- Hon Simeon Brown
New requirements for electric vehicle (EV) chargers supplied in New Zealand will make it easier and more affordable for people to charge their vehicles, while helping ensure the electricity system is ready for growing demand, Energy Minister Simeon Brown says.
By 2050, smart EV charging could:
- Reduce household power bills by up to $220 a year
- Save up to $4 billion in electricity network costs
"More New Zealanders are choosing electric vehicles, or considering one for the future, and we need to make sure our electricity system is ready," Mr Brown says.
EV chargers supplied in New Zealand will need to meet a minimum standard of 'smart functionality' and be clearly labelled. This will make it easier for people to choose chargers that can automatically shift charging to cheaper times based on price and network signals, while ensuring their vehicle is charged when they need it.
"This means EV chargers can automatically shift charging to times when electricity is cheaper and demand on the system is lower - such as overnight or other off-peak periods."
Once in effect, the new requirements will apply to new EV chargers with a charging capacity above 2.4 kW, covering most fixed household and business chargers.
"In practice, this means your EV can charge overnight at cheaper times without needing to think about it."
Mr Brown says this will become increasingly important as EV uptake grows and electricity demand rises.
"Without smarter charging, unmanaged EV charging could increase household peak demand by up to 40 per cent and add around $220 a year to the average household power bill by 2050. Managing charging can avoid these costs.
"That additional demand would fall on peak times, putting pressure on the grid and driving the need for costly new electricity generation and network upgrades - costs that would ultimately be passed on to consumers."
Smart EV charging helps avoid this by shifting demand away from peak periods and responding to signals such as time-of-use or dynamic pricing, as well as network constraints.
The potential savings are significant, with avoided network costs of up to $4 billion by 2050.
The decision also brings New Zealand into closer alignment with Australia and other key trading partners, including the European Union, the United Kingdom and China, which are moving towards regulating smart EV charging.
"Our focus is on ensuring all Kiwi households and businesses have secure, affordable energy, particularly as demand grows. This change is about building the future of New Zealand's energy system - one that is smarter, more resilient, and better able to support the growing use of electric vehicles."
Note to editors:
- The new requirements will be enabled through amendments to the Energy Efficiency and Conservation Act 2000. Legislation is expected to be introduced to Parliament later this year and will come into force following the normal Parliamentary process.
- MBIE and EECA (the Energy Efficiency and Conservation Authority) will undertake public consultation on the draft rules to implement these EV charger regulations before they come into force.
- EECA maintains the EV smart charger approved list for chargers that already meet the current voluntary standards for smartness and energy efficiency.
- Portable charging cables that often come with an EV are typically below 2.4 kW, so the new requirements will not apply to them.
