The $490 million New South Wales Electric Vehicle Strategy sets a target of 52 percent of new car sales to be powered by electricity by 2030 as the state government pushes towards Net Zero emissions by 2050.
The benefits of electric vehicles are not limited to the environment, but also our health and air quality.
At present, Australia lags far behind the rest of the world in the uptake of electric vehicles (EV’s).
COVID19 pushed global car sales down by 20 percent in 2020, but global demand for electric vehicles still rose by 43 percent over 2019.
Globally, 4.6 percent of new car registrations in the world were for electric vehicles.
Norway is the world leader with a record high sales share of 75%. Sales of electric cars exceeded 50% in Iceland, 30% in Sweden, and reached 25% in the Netherlands.
To put that into context, Australia’s share of electric vehicles sales in 2021 was… 1.57% and 0.68% for New South Wales.
But all that is about to change. Over the next nine years, New South Wales plans to build a world-class road and EV charging network.
The aim is to make ownership of an electric vehicle easier and cheaper for motorists than it would be to run a traditional internal combustion engine.
The end game is to also support the world’s fight against global warming and climate change and to reach New South Wales’ target of net zero emissions by 2050.
What types of electric vehicles are on the market?
The global number of models of Electric Vehicles shot up by 40 percent between 2019 and 2020 to 370.
Battery EVs
Battery EVs are powered entirely by electricity and produce zero tailpipe emissions.
Hydrogen fuel cell EVs
These vehicles are powered by a hydrogen fuel cell instead of a battery. They are still in early development and have not yet gained market traction.
Plug-in hybrid EVs
As the name suggests, these vehicles are a hybrid, having a small battery and petrol or
diesel engine and can be run both on fuel and electricity.
The NSW Electric Vehicle Strategy mainly provides support for battery and hydrogen fuel cell EVs which produce no tailpipe exhaust emissions and have the capacity to be zero emissions when powered by renewable energy.
How is the New South Wales Electric Vehicle Strategy going to build the charging infrastructure?
According to Australia’s Electric Vehicle Council, there are 3,000 charging stations across the whole country. But this number needs to increase vastly if EV adoption is to take off in earnest.
Currently, across Australia, there are 7.21 electric vehicles for every installed public charger.
One of the most consistently reported barriers to motorists buying an EV is running out of charge, commonly known as range anxiety. Out of the $490 million total investment, $171 is being allocated to the charging network alone.
• $131 million is for ultra-fast charging infrastructure in areas with limited off-street parking, as well as to build EV Commuter Corridors and Super Highways across NSW
• $20 million is for destination charging infrastructure in, or near commuter car parks and other popular Transport for NSW sites
• $20 million is for destination charging infrastructure at regional tourist locations, such as motels, restaurants, and wineries.
The NSW Government’s plan can be accessed on an interactive map, showing charging stations, superhighways, and other data.
What is ultra-fast versus destination charging?
Ultra-fast chargers have a capacity of 350 kilowatts (kW). Drivers plugging into an ultra-fast charger can recharge between 200 and 400 kilometres in less than 15 minutes.
These chargers are suited to people who need to get back on the road quickly.
There are currently 181 fast chargers in NSW, but at least 3,900 fast chargers are needed across by 2031 to meet projected demand.
EV fast charging will be available within a 5km radius and stations will also be provided at 100km intervals across all major roads and highways.
Standard destination chargers have a capacity of between 7 kW and 25 kW. They can recharge between 40 km and 140 km per hour. These chargers are best suited for
places like commuter car parks and motels where people leave their cars parked for longer periods of time.
The chargers will be powered by electricity from renewable energy projects.
Upfront cost for EVs under the New South Wales Electric Vehicle Strategy
Currently, the average EV sold into the NSW market is about $28,000 more expensive than the average petrol or diesel car.
The average price of an EV is expected to fall and is expected to reach price parity with petrol and diesel cars by 2027, according to Bloomberg.
The NSW government says it is helping to reduce upfront costs to create a vibrant EV market in New South Wales that allows drivers to access the lower running cost benefits sooner.
The removal of stamp duty and $3,000 rebates for electric vehicles under a price cap, $171 million for co-funding infrastructure, and 100% bus and government fleet targets provide real, meaningful actions.
As part of the New South Wales Electric Vehicle Strategy, the government has also made a commitment to delay road user charges until the market has matured.
This will either take place by 2027 or until electric vehicles account for 30% of sales, ultimately replacing upfront stamp duty charges.
Model availability
Ultimately, this barrier to EV adoption is driven by market forces that are dependent on the creation of an efficient charging grid and an overall environment that encourages demand.
As of December 2021, Australians now have access to 31 passenger electric vehicle models from 12 different carmakers, compared to 28 models available in July 2020.
Since last year, six more models under $65,000 have been launched, bringing the total to 14.
It is expected that by the end of 2022, Australians will have access to 27 additional electric vehicle models, with a predicted 20 battery electric vehicles and seven plug-in hybrid vehicles entering the market.
This will see an expected total of 58 passenger electric vehicle models available in Australia.
Interested in the benefits of hosting an EV charger?
Leading Edge Energy has published a series of EV vehicle articles as part of our progressive approach to embracing developments in the energy sector.
You can read about the benefits of your business hosting an EV charging station, how much it costs to charge an EV and how EVs can help with grid balancing.
If you want to chat about EV developments with our experts, you can call us obligation-free on 1300-852-770 or drop us an email at info@leadingedgeenergy.com.au and one of our Energy Management Consultants will get in touch with you.
