Positive industry reactions to 'significant' Budget EV charging commitment

Thursday, 18 May 2023

Public transport fares, prescription fees and early childhood care were all winners in this year's Budget.

The automotive industry has reacted well to the 2023 Budget’s emphasis on improving New Zealand’s electric vehicle (EV) charging network.

It was announced today that the Government will set aside $120 million for EV charging infrastructure over the next four years, which will include up to 1000 new EV chargers in smaller rural communities.

This will support the increasing adoption of EVs, which comprised almost 11% of new car sales in 2022, By 2030, the Climate Change Commission estimates a huge 67% of vehicles coming into New Zealand will be electric.

Electric vehicles are on the rise, and the Government has pledged to improve the needed charging infrastructure.

ChargeNet, one of the leading public EV charging suppliers, said the fund will help its plans to double the density of the network over the next three years to more than 600 fast DC chargers across the country.

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ChargeNet will double its network to more then 600 chargers in the next three years.

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Drive Electric chairman, Mark Gilbert, called the Government’s announcment ‘significant’.

“The Government support enables private investment to ramp up and keep pace with EV uptake over the next four years. The Government’s announcement of $120 million over four years towards building light EV charging infrastructure could ensure the rapid adoption of zero-emissions vehicles can be supported with essential public charging networks,” said Danusia Wypych, ChargeNet’s CEO.

“Public charging infrastructure plays a critical role in enabling uptake, particularly to encourage long-distance travel, widespread fleet adoption, movement away from peak energy usage, and support for all motorists who wish to make the transition to an EV.

“Supply needs to come before demand – if we want more people to buy EVs, the chargers need to be there for them. The network should be developed in anticipation of rapid demand increases for public charging infrastructure, not just what is commercially viable now.

“ChargeNet encourages the Government to develop a consistently available fund for public charging infrastructure for sites where investment is needed but will not be immediately profitable,” she said.

“This targeted support, alongside a National EV Charging Strategy that is currently being developed, is a real win and will enable the private sector to collaborate with Government to progress the delivery of EV infrastructure New Zealanders need,” added Lindis Jones, CEO of Z.

“A scaled domestic EV charging network that enables accessible, affordable, convenient, and reliable charging solutions to meet the needs of drivers now and into the future is core component of the transition to a low carbon economy.”

Meanwhile, nonprofit organisation Drive Electric said that the announcement is “significant”. Mark Gilbert, chairman of Drive Electric, agreed that encouraging EV uptake required solid charging infrastructure.

“Additionally, the real costs associated with connecting to the electricity network can make it difficult for investment in charging 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.

“While today’s announcement is positive, 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 charging sites are installed where demand is low today, but forecast to grow, or where it is not yet economic to invest. This is very important for equity, access, and confidence in the charging system.”

Uber also joined in welcoming the Government’s infrastructure push. Emma Foley, Uber New Zealand’s general manager, said that “continued funding of the Clean Car discount scheme and a $120 million investment in building out New Zealand’s EV charging infrastructure will support accelerated adoption of EVs and as a consequence help reduce national transport emissions.”

“Despite a rising number of EVs on the road, range anxiety and a lack of confidence in public charging infrastructure is holding back mainstream adoption, particularly among high-usage drivers like those on the Uber platform.

“We’re encouraged to see a financial commitment to building charging infrastructure around the country in today’s budget, and we look forward to seeing more detail on the government’s plan in the near future.