- Hon Chris Bishop
- Hon Simon Watts
The Government is updating the way it co-invests in public electric vehicle (EV) chargers with the private sector to accelerate the delivery of EV chargers across New Zealand, Transport Minister Chris Bishop and Energy Minister Simon Watts say.
"New Zealand needs more EV chargers. We have fewer public chargers per EV than many other countries in the OECD, and we know that this is a barrier to Kiwis purchasing EVs," Mr Bishop says.
"People buying an EV need confidence that they can charge where and when they need to on a comprehensive public network.
"The number of EV charge points (as of 31 December 2024) is 1,378 - around one for every 84 EVs (battery electric and plug in hybrid). The Government is targeting 10,000 by 2030, so that there will be one public charge point to around 40 EVs. This will remove people's 'range anxiety' and make owning an EV as easy as possible.
"The Government will therefore utilise the highly successful Ultra-Fast Broadband model to accelerate the roll-out of EV chargers. Under the status quo, the private sector are reluctant to invest in charging infrastructure until there's sufficient demand, but demand for charging won't grow until the purchase of EVs stops being hampered by a lack of public charging. This chicken-and-egg situation is hampering the roll-out and justifies government action.
"Since 2016, government investment in EV chargers has consisted of direct grants. This made sense when the market for public EV charging was being established. This model is now outdated, with EVs now making up over 2 per cent of the light vehicle fleet, and expected to make up around 11 per cent by 2030. A range of charge point operators have now also entered the market.
"The Government is moving to a more sophisticated, commercial procurement model. We have set aside up to $68.5 million in currently held grant funding, to provide concessionary loans to private operators to co-invest in public EV charging infrastructure. Loans will be quicker to implement and will help achieve the Government's objectives with less complexity, cost and risk.
"Concessionary loans will bring forward private investment in public EV charging infrastructure by lowering the cost of capital. They will also provide better value for money by maximising private sector investment while keeping the taxpayers' contribution to a minimum.
"Loans will be awarded through contestable co-investment rounds, and applications will be open to proposals to establish portfolios of public EV charging sites (i.e. multiple charging locations). This is the best way to support scaled-up development and to maximise competitive tension between providers.
"Giving effect to commitments made on the National-Act Coalition agreement, this competitive tension will help ensure public investment flows to proposals delivering the best value-for-money. A cost benefit analysis will also be applied at the point loan applications are assessed, with a successful applicant having demonstrated that the benefits to New Zealand of its project outweigh the costs."
Mr Watts says that EVs make a huge amount of sense for New Zealand.
"With our bountiful renewable energy resources EVs are a winner for New Zealand. Kiwis charging their EVs are essentially filling their cars with predominantly water, wind, and geothermal energy - rather than fossil fuels - due to our high level of renewable energy.
"There are real benefits to owning an EV. Not only does it support our economic and climate goals, but it also delivers long-term benefits to users by helping keep running costs low. This Government is focused on growing the economy so Kiwis can get ahead.
"By giving people more options to reduce everyday expenses like transport, we're helping households stay ahead and build a more sustainable future. By co-investing to accelerate public EV infrastructure ahead of demand, we will give more Kiwis the confidence to go electric."
The new EV charging initiative will be administered by National Infrastructure Funding and Financing (NIFFCo), the successor organisation to Crown Infrastructure Partners (which delivered Ultra-Fast Broadband). EECA will provide assistance as required.
Editor's notes
- Increasing the number of chargers to support rapid EV uptake will help to reduce New Zealand's light road transport emissions. An EV used in New Zealand emits at least 60 percent fewer emissions over its full life cycle than do petrol vehicles.
- The concessionary loans will offer up to 50 percent of project costs, have a zero percent interest rate, and a maximum tenure of 13 years. The loans will be awarded through a contestable co-investment bid process.
- Applications will be assessed against value-for-money criteria to ensure loans are awarded to projects of greatest benefit and that New Zealand's EV charging network grows at pace. A Request for Proposals (RFP) for interested parties is expected to be released shortly.
- Consumer monitoring by EECA consistently shows that some of the main perceived disadvantages of EVs include that the driving range is not suitable for long distance travel, and that there are not enough public chargers available. Increasing the availability of public charging infrastructure gives drivers the confidence to switch to an electric vehicle. See EECA's Transport Monitor: https://www.eeca.govt.nz/assets/EECA-Transport-Monitor-Mar-Jun-2024.pdf
