Call to accelerate shift to EVs

An energy systems expert says New Zealand needs to rethink how it powers its transport system, with conflict in the Middle East showing how exposed the domestic market is to global fuel shocks.

Professor Nirmal Nair, from the University of Auckland’s department of electrical, computer and software engineering, says recent fuel market volatility highlights the risks of dependence on imported fossil fuels and the need to accelerate EV ready infrastructure.

New Zealand imports most of its transport fuels and fluctuating prices for such products quickly flow into household budgets, freight costs and inflation pressures.

Nair, pictured, notes this underscores the need for cleaner, locally powered transport options such as EVs, although widespread adoption depends on grid capacity, charging access and smart policies.

About 130,000, or 3.5 per cent, of New Zealand’s 3.5 million light passenger vehicles are electric. However, in Norway, a country of similar size with about 2.9 million registered vehicles, more than 30 per cent of the fleet is now electric.

Nair says Norway’s uptake has been supported by long term incentives, which started in the 1990s, including a full exemption from vehicle sales tax for EVs. More recently, it added a polluter pays tax on high emissions vehicles, making petrol and diesel cars significantly more expensive.

“Policies matter, and if we want higher EV uptake, we need to make intentional choices as a country,” he explains.

A strength for New Zealand is that most of its electricity comes from renewable sources such as hydro, geothermal and wind, and the national grid has reliably powered the country for more than a century. 

But Nair says the system will need to adapt as EV numbers grow, particularly around how electricity is priced and when people charge.

The wholesale electricity market already gives companies confidence to invest in new renewable generation, but he warns the retail side – the prices households and businesses actually pay – needs attention.

“It’s a policy decision that government, grid owners, regulators and retailers will have to collectively come together to address.

“Building a resilient, low carbon transport system will make New Zealand less vulnerable to global shocks and better prepared for the future.”

Nair adds EVs offer advantages in a world where oil markets can shift overnight, especially when powered by New Zealand’s renewable electricity, and describes electrifying transport as an effective way to cut emissions and lower operating costs.

Engineering researchers at the university will play their part in supporting such changes, with their work spanning safe large scale grid integration, battery innovation, charging optimisation and policy design. 

“These insights are essential to ensuring EVs can be adopted safely, affordably and at scale,” continues Nair.

“Building a resilient, low carbon transport system will make New Zealand less vulnerable to global shocks and better prepared for the future.”