Right: The battery technology breakthroughs of the last decade were driven by the rising interest in electric cars, but aircraft like the Pipistrel Electro are already flying, with one being used for training pilots in Western Australia.
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Arguments in favour of electric cars in Australia
1. Electric vehicles (EVs) produce less greenhouse emissions
Those who support the adoption of EVs in Australia stress that they directly produce no emissions, including greenhouse gas emissions. Battery run electric vehicles have no exhaust emissions. Their emissions are determined by the production and distribution of the energy used to charge them and they are generally claimed to be far less polluting than internal combustion engine vehicles (ICEVs).
Dr Jake Whitehead, a Tritium e-Mobility Research Fellow at the University of Queensland's Dow Centre for Sustainable Engineering has stated as a result of his research, 'The typical Australian petrol vehicle generates 355 grams of CO2-equivalent per kilometre in real-world fuel life cycle emissions. By comparison, a typical electric vehicle charged using the average Australian electricity grid mix generates about 40 percent fewer emissions, at 213 grams of CO2-equivalent per kilometre.'
Dr Whitehead has indicated that irrespective of where in Australia an electric car was run it would be responsible for fewer emissions than an ICEV. Whitehead's work indicates, 'Victoria has the most emissions-intensive [power] grid in Australia due to its reliance on brown coal. However, even in that state, the real-world fuel life cycle emissions of a typical electric vehicle would still be 20 percent lower than a typical petrol vehicle. In Tasmania, which is dominated by renewable energy, electric vehicle emissions would be 88 percent lower than a comparable petrol vehicle.'
It has been noted by Dr Whitehead and others that many of the claims made regarding the ineffectiveness of EVs in reducing greenhouse emissions are doubtful. A new study by the Centre for Economic Studies (CES) in Munich claimed, 'Germany's current energy mix and the amount of energy used in battery production, the CO2 emissions of battery-electric vehicles are, in the best case, slightly higher than those of a diesel engine, and are otherwise much higher.' This has been vigorously disputed. Dr. Markus Lienkamp, head of the Department of Automotive Engineering at the Technical University of Munich, has denounced the report as an 'unscientific conspiracy theory'. The CES study has been challenged for drawing on discredited claims, misrepresenting data and understating the emissions of ICEVs.
It has further been argued that as the countries of the world reduce their reliance on power-stations using fossil fuels the greenhouse emissions connected to EVs will drop to an even lower level. Data shows that worldwide coal-fired electricity generation is expected to fall by 3 percent in 2019, or more than the combined coal generation in Germany, Spain and the United Kingdom in 2018. The steepest global slump on record is likely to emerge in 2019 as India's reliance on coal power falls for the first time in at least three decades and China's coal power demand plateaus.
The European Union reported a record slump in coal-fired electricity generation in the first half of 2019 of almost a fifth compared with the same months in 2018. This trend was expected to accelerate over the second half of the year to average a 23 percent fall overall. By the end of August 2019, the United States had reduced coal-generated power by almost 14 percent over the year compared with the same months in 2018.
Even more dramatic reductions in fossil-fuel-powered electricity generation has occurred in the United Kingdom. Zero-carbon energy became Britain's largest electricity source in 2019, delivering nearly half the country's electrical power, outstripping generation by fossil fuels.
Supporters of EVs in Australia argue that a larger take-up of electric vehicles would prompt the country to turn more rapidly from fossil fuel-powered electricity generation and this would have the huge double advantage of reducing emissions from Australians power-stations for all purposes and of reducing dramatically the emissions associated with road transport.
It has also been noted that many people who drive electric cars also have roof-top generated solar electricity which they use to charge their vehicles, therefore causing no emissions. A survey conducted in 2018 found that 80 percent of EV charging occurred at home, with 73 percent of respondents owning rooftop solar systems.
2. The cost of EVs can be reduced by government subsidies
Supporters of EVs argue that governments seeking to lower greenhouse emissions need to subsidise electric cars as part of their emissions-reduction strategy. Development and production costs are greater for new technologies. In addition, EVs, as a new technology, inevitably have a more expensive purchase price as their manufacturers have not yet achieved the economies of scale that ICEVs enjoy. Government subsidies are a means of shaping citizens' behaviour in ways which the government considers beneficial.
Dr Benjamin Beard, an economist who is a Fellow at Resources for the Future, has written of the need for governments to subsidise environmentally desirable developments which are initially too expensive to be widely taken up. Beard states, 'One of the best ways to encourage people to do something is to subsidise the behavior. A subsidy lowers the effective purchase price, which is the most important feature of a product. One of the big reasons we see low sales of electric vehicles is their high up-front purchase price.'
Norway is often offered as an example of a country which, as part of its endeavor to lower greenhouse emissions, substantially subsidises electric vehicles.
On May 4, 2018, The Conversation published a comment by Dr Anna Mortimer, a lecturer in taxation at Griffiths University. Dr Mortimer noted, 'Norway imposes a high stamp duty on internal combustion vehicles, and exempts battery electric vehicles from both stamp duty and the high 25 percent Value Added Tax. Plug-in hybrid electric vehicles have a lower rate of stamp duty. Such financial incentives are high enough to offset the price differences between electric and combustion vehicles...
Norway also provides total exemption from road tolls, free car ferry travel, free recharge sites, free parking, and access to bus lanes. In effect, consumers in Norway are better off for choosing a battery electric vehicle.'
These incentives have been highly successful. Commenting on their success, Dr Mortimer has stated, 'It is projected that by 2030, up to 4 million electric vehicles will be on the road in the Nordic states. Norway and Sweden will account for 80 percent of the growth by 2030.'
Other countries have adopted additional methods of encouraging consumers to purchase electric vehicles. China is the world's largest market for electric cars. There is currently a growth of 117 percent in the Chinese EV market, based on low-cost offers and regulatory incentives. Electric vehicles are not subject to registration restrictions or driving bans on certain days, that apply to vehicles with combustion engines in Chinese megacities. Purchase incentives also contribute to the enormous demand.
Incentives are also offered in the United States. When purchasing electric cars, all federal taxes that depend on fuel consumption are waived. Buyers of electric cars are also entitled to a federal tax credit of up to $US7,500.
Since the summer of 2016, the German government makes an environmental contribution of 2,000 Euros to the purchase of a pure electric car, combined with the same amount by the manufacturer, corresponding to a total of 4,000 Euros. This bonus is limited to electric cars up to a value of 60,000 Euros.
In the Netherlands there are no registration taxes for pure electric cars. Registration tax is based on the CO2 emissions of a vehicle. By way of comparison, a petrol-powered vehicle with CO2 emissions of 100g/km is subject to a registration tax of 2,355 Euros.
Supporters of EVs in Australia argue that their purchase price would not be a factor if the government were sufficiently committed to lowering greenhouse emissions and thus was prepared to subsidise these vehicles at the rate required.
3. The cost of EVs is likely to fall even without government intervention
Supporters of increased EV use in Australia argue that even without increased government intervention, the cost of electric cars is likely to fall.
The former federal Minister for the Environment and Energy, Josh Frydenberg, has noted, 'Of the 16 electric vehicle models on sale in Australia, 13 are over $60,000. But the next generation Tesla for example, will sell for less than half the cost of existing models and the convergence in price is on the way. Bloomberg Energy Finance estimates that electric and conventional vehicles will be of a similar price by 2025.'
It has also been noted that as more EVs are sold in Australia, there will be more to service the secondhand market, selling for much lower process. Frydenberg has stated, 'With the purchase of more electric vehicles as part of company and government fleets and fleet cars being turned over on average every 3-5 years, the range of second-hand electric vehicles is also likely to increase exponentially.'
BloombergNEF (BNEF), a research organisation that advises energy companies, announced in April 2019, that the total cost of ownership of some electric vehicles in Australia could match that of their petrol and diesel equivalents as soon as 2020.
In a report looking at the Australian vehicle market, BNEF stated that the prospect of growing interest in EVs and their rapidly falling costs means that the share of new sales would likely reach 28 per cent on a 'business-as-usual' basis, that is, if there were no further interventions by government.
BNEF analyst Ali Asghar has stated, 'The TCO (total cost of ownership) is the metric likely to influence purchasing decisions of fleet owners and managers. Since TCO parity could start earlier than upfront cost parity of EVs (relative to ICEs), it is likely that fleet purchases in Australia will pick up prior to significant growth in private car purchase.'
By 2030, BNEF predicts, the average cost of a midsize battery electric vehicle will decline from more than $50,000 in 2018 to near $37,000 by 2030. That puts it in the middle of the $20,000 to $50,000 range that Australians now spend on such cars.
The falling cost of batteries is largely responsible for the declining prices of EVs. For many years, electric vehicle batteries were said to account for half the car's total cost, but that figure has dropped dramatically. In 2015, the battery represented about 57 percent of the cost, in 2019 it was 33 percent and by 2025 Bloomberg NEF predicts it will be only 20 percent.
The BNEF report also indicated that electric vehicle chassis and body costs are likely to drop slightly, while those same costs will rise modestly for combustion vehicles 'as a result of light-weighting and other measures to help comply with emissions targets.' In addition there are likely to be bigger cost improvements in the electric powertrain, as 'large-volume manufacturing is only now beginning for such parts.' By 2030, costs for motors, inverters and power electronics could be 25 to 30 percent lower than they are today.
4. EVs are cheaper to run and maintain
Those who support the general adoption of EVs in Australia argue that they offer significant fuel and maintenance savings to their owners.
On March 7, 2019, Carsales published an advice column which noted 'There are significant fuel cost savings on offer for electric buyers...with the Kona Electric costing just 3.49 cents per kilometre in electricity to run, compared to 9.79 cents for the petrol-powered Elite.'
The same article further noted 'Owners could halve their "fuel" costs again with the right power plan. The RACQ (Royal Automobile Club of Queensland) calculates its figures using Queensland electricity tariff 11 rates, a flat price of 26.62 cents per kWh that doesn't fluctuate with demand. Charging off-peak could cost as little as 12 cents per kWh for homes with a smart meter, effectively halving the price of charging.'
European research has come to similar conclusions. A study conducted in five European nations and reported on in The Guardian on February 12, 2019, stated, 'The study examined the purchase, fuel and tax costs of Europe's bestselling car, the VW golf, in its battery electric, hybrid, petrol and diesel versions. Over four years, the pure electric version was the cheapest in all places - UK, Germany, France, Netherlands and Norway - owing to a combination of lower taxes, fuel costs and subsidies on the purchase price.'
It has also been noted that in addition to lower fuel costs, an EV is cheaper to maintain. In an information piece published on November 18, 2016, Ergon Energy (a subsidiary company of Energy Queensland Limited, a Government owned corporation which distributes electricity to around 738,000 customers across the state) stated, 'A battery electric vehicle (BEV) has a lot less moving parts than a conventional petrol/diesel car. There is relatively little servicing and no expensive exhaust systems, starter motors, fuel injection systems, radiators and many other parts that aren't needed in an EV.'
With just one moving part - the rotor - BEVs are particularly simple and very strong. Just maintain the brakes, tyres and suspension and that's about it.'
Charging costs for an EV are around 60 to 90% cheaper than fuel costs. With Queensland households spending $5.8 billion on fuel each year, the fuel savings created by the transition to EVs could be spent elsewhere in the local economy.
The Queensland Government's transport site promotes the fuel-saving advantages of EVs. It states, 'Charging costs for an EV are around 60 to 90 percent cheaper than fuel costs. With Queensland households spending $5.8 billion on fuel each year, the fuel savings created by the transition to EVs could be spent elsewhere in the local economy.
Typical fuel costs are reduced from $1.50 per litre to $0.50 equivalent-litre when converting from a traditional combustion engine vehicle to an EV.'
Looking at overall costs, a study conducted by the Royal Automobile Club of Victoria (RACV) posted on their site on July 11, 2019, stated, 'The average weekly cost of charging an EV (inclusive of some fuel costs for the Outlander PHEV) is $11.70 per week. Whereas the weekly average fuel costs of a medium SUV (sports utility vehicle), for example, is $28.37...
As EVs require less frequent servicing and have fewer moving parts to monitor and fix, the cost of servicing is significantly lower for an EV compared to a petrol or diesel vehicle.'
5. EVs carry sufficient charge to suit Australian distances conditions and recharge facilities are being set up
Supporters of EVs note that their batteries carry sufficient charge to allow them easily to meet average Australian driving distances and that the necessary recharging infrastructure is being set up.
In an analysis published in WhichCar on April 8, 2019, it was noted, 'Most Australians live in big cities and travel less than 20kms both ways for their daily commute. That means even cars with lesser ranges, such as the Hyundai Ionic Electric with its modest 230km range, will get you to work all week on a single charge.
Another thing about EVs is their efficiency actually increases in city traffic thanks to regenerative braking, which recoups kinetic energy while stopping to top up the batteries.'
The WhichCar analysis further noted that the capacity of EV batteries is being increased. The article states, 'With the "new norm" for range now being about 450kms, EVs are approaching the point where they can easily provide more than enough range for weekly driving duties.'
It has been noted that most EVs can be charged in between six and ten hours, which makes charging overnight the most suitable option. It has further been noted that if the owner charges every day or every second day and does not allow the battery to go flat, then charging times are much shorter.
The federal Minister for the Environment and Energy, Josh Frydenberg, has noted, 'With regards to range and recharging, the Chevrolet and Renault models already travel around 350 kilometres without needing to be recharged and using the increasingly prominent DC recharging stations, an electric vehicle can be recharged in less than 30 minutes. Indeed, it's the view of Australia's Chief Scientist that by 2025 there might be electric vehicles in production that can drive 1000 kilometres on a single charge.'
It has also been noted that the infrastructure which will allow for recharging during a trip is rapidly increasing. Frydenberg has stated, 'The infrastructure of electric vehicles is also rapidly becoming more feasible for long distance journeys. In Western Australia, the Royal Automobile Club recently rolled out 11 fast charging stations in the south-west, in Queensland the state government is creating a superhighway of charging stations between the Gold Coast and Cairns, in NSW the NRMA is building 40 fast charging stations suitable for a range of car types and Tesla has built a network of fast-charging stations between Adelaide and Melbourne, Sydney and Brisbane. While Australia's 476 public charging stations are just a fraction of the more than 60,000 you can find across Europe, it will quickly grow over time.'
The Victorian government has launched a new map of existing and proposed electric charging stations across Victoria with the latest ultra-rapid charging station opening in Moe in December 2019. The map is intended to help Victorian drivers locate the 403 electric vehicle charging stations across the state, with another 31 expected to be constructed by the end of 2020.
David Finn, chief executive and founder of Tritium - Australia's only designer and manufacturer of EV chargers - has stated that the expansion of EV facilities is happening quickly. The Brisbane-based company estimates it supplies about 95 percent of the fast-charge infrastructure in Australia and half that of nations such as Norway, where almost 60 percent of new cars sales in March were electric. A 50-kilowatt charger costs about $30,000, and Australia probably has about 100 such outlets. Dr Finn has explained that super-fast charging could offer drivers 200-km of range for just five minutes waiting.