Government stimulates EV charger investment

A new scheme worth almost $70m will help to fund public electric vehicle chargers, according to a 1News item.

Companies building EV chargers have previously applied for grants via a contestable fund, according to Transport Minister, Chris Bishop.

But now the Government is putting $68.5 million in grant money towards interest-free loans instead.

Bishop said that this should stimulate 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.”

The loans will pay for up to one-half of project costs. They will be awarded through contestable investment rounds.

“Under the status quo, the private sector is reluctant to invest in charging infrastructure until there’s sufficient demand. However, the 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.”

Grants made sense when the public charging market was being established. Butt EVs now comprise more than two per cent of the light vehicle fleet. That’s projected to grow to 11 per cent by 2030, according to Bishop’s figures.

At the end of last year, there were 1378 public charging points. That’s roughly one for every 84 EVs (BEVs and PHEVs).

The Government promised 10,000 by 2030, in the lead up to the election which is one charging point for every 40 EVs.

Climate Change Minister Simon Watts agreed that boosting public charging infrastructure would stimulate demand for EVs.

He said: “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.”

The loan initiative will be administered by National Infrastructure Funding and Financing which previously delivered ultra-fast broadband.