‘Record investment’ in low emission vehicles, but still paltry

The Government has announced more funding in support of the use of ‘low emission’ (mostly electric) vehicles, but it is still paltry amounts. It may be a bit more than lip service but it is hardly going to launch us into a transport revolution.

Energy and Resources Minister Megan Woods:  Record investment in low emissions vehicles announced

Low emission transport will receive a record boost totalling more than $11 million, Energy and Resources Minister Megan Woods announced today.

“Today I’m announcing the largest round of new funding from the Government’s Low Emission Vehicles Contestable Fund yet.

“Thirty one exciting new low emissions transport projects will share over $11 million of funding to help more Kiwis make use of new transport technology.

“This funding is made up of $4.3 million of government co-funding and $7.3 million of funds from the private sector. That’s a smart investment that means the maximum benefit for the taxpayers spend.

That’s $4.3 million of Government funding. It suggests that not a big priority is going alternative energy transport.

“This round of funding focuses on innovative projects that expand the use and possibilities of electric vehicles and other low emissions technology in the transport space. It’s about making new technology available to help Kiwis get around, lower our carbon emissions and contribute to our economy.

“From 100% electric campervans for tourists to hydrogen fuel cell powered buses at the Ports of Auckland to solar panel charged electric vehicles and trial of smart chargers in people’s homes, we’re backing new technologies that will make a difference.

“We’re also funding a further 34 new public charging spaces for electric vehicles right around New Zealand, including several at South Island tourism hot-spots. This is about creating a truly national infrastructure of EV charging so that all major trips around our country are available to EV users.

34 charging stations around the country is not a big boost – and it doesn’t solve all the problems of using EVs. A small increase in the number of charging stations will help a bit, but they are still few and scattered, and the range of EVs and the time required to charge them are still significant negatives.

“This is by far the biggest round of new projects delivered by the Fund. Each previous round has given the green light to between 14 and 18 projects. In total, the fund has committed $17.2 million in government funding to 93 projects. This is matched by over $45 million applicant funding.

Trying to talk up an underwhelming investment.

“Transport is responsible for about 18% of New Zealand’s total greenhouse gas emissions, so one of the most effective ways for us to help tackle climate change is to transition our fossil-fuelled transport fleet to run on clean, renewable energy sources. By helping to roll out that technology to more people than ever, today’s announcement helps more Kiwis cut their transport emissions.

It will help a small number of Kiwis charge their vehicles.

The 31 projects are listed, ranging from tens of thousands to a few hundred thousand dollars. It is hardly going to encourage people to invest more in electric vehicles.

But I guess it’s something.

For more information about the fund, visit www.eeca.govt.nz/funding-and-support/low-emission-vehicles-contestable-fund/

For general information about EVs, see www.electricvehicles.govt.nz

 

Petrol price rip off

A report from the Government suggests that we are being ripped off with petrol prices, especially in Wellington and the South Island.

Judith Collins:

Fuel Market Study released

A study into New Zealand’s retail fuel market confirms that it has features which may not be consistent with a workably competitive market, Energy and Resources Minister Judith Collins says.

The Study found that retail fuel margins have increased significantly over the last five years while fuel margins for aviation and commercial road users have been flat or falling. It also found that higher petrol prices in the South Island and Wellington are not explained by higher costs in those areas.

“There were difficulties in comparing the information received from the companies, and some very specific information that was required could not be obtained.

“As a result, the Study doesn’t definitively answer whether fuel prices are reasonable or not. However, the Report does conclude that “we cannot definitely say that fuel prices in New Zealand are reasonable, but we have reason to believe that they might not be.”

“This is a very complex area and the Study takes us a significant step forward in our understanding. I have now instructed my officials to assess the recommendations of the Study and report back to me by November.

“Furthermore, the Market Studies powers announced recently by the Minister of Commerce and Consumer Affairs will give the Government the option to direct the Commerce Commission to undertake a further competition-specific fuel market study, backed by the ability to require comparable data across companies. There is currently no legal mechanism to do this.”

“I would like to thank Z Energy, BP, Mobil and Gull for taking part in the Study.”

The Fuel Market Financial Performance Study, MBIE summary of the Study and the Cabinet paper are available here.

Collusion between fuel companies or lack of real competition?

Petrol pricing is complicated, probably deliberately, by fuel card and coupon discounts, that mask the real retail prices, and really rip you off if you need to get petrol from a service station that you can get a discount from.