Australia electric vehicle debate: Charging ahead with our electric vehicle revolution

It will cost billions to build a network of electric vehicle charging stations across Australia — but would also create 13,000 jobs. It’s a project that done well, all consumers will benefit. But done poorly? The risks are overwhelming.

• What it’s like to drive an electric vehicle

It would cost $3.2 billion over the next decade to build a network of charging stations for Australia’s electric vehicle fleet.

The infrastructure investment will create more than 13,000 jobs, according to an economic analysis by professional services firm, PwC.

The need for a nationwide charging network has been added to the high priority list of the Federal Government’s independent advisers, Infrastructure Australia, and reflects “forward-thinking, ambitious solutions to support our future prosperity”.

“The advent of electric vehicles, along with automation, growth in the ‘sharing economy’ and technological connectivity, could bring the largest transformation the transport sector has seen since the shift from steam to diesel locomotives,” Infrastructure Australia said in February.

“It is expected that the distance vehicles can travel on a single charge will continue to improve with technological advancements, and that vehicle prices will reduce as production scale increases and the cost of batteries reduces.

“By 2040, electric vehicles are projected to account for 70 per cent of new vehicle sales and 30 per cent of the vehicle fleet in Australia.”

PwC’s economic analysis was commissioned by the Electric Vehicle Council, the St Baker Energy Innovation Fund and the largest motoring organisation, the NRMA.

The council says that “overwhelmingly” investment will be from the private sector.

THE STATE OF ELECTRIC CARS

Initially, federal funding would kickstart a network such as the $6 million grant from the federal Australian Renewable Energy Agency to Chargefox last October — a company building 21 superfast charging stations from Adelaide to Brisbane.

Once motorists had the “comfort” of seeing a network, commercial imperatives would drive demand, Electric Vehicle Council chief executive Behyad Jafari said.

“We need some infrastructure to exist for people to start buying the vehicles so that the economics then make sense for the private sector to take over,” he said.

Energy sellers, accommodation, tourism and hospitality services and shopping centres would be interested.

“Quite often it’s provided free because it’d only cost the business $3 or $4 to top-up their customer’s car,” he said.

But so far sales of electric vehicles have been very slow, only 0.2 per cent of the total in 2017.

Electric vehicles come in two forms — Battery Electric Vehicles (BEV) only have the rechargeable battery; Plug-in Hybrid Electric Vehicles (PHEV) have both a battery and an internal combustion engine to power the drive train.

The Federal Chamber of Automotive Industries says in 2018 there were 189 BEVs sold and 1163 PHEVs.

Sales are increasing with 148 BEV and 576 PHEV sold so far this year. The numbers exclude Tesla which only publishes global sales.

The chamber says “Australia must join the rest of the world in preparing for these vehicles”.

“It’s critical that Australian consumers have the opportunity to enjoy the environmental and safety benefits these low emission vehicles offer,”, chamber chief executive Tony Weber said.

Retailers report high levels of interest and a sales backlog.

Solitaire Jaguar in Hawthorn is awaiting deliveries on orders for its I-PACE but gave National Motor Museum officer Dane Wilden a test drive.

“It’s very impressive, the power is incredible,” he said.

Mr Wilden edits the Jaguar Driver’s Club of SA magazine and says the marque’s loyal followers will be won over.

Maughan Thiem Hyundai handed over the first two Kona Electrics this week. “Demand is outstripping supply,” said sales consultant Darryl Arthur.

All major manufacturers are moving to electric vehicles.

BMW said it would “offer 25 electrified vehicles by 2025, 12 of which will be fully electric”. The MINI Countryman PHEV will be showrooms in July.

Nissan’s Leaf is due in July.

Toyota will “electrify the entire vehicle line-up” by 2025 but was still choosing technology. For utes it is yet to decide if this would be the HiLux.

Rivian, a US company which won $US700 million funding from Amazon, is making a ute with a 640km range and power to tow five tonnes.

Australia by 2021 is “definitely part of our plans”, Rivian told The Advertiser.

Lower running and maintenance costs will make the vehicles more attractive, especially when cheaper models are available.

Over a 10 year ownership period, UBS estimates the total cost for an electric vehicle will be $11,000 less than a petrol car by 2025.

The Motor Trade Association is preparing for change with its apprenticeship program including training on electric and hybrids.

MTA general manager of training Tim Buckley called for the Federal Government to develop a 10-year plan with industry because of disruption risks to automotive businesses.

Electric vehicle batteries have at least four or five times the capacity of home batteries and will cause significant change to the electricity grid.

AGL has run pilot projects including using the vehicle batteries to smooth demand.

AGL general manager energy management Nick Ruddock said “home charging is a potentially significant and highly deferrable load”.

The Australian Energy Market Operator estimates there will be 5.5 million electric vehicles in Australia by 2038.

AEMO says that if proactively planned and managed, there will be value to all electricity consumers.

However, there would be risks if the rollout is not part of holistic management of the network.

Issues include the need for the market operator to have visibility of charging and consideration of the local context.

A fast-charging station at a rural stopping point will have a more significant effect on the surrounding network than in a metropolitan setting.

AEMO says that if proactively managed, there will be value to consumers broadly.

It expects various business models to emerge where the owner of an electric vehicle can monetise their asset through two-way interaction with the electricity market.

A significant electric vehicle fleet also will help Australia’s security by lessening dependence on imported liquid fuel.

CITY VS COUNTRY DEBATE HEATS UP

By Matt Smith, National Affairs Editor

Driving habits of city versus country voters are being used to fuel debate about electric vehicles.

The Coalition has released modelling, based on ABS statistics, that shows the electorates with the most voters that rely on vehicles.

The three electorates in the country that relied the least on vehicles were Sydney, Melbourne and Grayndler prompting calls from energy minister Angus Taylor that Labor’s electric vehicle policy, that includes a target for 50 per cent of all new car sales to be electric vehicles by 2030, would benefit city dwellers over country voters.

However, Labor has laughed off the suggestion arguing voters in regionals areas, where fuel prices are traditionally higher, would be big winners.

In South Australia the electorate of Adelaide had the least reliance on cars, with 76.2 per cent, followed by Boothby, 83.3 per cent and Sturt 82.7 per cent.

The electorates with the highest reliance on vehicles were Barker, 93.4 per cent, Spence, 91.7 per cent and Mayo, 91.43 per cent.

Mr Taylor said the data shows Labor expect families in the lowest income electorates with the highest reliance on vehicles to get to work to bear the greatest burden of their extreme and expensive policies.

“It’s all well and good for Labor to spruik these policies in the cities, where people have multiple options for public transport to commute,” Mr Taylor said.

“But what about those families in the outer suburbs and the regions, who have no choice but to take the car?

Labor’s energy spokesman Mark Butler said the Liberals were engaging in a desperate scare campaign.

“The transition to EVs will benefit regional motorists as much, if not more, than urban motorists,” Mr Butler said.

“The majority of the average annual saving of $2,300 of owning an EV comes from reduced fuel costs.

“These reduced fuel costs will be greater for regional motorists, because regional fuel is typically more expensive than in cities, and regional motorists drive greater distances.”