The 'Electric Election': energy policies, side by side
Ensuring more electric vehicles can run on New Zealand-made energy needs to be seen as an issue of national security and dual fuel peakers that can run on gas or diesel can help solve the dry year issue while also improving diesel storage, unlike the LNG import terminal.
Right now, diesel prices are ramping up and some are worried we won't have enough supply to keep the economy going. We have a set amount of fuel storage in New Zealand, but if we had more EVs in the fleet we would need less of that for petrol and could devote more of it to diesel. While the majority of light vehicle fuel consumption is petrol, 1/3 is still diesel from most of our utes and vans, so electrifying these light commercial vehicles would also significantly reduce our current diesel demand. Taking both together - the reduced diesel demand from easier-to-electrify light vehicles, and the increased storage capacity from reduced petrol demand - we'd increase our diesel storage capacity significantly for our harder-to-electrify sectors.
If all our light transport fleet was electrified, it would equate to 37.5 days of diesel storage.
If one third of our fleet was electric, as it is in Norway following a decade's worth of policy support, that would give us an additional eight days of storage.
At our current rate of EV adoption, with just 2% of the fleet electric, we have just 0.5 days.
Fuel security is also relevant when it comes to the decision to build an LNG import terminal. The primary reason it has been suggested is to solve the dry year issue - although it is also clearly about keeping gas users hooked and letting the gas industry play for time. But our portfolio approach can kill two birds with one stone.
Along with rapid build out of large-scale renewables, mass adoption of rooftop solar and batteries on homes, farms and businesses to keep our hydro lakes full, and assistance for gas users to electrify, we also believe we should invest in dual fuel peakers that can run on gas or diesel and offer added diesel storage.
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Rather than an investment of $1-$2.7 billion into LNG for no added fuel security, an investment of around $400-$800 million could add 120 million litres of additional fuel storage (11-12 days). This would come at a much lower fixed cost than the LNG terminal but at a higher fuel cost and it would still push electricity prices down in the same way by removing the cost of dry year risk in electricity bills. And if we build those renewables quickly enough, we may not need to use it.
'Twas the night before Chris-mas, and all through the house, all the voters were stirring, the pundits showing their nous … the election will soon be over, but the energy crisis won't, so we'll be there to pester whoever is in power about the need to run more of the economy on New Zealand-made energy; can Ethiopia's aggressive push for EVs work and how does New Zealand compare in terms of adoption rates?; a two-way charging trial from Genesis shows promise in Auckland, but there's still a way to go before it's mainstream; small electric vehicles are often overlooked when it comes to electrifying transport, but it's hard to miss this weird French one; a solar-powered cafe (and some electric coffee); and we endorse the political vandalism of Keith of All Trades.
Read moreDownloadPoliticians are being urged to adopt stronger electric vehicle incentives ahead of the election. Climate and energy advocacy group Rewiring Aotearoa is arguing that EVs are one of the most effective long-term solutions for rising transport and energy costs. They're promoting an EV Salary Boost proposal, which would allow workers to access EVs through pre-tax salary arrangements – similarly to already existing schemes in the UK and Australia. Policy and Government Relations Spokesperson Ngaio Neumegen told Kerre Woodham that even with the rising cost of power, it's still cheaper to run an EV than a car running on imported fuel.
A proposal that would let New Zealanders lease an electric car using their before-tax pay has not won a commitment from either National or Labour, with the 7 November election days away. Under the EV Salary Boost, put forward by Rewiring Aotearoa and Drive Electric, an employee would lease a new or used EV for three to five years. The payments would come out of their pay before tax, lowering the cost of running the car. The idea is based on Australia’s novated leasing system, though the groups say they are not proposing a direct copy.
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