New report forecasts boom for Electric vehicles

A new report released by research consultancy service, Energeia, predicts electrical vehicles (EVs) will reach price parity with traditional combustion vehicles as early as 2020.

Commissioned by Australian Renewable Energy Agency (ARENA) and Clean Energy Finance Corporation (CEFC), the market study identified that most trips made in Australia are within range of current and future EV battery capabilities.

Charging infrastructure according to the report remained a barrier to growth in the consumer market. Model availability, reductions in registration fees, procurement targets and fuel efficiency standards were other major drivers of uptake.

Investment in public charging infrastructure remained a necessary prerequisite for EV uptake globally. Among its findings, the report forecast that between 2020 and 2027, EVS would increase, once they achieved price parity, as a percentage of new vehicles sales.

The report also offered a look into potential EV trends in Australia.

Ivor Frishknecht, ARENA CEO, said electric vehicles offered a better driving experience, with lower emissions and reduced Australia’s dependence on fuel imports.

“As far as ARENA is concerned, they also offer a great opportunity for renewable energy technologies that can be used to charge them,” he said.

“Also, being a battery with wheels, EVs offer tremendous opportunities to support the grid through smart charging.”

The report, according to Frishknecht, illustrated new approaches in play around the world for encouraging sales of electric vehicles.

“The report helps us to deliver on ARENA’s investment priority of improving Australia’s energy productivity. It also builds on the other EV related projects ARENA has already supported. I hope this report will be a useful addition to the EV conversation currently taking place in Australia.”

Ian Learmonth, CEO, CEFC, believed the research indicated Australia was in a position to increase the uptake of EVs by creating a charging network and lowering prices so that it benefited drivers and the environment.

“The reality is that the transition to EVs is inevitable. We’re already seeing vehicle makers confirm they will stop producing pure internal combustion engines over the coming years. At the same time, we’re seeing dramatic improvements in vehicle charging networks, creating the essential infrastructure to support electric vehicles.”