Household with two EVs 51% lower energy bills by 2035

Drive Electric’s first State of Nation report sets out progress towards zero emissions transportation and energy independence, showing that by 2035 a household with two EVs will have 51% lower household energy bills.

The not-for-profit e-mobility advocacy group says its report demonstrates that electrifying the transport system will drive energy independence for New Zealand, lower costs for businesses and families and contribute to environmental improvements.

The 78-page report explores all aspects of the electric transport ecosystem in New Zealand up to June 30, 2023, and covers global trends, energy and charging infrastructure, light vehicles, heavy transport, commercial vehicles, buses, marine, aviation, bikes, batteries, consumer and fleet trends, policy and more.

Highlights from the report that draws on a range of sources include that global EV sales have increased 730% since 2017, 343 EV models were available worldwide last year (with BYD and Tesla the biggest EV brands), average range has doubled in the last decade and average prices have fallen almost NZ$16,834 (US$10,000), the NZ light EV fleet has increased 9.5 times in the last five years, the Clean Car programme has provided more than 100,000 rebates and reduced newly registered vehicles’ average emissions by 21%, Wellington has the highest market share of EV registrations, Canterbury has the highest number of public chargers, and 24% of all New Zealand bus registrations were electric in 2022.

“We are proud to release this report as it shows New Zealand has made considerable progress with the uptake of e-mobility, particularly in the light fleet,” says Drive Electric deputy chair Kirsten Corson.

“The report clearly shows the Clean Car programme has really contributed to this progress.

“It’s a policy that has driven down the price for New Zealanders and attracted greater supply to New Zealand,” she says.

“In time these New Zealand-new EVs will start to populate the secondhand fleet, making them accessible to more New Zealanders.

“However, the report shows there is still so much more to do.”

In spite of the progress, EVs remain at around 2% of the light fleet, Corson explains.

“Now is the time to double down and strive for more than two million EVs on our roads in the mid-2030s.”

Corson says e-mobility’s many benefits include cheaper fuel prices for households, fewer emissions, less air pollution, and less reliance on foreign oil.

“The report also shows that we have to significantly advance charging infrastructure,” she adds.

“Charging infrastructure underpins all forms of e-mobility, and we need to rapidly increase the availability of public charging and encourage households and businesses to adopt smart charging technology.

“As we decarbonise the economy, our demand for renewable energy will soar. This could be 60%-70% higher by 2050.

“We’ve got to make sure we can increase generation but also ensure our distribution infrastructure is ready to support this uptake,” Corson explains, adding Drive Electric encourages policymakers and regulators to give electricity distribution businesses (EDBs) the mandate to enable this growth.

“This is possible, since 1996 we have added enough generation capacity to our energy system to support two to three complete EV fleets,” she says.

“It’s also great for households.

“The report is unique in that it is not all about passenger cars. We can see that our bus fleet is making real strides towards electrification, with 24% of registrations electric in 2022.

“There are some green shoots in our marine sector too, with electric ferries docking in Wellington and Auckland. And we could see electric planes carrying passengers in our skies as early as 2026.”

Heavy transport remains a challenge, according to Corson, but electric trucks have started to arrive in the New Zealand fleet with more than 100 so far.

“The investment cases for electric trucks can be challenging, but the emissions reductions from electrification are significant,” she says.

“We want to take that opportunity to the next Government and say ‘there’s real bang for buck here let’s get the settings right’.

“Globally, this report shows that e-mobility in all forms are the vehicles of the future.”

“With our advantages of renewable energy New Zealand is well positioned to take advantage of this technology and benefit financially and environmentally with its renewable energy, Corson explains.

“Let’s invest and reap the rewards.”