Electric Vehicle & Hydrogen Technology Policy Workshop: Recommendations for Policy Makers

1. Electric Vehicle & Hydrogen Technology Policy Workshop: Recommendations for Policy Makers Clem Arlidge New Zealand Energy Efficiency and Conservation Authority

2. EV Workshop Summary.. • The convergence of new technologies and business models are disrupting the energy and transportation industries • “By 2025, all new vehicles will be electric” – T. Seba • Pure economics will lead to this tipping point, followed by a rapid decline in demand for oil, peaking in 2020. • 95% of passenger miles will be Transport as a Service (TaaS) by 2030. As fleets convert to electric autonomous vehicles, car ownership will become obsolete • Declining solar prices will undercut all forms of electricity generation • Navigating the transition with consideration to traditional infrastructure investment models will be challenging!

3. EV Workshop Summary.. • The transition will lead to new innovation, new opportunities, new businesses and new jobs • Urban land use change will lead to city planning opportunities • Ambitious EV targets can give a signal to the market but need implementation policies to deliver on goals • Hearts & minds.. It’s not always about economics when it comes to changing behaviour.. • Govt supported charging infrastructure is fundamental to success • Modelling and forecasting of technology uptake is nearly always wrong! Question ‘the experts’

4. H2 Workshop Summary: • Hydrogen provides a complimentary renewable fuel source to wind, solar, and batteries • Storage – hydrogen’s ability to be stored and transported makes it a useful fuel source to compliment intermittent renewables • FCEVs are here now and will play key role in emissions reductions and meeting our Paris Commitments particularly for commercial transport - buses, trains, trucks, forklifts etc. • By 2030 a hydrogen commodity market will likely exist - this could displace fossil fuels used in transport and stationary energy

5. Green Hydrogen production has both small and large small scale applications.. • Small scale – local electrolysis systems running on standalone (solar or wind) or grid connected power to create hydrogen under low pressure for cooking/water heating or under higher pressure for transport use. • Large scale – larger electrolysis production plants using 300-500 MW of electricity can create hydrogen for local use or for export to hydrogen using economies. • Small scale use may help stimulate the local demand that justifies large scale investment in expensive production plants.

6. Summary: Benefits of EVs & H2 to energy systems.. Improved air quality in cities enhanced energy security Support for domestic renewable generation Utilise existing infrastructure EVs & H2 Improved electrical grid stability Reduced GHG emissions Ability to Store energy Efficient use of energy

7. Recommendations for Policy Makers..

8. Recommendations for policy makers… • Consider EVs & H2 in the broader economy context: Both technologies can play a role in improving energy, transport, health and environmental outcomes- the co-benefits are appealing • Energy and transport disruption will have wide implications: Policy makers should plan for the transition and future proof energy systems to navigate the forthcoming disruption • EVs to reach price parity with ICE vehicles in 5-10 years. From there, uptake will be exponential. Supportive policies, leads to early adoption- bringing those benefits forward • Policy makers need to plan for the transition to electrified transport by ensuring market and regulatory settings allow for innovation and new technologies (e.g. ride sharing, autonomous vehicles) • Supportive policies are fundamental to the roll out of charging infrastructure: Governments can support rollout of charging infrastructure to avoid the ‘chicken & egg’ dilemma

9. Recommendations for policy makers.. • Well implemented subsidiescan offer short term stimulus- however, over the long term impacts can be costly or have adverse outcomes • Inefficient vehicles can be discouraged through higher taxes • Governments can demonstrate leadership- Convert government vehicles to electric/H2, demonstrate leadership. • ‘Priming the market’ through information and awareness is key to reducing the perceived barriers to uptake • Policy makers need to plan for hydrogen introduction by ensuring market and regulatory settings allow for the safe use and operation of hydrogen

10. How are EVs & H2 relevant to the EWG’s strategic plan? Low Carbon Model Towns Doubling of Renewable Energy Goal Facilitate regional trade & growth Improved energy intensity EVs & H2 Enhanced energy resilience Reduced fossil fuel subsidies New Energy R&D.. Innovative, world leading hub ..

11. Cross-fora Collaboration is key..

12. APEC Automotive Dialogue: EV Roadmap The Automotive Dialogue is actively discussing: • Recycling - protocols for re-use and re-manufacturing of batteries • Cybersecurity – hacking prevention • Personal Data - issues with autonomous vehicle routing info, driver information • Emergency Rescue - protocol and rescue manual, ability to let outside community know what kind of help is required • Interoperability Standards – high power and wireless charging, building integration • 2 and 3-wheel vehicle related standards issues

13. What is the role of the APEC EWG? • It is recommended that the EWG supports the deployment of electric vehicle and hydrogen technologies by: • Recognising that EVs & H2 are key to reduce emissions and localised air pollution and meet agreed Paris Climate change targets • Championing, developing and sharing best policy practice in EV & H2 growth, especially around charging networks and infrastructure to ensure energy systems maintain resilience • Collaborating with experts and industry to develop projects to further understand the barriers to uptake and opportunities posed by EVs • Establishing EVs & H2 as mainstays on the EWG agenda to facilitate further dialogue and market development

14. Upcoming APEC Electric Vehicle Activity.. • Workshop on Electromobility: Infrastructure and Workforce Development 1 & 2 February 2018, Santiago, Chile • The Automotive Dialogue EV Roadmap development to continue: Project Overseer (USA) plans to apply to the Energy Efficiency and Low Carbon Measures Sub-Fund and will seek EWG members’ input on the Concept Note. Project Overseer contact: