Powering up down under: How EVs can build a cleaner, smarter future for Australia

As the impact of a warming climate manifests around the world, Australia is seeking new ways to shift to renewable power and achieve energy efficiency. Solar PV adoption has soared in the last five years and generated 10% of the country’s electricity from 2020-2021. Other areas of the transition are progressing too, such as investment in battery storage, which is allowing more homes to self-serve.

However, transport remains the third biggest and fastest growing source of greenhouse gas emissions in Australia.

Despite Canada topping the above graph and the United States coming in close third place, Canada’s EV penetration stands at 5.8% and the US is seeing record-breaking EV sales – with new tax breaks pledged to further incentivise customers switching away from fossil-fuel vehicles. Meanwhile in Australia, EV adoption is accelerating, but at a slower pace than other countries due to difficulties obtaining EV stock, among other issues.

Batteries on wheels

According to Kaluza’s data, when half of all vehicles on Australia’s roads are electric, they will create almost 13GW of daily flexible load, which is more than all of the current coal generation capacity in New South Wales. Forecasts also show that the next generation of vehicles in Australia will allow energy to flow bidirectionally – meaning that vehicles will be able to export energy back into homes and the grid – doubling the amount of flexibility available to manage a low carbon energy system. Clearly there is phenomenal potential for EVs to enable the country to maximise its use of abundant renewables, but what about engaging consumers in going electric?

The emergence of technology which facilitates the orchestration of EV charging means that the effect of surges in grid demand can be mitigated – and these concerns can in fact be outweighed by the huge opportunities that EVs present for Australia. Options such as vehicle-to-grid (V2G) technology, which allows drivers to charge bidirectionally, could help support the grid while rewarding drivers in the future – as Kaluza’s trial of the technology has shown in the UK. Not only does technology like V2G turn cars into mini green power stations, which can support the energy system by exporting back to the grid to avoid blackouts; it also cuts costs for both energy networks and consumers, who are empowered to store and sell their surplus energy.

Through Kaluza’s implementation of the world’s first domestic V2G rollout, which saw 330 V2G devices installed across the UK and over 3 million free miles made available to customers, it was shown that V2G has the potential to save £3.5bn per year on grid infrastructure reinforcement. In addition, V2G enabled customers participating in the rollout to earn an average of £420, and in some cases up to £800, per year without needing to do anything except keep their cars plugged in when they are not in use.

So what’s next? For significant impact across a country containing 20.1 million registered vehicles, this is only the beginning.

Increasing EV adoption

Recent data shows that 3.39% of all new cars sold in Australia so far in 2022 have been EVs – a 65% increase from 2% in 2021. The majority of EV drivers in Australia are also comfortable with charging from home, understanding that this is where 90% of charging takes place – making the concept infinitely more accessible.

Still, more needs to be done to convert consumer appetite into action. To do this the journey from researching and purchase to charging, and the decision points for customers along the way, need to be made as simple as possible.

AGL Energy: leading the charge

The EV technology Australia needs is ready, the country’s drivers are engaged, and we consider the forecasted impact to be clear. AGL Energy, one of the country’s largest energy retailers, is embracing this  technology to activate the transition and make smart charging a reality for drivers.

Kaluza’s new partnership with AGL Energy draws on our pioneering smart charging work in the UK and Japan. Kaluza technology will power innovative smart charging propositions which can be offered to AGL’s customer base. The partnership is initially providing Tesla EV drivers with an engaging digital experience through the new AGL ChargeOn mobile app, before expanding the service to cover other major EV brands in Australia.

The ChargeOn app connects directly to EV drivers’ cars and automatically schedules charging according to when cheap, renewable energy is in abundance, while ensuring their EV is ready when they need it. In addition, drivers will actively earn money back, as participating EV drivers on any AGL tariff will be rewarded up to $20/month for allowing Kaluza to manage their vehicle’s charging.

Powering a brighter future

EV technology presents a huge, untapped opportunity for Australia: an opportunity that would allow this powerhouse of a nation to drive progress on decarbonisation, reduce consumer costs and bolster the grid. Consumer demand for electric vehicles is increasing, and data-driven platforms like Kaluza working with energy majors like AGL are helping to lower the cost of EV ownership. Stay tuned for progress on our partnership!