Electric fleet operators get $128m boost for charging infrastructure rollout

Vehicle fleet providers will be able to tap into a new $128 million fund to support their switch to electric vehicles, with funding available to support the rollout of new charging infrastructure.

Fleet operators are responsible for almost half of all new vehicle sales in Australia, with some operators responsible for the purchase of significant volumes of new vehicles at a time, and so have received significant attention from those seeking to boost Australian electric vehicle uptake.

Electric vehicles are becoming an increasingly attractive option for fleet operators, due to the decreasing cost of the vehicles over their whole-of-life, while also providing an opportunity for climate conscious governments and companies to reduce their own emissions footprint.

The funding is being provided over the next four years through the Australian Renewable Energy Agency’s Future Fuels program, which has been expanded to a total funding commitment of $250 million, with the aim of making it easier for fleet operators to make the switch to electric by supporting new charging infrastructure.

ARENA will make the new $128 million funding available to fleet operators through a competitive process to support the installation of new chargers and associated electrical infrastructure, as well as supporting the increased use of battery electric vehicles in heavy vehicle fleets.

“Funding will be available for light vehicle fleet operators for charging and electrical infrastructure, while heavy fleet operators are eligible for funding towards enabling infrastructure and some support for vehicle costs,” ARENA said in a statement.

“ARENA is also looking to fund projects that incorporate hydrogen fuel cell vehicles and refuelling infrastructure.”

Funding will also be open to operators of hydrogen fuel cell vehicles and supporting the construction of new hydrogen refueling infrastructure to accelerate the commercialisation of hydrogen as a transport fuel.

The fund’s guidelines suggest that ARENA will be looking to fund projects that are able to provide their own levels of co-funding, with the agency aiming to secure around $500 million of private and public co-investment.

ARENA CEO Darren Miller said the program, by helping fleet operators to offer customers electric options, would ultimately drive down transport emissions.

“Assisting fleet users to move to zero emissions vehicles means getting more zero emission cars and trucks on the road sooner, driving the road transport sector toward a net zero future,” Miller said.

“By getting these vehicles on the road as soon as possible we’ll reduce emissions in the short term and help to create a market for second hand vehicles in the future, giving more consumers the option of switching to a ZEV with their next vehicle purchase.”

As fleet vehicles are generally replaced within a few years, the sector serves as a key source of vehicles for the second-hand market.

By boosting the use of electric vehicles in fleets, it is likely to increase the number of lower cost electric vehicles becoming available for everyday drivers also wanting to make the shift to electric models.

Through the expanded fund, ARENA expects that up to 84 per cent of the Australian population will have access to publicly available fast-charging infrastructure.