New rules promise cheaper charging

EV chargers supplied in New Zealand will need to meet a minimum standard of “smart functionality” under new regulations being proposed by the government, which it says will make charging vehicles easier and more affordable.

Such smart devices will need to be clearly labelled to help people to choose chargers that can automatically shift charging to cheaper times, such as overnight or other off-peak periods, based on price and network signals.

Simeon Brown, Minister for Energy, says the plans will also help ensure the electricity system is ready for growing demand from EV owners.

He notes that by 2050, smart EV charging could reduce household power bills by up to $220 a year and save up to $4 billion in electricity network costs.

“More New Zealanders are choosing electric vehicles, or considering one for the future, and we need to make sure our electricity system is ready,” he adds.

The proposed rules will apply to new EV chargers with a charging capacity above 2.4kW, covering most fixed household and business chargers.

Brown, pictured, explains this means consumers will be able to charge vehicles overnight at cheaper times without needing to think about it, which is set to become increasingly important as EV uptake grows and electricity demand rises.

“Without smarter charging, unmanaged EV charging could increase household peak demand by up to 40 per cent and add around $220 a year to the average household power bill by 2050. Managing charging can avoid these costs,” he continues.

“That additional demand would fall on peak times, putting pressure on the grid and driving the need for costly new electricity generation and network upgrades – costs that would ultimately be passed on to consumers.”

Smart EV charging helps avoid this by shifting demand away from peak periods and responding to signals such as time-of-use or dynamic pricing, as well as network constraints.

The new requirements would be enabled through amendments to the Energy Efficiency and Conservation Act 2000, with the proposed legislation expected to be introduced to Parliament later this year.

Public consultation will be conducted on the draft rules before they come into force.

The changes would make New Zealand more closely aligned with Australia and other key trading partners, including the European Union, the UK and China, which are moving towards regulating smart EV charging.

“Our focus is on ensuring all Kiwi households and businesses have secure, affordable energy, particularly as demand grows,” says Brown. 

“This change is about building the future of New Zealand’s energy system – one that is smarter, more resilient, and better able to support the growing use of electric vehicles.”