Big Three Australian gen-tailer Origin Energy has been awarded $6.2 million in federal government funding to cover roughly half of the cost of its $12.8 million plan to help its business customers invest in electric vehicles.
Origin’s Accelerate EV Fleet Program will deliver 1000 electric vehicles and charging infrastructure to business customers nationally, in a bid to help establish “business ecosystems” that can be scaled up as the cost of EVs fall.
The funding, from the Australian Renewable Energy Agency, comes less than a month after Canada-based investment giant Brookfield sealed an $18.7 billion deal for the purchase of Origin, after months of negotiations and due diligence.
Brookfield – which manages more than $1 trillion of assets across the globe – has flagged $20 billion plus plans to splurge on up to 14GW of new large scale renewable and storage facilities in Australia; nearly as much as has been built nationwide over the last 10 years.
The funding for a cashed up Origin is part of flurry of federal policy announcements aimed at getting Australia back in the global EV race.
It follows the Wednesday unveil of Federal Labor’s long-awaited National Electric Vehicle Strategy, which has committed to the introduction of fuel efficiency standards, but delayed them until further consultations with the car industry.
As well as a promised fuel efficiency standard, the strategy introduces a policy preparing for the recycling and reuse of EV batteries and sets out initiatives to build up charging infrastructure and industry skills.
Also announced on Wednesday was $40 million of CEFC funding to support a discount on loans by lender Firstmac on EVs under $90,000. The discounts aim to save eligible recipients between $1,400 and $2,500, depending on the size and length of the loan.
“EVs are cheaper to run than cars with internal combustion engines, but the cost has discouraged many car buyers,” said federal climate and energy minister Chris Bowen.
“Discounted loans are a great way to help Australians buy an EV and grow the first and second-hand EV markets.
“This financing will also help open the way for more manufacturers to supply the cleanest EVs to the local market because the Green Car Loan scheme is available to a wide range of EVs.”
While welcome – and long overdue – the federal government’s EV strategy has been criticised by some for falling short on ambition, with no defined EV sales targets for car manufacturers and retailers, and a reliance on existing programs, such as the electric car discount, upgrading charging infrastructure, and the National Reconstruction Fund.