It’s about the production and not the delivery

“The Government is proposing to make electric, hybrid and fuel efficient vehicles more affordable so New Zealand families can choose a vehicle that’s better for the climate and their back pocket.….” so the latest release from the Hon. Julie Anne Genter starts out.

Great news, many are saying. At last the government is imposing more regulation to speed up our progress in cleaning up our environment.

Wait a minute, there is an ‘elephant’ in the room that needs to be addressed.

The electricity required to charge an EV battery has to be generated somehow. The mindset is that all electricity is ‘clean and green’. Well, that is not necessarily so as many countries throughout the world rely on fossil fuels for electricity generation. (See 100% renewable energy is ‘aspirational’

We are fortunate in NZ that we have such a high amount of renewable electricity generation from our hydro dams. It’s around 84% and the Interim Climate Change Committee’s latest report says that we can reach 92%. (100% is now considered ‘aspirational’ by the current government.)

Arguably we are in a prime position to implement policy (and regulation) regarding EVs. But should this be done with a carrot and a stick?

The implications of Genter’s policy is that those who can afford an electric car (or hybrid) get the subsidy. Those that cannot afford it or require a certain type of vehicle, i.e. a tradesman, will have to pay a higher price.

As most new vehicles are purchased by business, it will be another cost to be absorbed or passed on.

The next question that needs to be addressed is, how many electric vehicles can our current renewable electricity generation sustain? When we pass this limit, what new avenues are currently being pursued to increase our renewable generation?

While moves to motor vehicles that have less impact on the environment are to be applauded, we must remember that it is all about energy and its production, management and use. Buying an electric vehicle may help you feel good but the real questions in the future is how the world generates its electricity.