The federal government will provide $1.6 million in funding for a trial of smart hardware designed to manage the recharging of electric vehicles at home.
The new trial, which will cost stakeholders $3.4 million in total, is the latest in which the government’s Australian Renewable Energy Agency (ARENA) is supporting local initiatives such as EV manufacturing and a three-year trial of the demand residential EV ownership will place on the national electricity grid.
It also comes as the Morrison government today released a ‘Future Fuels Strategy’ discussion paper that is designed to support industry and broaden consumer choice across a variety of automotive technologies “including traditional fuel, hybrid, hydrogen fuel cell, electric and bio-fuelled vehicles”.
Welcomed by some in the industry and criticised by others for not going far enough, the discussion paper provides no firm commitments on reducing vehicle emissions or providing specific incentives to stimulate widespread sales of EVs.
But as well as removing barriers that discourage vehicle technology development and adoption, a key plank of the Future Fuels Strategy is the investment in infrastructure – as evidenced by the new EV charging trial that will run in the ACT, Victoria and Tasmania and monitor 176 residential properties housing EVs.
“As the penetration of EVs increases, it will be important to manage and orchestrate the charging of vehicles to avoid negative impacts on networks and costs and ensure the optimal outcome for all parties,” said ARENA CEO Darren Miller.
“Networks will be key to this as they hold the ultimate responsibility for integrating EVs into their grids while maintaining security of supply and minimising costs.”
The stakeholders involved are all companies with a history of energy distribution and asset/resources management, including Jemena Networks (formerly Alinta LGA), AusNet, Evoenergy, TasNetworks and United Energy. Jemena is taking the lead on the project.
These companies are Distribution Network Service Providers (DNSP), not electricity retailers. According to ARENA, this is the first time DNSPs have been directly involved in EV charge management.
The aim is to establish the efficiency of ‘managed’ charging systems, and to shed light on the costs to the DNSPs and, ultimately, the consumer. The DNSPs will be able to improve network infrastructure at lower cost as a consequence.
“With more and more Australians buying electric vehicles, Jemena is playing its part to support this adoption while ensuring the electricity grid can manage the extra consumption, particularly in neighbourhoods that already have a high uptake of electric vehicles,” said executive general manager of Jemena, Shaun Reardon.
The announcement of the new EV charging trial and the release of the Future Fuels Strategy discussion paper today coincided with a statement of support from the Federal Chamber of Automotive Industries (FCAI) – which represents the car-makers – and a statement of condemnation from the Electric Vehicle Council, which also represents many of those same car manufacturers.
FCAI chief executive Tony Weber said the government’s strategy, which was delivered by the minister of energy and emissions reduction, Angus Taylor, “presents a strong position” that allows the market to determine the direction and update of new technology.
“It is very significant that the minister is placing the focus on a mix of technologies rather than taxation to lead the transition,” he said.
“Globally, our member companies are taking a lead in emissions reduction and invest more than $100 billion every year in research and development to design and build the low and zero-emission vehicles of the future.
“This research continues to present us with a vast range of options – from highly efficient internal combustion engines, through hybrids to battery or plug-in electric and hydrogen fuel cell.
“The government is wise to acknowledge that the future directions include this range of technologies.
“Governments should choose targets – not technology. The market is already showing us that these advanced drive technologies are accepted in the Australian market if they are fit for purpose and affordable.”
In contrast, EV Council CEO Behyad Jafari described the discussion paper as little more than a “do-nothing document that will prevent Australians getting access to the world’s best electric vehicles”.
He also said the British government under Boris Johnson was providing the equivalent of over one billion dollars in electric vehicle subsidies, yet the Australian government, in the discussion paper, has refrained from supporting EVs in the local market with such subsidies.
“Global leaders from Biden to Boris are rushing to accelerate their transition to electric vehicles, but Angus Taylor reckons he knows something they don’t,” Jafari said.
“A rapid transition to electric vehicles would clean our city air, drastically reduce our carbon emissions, and free us from our insecure dependence on foreign oil imports. Mr Taylor is apparently happy to leave all those benefits on the table and cement Australia’s reputation as the world’s transport tech laggard.
“As always, the result of inaction in a dynamic environment is not stability. Australia’s inertia on EV has been noticed by the global auto sector, which now withholds the best and most affordable electric vehicles from our market.
“Many of the most popular electric vehicles in the US and UK are unavailable to Australian consumers and that trend will rapidly accelerate under Taylor’s do-nothing plan.”