Key Considerations for Tasmania

The key barriers to electric vehicle uptake are their purchase price, limited selection and range of models available, lack of public charging infrastructure limiting journey length, and lack of consumer awareness. Understanding and addressing these barriers can contribute to supporting electric vehicle uptake.

Policies and programs that may address these barriers include:

• incorporating electric vehicles into fleets to stimulate demand, raise awareness through exposure and contribute to the second-hand electric vehicle market;
• introducing stamp duty and registration discounts to reduce the upfront cost of electric vehicles;
• a coordinated rollout of public electric vehicle charging infrastructure to permit movement throughout the State; and
• awareness initiatives to increase community exposure to, and understanding of, electric vehicles.

Electric vehicle charging infrastructure

One key barrier to electric vehicle uptake is the lack of public charging infrastrtucture to support longer distance drives, for electric vehicles with limited range.

While the primary charging site for most electric vehicle owners is at home, public charging is needed to support extended extended journeys, including to facilitate electric vehicle tourism.

There are currently 476 dedicated electric vehicle public charging stations in Australia, of which 16 are located in Tasmania (ClimateWorks 2017). According to the Plugshare database, there are currently 74 electric vehicle charging stations available in Tasmania. (Note: This is the number of electric vehicle charging stations in Tasmania according to PlugShare on 20 December 2017.) Some of these chargers have limited availability/accessibility to the public (eg only available to business patrons). Presently, most of the chargers available in Australia are AC chargers. AC charging is generally considerably slower than DC charging, and is suitable for locations where drivers stop for longer periods, such as home, work or tourist destinations (particularly overnight accommodation).

DC charging allows most electric vehicles to charge more quickly (depending on the model and charger capacity), with a full charge typically taking 30 to 90 minutes. Many electric vehicle drivers will only need a five to fifteen minute top-up charge to reach their destination, so relatively short charging times are most common where DC chargers are widely available. There are currently 47 DC charging stations available in Australia, with none available in Tasmania (NRMA 2017). Table 2 below summarises the electric vehicle public charging infrastructure currently available in Australia.

A coordinated approach to the rollout of electric vehicle charging infrastructure ensures charging stations are strategically placed to fulfil the charging needs of the Tasmanian community and the tourism industry.

Because there is currently no standardised uniform electric vehicle charging type, manufacturers use different charging technologies (The Australia Institute 2017). It is important that governments support a charging network that is consistent with market trends, or specify standards. It is also important that charging infrastructure complies with the standard of electrical work. In Tasmania, relevant legislation includes the Occupational Licencing Act 2005 and the Occupational Licensing (Standards of Electrical Work) Code of Practice 2017.

Policies to support the installation of home and workplace electric vehicle charging infrastructure (eg potential financial incentives) combined with education programs, can also help to address electric vehicle charging concerns.

TasNetworks has introduced an Electric Vehicle Fast Charger Support Scheme to act as an incentive for the installation of public DC chargers. The scheme provides both technical advice and cost rebate components.

With regards to e-bikes, encouraging employers to provide charging opportunities for commuters can encourage their use (EV Talk 2017). Use of e-bikes can also be encouraged through initiatives that support bicycle use in general including safe lanes and routes, and parking facilities (EV Talk 2017).

Electric vehicle charging infrastructure in Tasmania

PlugShare is a free software application that allows users to find and review electric vehicle charging stations worldwide, and connect with other electric vehicle owners.

Figure 1: Electric vehicle charging infrastructure in Tasmania (Source: PlugShare 2017)

Table 2: Public electric vehicle charging infrastructure in Australia (Source: ClimateWorks 2017)

Community awareness of electric vehicles

While many people are willing to consider purchasing an electric vehicle, studies have shown that lack of consumer knowledge and awareness of electric vehicles is a key barrier to the adoption of the technology (Climate Works 2016). Key concerns held by prospective purchasers include uncertainty about the total cost of ownership, the expectancy of battery life and constraints of limited driving range compared to ICE vehicles. Raising community awareness and understanding of electric vehicles can help prospective purchasers to realise the benefits of uptake more quickly. Exposure to new technology is known to improve the likelihood of adoption (ClimateWorks 2016).

Awareness initiatives can include demonstration and/or trial initiatives to increase community exposure to electric vehicles, including encouraging first driving experiences, and raising community awareness of the benefits of ownership.

Widespread introduction of electric vehicles into fleets (eg government, business and public transit network) can also act to raise community awareness of electric vehicles through exposure. Vehicle fleet purchasing policy, including supporting the purchase of electric and alternative fuel vehicles, was identified as a potential measure to improve fleet efficiency in the Australian Government’s Vehicle Emissions Discussion Paper (2016). The Discussion Paper also highlighted the importance of measures that provide information and education on the efficiency and environmental performance of vehicles (Australian Government 2016).

As part of its broader electric vehicle strategy, the Queensland Government has committed to establishing a Fleet Transition Working Group to investigate opportunities for transitioning its Government fleets to include a greater number of electric vehicles (Queensland Government 2017). Additionally, the New South Wales Government is running a Government electric vehicle fleet trial to take the first step towards increasing the number of low emission vehicles in the Government fleet (New South Wales Government 2017).

A number of states are undertaking electric bus trials which are an effective way to increase community awareness of electric vehicles. Tasmania’s largest transport provider, Metro Tasmania, has 100 new buses being delivered over the next two years (from 2017-18), which are designed for conversion from ICE to electric.

Tasmania maintains a flexible whole-of-government vehicle contract, which allows contracted manufacturers to submit models for consideration at any time. Subject to whole-of-life costs and likely demand reviews, vehicles are placed on contract and subsequently made available for agencies to select. Historically, the Tasmanian Government has been open to the inclusion of electric vehicles on its whole-of-government common-use contract (ie Nissan Leaf, Holden Volt and Mitsubishi Outlander PHEV have all been available to agencies through the Tasmanian Government’s vehicle contract). (Note: Information provided by the Tasmanian Government Department of Treasury and Finance in November 2017.)

Raising community awareness of available electric vehicle public charging infrastructure can promote uptake of the technology by alleviating concerns regarding limited driving range. The introduction of consistent labelling of electric vehicles (eg distinguishable licence plates) and charging infrastructure signage can also help to raise awareness by increasing visibility of the technology within the community.

Another way to promote community awareness of electric vehicles is at the vehicle dealership level. Increasing understanding and awareness of electric vehicle model availability at dealerships can raise awareness of prospective vehicle purchasers.

Resources

Electric Vehicle Council website

The Electric Vehicle Council’s website allows potential purchasers to browse electric vehicle models currently available in Australia, easily compare the running costs of electric vehicles with ICE vehicles and search for locations of charging points around the country (Electric Vehicle Council 2017).

Australian Electric Vehicle Association (AEVA)

AEVA is a not-for-profit organisation dedicated to promoting and facilitating the uptake of electric vehicles.

AEVA provides a forum for social and technical communication in the electric vehicle field. The organisation creates greater awareness of electric vehicles and encourages their use to foster further research and development in EV technology and to be an official source of information on EVs in Australia (AEVA 2017).

Case Study: Electric bus trials in SA, ACT, QLD and NSW

South Australia – The South Australian Government has commissioned the design and building of two Australian made electric buses. The buses will be trialled to provide the Government with data on how electric and low-carbon buses could be used in Adelaide’s public transit network. The Government is also planning to trial six hydrogen fuel cell electric buses in the Adelaide Metro system within the next two years. The buses will be refuelled by hydrogen produced by 100 per cent renewable energy (Bustech 2017) (Government of South Australia 2017a).

Australian Capital Territory – The Australian Capital Territory Government is trialling three leased electric buses on public transport routes in Canberra (one hybrid diesel fuel electric and two pure electric). The purpose of the trial is for the Government to assess the viability of using electric buses within the bus network to see if it can progressively replace the existing fleet (Transport Canberra 2017).

Queensland and New South Wales – Electric buses (BYD pure electric) have been added to the transport fleet at Brisbane airport (11 buses) and Sydney airport (6 buses) (Electric Vehicle News 2017) (Electric Cars Report 2017).

Case Study: Three-wheeled electric vehicle trial - Tasmania

Australia Post – Australia Post is trialling three-wheeled electric vehicles in Hobart, which are being used for letter and parcel delivery. The benefits of the e-bikes include increased safety protection for postal service employees, supporting the ageing postal service workforce to stay in the job longer, and business efficiency improvements. Australia Post is running similar pilot programs in Victoria, New South Wales, Queensland, South Australia and Western Australia. Following the trials, Australia Post will consider rolling out the e-bikes nationally (ABC News 2017) (Australia Post 2017).

International Case Study: Electric vehicle awareness campaign in San Francisco

• San Francisco Bay’s ‘Experience Electric – The Better Ride awareness’ raised awareness of the many benefits of, and incentives for, the purchase of electric vehicles through test drives and the use of #TheBetterRide on social media.
• The campaign provided around 5,000 electric vehicle test drives for members of the public at events throughout the nine San Francisco Bay Area counties (Source: Centre for Sustainable Energy, 2017).

International Case Study: Electric vehicle targets for state agencies in California

• The State of California has set a target for 50 per cent of light-vehicles purchases by state agencies to be electric by 2025, and 15 per cent of medium-heavy vehicle purchases by state agencies to be electric by 2025 (increasing to 30 per cent in 2030) (Government Fleet, 2017).

Upfront cost of electric vehicles

Globally, electric vehicles are currently more expensive compared to their ICE vehicle equivalents, primarily due to the high cost of batteries (Climate Council 2015). Despite the lower operating cost of electric vehicles, the upfront cost difference is a major barrier to consumers.

Due to higher demand for batteries, competition among battery suppliers and increased production rates, it is predicted that cost parity with ICE vehicles will occur by 2025 (Bloomberg 2016).

In Australia, the price of electric vehicles is further inflated due to shipping costs and expenses associated with market introduction and low sales volumes (ClimateWorks 2016). Greater uptake of electric vehicles would ultimately lower these costs by spreading them across a higher volume of sales.

Policy incentives, such as upfront purchase subsidies, or stamp duty and registration discounts, have been shown to stimulate short-term demand and encourage the purchase of electric vehicles (ClimateWorks 2017).

An example of such an incentive could be a stamp duty regime for new light vehicles (gross vehicle mass of less than or equal to 4.5 tonnes) that establishes differential charges linked to environmental performance. Charges would be based on the environmental ratings published on the Australian Government’s Green Vehicle Guide. A number of states and territories provide discounts on stamp duty and registration for electric vehicles, as outlined in Table 3 below.

Table 3: Comparison of estimated discounts on stamp duty and registration for a $60,000 electric vehicle (Source: ClimateWorks 2017)

Note: Estimated discounts are for a $60,000 electric vehicle in comparison to a $60,000 medium-sized petrol or diesel vehicle with a two or three litre engine and emissions of 182 grams per kilometre.

Case Study: Stamp duty reduction for electric vehicles in Australian Capital Territory

The Australian Capital Territory Government’s Vehicle Emission Reduction Scheme provides a differential stamp duty system for new light vehicles, incentivising the purchase of low emission vehicles, such as electric vehicles. Under the Scheme, vehicles have a performance rating based on their carbon dioxide (CO₂) emissions, consistent with the Australian Government’s Green Vehicle Guide. In effect, purchasers can avoid paying duty, or reduce the duty they pay, by choosing higher rating vehicles (eg new vehicles that emit below 130g of CO₂ per kilometre pay no duty) (ACT Government 2017a).

Electric vehicle model availability

The experience of a number of international jurisdictions suggests a strong correlation between electric vehicle sales and the number of models available for purchase (ClimateWorks 2016).

The current lack of choice of electric vehicle models in Australia makes it difficult for consumers to find electric vehicles that meet their price and diverse transport needs. The current low demand for electric vehicles in Australia means that many electric vehicle manufacturers do not introduce their models to the Australian market.

Bulk purchasing of electric vehicles, through the combined purchasing power of fleets, can act to stimulate demand and lead to increased model availability. Increasing the number of electric vehicles in fleets also stimulates the second-hand electric vehicle market and exposes the community to the technology.

Another way to increase model availability is through mandatory emissions reductions targets for new cars, and setting targets for increased number of electric vehicles in fleets, or aspirational targets to end the sale of internal combustion engines.

An international perspective on electric vehicle model availability

Europe currently offers the most consumer choice of electric vehicle models, while domestic manufacturers in the United States and China are starting to gain momentum (JATO Dynamics 2015).

The main driver for growth in electric vehicle model availability in Europe is the European Union’s mandatory emissions reduction targets for new cars. By 2021, the average emissions of all new cars sold must be 40 per cent less than emissions from today’s average car. This goal can only be met by the rapid, large-scale adoption of electric vehicles (Yale University 2017).

Some jurisdictions are now setting ambitious targets to end sales of internal combustion engines, including India (by 2030), China (considering timeframe), United Kingdom (by 2040), France (by 2040), Netherlands (2025) and Norway (by 2025) (CNN 2017).

International Case Study: Bulk purchasing of electric vehicles in Sweden

• As a smaller market, Sweden looked to bulk procurement to demonstrate purchasing potential to electric vehicle manufacturers and incentivise the introduction of electric vehicle models to address local supply constraints.
• A joint electric vehicle procurement project was initiated by 296 organisations. The Swedish Government provided a grant of AUD $9.1 million to assist in reducing the purchase price by up to 25 per cent for the first 1,050 vehicles purchased through the procurement project.
• In total, more than 900 vehicles were ordered through the procurement project (as of November 2014) which made a significant contribution to increasing the number of models in the Swedish market (Kuiper 2016) (Swedish Energy Agency 2015).

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