case study: Electrification of the economy
CASE STUDY://
WHEN ENERGY AND TRANSPORT CONVERGE.
There is no denying that the threat of climate change has turned the world of energy on its head. Under the Paris climate accord, ambitious carbon targets have been set, and businesses around the globe have been challenged to step up and help deliver. As more industries move away from fossil fuels and towards cleaner electricity, Vector is firmly focused on preparing Auckland for a new energy future. A key area of focus for us is the growing convergence of the energy and transport sectors. It’s clear that the popularity of EVs is on the rise and that the reign of the internal combustion engine (ICE) is on the decline. What is less obvious is the impact these trends will have on our network, and our place in the new energy ecosystem. THE RISE OF ELECTRIC VEHICLES IN NEW ZEALAND. New Zealand’s mostly renewable energy supply puts us in a unique position to transition swiftly to an EV nation. Consumer appetite for EVs is already evident, with 4,363 EVs registered on Auckland roads as at January this year compared to just 600 in 2016. When respected futurist Tony Seba visited New Zealand last year, he boldly predicted EVs will be cheaper than petrol cars within a decade. This is all good news for the environment and the air we breathe, but the rapid rise of EVs is going to bring its own set of challenges, including to network management. If we don’t work collectively to solve these challenges, it could hold New Zealand back from reaching its target of net zero carbon emissions by 2050.
PREPARING THE MARKET FOR AN EV REVOLUTION. Next generation EVs will have bigger batteries, which will mean longer charges. By today’s standards, one slow EV charger (7kW) adds the equivalent of 2.8 houses to the grid. Every fast charger (22kW) adds 8.8 houses and a rapid charger (50kW) adds 20 houses. This level of demand is expected to put unprecedented pressure on the network, which will ultimately require significant technology upgrades. Under the current market and regulatory settings, these upgrade costs will compete with other demands for network expansion and investment. They will need to be spread out evenly across all electricity users – regardless of whether they are in the position to upgrade to an EV. For these reasons, Vector is working to raise awareness of the expected (and unexpected) consequences of energy and transport convergence. Our goal is to ensure the next set of policy and regulatory decisions gives us the certainty we need to make smart investment decisions that more equitably benefit all Aucklanders now and in the future.
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