Archived publication

This publication is no longer current or has been superseded.

Electric vehicles catch the eye of the Kiwi motorist

Last November, Environz published an article about an approaching electric vehicle trial that was due to take place in New Zealand for the first time to test the potential for carbon neutral mobility. The results of the trial are in, and it seems that a renewable, zero-emissions mode of personal transport could work here in the future.

01
01 Environment Minister Nick Smith and
Wellington Mayor Kerry Prendergast cut
the ribbon at the iMiEV trial launch in
Wellington as John Leighton (CEO
Mitsubishi Motors New Zealand) and Tim
Lusk (CEO Meridian Energy Ltd) look on.

The Mitsubishi iMiEV vehicle trial was officially launched in Wellington by Mitsubishi Motors and Meridian Energy earlier this year. Following the launch, the iMiEV toured the country for three months, providing the public with the chance to test drive the vehicle.

The aim of the trial was to build an understanding of the appetite for electric vehicles in New Zealand by conducting market research. “The results of the research showed a wide acceptance for the technology and a willingness to pay a premium for the benefits,” says Meridian’s Electric Vehicle Programme Manager, K-J Dillon.

According to Dillon, motoring journalists and New Zealanders who had the opportunity to drive the vehicle were unanimous that the car performed well.

Following the trial, Meridian has set out to understand the benefits of accelerating the uptake of electric vehicles in New Zealand.

In conjunction with Contact Energy, Meridian has commissioned a piece of work to look at the benefits of deploying the iMiEV vehicles in New Zealand. The analysis was completed by Hyder Consulting, an economic modelling agency, which used a cost-benefit approach to assess the net benefit to New Zealand of adopting electric vehicles.

Dillon says the analysis is thoroughly researched and far reaching, with input from international experts and government officials. “The results of the analysis show significant benefits to New Zealand, on both a private and public level.”

This includes a projected $8.2 million net benefit to New Zealand over a 50-year period – 91 per cent of this for private vehicle owners through decreased operational and maintenance costs and nine per cent for society through air pollution and carbon savings.

02
02 The iMiEV at Meridian’s Te Apiti wind
farm. Photos Meridian Energy.

But what is the likelihood of creating a real demand for electric vehicles here in New Zealand?

“There are several policy mechanisms that could be used to accelerate the demand for electric vehicles,” Dillon says. “There are very strong private benefits from owning and operating an electric vehicle. The private benefits are so strong that when coupled with production constraints and overseas incentives, it is likely that demand will exceed supply in New Zealand until around 2030.”

Some of the major challenges going forward are the price point of the vehicles when they first begin to arrive on New Zealand shores. But Dillon says the purchase price is forecast to drop dramatically over the next decade due to battery manufacturing efficiencies.

Market education will also be required on the benefits of electric vehicles and the competitiveness of their whole-of-life costs when compared to traditional modes of transport.

Challenges aside, this is a fast moving and very exciting time for electric vehicles. It may not be long until they start popping up on New Zealand roads.

For more information on the electric vehicle trial email EV.Enquiry@meridianenergy.co.nz