Israel is gearing up for a substantial increase in electric vehicle (EV) adoption by the end of this decade, with a projection that nearly one-third of all cars on its roads will be powered by the grid rather than gasoline, according to the nation’s Energy Ministry.
This surge in EV adoption is anticipated to place significant stress on Israel’s national power grid, representing approximately 6% of the total electricity demand. To accommodate this growing demand, the ministry has identified the need for a tenfold expansion in battery charging infrastructure.
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This forecast coincides with the Israeli government’s ongoing reassessment of its energy export policy. The objective is to enhance natural gas exports throughout the region while ensuring adequate reserves to meet the needs of a rapidly expanding population. Currently, Israel relies heavily on its newly discovered natural gas deposits as its primary source of power.
The official forecast from the Energy Ministry projects that by 2030, approximately 1.3 million cars, equivalent to 30% of the country’s total, will be electric, up from the current 70,000 electric cars, which constitute less than 2% of the total. Looking further ahead, the ministry anticipates that by 2050, all 6 million vehicles on Israeli roads will be electric.
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These developments are expected to occur despite an impending increase in taxes on electric cars. Starting in 2024, the tax rate for electric vehicles is set to rise to 35%, up from the current 20%. However, this increase will be offset by a reduction in income from gasoline sales, which are taxed at a rate of 50%.
Furthermore, the Energy Ministry also foresees that approximately 35% of buses in Israel will be electric by 2030, further contributing to the nation’s efforts to reduce its carbon footprint and transition to cleaner energy alternatives.
