EVs could 'reshape' the entire energy system - report

A massive, co-ordinated effort to help more people into electric vehicles could reshape the country's entire energy system, a new report says.

EV advocacy group Drive Electric launched its 'State of the Nation' report at Parliament today, calling for consistent, cross-party policies to get more battery EVs and charging infrastructure on the road.

New Zealand's access to renewable energy gave the country a huge structural advantage, but policy changes that axed many incentives meant uptake was now lagging, the report said.

EVs should no longer be thought of as "just vehicles", it said.

Their ability to store power made them "mobile energy assets that could reshape how New Zealand generates, stores, and uses electricity".

About 18 percent of New Zealand's total emissions - and nearly half of all carbon dixoide emissions - come from the transport sector.

But electrifying transport would do far more than just helping New Zealand meet its emissions reduction targets, the report said.

"It strengthens energy security, reduces reliance on imported oil and allows more of New Zealand's transport system to run on locally produced renewable electricity."

New Zealand spent $7-$9 billion on petroleum imports every year, and local research had estimated the social costs from transport emissions were $10.5b annually.

That included 9000 hospital admissions and more than 2000 premature deaths every year from respiratory and cardiac conditions caused by air pollution.

The report called for "a long-term, durable cross-party strategy", with consistent, co-ordinated policies to drive uptake across passenger vehicles, business fleets, and heavy vehicles.

"It is not idealism - it is the minimum requirement for investors, who make decisions over multi-year horizons, and to give consumers confidence."

The report honed in on the potential of 'vehicle-to-grid' technology, where off-peak electricity can be stored and then exported back to the grid from parked household and business EVs at times of peak demand.

Australia had gone from piloting the concept, to having it ready to launch this year, in just 18 months, the report said.

New Zealand could do the same, with vehicle-to-grid capability available in many EVs now but not enabled.

"The constraint is not hardware. It is co-ordination."

Household and business EV owners should be allowed to earn revenue from vehicle-to-grid technology, and there had to be consistency across lines companies, the report said.

Enabling vehicle-to-grid could help balance supply and demand across the electricity system.

"If 30 percent of New Zealand's fleet were V2G-enabled, the combined output would be comparable to all of New Zealand's power stations running at full capacity."

Even without full vehicle-to-grid capability, there were huge benefits to individual households and businesses from increasing the number of EVs, it said.

The stored energy could be used to power appliances and tools and run household and building electricity systems - including during network outages.

Despite the benefits of electrifying transport, and building momentum around the world, New Zealand's own transition had slowed.

The report pinned the blame firmly on the government's decision to axe most incentives, including the Clean Car Discount and road user charge exemptions for EVs, along with weakening the Clean Car Standard that penalises importers for bringing in higher-emissions vehicles.

EVs fell from 27 percent of all new vehicle sales in New Zealand in 2023, to 11 percent last year, although increased to 18 percent in the first quarter of this year as a result of the fuel crisis.

The government has defended its decisions, saying the discount was largely being used by people who did not need the help, while importers were unable to source enough low-emissions vehicles to avoid penalties.

It has since announced $53 million in zero-interest loans to help Meridian and ChargeNet to keep building out their charging networks, which will more than double the number of public EV chargers from 1800 to 4500 by 2030.

However, the report pointed out that would still fall well short of the government's target of 10,000 public chargers by that date.

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