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100 MW
Electric cars to deliver costs shock
BY: ANNABEL HEPWORTH
From: The Australian January 21, 2012 12:00AM
ELECTRIC vehicles will make up 20 per cent of new car sales in Australia by the end of the decade and 45 per cent by 2030, potentially requiring up to $10.2 billion in upgrades to the electricity system
The findings are cited in a report by Julia Gillard's top energy adviser, which finds that although electric cars are still a niche in Australia and are forecast to account for only 1 to 2 per cent of sales until 2015, the take-up is expected to surge later as vehicle prices fall to become competitive with those powered by petrol and diesel.
People in relatively affluent urban areas who are "more educated, environmentally conscious and technologically aware" will spearhead the early take-up. Most of the sales will take place in NSW, Victoria and Queensland.
The issues paper by the Australian Energy Market Commission, which commissioned research into the vehicles, says consumers are likely to start buying more hybrids, which use both electricity and petrol. Pure battery-operated vehicles will become increasingly popular as charging infrastructure and batteries improve.
Overall, fuelling electric cars will only lead to a 4 per cent increase in electricity use by 2030, but the costs will be significant if consumers charge the cars in the evening peak period.
If there is "unmanaged" charging -- meaning drivers plugged them in when they wanted, especially when other appliances such as air-conditioners were running -- this would saddle electricity users with higher bills. Nationwide, uncontrolled charging during the peak times of 3pm to 8pm would require $3.9bn in spending by 2020 and $10.2bn by 2030 to upgrade the poles, wires and transmission, and build new electricity generation. Even if drivers were convinced to charge and discharge vehicles outside peak times, there could be other costs such as metering.
According to the AEMC paper, if consumers could be forced to charge electric cars in off-peak periods, the costs of the network and system could be spread over more users, putting downward pressure on electricity prices. The Standing Council on Energy and Resources has asked the AEMC to provide advice on the appropriate energy market arrangements, with a draft report due in May.
State governments in Victoria, Queensland, South Australia and Western Australia are running trials on electric vehicles as they expect that climate change and concerns about energy security will cause the cars to have a more prominent role. The chief executive of the electric car network Better Place Australia, Evan Thornley, said the local car industry stood to benefit from the trend.
"Because we make large cars that travel large distances, there's a very big petrol bill associated with those cars," Mr Thornley said. "Therefore, those are the very cars that will make the most financial sense to go electric."
Ausgrid general manager of system operations, Trevor Armstrong, said different pricing incentives could encourage people to charge later at night, after the peak, by making it cheaper.
"It costs about 1c per kilometre to charge an electric car overnight compared to 10c/km to run a petrol car," he said. "So more electric cars will be sold in the future and we need to be ready."
Michael Wroe is the general manager of sales at Eagers Mitsubishi in Brisbane, one of only nine car dealerships in Australia that sell the fully electric Mitsubishi i-MiEV. Since the car went on sale in September last year he has sold just three of the vehicles, while nationwide only 30 have been bought.
According to Mr Wroe the greatest barrier to sales is the fact that the car needs to be recharged through a power point every 100km to 120km. No doubt price is also a factor, with the i-MiEV selling for about $48,000, which is a big hit to the hip pocket for a very small car.
Brisbane mother of three Nicole Weinert, who currently drives a Mitsubishi Pajero, agrees that the electric car is the way of the future.
"They are a fantastic idea, and obviously they are good for the environment as they reduce emissions," Ms Weinert said.
"But for the moment, with a starting price of close to $50,000, they are probably a bit unaffordable for most people. When the price comes down, I think you will see a lot more people buying them."
BY: ANNABEL HEPWORTH
From: The Australian January 21, 2012 12:00AM
ELECTRIC vehicles will make up 20 per cent of new car sales in Australia by the end of the decade and 45 per cent by 2030, potentially requiring up to $10.2 billion in upgrades to the electricity system
The findings are cited in a report by Julia Gillard's top energy adviser, which finds that although electric cars are still a niche in Australia and are forecast to account for only 1 to 2 per cent of sales until 2015, the take-up is expected to surge later as vehicle prices fall to become competitive with those powered by petrol and diesel.
People in relatively affluent urban areas who are "more educated, environmentally conscious and technologically aware" will spearhead the early take-up. Most of the sales will take place in NSW, Victoria and Queensland.
The issues paper by the Australian Energy Market Commission, which commissioned research into the vehicles, says consumers are likely to start buying more hybrids, which use both electricity and petrol. Pure battery-operated vehicles will become increasingly popular as charging infrastructure and batteries improve.
Overall, fuelling electric cars will only lead to a 4 per cent increase in electricity use by 2030, but the costs will be significant if consumers charge the cars in the evening peak period.
If there is "unmanaged" charging -- meaning drivers plugged them in when they wanted, especially when other appliances such as air-conditioners were running -- this would saddle electricity users with higher bills. Nationwide, uncontrolled charging during the peak times of 3pm to 8pm would require $3.9bn in spending by 2020 and $10.2bn by 2030 to upgrade the poles, wires and transmission, and build new electricity generation. Even if drivers were convinced to charge and discharge vehicles outside peak times, there could be other costs such as metering.
According to the AEMC paper, if consumers could be forced to charge electric cars in off-peak periods, the costs of the network and system could be spread over more users, putting downward pressure on electricity prices. The Standing Council on Energy and Resources has asked the AEMC to provide advice on the appropriate energy market arrangements, with a draft report due in May.
State governments in Victoria, Queensland, South Australia and Western Australia are running trials on electric vehicles as they expect that climate change and concerns about energy security will cause the cars to have a more prominent role. The chief executive of the electric car network Better Place Australia, Evan Thornley, said the local car industry stood to benefit from the trend.
"Because we make large cars that travel large distances, there's a very big petrol bill associated with those cars," Mr Thornley said. "Therefore, those are the very cars that will make the most financial sense to go electric."
Ausgrid general manager of system operations, Trevor Armstrong, said different pricing incentives could encourage people to charge later at night, after the peak, by making it cheaper.
"It costs about 1c per kilometre to charge an electric car overnight compared to 10c/km to run a petrol car," he said. "So more electric cars will be sold in the future and we need to be ready."
Michael Wroe is the general manager of sales at Eagers Mitsubishi in Brisbane, one of only nine car dealerships in Australia that sell the fully electric Mitsubishi i-MiEV. Since the car went on sale in September last year he has sold just three of the vehicles, while nationwide only 30 have been bought.
According to Mr Wroe the greatest barrier to sales is the fact that the car needs to be recharged through a power point every 100km to 120km. No doubt price is also a factor, with the i-MiEV selling for about $48,000, which is a big hit to the hip pocket for a very small car.
Brisbane mother of three Nicole Weinert, who currently drives a Mitsubishi Pajero, agrees that the electric car is the way of the future.
"They are a fantastic idea, and obviously they are good for the environment as they reduce emissions," Ms Weinert said.
"But for the moment, with a starting price of close to $50,000, they are probably a bit unaffordable for most people. When the price comes down, I think you will see a lot more people buying them."
