The Future of EV Charging Infrastructure in Australia

As we move towards a world of electrified transport, the decarbonised future not only relies on the uptake of electric vehicles (EVs) themselves, but equally on the essential infrastructure supporting them – EV charging infrastructure.

We explore the increasing demand for EV charging infrastructure, the relevant governmental funding programs on the federal and state levels, and the regulatory requirements for businesses rolling out EV charging infrastructure.

Outlook of EV charging infrastructure

The rapid growth of EVs will drastically increase the demand for EV charging infrastructure. As of the end of 2023, there are more than 180,000 EVs in Australia.¹ Though EVs currently represent less than 1% of the total passenger vehicle fleet in Australia, the number of EVs is expected to skyrocket to around 2.5 million within the next 10 years.² The range of current EV models are well-equipped to meet the daily travel needs of most people commuting between home and work.³ In Australia, only 10% of cars travel more than 100km each day.

Most EV charging in Australia is expected to occur in private homes, with at-home charging to provide 95% of the charging needs for roughly 70% of the Australian population that reside in detached dwellings.⁴ Nevertheless, a significant proportion of EV users will rely heavily on public chargers, including on-street, shopping centres, public car parks and apartment blocks.

To service this demand, Australia needs to increase its public charging capacity by eight-fold, requiring 27,500 new public EV chargers by 2033.⁵

Australia has already been accelerating the rollout of EV charging infrastructure. In 2023, Australia saw a 75% increase in the number of public EV charging locations, from 464 by the end of 2022 to 812 by the end of 2023.⁶ Notably, NSW is leading with the most significant increase in charging locations, adding 52 fast charging and 28 ultrafast charging locations in 2023.⁷

Funding program highlights

In the Federal Budget for FY 2024-25, the Australian Government will provide $154.5 million to implement the recently introduced New Vehicle Efficiency Standard. This includes $60 million over four years from 2024 to support the installation of electric vehicle charging infrastructure at automotive dealerships and workshops across the country. More information on the 2024 Federal Budget can be found in our New Energy Insights: The 2024 Federal Budget – What it means for Clean Energy.

To address the increasing demand for charging infrastructure, governmental funding programs have been implemented on the federal and state levels,⁸ including:

1. Federal level: Driving the Nation – National EV Charging Network

In April 2023, the federal government announced funding of $39.3 million to help deliver 117 EV chargers on key national highway routes across Australia, at an average interval of 150 kms and connecting all capital cities. This initiative aims to enhance charging infrastructure in rural and regional areas, closing the gaps and known black spots in Australia’s fast charging network.

2. State level: NSW fast charging grants (Round 3)

With applications closing by 3 October 2024, the fast charging grants round 3 has up to $54 million in funding available. The EV fast charging grants program aims to add approximately 280 fast and ultra-fast charging stations across NSW. This will ensure that fast charging stations are no more than 5 km apart in metropolitan areas and no more than 100 km apart on major roads and highways across NSW.

3. State level: NSW EV fleets incentive

The EV fleets incentive is a payment scheme that helps eligible organisations procure battery electric vehicles and smart chargers. The $8 million competitive bid funding opens on 24 July 2024 and closes on 17 September. The $7 million kick-start funding opens on 24 July 2024 and closes when allocated funds are exhausted.

4. State level: NSW Kerbside Charging Program

In July 2023, the NSW Government launched a $3 million kerbside charging grants funding round to support the installation of at least 150 EV chargers at kerbside locations, targeting EV drivers who lack off-street parking. With a total budget of $10 million, the program offers funding for charge point operators and councils, covering up to 80% of installation, equipment costs and software subscriptions. Round 2 of the NSW kerbside charging grants are open with $4.5 million in funding available, with applications closing by 9 December 2024.

5. State level: NSW Destination Charging Grants (Round 2)

In November 2023, the NSW Government launched the second round of the Destination Charging Grants to bolster EV confidence among residents and tourists in regional NSW. The $10 million funding round encourages small to medium regional tourism businesses and councils to install at least 1,500 EV charge points, making it easier for EV owners to travel to and within regional areas. Applications closed on Friday, 2 August 2024.

Regulatory requirements for businesses rolling out EV charging infrastructure

Businesses in the EV charging infrastructure market need to navigate a complex landscape of regulatory requirements, which vary based on the location of the EV charging infrastructure. These locations include on-street, at destinations (e.g. at a supermarket, carpark or workplace) or en-route (e.g. service station or charging points on highways).

Depending on the location of the EV charging infrastructure, businesses rolling out EV charging infrastructure may be subject to:⁹

1. Retailer authorisation (or exemption) by the Australian Energy Regulator (AER) for the sale of electricity under the National Energy Retail Law and National EnergyRetail Rules;
2. Network service provider registration with the Australian Energy Market Operator (AEMO) for an electricity distribution network or an exemption from the AER under the National Electricity Law and National Electricity Rules; and
3. Customer registration with the AEMO for buying and selling energy in the wholesale electricity market.

In addition, there may be state-specific licensing requirements. For example, in Victoria, a licence from the Essential Service Commission (ESC) is required for the sale or supply of electricity. In South Australia, operators of EV charging stations can have a fixed term exemption from the requirement of holding a distribution licence.¹⁰

Furthermore, businesses also need to consider relevant safety regulations, as well as the National Construction Code, which now contains requirements for EV charging infrastructure in carparks associated with certain building classes.¹¹

EVs: The future is bright

As Australia marches towards a future of electrified transport, it is critical to support the uptake of EVs with a rapid deployment of EV charging infrastructure. The combined efforts of federal and state funding programs are paving the way for a seamless transition. Meanwhile, businesses must familiarise themselves with the regulatory requirements in entering the EV infrastructure market.

If you or your business would like further information or assistance in relation to navigating this landscape, please contact Matt Baumgurtel and David O’Carroll.

The Hamilton Locke team advises across the energy project life cycle – from project development, grid connection, financing, construction, including the buying and selling of development and operating projects. For more information, please contact Matt Baumgurtel.

For more information, please contact Hamilton Locke New Energy Partner Matt Baumgurtel.

¹Electric Vehicle Council, ‘Australian Electric Vehicle Industry Recap 2023’ <https://electricvehiclecouncil.com.au/wp-content/uploads/2024/03/EVC-Australian-EV-Industry-Recap-2023.pdf > (‘EV Council report’)

²Deloitte, ‘EV Charging Infrastructure – The Next Frontier’ <https://www.deloitte.com/au/en/Industries/infrastructure/analysis/ev-charging-infrastructure-next-frontier.html> (‘Deloitte report’)

³EVSE, ‘What is range anxiety and should electric vehicle drivers in Australia be worried about it?’ <https://evse.com.au/blog/evrangeanxiety/>

⁴Deloitte report.

⁵Deloitte report

⁶EV Council report, p10.

⁷EV Council report.

⁸EV Council report.

⁹Australian Government, Energy Innovation Toolkit, ‘Electric Vehicle Charging’ <https://energyinnovationtoolkit.gov.au/article/use-case/electric-vehicle-charging>.

¹⁰Essential Services Commission of South Australia ‘Electricity generation licence exemption’ https://www.escosa.sa.gov.au/projects-and-publications/projects/electricity/electricity-generation-licence-exemption-virtual-pp-operations-ev-charging-and-sub-5mw-operators/vpp-ev-sub5.

¹¹See National Construction Code 2022 Volume One – Building Code of Australia Class 2 to 9 buildings – Section J Energy efficiency.