Opposition leader Peter Dutton’s nuclear fantasy could slam the brakes on electric vehicle (EV) uptake in Australia, potentially depriving at least 2.1 million Australians of $2,000 a year in savings on their fuel bills in 2030, resulting in a total of $4.2 billion in extra fuel costs.
This is the conclusion of a new analysis conducted by the Smart Energy Council, reinforcing previous calculations that demonstrate how the Coalition’s plans to double-down on nuclear power will force rooftop solar systems to be switched off, causing power prices to double.
On Tuesday, the Smart Energy Council concluded that the Coalition’s plan to install 14GW of nuclear power into Australia’s grid would require up to 5 million solar systems to be switched off every day to allow for the influx of nuclear generation.
This would, in turn, result in lost solar savings, causing power price bills to more than double.
According to the Smart Energy Council, these knock-on effects caused by shoe-horning expensive nuclear generating capacity into the grid will also begin to effect EV owners and, subsequently, potential EV uptake.
It says that when EV users are able to charge using home solar or off-peak tariffs, they can generally reduce their average charging costs by around $300.
This figure is based on a typical passenger car driving around 12,000 kilometres per year, working out to around $2,500 in fuel costs, but only around $500 for EV drivers (and sometimes much less). When those same EV drivers are able to charge using solar, that cost drops to around $200.
At the end of the day, then, EV drivers are often able to save upwards of $2,000 per year compared to those driving internal combustion engine (ICE) vehicles.
Shutting off solar systems will therefore risk those same savings, forcing EV drivers who previously charged using their at-home solar systems to go back to relying on grid energy now dominated by expensive nuclear power.
Not only will Australians therefore lose out on as much as $4.8 billion in energy savings, but they may end up having to pay an additional $4.2 billion in fuel costs.
“We know Peter Dutton is determined to crush cheap and clean renewable energy, but whacking cash-strapped Australian families in the process is a new low,” said John Grimes, Smart Energy Council CEO.
“Time and again Peter Dutton and his Coalition colleagues demonstrate how little they understand about solar, storage and EV battery technologies,” said Grimes.
“Australians are on a journey of saving money with cheap renewable energy by expanding their efficient, electrified footprints. We’re seeing it on our roads, and with cheap EV charging during the day when the grid is rich in solar.”
The Coalition’s plans further jeopardise EV uptake by underestimating how many new EVs will hit Australian roads in the future.
According to the Coalition’s own modelling, there will only be 1.5 million EVs on the roads by the end of 2030 and 12.8 million by the end of 2050. Conversely, more realistic modelling backing the Labor government’s plans anticipates 3.6 million EVs on the roads by 2030 and 21.3 million by 2050.
This, in turn, affects the forecast of power EVs will be using in Australia, with the Coalition expecting EVs to only be drawing 4.5GWh of power a year by 2030 and 47.3GWh by 2050. The Labor government, on the other hand, expects to see EVs drawing 10.9GWh a year by 2030 and 81.7GWh by 2050.
“Almost 1 in 10 new vehicles sold this year are EVs, and as of June 2024, 221,000 EVs1 are already on our roads,” added Grimes.
“Hundreds of thousands of Australians are, and will continue to, make the change away from fossil-fuel vehicles, despite the best efforts of people like Mr Dutton to ruin every day of their week by forcing them to pay more at the petrol pump.”
“This is already happening in comparable economies around the world that have a far higher uptake of EVs than us, we’re playing catchup.”
“The ever-growing amount of renewables in the grid means that more people will switch from expensive, polluting fossil fuels to cheaper, cleaner electricity coming from their homes and the grid.”
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.