Electric Vehicles in New Zealand: from Passenger to Driver? Scott Lemon, Dr Allan Miller New Zealand Greenhouse Gas Emissions Greenhouse gas emissions by sector and vehicle type in New Zealand 76 million Tonnes of greenhouse gases emitted by New Zealand in 2012 New Zealand Greenhouse Gas Emissions Greenhouse gas emissions by sector and vehicle type in New Zealand New Zealand Greenhouse Gas Emissions Greenhouse gas emissions by sector and vehicle type in New Zealand Electric Vehicles A shortcut to a greener future or just an expensive dead end? 1 Market 2 Policy 3 Environment Market 1.1 New Zealand Vehicle Fleet Passenger car ownership per 1000 people for OECD countries Passenger Cars (per 1000 people) 700 600 500 400 300 200 100 2.6 million 600 Luxembourg Iceland USA Italy New Zealand Australia Finland Austria Slovenia Switzerland Germany Greece Belgium Spain France Norway Netherlands Sweden UK Japan Poland Canada Ireland Czech Republic Estonia Denmark Slovakia Hungary South Korea Israel Mexico Chile Turkey 0 Country Light passenger vehicles registered in New Zealand Passenger cars per 1000 people in New Zealand th 5 Highest rate of passenger car ownership in the OECD 1.2 New Zealand Vehicle Market Sales of new and ex-overseas light passenger vehicles in New Zealand New Light Passenger Vehicle Registrations (thousand) 250 New Ex-overseas 200 150 100 50 0 2000 2001 2002 2003 2004 2005 2006 Year 2007 2008 2009 2010 2011 2012 1.3 New Zealand Fleet Composition Number of Registered Passenger Vehicles Age distribution of passenger vehicles in the New Zealand fleet 250000 200000 150000 100000 50000 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Vehicle Age (years) 13.6 years Average age of a light passenger vehicle in New Zealand in 2011 1.4 Electric Vehicles in the Market Overview of current generation electric vehicles on the market Model Year Type Body Motor (kW) Battery (kWh) Electric Range (km) Efficiency (kWh/km) RRP ($) Mitsubishi i-MiEV 2012 EV 5-door hatchback 47 16 100-160 0.168 (NZ) 59990 Nissan LEAF 2012 EV 5-door hatchback 80 24 115-175 0.189 (NZ) 69600 Holden Volt 2013 PHEV 5-door hatchback 111 24 50-80 0.25 (NZ) 85000 Smart Fortwo ED 2013 EV 2-door coupe 35 17.6 140 0.151 Toyota RAV4 EV 2012 EV 4-door SUV 115 35 165 0.27 (US) 49800 Tesla Model S (40kWh) 2012 EV 4-door fastback 175 40 260 0.24 (US) 59900 BMW ActiveE 2012 EV 2-door coupe 125 32 160 0.14 - Toyota Prius PHV 2013 PHEV 5-door hatchback 60 4.4 20 0.27 (US) 32000 Fisker Karma 2012 PHEV 4-door sedan 210 20.1 80 0.40 (US) 102000 - 1.5 Cost Analysis – Running Costs Comparison of annual yearly fuel costs for different vehicle types Type Fuel Consumption (units/km) Fuel Price (2012) $NZD/unit Annual Fuel Cost (2012) $NZD Petrol - New 0.074 2.13 1923 Petrol - Old 0.088 2.13 2286 Diesel 0.056 1.52 1038 Hybrid 0.039 2.13 1013 Electric – Peak rate 0.19 0.277 643 Electric – Off-peak rate 0.19 0.15 348 18¢ Per km for an average petrol vehicle in NZ 8¢ Per km for an average hybrid vehicle in NZ 4¢ Per km for an average electric vehicle in NZ 1.6 Cost Analysis Cumulative cost of owning a petrol, diesel, hybrid and electric vehicle from 2012 1.7 Cost Analysis – Tariffs Cumulative cost of owning an electric vs. petrol vehicle with off-peak charging 1.8 Electric Vehicle Sales in New Zealand Annual number of registered electric light passenger vehicles in New Zealand No. of Registered Electric LPV in New Zealand 90 80 70 60 50 40 30 20 10 0 2007 2008 2009 2010 Year 2011 2012 1.9 Electric Vehicle Sales in New Zealand Annual number of registered electric light passenger vehicles in New Zealand 6000 No. of Registered Electric LPV in New Zealand Projection MOT 5000 NZ Target 4000 3000 2000 1000 0 2007 2008 2009 2010 2011 2012 2013 2014 Year 15% Of light passenger vehicles sold in 2025 are to be EVs (NZ target) 2015 2016 2017 2018 2019 2020 Country New Zealand Australia Spain Italy Portugal Ireland Germany UK Canada Sweden China Austria France Denmark USA Belgium Japan Netherlands Estonia Norway % of Electric Vehicles in LPV Fleet 1.10 Electric Vehicle Sales Worldwide A global comparison of electric vehicle uptake by country 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 Policy and Regulation 2.1 Policy and Regulation Breakdown of measures available to governments for stimulating EV adoption Measures Economic Suasive Sales tax Subsidies Bonus/malus Scrappage Annual tax Fuel taxation Education Standards & guidelines Regulatory Emission targets Vehicle standards Organisational Infrastructure Usage incentives Free parking HOV lane use 2.2 Economic Measures – Tax Reduction Global overview of countries implementing tax reduction measures for EVs Austria Belgium Czech Republic Denmark Finland France Germany Greece India Ireland Israel Italy Japan Netherlands Norway Switzerland Portugal South Korea Spain Sweden Turkey United Kingdom United States 2.3 Economic Measures - Subsidies Global overview of countries implementing direct subsidy measures for EVs Canada China Finland India Ireland Japan Luxembourg South Korea Spain United Kingdom 2.4 Economic Measures - Subsidies Comparison of maximum price subsidy offered and EV uptake rate by country Country % EVs in LPV Fleet Price Offset ($USD) Norway 0.390 20000 Estonia 0.140 24000 Netherlands 0.093 0 Japan 0.047 2700 Belgium 0.035 12250 USA 0.031 7500 Denmark 0.030 30000 France 0.026 8000 Austria 0.022 0 China 0.020 8800 Country % EVs in LPV Fleet Price Offset ($USD) Sweden 0.016 600 Canada 0.012 8650 United Kingdom 0.011 8200 Germany 0.011 0 Ireland 0.010 8000 Portugal 0.008 7000 Italy 0.007 0 Spain 0.004 9300 Australia 0.003 0 New Zealand 0.003 0 2.5 Electric Vehicle Incentives in New Zealand Viable short-term measures for encouraging EV uptake Short-term (2012-2015) Suasive/regulatory measures Increase consumer awareness about importance of fuel economy Tighten fuel economy standards on imported vehicles Mid-term (2015-2020) Long-term (2020-) 2.6 Electric Vehicle Incentives in New Zealand Viable medium-term measures for encouraging EV uptake Short-term (2012-2015) Mid-term (2015-2020) Organisational measures Installation of charging stations Requirement for new homes and car parks to include provision for EVs Renewable energy and smart grid developments Long-term (2020-) 2.7 Electric Vehicle Incentives in New Zealand Viable long-term measures for encouraging EV uptake Short-term (2012-2015) Mid-term (2015-2020) Long-term (2020-) Economic measures Aim to increase fleet turnover rate and speed the transition to a greener transportation system Scrappage schemes and decreased taxes/vehicle charges Environment 2.4 tonnes Of CO2e gas emitted by an average passenger vehicle in New Zealand annually Country USA Australia New Zealand China Russia Mexico Israel Estonia Canada South Korea Sweden Germany Chile Finland Greece Luxembourg UK Austria Netherlands Ireland Slovenia Iceland Turkey Czech Republic Switzerland Hungary Poland Slovakia Spain Belgium Denmark Italy Japan India France Portugal Average Passenger Vehicle Emissions (gCO2e/km) 3.1 Light Passenger Vehicle GHG Emissions Amount of GHG emitted by average light passenger vehicles around the world 250 200 150 100 50 0 74% Renewable energy powering the New Zealand grid in 2012 142 grams India Estonia China Australia Israel Poland Greece Czech Republic USA South Korea Ireland UK Turkey Mexico Germany Japan Russia Chile Netherlands Italy Slovenia Hungary Denmark Luxembourg Portugal Spain Finland Slovakia Belgium Canada Austria New Zealand France Sweden Norway Switzerland Iceland Average Grid Emissions (gCO2e/kWh) 3.2 Average Grid GHG Emissions Amount of GHG emitted per unit of residential electricity consumed 1000 900 800 700 600 500 400 300 200 100 0 Country Of CO2e gas emitted per kWh of electricity used by households in New Zealand 3.3 Average Vehicle Emissions Greenhouse gas emissions for electric and average fleet vehicles by country 85% Reduction in average vehicle emissions achievable by switching to EVs in NZ 3.4 Vehicle Lifetime Emissions Cumulative GHG emissions for electric and petrol vehicles over their lifespan Cumulative Vehicle CO2e Emissions (kg) 35000 Average EV 30000 Average ICV 25000 20000 15000 10000 5000 0 0 1 2 3 4 5 6 7 8 9 10 Year of Ownership 13.1 Tonnes of CO2e produced manufacturing an EV 6.5 Tonnes of CO2e produced manufacturing an ICV 3.5 Emission Reduction Potential Total greenhouse gas emission reduction based on EV market penetration Reduction in New Zealand's Total CO2 Emissions (%) 12% 10% 8% 6% 4% 2% 0% 0% 10% 20% 30% 40% 50% 60% EV Market Penetration (%) 70% 80% 90% 100% Conclusion Market New Zealand’s fleet is old, inefficient and in need of change EVs are currently too expensive, and the pay-back period too long despite lower operational costs Policy Tax reductions and price subsidies are commonly used worldwide but are too expensive to justify in New Zealand The short-term focus should be on improving fuel economy regulations, and educating consumers Environment EVs can achieve considerable GHG emission reductions in a green power system like New Zealand’s The main focus worldwide should be increasing the use of renewable energy and preparing the grid so that when the time comes for EVs we are well-prepared Questions?