A new report says a large, coordinated push to increase electric vehicle adoption could transform the country’s energy system.
EV advocacy group Drive Electric’s “State of the Nation” report urges consistent, cross-party policies to accelerate the rollout of battery electric vehicles and expand charging infrastructure.
The report said New Zealand’s strong access to renewable energy gives it a major structural advantage but warned that policy changes removing several incentives have slowed the uptake of electric vehicles.
The report said electric vehicles should no longer be viewed as “just vehicles.” It said their ability to store power makes them “mobile energy assets” that could reshape how New Zealand generates, stores, and uses electricity.
About 18% of New Zealand’s total emissions, and nearly half of its carbon dioxide emissions, come from the transport sector.
Additionally, New Zealand spends around $7–$9 billion a year on petroleum imports, while local research has estimated the social costs of transport emissions at about $10.5 billion annually.
That includes around 9,000 hospital admissions and more than 2,000 premature deaths each year linked to respiratory and cardiac conditions caused by air pollution.
The report said electrifying transport would achieve far more than simply helping New Zealand meet its emissions reduction targets.
“It strengthens energy security, reduces reliance on imported oil and allows more of New Zealand’s transport system to run on locally produced renewable electricity.”
The report urged a “long-term, durable cross-party strategy” backed by consistent, coordinated policies to accelerate electric vehicle uptake across passenger cars, commercial fleets, and heavy transport.
“It is not idealism – it is the minimum requirement for investors, who make decisions over multi-year horizons, and to give consumers confidence.”
The report highlighted the potential of “vehicle-to-grid” technology, in which off-peak electricity is stored in EVs and then fed back into the grid from parked household and business vehicles during periods of peak demand.
It said Australia had progressed from piloting the concept to being ready for rollout within 18 months. It added that New Zealand could achieve the same, noting that vehicle-to-grid capability already exists in many EVs but is not yet enabled.