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon 2020—the Framework Programme for Research and Innovation (2014–2020) and repealing Decision No 1982/2006/EC.

  16. 16.

    Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC.

  17. 17.

    European Commission (2016c).

  18. 18.

    Hancher (2016).

  19. 19.

    European Commission (2010b).

  20. 20.

    European Commission (2011).

  21. 21.

    European Commission (2013c).

  22. 22.

    European Commission (2013b).

  23. 23.

    Directive 2014/94/EU of the European Parliament and of the Council of 22 October 2014 on the Deployment of Alternative Fuels Infrastructure.

  24. 24.

    Commission Decision C(2015) 5572 final of 11 August 2015 on State Aid SA.38769 (2015/N), The Green Deal for Publicly Accessible Charging Infrastructure Scheme (The Netherlands).

  25. 25.

    Directive 2014/94/EU of the European Parliament and of the Council of 22 October 2014 on the Deployment of Alternative Fuels Infrastructure.

  26. 26.

    European Commission (2013a).

  27. 27.

    This modification was not included in: European Economic and Social Committee (2013b) or Committee of the Regions (2013).

  28. 28.

    United States Environmental Protection Agency (EPA). Overview of Greenhouse Gases. https://www.epa.gov/ghgemissions/overview-greenhouse-gases [accessed 2 December 2016].

  29. 29.

    United States National Aeronautics and Space Administration (NASA). Methane’s Impacts on Climate Change May Be Twice Previous Estimates. https://www.nasa.gov/vision/earth/lookingatearth/methane.html [accessed 2 December 2016].

  30. 30.

    These provisions were introduced in: European Parliament (2013), p. 6, para. 8.

  31. 31.

    European Economic and Social Committee (2013b).

  32. 32.

    European Commission (2017).

  33. 33.

    European Commission (2016b).

  34. 34.

    Information available at www.ec.europa.eu/regional_policy/en/funding/cohesion-fund/—last retrieved 13 June 2016. Other cohesion instruments for sustainable and urban mobility include the European Structural and Investment Funds (ESIF), the Joint Assistance to Support Projects in European Regions (JASPERS), the territorial and regional cooperation programs INTERREG and URBACT III and the plan for innovative actions in sustainable urban development. Information available on the website of the European Local Transport Information Service (http://www.eltis.org/resources/eu-funding—last retrieved 19 June 2016).

  35. 35.

    Information available on the website of the European Local Transport Information Service (www.eltis.org/resources/eu-funding—last retrieved 19 June 2016). Other EU funds applicable to sustainable mobility include those of the European Energy Efficiency Fund, the European Fund for Strategic Investments (EFSI), the Programme for the Environment and Climate Action (LIFE), the Horizon 2020 initiative and the Fuel Cell and Hydrogen Joint Undertaking for H2 mobility related projects. Some of these funds (as EFSI) are joint initiatives of the Commission and the EIB.

  36. 36.

    Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010, p. 129; see also European Parliament (2014), p. 10, para. 16.

  37. 37.

    Daintith (1987).

  38. 38.

    Cf. i.e., EFTA Surveillance Authority Decision No 76339 of 21 April 2015 on the State aid measures in favour of electric vehicles (Norway).

  39. 39.

    Directive 2004/17/EC of the European Parliament and of the Council of 31 March 2004 coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors.

  40. 40.

    Slocock (2002), pp. 23–26.

  41. 41.

    Case C-280/00 Altmark Trans GmbH and Regierungspräsidium Magdeburg v Nahverkehrsgesellschaft Altmark GmbH, Judgment Judgment ECLI:EU:C:2003:415 of 24 July 2003; Commission Decision 2012/21/EU(notified under document C(2011) 9380) of 20 December 2011 on the application of Article 106(2) of the Treaty on the Functioning of the European Union to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest; European Commission (2012a, b); Commission Regulation (EU) No 360/2012 of 25 April 2012 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid granted to undertakings providing services of general economic interest.

  42. 42.

    Estonian World (20 February 2013) Estonia becomes the first in the world to open a nationwide electric vehicle fast-charging network. http://estonianworld.com/technology/estonia-becomes-the-first-in-the-world-to-open-a-nationwide-electric-vehicle-fast-charging-network, accessed 29 May 2017. Reuters (20 February 2013) Estonia goes electric with new car charger network. http://www.reuters.com/article/us-estonia-environment-cars-idUSBRE91J1EM20130220 [accessed 29 May 2017].

  43. 43.

    Forbes (26 February 2013) Estonia Launches Nationwide Electric Vehicle Fast-Charging Network. http://www.forbes.com/sites/justingerdes/2013/02/26/estonia-launches-nationwide-electric-vehicle-fast-charging-network/#2610e3782610 [accessed 29 May 2017].

  44. 44.

    Estonian World (20 Febraury 2013) Estonia becomes the first in the world to open a nationwide electric vehicle fast-charging network. http://estonianworld.com/technology/estonia-becomes-the-first-in-the-world-to-open-a-nationwide-electric-vehicle-fast-charging-network [accessed 29 May 2017].

  45. 45.

    Joller and Varblane (2015), pp. 57–67.

  46. 46.

    Reuters (20 February 2013) Estonia goes electric with new car charger network. http://www.reuters.com/article/us-estonia-environment-cars-idUSBRE91J1EM20130220 [accessed 29 May 2017]. Grants to acquire PEV, which were available to end-users from 2011 for PEV and 2012 for hybrid CEV until 2014, fell under the de minimis threshold and were thus not notified to the Commission. Information on grant period available at http://elmo.ee/about/. Information on the application of de minimis rules obtained through correspondence from 30 September 2016 with Heikki Parve, KredEX Project Manager.

  47. 47.

    The Guardian (20 February 2013) Estonia launches national electric car charging network. http://www.theguardian.com/environment/2013/feb/20/estonia-electric-car-charging-network [accessed 29 May 2017].

  48. 48.

    Correspondence from 14 September 2016 with Heikki Parve, KredEX Project Manager.

  49. 49.

    Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC; The programme period of 2011–2014 corresponds to the trade period of AAUs according to the Kyoto Protocol.

  50. 50.

    Commission response to my application for access to documents—Ref GestDem No 2016/6662, Brussels, 16 December 2016, GROW/C3/NM/mm(2016) 7609437. The letter states that the Estonian scheme was encompassed in the ‘Impact Assessment Study Concerning the Charging of Electric Vehicles (Report, May 2013)’ from DG MOVE, which remained confidential by the time the response was issued.

  51. 51.

    Reuters (20 February 2013) Estonia goes electric with new car charger network. http://www.reuters.com/article/us-estonia-environment-cars-idUSBRE91J1EM20130220 [accessed 29 May 2017].

  52. 52.

    Hybridcars (16 January 2014) Top 6 Plug-In Vehicle Adopting Countries—2013. http://www.hybridcars.com/top-6-plug-in-car-adopting-countries [accessed 12 June 2017].

  53. 53.

    KredEx (20 February 2013) Estonia becomes the first in the world to open a nationwide electric vehicle fast-charging network. Estonian World in Technology. http://estonianworld.com/technology/estonia-becomes-the-first-in-the-world-to-open-a-nationwide-electric-vehicle-fast-charging-network [accessed 14 June 2017]. Reuters (20 February 2013) Estonia goes electric with new car charger network. http://www.reuters.com/article/us-estonia-environment-cars-idUSBRE91J1EM20130220 [accessed 29 May 2017].

  54. 54.

    Netherlands Enterprise Agency (RVO.nl) (2011) Electric Mobility gets up to speed—2011–2015 Action Plan. https://www.rvo.nl/sites/default/files/bijlagen/Action%20Plan%20English.pdf [accessed 29 May 2017].

  55. 55.

    The decisions analysed here were chosen from a range of aids granted by the Netherlands (i.e., under the de minimis Regulation and the General Block Exemption Regulation) because of their scope and implications (Cf. COM Case SA.34719 2013 NL Page 7).

  56. 56.

    Commission Decision SG (2001) D/ 289514 of 3 July 2001 on a framework for aid for the reduction of CO2 emissions in the transport sector (The Netherlands).

  57. 57.

    Commission Decision C(2009) 3289 final of 20 May 2009 on a framework for aid for sustainability in the transport and water sectors (The Netherlands).

  58. 58.

    Commission Decision C(2015) 5572 final of 11 August 2015 on State Aid SA.38769 (2015/N), The Green Deal for Publicly Accessible Charging Infrastructure Scheme (The Netherlands).

  59. 59.

    The New York Times (9 February 2013) Plugging In, Dutch Put Electric Cars to the Test. http://mobile.nytimes.com/2013/02/10/world/europe/dutch-put-electric-cars-to-the-test.html?_r=0&referer= [accessed 19 June 2017].

  60. 60.

    Netherlands Enterprise Agency (RVO.nl) (2015) Electromobility in the Netherlands –Highlights 2014. https://www.rvo.nl/sites/default/files/2015/04/Electromobility%20in%20the%20Netherlands%20Highlights%202014.pdf [accessed 19 June 2017].

  61. 61.

    In this case, the German energy company RWE had requested an investigation into whether the Dutch DSO Alliander had overstepped its core competencies. The reason for this was that three companies under Alliander’s wing were developing energy efficiency and flexibility management software, a competitive market in RWE’s view. The ACM was of the opinion that Alliander had not overstepped its core competencies. The behind this was twofold. First, the ACM held that the activities under review did not entail the supply or trade in energy but merely an improvement of energy efficiency. Second, the authority believed that the stage for intervention had not yet come; it could not yet decide on the matter conclusively because the software at issue was still under development and it was yet unclear whether the DSO wanted to take on an additional role or not.

  62. 62.

    Reuters (20 February 2013) Estonia goes electric with new car charger network. http://www.reuters.com/article/us-estonia-environment-cars-idUSBRE91J1EM20130220 [accessed 29 May 2017]; Hybridcars (16 January 2014) Top 6 Plug-In Vehicle Adopting Countries—2013. http://www.hybridcars.com/top-6-plug-in-car-adopting-countries [accessed 19 June 2017].

  63. 63.

    European Free Trade Association Surveillance Authority, Decision of 16 September 2015 raising no objections to the programme for alternative fuels infrastructure (Norway), 336/1 5/COL.

  64. 64.

    Mobility Norway website. http://www.electricmobility.no/English [accessed 2 October 2016].

  65. 65.

    Mobility Norway website. http://www.electricmobility.no/English [accessed 2 October 2016].

  66. 66.

    European Free Trade Association Surveillance Authority, Decision of 21 April 2015 on State aid measures in favour of electric vehicles (Norway), 150/15/COL.

  67. 67.

    European Free Trade Association Surveillance Authority, Decision of 16 September 2015 raising no objections to the programme for alternative fuels infrastructure (Norway), 336/1 5/COL.

  68. 68.

    European Free Trade Association Surveillance Authority, Decision of 16 September 2015 raising no objections to the programme for alternative fuels infrastructure (Norway), 336/1 5/COL.

  69. 69.

    European Free Trade Association Surveillance Authority, Decision of 16 September 2015 raising no objections to the programme for alternative fuels infrastructure (Norway), 336/1 5/COL.

  70. 70.

    European Commission, Decision of 11 August 2015 on the Green Deal for Publicly Accessible Charging Infrastructure Scheme (The Netherlands), C(2015) 5572 final; European Free Trade Association Surveillance Authority, Decision of 16 September 2015 raising no objections to the programme for alternative fuels infrastructure (Norway), 336/1 5/COL.

  71. 71.

    Cf. i.e., Commission Decisions in cases N 142/2005—United Kingdom, N 386/2010– Denmark and SA.30741 (2011/N)—United Kingdom.

  72. 72.

    Commission Decision SA.34719 (2013/N) of 20 November 2013 on the Netherlands Electric transportation scheme in Amsterdam (The Netherlands).

  73. 73.

    Since the funds and number of charging stations were limited, the measure could not distort competition under the de minimis principle.

  74. 74.

    European Commission (2016a).

  75. 75.

    Commission Decision 2007/374/EC of 24 January 2007 on State aid implemented by the Italian Republic for the subsidised purchase of digital decoders.

  76. 76.

    Meeus and Hadush (2016), pp. 1–6.

  77. 77.

    Norwegian Regulation No 1377 of 10 December 2001 concerning the levy on the electricity distribution tariff, Section 2 and 3.

  78. 78.

    European Commission (2010b).

  79. 79.

    European Economic and Social Committee (2013a).

  80. 80.

    EFTA Surveillance Authority Decision No 77595 of 16 September 2015 raising no objections to the programme for alternative fuels infrastructure (Norway).

  81. 81.

    Commission Decision C(2015) 5572 final of 11 August 2015 on State Aid SA.38769 (2015/N), The Green Deal for Publicly Accessible Charging Infrastructure Scheme (The Netherlands).

  82. 82.

    David (1985), pp. 332–337; Arthur (1989), pp. 116–131; and Perkins (2003).

  83. 83.

    EFTA Surveillance Authority Decision No 77595 of 16 September 2015 raising no objections to the programme for alternative fuels infrastructure (Norway).

  84. 84.

    Committee on Transport and Tourism (2013), amendment 70 (Article 4—para. 3—subpara. 2a).

  85. 85.

    European Economic and Social Committee (2013a).

  86. 86.

    The Engineer (2010) Unplugged: inductive charging on the road. http://www.theengineer.co.uk/unplugged-inductive-charging-on-the-road [accessed 6 April 2016].

  87. 87.

    Directive 2014/94/EU of the European Parliament and of the Council of 22 October 2014 on the Deployment of Alternative Fuels Infrastructure; Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010.

  88. 88.

    Committee of the Regions (2013), p. 68 [8].

  89. 89.

    Such measures can be declared illegal under WTO law.

  90. 90.

    Netherlands Enterprise Agency (RVO.nl) (2011) Electric Mobility gets up to speed—2011–2015 Action Plan. https://www.rvo.nl/sites/default/files/bijlagen/Action%20Plan%20English.pdf [accessed 14 Jun 2016].

  91. 91.

    European Commission (2013c).

  92. 92.

    EFTA Surveillance Authority Decision No 77595 of 16 September 2015 raising no objections to the programme for alternative fuels infrastructure (Norway).

  93. 93.

    In Estonia subsidies paid to the renewable energy producers are financed by electricity consumers through the renewable energy charge, paid by every end user in Estonia in accordance to their network service capacity (Estonian Wind Power Association 2015). For the Netherlands and Norway, see Commission Decision State Aid SA.38769 (2015/N)—The Netherlands and EFTA Surveillance Authority, Decision No 76339—Norway, respectively.

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Authors and Affiliations

  1. Center for European Integration Studies, University of Bonn, Bonn, Germany

    Ana Trías

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  1. Faculty of Law, University of Lucerne, Lucerne, Switzerland

    Klaus Mathis

  2. University of Notre Dame Law School , Notre Dame, Indiana, USA

    Bruce R. Huber

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Trías, A. (2018). State Measures in Support of Sustainable Mobility Infrastructure: The Case of Estonia, the Netherlands, and Norway. In: Mathis, K., Huber, B. (eds) Energy Law and Economics. Economic Analysis of Law in European Legal Scholarship, vol 5. Springer, Cham. https://doi.org/10.1007/978-3-319-74636-4_16

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