report (2).pdf - The Senate Select Committee on Electric Vehicles Report January 2019 \u00a9 Commonwealth of Australia 2019 ISBN 0-888-5 This work is

report (2).pdf - The Senate Select Committee on Electric...

This preview shows page 1 out of 197 pages.

You've reached the end of your free preview.

Want to read all 197 pages?

Unformatted text preview: The Senate Select Committee on Electric Vehicles Report January 2019 © Commonwealth of Australia 2019 ISBN 978-1-76010-888-5 This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia License. The details of this licence are available on the . Creative Printed by the Senate Printing Unit, Parliament House, Canberra. ii Commons website: Membership of the Committee Committee members Senator Tim Storer, Chair IND, SA (Chair) Senator the Hon Kim Carr ALP, VIC (Deputy Chair) Senator Janet Rice AG, VIC Senator David Smith ALP, ACT Senator Dean Smith LP, WA Former member Senator David Bushby LP, TAS (until 21.01.2019) Participating members Senator Rex Patrick CA, SA Secretariat Ms Ann Palmer, Committee Secretary Mr Tas Larnach, Principal Research Officer Ms Kathryn Cochrane, Senior Research Officer Mr Michael Gilbey, Research Officer Ms Rachel Debels, Administrative Officer Ms Jo-Anne Holmes, Administrative Officer Ms Michelle Macarthur-King, Administrative Officer PO Box 6100 Parliament House Canberra ACT 2600 Ph: 02 6277 3439 Fax: 02 6277 5809 E-mail: [email protected] Internet: iii Table of contents Membership of the Committee ........................................................................ iii Acronyms and abbreviations ...........................................................................vii Recommendations ..............................................................................................xi Executive Summary .......................................................................................... xv Chapter 1 Introduction .............................................................................................................. 1 Establishment of the Committee ............................................................................ 1 Conduct of the inquiry ............................................................................................ 1 Structure of the report ............................................................................................. 2 Chapter 2 Electric vehicles—Definitions, background and projections ............................... 3 Introduction ............................................................................................................ 3 What is an EV? ....................................................................................................... 3 Background—current uptake, projections, and policy initiatives .......................... 4 Diverse range of EVs—light passenger, commercial and public transport ......... 15 Hydrogen, hybrids or electric only ....................................................................... 16 Autonomous vehicles ........................................................................................... 20 Public and active transport ................................................................................... 23 Chapter 3 Increased EV uptake and use—benefits and challenges ..................................... 27 Introduction .......................................................................................................... 27 Benefits ................................................................................................................. 27 Challenges ............................................................................................................ 40 Concluding comment............................................................................................ 48 v Chapter 4 Manufacturing and value-chain activities—opportunities and challenges ....... 49 Introduction .......................................................................................................... 49 EV and EV component manufacturing ................................................................ 49 Battery manufacturing and commodity value-adding .......................................... 62 Manufacturing and installation of charging infrastructure ................................... 73 Concluding comments .......................................................................................... 80 Chapter 5 Seizing the opportunity and managing the risks ................................................. 83 Introduction .......................................................................................................... 83 Supporting EV uptake .......................................................................................... 83 Supporting manufacturing and value chain activities ........................................ 110 Managing the risks ............................................................................................. 119 Concluding comments ........................................................................................ 125 Chapter 6 Committee view and recommendations.............................................................. 127 Introduction ........................................................................................................ 127 Development of a national EV strategy and targets ........................................... 128 Developing an EV industry in Australia ............................................................ 132 Regulatory reform .............................................................................................. 134 Chair's Additional Comments ....................................................................... 137 Labor Senators' Additional Comments ........................................................ 143 Australian Greens' Additional Comments ................................................... 145 Additional Comments by Senator Rex Patrick ............................................ 149 Appendix 1 - Submissions and additional information received by the committee ......................................................................................................... 153 Appendix 2 - Public Hearings ........................................................................ 161 Appendix 3 - Summary of committee site visits ........................................... 169 vi Acronyms and abbreviations AC alternating current ACTU Australian Council of Trade Unions AEMO Australian Energy Market Operator AEVA Australian Electric Vehicle Association ALC Australian Logistics Council AMWU Australian Manufacturing Workers Union ARENA Australian Renewable Energy Agency ATO Australian Taxation Office ATS Automotive Transformation Scheme AV Autonomous vehicles BEV A battery electric vehicle is a fully electric vehicle that is propelled by one or more electric motors and has a battery which is charged using electricity from the grid or renewable energy sources. CEEM UNSW Centre for Energy and Environmental Markets at the University of NSW CEFC Clean Energy Finance Corporation CFP Common flexible platform CKD Completely knocked down packs CO2 carbon dioxide COAG Council of Australian Governments CPI Consumer Price Index DC direct current DER Distributed energy resources vii DLWP Victorian Department of Environment, Land, Water and Planning DTMR Queensland Department of Transport and Main Roads ECCA New Zealand Energy Efficiency and Conservation Authority ENA Energy Networks Australia ETU Electrical Trades Union EV Electric vehicle EVSE Electric vehicle supply equipment FCAI Federal Chamber of Automotive Industries FCEV A fuel cell electric vehicle is an electric vehicle that is powered by an on-board energy source such as hydrogen. FOI Freedom of Information GHG Greenhouse gas GM General Motors GVG Green Vehicle Guide GVM Gross Vehicle Mass HEV A hybrid electric vehicle is an electric vehicle that has an electric motor and batteries, and an internal combustion engine. HMA Hydrogen Mobility Australia IA Infrastructure Australia ICE Internal combustion engine IEA International Energy Agency km kilometre kW kilowatt LCT Luxury Car Tax MTAQ Motor Trades Association of Queensland viii NCAP Nissan Casting Plant Australia NOx nitrogen oxides OEM Original Equipment Manufacturer OLEV United Kingdom Office for Low Emission Vehicles PEV Plug-in electric vehicle is an EV (either PHEV or BEV) that plugs into a charger PHEV A Plug-in hybrid electric vehicle is an electric vehicle that can be plugged-in to charge and drive shorter distances on electricity, however, also have a liquid fuel range extender/internal combustion engine (ICE) that provides additional driving range for longer trips. PMG Pilbara Metals Group PM Particulate matter PTUA Public Transport Users Association PV Photovoltaic QESH Queensland Government Electric Super Highway RACV Royal Automobile Club of Victoria RACWA Royal Automobile Club of WA R&D Research and development RVS Road Vehicle Standards REE Rare earth elements STEM Science, technology, engineering and mathematics TAI The Australia Institute TIC Transport and Infrastructure Council (COAG) TISOC Transport and Infrastructure Senior Officials Committee ix TOC Tesla Owners Club of Australia TPS Toyota Production System VACC Victorian Automobile Chamber of Commerce VAT Value added tax WHO World Health Organisation ZEV Zero emission vehicle x Recommendations Recommendation 1 6.14 The Committee recommends that the Australian Government develop a national EV strategy to facilitate and accelerate EV uptake and ensure Australia takes advantage of the opportunities, and manages the risks and challenges, of the transition to EVs. Addressing these risks and challenges will require effective national standards and regulation in regards to charging infrastructure and electricity grid integration, building and construction, public safety, consumer protection, processes for disposal and/or re-use of batteries, and skills training. Recommendation 2 6.15 The Committee recommends that the Australian Government should take a national leadership position in establishing an inter-governmental taskforce to lead the development and implementation of a national EV strategy. Recommendation 3 6.18 The Committee recommends that the Australian Government consider establishing national EV targets for light passenger vehicles, light commercial vehicles and metropolitan buses. Recommendation 4 6.20 The Committee recommends that the Australian Government consider establishing a national EV target for the Government fleet. Recommendation 5 6.28 The Committee recommends that the Australian Government coordinate with operators in the charging infrastructure industry to develop a comprehensive plan for the rollout of a national public charging network. Recommendation 6 6.31 The Committee recommends that the Australian Government introduce more stringent vehicle emissions standards, and establish a new CO2 standard, informed by those implemented in other developed countries and the findings of the Ministerial Forum on Vehicle Emissions. Recommendation 7 6.34 The Committee recommends that any national strategy by the Australian Government should develop a consumer education campaign to raise awareness of the capabilities and benefits of EVs. Recommendation 8 6.37 The Committee recommends that the Australian Government work with the state and territory governments to bring a Formula-E Championship race to Australia. xi Recommendation 9 6.39 The Committee recommends that the Australian Government develop and implement a comprehensive 10-year EV manufacturing roadmap, also covering research and development, vehicle and system design and manufacture batteries, telematics, supply chain and component manufacturing. Recommendation 10 6.43 The Committee recommends the Australian Government coordinate federal, state and local government EV fleet, truck and electric bus procurement through the inter-governmental EV taskforce (Recommendation 2). Recommendation 11 6.47 The Committee recommends that the Australian Government works with state and territory governments through the COAG Industry and Skills Council to establish national training arrangements for automotive service technicians in relation to electric vehicles. Recommendation 12 6.48 The Committee recommends that the Australian Government, in conjunction with industry stakeholders, fund apprenticeships and traineeships in the local EV and associated manufacturing sector. Recommendation 13 6.50 The Committee recommends that the Australian Government work closely with electricity market agencies, states and other relevant stakeholders to prepare a 10-year plan detailing priority electricity network infrastructure upgrades needed to manage demand from EVs. Recommendation 14 6.55 The Committee recommends that the Australian Government work closely with the Australian Energy Market Operator (AEMO) to: • Expedite the establishment of a register of distributed energy resources (DER); • Develop a strategy for AEMO to access and direct the DER to charge or provide electricity to the grid to meet operational requirements. Recommendation 15 6.59 The Committee recommends that the Australian Government work with state and territory governments, through COAG and the Building Ministers Forum, to explore necessary amendments to the National Construction Code to render all new dwellings 'electric vehicle charger ready'. xii Recommendation 16 6.60 The Committee recommends that the Australian Government work with Standards Australia to amend AS/NZS3000:2018 Electrical installations: Wiring Rules to the following effect: Where a smart load management system is not implemented, assume all the electric vehicle chargers will be running at full capacity all the time. Where a smart load management system is implemented, assume electric vehicle charging load will be effectively limited by the parameters of this system. Recommendation 17 6.62 The Committee recommends that the Australian Government work closely with Standards Australia to establish a series of national standards in relation to EVs. xiii Executive Summary Electric vehicles (EVs) are at the forefront of a major transformation of the world's transport sector. Global EV sales are growing rapidly, driven by government policy in large consumer markets in Europe, Asia and North America. Vehicle manufacturers are leading the transition, investing heavily to expand their EV offerings and improve EV driving range and performance. The technological disruption is also providing opportunities for new business models and companies to emerge. EV uptake in Australia lags behind that of other comparable countries due to a relative absence of overarching policy direction from Australian Governments. The higher upfront cost of EVs, concerns about driving range, lack of recharging infrastructure, and limited model availability are key factors hindering consumer uptake. In the Committee's view, widespread use of EVs in the Australian transportation fleet would deliver significant economic, environmental and health benefits to Australian consumers and society. It would also create new opportunities for Australian industry. There would be challenges associated with increasing EV uptake, but they can be managed with well calibrated regulatory settings. The Committee heard evidence that traditional automotive businesses are already pursuing opportunities in EV component manufacturing and assembly. New industries, such as charging infrastructure manufacturing and installation, battery manufacturing, recycling, repurposing and related mining and processing activities, and EV research and development are also emerging as growth sectors for the Australian economy. The Committee received a wealth of information and evidence throughout the inquiry and thanks all those who participated. The Committee has made 17 recommendations which aim to help Australia accelerate EV uptake, while also managing the risks, and support Australian industry to capitalise on the significant opportunities presented by a transition to EVs. Australian Governments should prioritise the development of a national EV strategy and an inter-governmental taskforce to lead its implementation. National EV sales targets could be set to deliver certainty to business and consumers, and careful examination should be given to policies that may be introduced to reduce the upfront cost of EVs and improve their price competitiveness with internal combustion engine vehicles. The Australian Government should set EV targets for the Australian Government Fleet and work with state and local government to coordinate fleet procurement. It should partner with business to manage and facilitate the roll out of charging infrastructure, establish consistent national standards, and ensure new developments and the electricity grid are 'EV charger ready'. Government could actively assist industry to develop its domestic EV manufacturing and supply and value-chain capabilities. In the absence of appropriate regulatory settings, Australia's near term EV uptake is likely to be modest. Slow uptake will continue to result in EV manufacturers not prioritising the Australian market and fewer EV models being available to Australian motorists. It will also delay the realisation of substantial economic, environmental and health benefits, and risk seeing opportunities for economic development pass by. xvi Chapter 1 Introduction Establishment of the Committee 1.1 On 27 June 2018, the Senate established the Senate Select Committee on Electric Vehicles (Committee) to inquire into the use and manufacture of electric vehicles (EV) in Australia by 17 October 2018. 1 In particular, the Committee was to inquire into and report on the following matters: a) the potential economic, environmental and social benefits of widespread electric vehicle uptake in Australia; b) opportunities for electric vehicle manufacturing and electric vehicle supply and value chain services in Australia, and related economic benefits; c) measures to support the acceleration of electric vehicle uptake; d) measures to attract electric vehicle manufacturing and electric vehicle supply and value chain manufacturing to Australia; e) how federal, state and territory Governments could work together to support electric vehicle uptake and manufacturing, supply, and value chain activities; and f) any other related matters. 2 1.2 The Senate granted an extension of time for reporting until 4 December 2018 3 and 30 January 2019. 4 Conduct of the inquiry 1.3 The inquiry was advertised on the Committee's website and by media release. The Committee invited submissions from over 200 individuals and organisations by 27 July 2018. Submissions continued to be accepted after this date. The Committee received 137 submissions which are listed at Appendix 1. 1.4 The Committee held public hearings in Adelaide on 10 August 2018; Canberra on 17 August 2018; Melbourne on 31 August 2018; Brisbane on 27 September 2018; and Canberra on 18 October 2018. A list of the witnesses who gave evidence at the public hearings is available at Appendix 2. 1.5 The Committee also conducted site visits to Precision Buses on 9 August 2018 (Adelaide, South Australia); Nissan Casting Australia Plant and SEA Electric on 30 August 2018 (Dandenong, Victoria); and Tritium on 1 Journals of the Senate, No. 104—27 June 2018, pp. 3336–3337. 2 Journals of the Senate, No. 104—27 June 2018, pp. 3336–3337. 3 Journals of the Senate, No. 110—20 August 2018, p. 3534. 4 Journals of the Senate, No. 135—4 December 2018, p. 4397. 2 27 September 2018 (Murrarie, Queensland). Summaries of the site visits can be found in Appendix 3. 1.6 Submissions, additional information and the Hansard transcripts of evidence may be accessed through the committee website at: s. 1.7 The Committee thanks those who made submissions to the Committee and appeared as witnesses at public hearings. The Committee extends its sincere appreciation to hosts at the site visits from Precision Buses, Nissan Casting Australia Plant, SEA Electric and Tritium. Structure of the report 1.8 Chapter 1 is an introduc...
View Full Document

  • One '14
  • Electric vehicle, Plug-in hybrid

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture