Budget cash must be ‘well targeted’
Drive Electric has welcomed the announcement in the budget that $120 million will be invested to enable the roll-out of public-charging infrastructure in New Zealand in partnership with the private sector.
The adoption of electric vehicles (EVs) in New Zealand has accelerated in the past two years. In 2022, they comprised almost 11 per cent of sales in the new and used light-vehicle market, which was more than double the figure in 2021.
Mark Gilbert, chairman of Drive Electric, says: “With the uptake of EVs exceeding expectations, New Zealand needs a robust national network of charging sites to underpin this demand.
“The International Energy Agency’s analysis shows that New Zealand’s public-charging infrastructure is well behind that of comparative countries.”
Gilbert, pictured, adds the announcement in Budget 2023 is significant because it should enable major charging providers to work alongside the government to accelerate the roll-out of public infrastructure for all Kiwis.
“Some sites are not currently economically viable as demand for charging in certain areas remains low, but chargers are needed to enable greater EV uptake by families.
“Additionally, the real costs associated with connecting to the electricity network can make it difficult for investment in sites to stack up. In some cases, it can take close to a decade for a large charging site to pay for itself depending on what it costs to install and connect to the electricity network.
“The good news is that we have a range of competitors already installing a range of charging stations – including the likes of ChargeNet, Tesla, Meridian, Jolt, Z Energy, and BP – and they have plans to further roll out their charging networks.
“Success will come down to how these funds are deployed. This new funding needs to be well targeted, in partnership with the charging sector, to ensure sites are installed where demand is low today, but forecast to grow or where it is not yet economic to invest. This is important for equity, access and confidence in the charging system.
“It’s worth noting government investment won’t be necessary at many public-charging sites as the economics for investment already stack up.”
In addition to the funding announcement, Drive Electric says the government has an essential role to play in enabling the private sector to deliver private and public charging by ensuring regulatory settings are fit-for-purpose and other barriers are addressed.
Its members are working with relevant agencies on the development of the national EV charging strategy to ensure the delivery of a charging ecosystem in the country.
“Ultimately, electrifying the transport system will help to decrease transport costs for families, reduce emissions and decrease air pollution,” says Gilbert.
“In the future, many New Zealanders will own, share and hire EVs, so do what’s needed to create a robust charging network to underpin the transition to a clean transport system.
“Drive Electric also welcomes the announcement regarding the clean heavy-vehicle grant scheme to provide grants towards the purchase of zero on-road emissions heavy vehicles including trucks, heavy vans and non-public transport buses.
“This grant will be useful to accelerate the uptake of these technologies, while they become economic. However, we expect this investment will need to go further in time.”
