Volkswagen launches 5-year project on Greek island

German carmaker Volkswagen on Wednesday launched a five-year project on the small Greek island of Astypalea to test the adoption of electric vehicles in areas which plan to switch to sustainable energy generation.

The 20 million euro ($24.4 million) initiative, which will receive financial support from the Greek government, will provide residents purchasing incentives to swap conventional vehicles for electric cars and scooters.

They'll also be given options to test ride-share applications and public transport models driven by customer demand instead of using fixed schedules and routes.

Greek Prime Minister Kyriakos Mitsotakis said the program - branded "E-Mobility" - represented a "new beginning" for the island.

Volkswagen CEO Herbert Diess said the program would make people's lives cleaner, easier and more convenient.

Greece is keen to develop power generation from renewable energy sources on its islands to replace expensive locally-produced electricity, mostly using diesel.

The government plans to use wind and solar power for the Astypalea project.

Officials said researchers from the Universities of the Aegean in Greece and Strathclyde in Scotland were also participating in the program.