The Government has set a target of 10% of all vehicles to be powered by electricity by 2020. This will represent some 250,000 cars on Irish roads over the next 12 years.

Announcing the Government's plans, Minister for Communications, Energy and Natural Resources, Eamon Ryan said: "The Irish Government is signalling its intentions to national and international players that Ireland is 'open for business.' We are positioning ourselves as a centre for electric vehicles. The Government expects considerable international investment to emanate from this plan."

The electric vehicles plan includes:

Tax incentives for business to purchase electric vehicles.

Businesses can write off 100% of the cost of purchase against tax under the Accelerated Capital Allowance Scheme.

A €1 million project by Sustainable Energy Ireland to research, develop and demonstrate of vehicles nationally.

Assistance for individuals purchasing electric vehicles.

Publication of a buyer's guide' and a 'cost of ownership calculator' by Sustainable Energy Ireland.

Establishment of a National Task Force, which will examine infrastructure options for national roll-out of electric vehicles, including street charging.