The Electric Vehicle Council (EVC) submits that the National Electricity Market (NEM) requires significant reform to meet current needs and future climate targets. The NEM, last updated in the 1990s, is no longer suitable for modern energy demands, and the review offers an opportunity to create a more consumer-friendly and climate-aligned system.
Key Concerns and Solutions:
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Ensuring Sufficient Capacity: The EVC suggests minimizing peak-time EV charging to reduce the need for new dispatchable generation assets. However, they note that lack of retail competition in Western Australia (WA) and regional Queensland (QLD) hinders this, with time-of-use (TOU) tariffs in QLD making night charging three times more expensive than in South East Queensland (SE QLD). The council emphasizes consumer education to promote off-peak charging, leveraging resources like Victorian energy compare and the federal government’s Energy Made Easy. Additionally, Vehicle-to-Grid (V2G) exports are crucial for balancing peak demand, with two-way tariffs incentivizing consumers to discharge EVs during high-load periods. The EVC recommends standardized solar export fees to avoid disincentivizing V2G participation.
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Market Integration for Resource Allocation: V2G represents a significant potential storage solution by 2050, and the EVC highlights the need for wholesale spot pricing to support V2G by recognizing energy arbitrage. Distribution Network Service Providers (DNSPs) must design tariffs that share value with consumers rather than solely benefiting the DNSP, as proposed in Victoria. Competitive retail markets will rapidly adopt V2G rewards, but regions like QLD and WA may lag due to lack of competition.
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Emissions Reduction: EVs discharging during peak times displace fossil fuel generation, aligning with Australia’s National Electricity Objective and international commitments. The EVC notes that EVs also reduce road transport emissions, which account for approximately 18% of national emissions. By integrating EVs with renewable energy sources, the overall cost of electricity can decrease, further encouraging EV adoption.
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Demand-Side Interaction with Markets: The EVC calls for ensuring consumers have access to effective signals for load shifting, particularly in WA and QLD. They strongly oppose "control without consent," citing Energy Queensland’s practices of limiting EV charging without opt-out options, which violates consumer protections. The council advocates for sustained education campaigns, including government-led initiatives, to build trust and demonstrate cost-saving and emissions-reduction benefits. Retail plans rewarding V2G exports will drive adoption, but regions lacking competition will lag.
Conclusion and Recommendations:
The EVC urges the Australian Energy Regulator (AER) to improve DNSP time-of-use windows and prices to incentivize competitive retail plans promoting load shifting and V2G. Governments should enhance education campaigns on EV benefits and management. The submission highlights the potential of EVs and V2G to transform the energy market, provided appropriate policies and consumer engagement are implemented.
