EVs to play growing role in Australian energy security

The Australian government forecasts electric vehicles (EVs) to consume around 2pc of the country's grid electricity output by 2030 or around 5.2TWh, with it looking at policies to increase EV uptake to raise Australia's petroleum energy security and help it achieve its emissions reduction targets by 2030.

Fossil fuels, such as gasoline and diesel, accounts for over a third of Australia's energy use, including nearly all of its transport needs, the Australian government's Department of the Environment and Energy said in a submission to the Australian Senate's inquiry into EVs.

The department is assessing Australia's liquid fuel security to help deliver reliable energy and support Australia's national defence, which will be completed by the end of 2018. The outcomes of this assessment will help inform Australia's plan to restore its IEA emergency fuel stocks obligations, which will consider the role of electricity and EVs.

Transport is the second-largest source of greenhouse gas emissions (GHG) in Australia behind electricity. Under current policies, transport sector emissions are projected to steadily increase to 112mn t of CO2 equivalent by 2030 or a 15pc increase from present levels, the department said. The increase is because of population and economic growth, with cars and light

commercial vehicles projected to remain the sector's largest source of emissions.

A typical EV uses 19kWh of energy to travel 100km, compared with 67kWh for the average gasoline vehicle, said the submission.

The Australian Energy Market Operator (AEMO) and the industry group representing power transmission and distribution networks Energy Networks Australia are examining the market frameworks needed to support more distributed energy resources, including EVs, and how to optimise them to ensure they support the electricity system, AEMO said in its submission.

The federal government has no EV policy and Australia has relatively low level of hybrid EVs and battery EVs, with only state and territory governments adopting any policy measures.

The Queensland state government launched a EV strategy in 2017 that focuses on building a network of charging stations along the state's coastal towns. The Australian Capital Territory has a commitment to ensure 50pc of newly leased government passenger fleet vehicles are zero emission vehicles in 2019-20, increasing to 100pc of newly leased vehicles from 2020-21.

Two of Australia's largest utilities AGL Energy and Origin Energy both support the increased EV uptake.

Origin said in its submission that financial incentives should be provided by federal and state governments, similar to the early days of encouraging household solar. Originally small solar systems were encouraged with an up-front point of sale rebate of A$8,000 ($5,800), which was funded by the federal government. A similar amount could be appropriate for EV support in Australia, Origin said.