Electric Vehicles are the way of the future. Governments worldwide are driving policies and initiatives for the adoption of EVs, and New Zealand is no different with the Clean Car Programme. As a more sustainable way to distribute goods, FMCG investment in EVs can save long-term operating expenses and, most importantly, have a healthier contribution to a business's carbon footprint. The sector is also supplying customers with charging stations to encourage the transport shift.
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There are three main types of electric vehicles: HEV, PHEV and BEV. HEV or hybrid electric vehicle is the combination of a combustion engine with a small battery pack and electric motor that usually can only drive on electric power for short distances. The battery is charged on braking and deceleration. PHEV vehicles combine a combustion engine with plug-in electric power. Batteries are bigger than those in an HEV and designed for overnight charging. Once the electric battery is depleted, the vehicle will run like a HEV. A BEV is a purely electric vehicle that does not burn any fossil fuels. It relies solely on the driver to plug in and recharge the battery.
There are a number of challenges that New Zealand faces in the adoption of EVs, including the capital cost and strain on the power grids.
“We would like to see Government rebates extended for at least another couple of years until the cost of buying an EV is similar to the cost of petrol/diesel vehicles. Making EVs accessible is key to encouraging greater uptake. We would also be supportive of the Government introducing an FBT (Fringe Benefit Tax) exemption on electric vehicles to support businesses making the switch,” said Ed Harvey, CEO of Evnex.
With an increase in the uptake of consumer EV vehicles, the government has to ensure power grids are not overloaded as the nation charges overnight. Smart charging and the use of renewable energy sources, particularly home solar panels, could shift energy demand away from peak charging times.
“Making efficient use of New Zealand’s grid and power consumption will be enabled by smart technology; dynamic charging infrastructure that controls load, and software that gives consumers choice in how and when they charge. We see potential, and Z will look to trial micro-grids and battery storage solutions in the near future,” said Kaye Herrick, EV Experience Manager at Z Energy
There are also concerns about national infrastructure and whether public charging should be paid or free.
“My understanding is that there is significant investment going into National Fast Charging networks as well as the likes of Z Energy proposing to install chargers in their Service Stations. We are installing EV chargers in our business for staff to charge our EV fleet during the day when in the office, and our fleet is being replaced progressively with PHEVs. EVs are not currently suited for business travel around the country due to the lack of charging stations,” said Chris Farmer, Sales & Marketing Director, Eurotec Ltd
While there are a number of challenges to investing in EVs, the recommendation is to prepare for the change.
“For retailers, top-up charging may be an attractive service for customers, a bit like providing in-store Wi-Fi. The electrification of motorbikes and mopeds is happening faster than for cars, and retailers may want to think about providing a moped and motorbike park’ n ’charge. Likewise, as the range of e-cycles expands, customers will be looking for more space to park bigger e-cargo bikes and demanding charge ports. Retailers should also think about supporting their suppliers by providing top-up charging for delivery vehicles to keep them on the move,” said Sam Stephenson from Auckland Transport.
