The Australian Electric Vehicle Market Study commissioned in partnership with the Clean Energy Finance Corporation, and prepared by Energeia consists of two related parts – Part A – Strategic Review of Electric Vehicle Charging Infrastructure and Part B – Market Review of Electric Vehicle Sales, Stock and Infrastructure.
1 Executive Summary
Energeia’s Australian Electric Vehicle Market Study research review of Plug-in Electric Vehicles (PEV) charging infrastructure, and market modelling of PEV sales and associated charging infrastructure requirements have uncovered the following key findings.
1.1 Electric Vehicle Charging Infrastructure Policy and Regulation
Energeia’s benchmarking of international comparator markets identified the role of financial and non-financial incentives, and reviewed the case study of Norway, the world leader for PEV uptake. This case study showed clearly that financial incentives, and particularly reductions in up-front purchase costs, are the incentives that impact most strongly on PEV purchase decisions, and that non-financial incentives play a supporting rather than leading role.
From the review of comparator jurisdictions, Energeia identified the following uptake levers that could be used to drive uptake of PEVs in Australia:
- Purchase Incentives – Any increase in direct Australian financial incentives for PEV adoption will drive improved PEV model availability, which in turn will drive demand.
- Procurement Targets – Limited numbers (300-500 cars per year) bought via a co-ordinated fleet buying program would be sufficient to attract Original Equipment Manufacturer (OEM) interest to import new right-hand drive models not yet made available in Australia.
- Import Regulation – Adoption of third party imports of PEVs would increase both model availability and overall uptake in Australia (in line with the New Zealand experience).
- Fuel Efficiency Regulation – Implementation of 105g/km fuel efficiency standard would underpin a significant increase in PEVs in Australia driven by OEMs more aggressively marketing their PEVs in order to meet their compliance targets at least cost.
- Global Internal Combustion Engine Vehicle Bans – OEMs are increasingly likely to consider either removing Internal Combustion Engines (ICEs) from their vehicle portfolio and replace those models with PEV alternatives over the 10 to 30-year timeframe.