AGL responds to Australian Government’s Future Fuels Strategy

The Australian Government is currently consulting on its Future Fuels Strategy. The Strategy sets out the Australian Government’s proposed direction to enable the private sector to commercially deploy low emissions road transport technologies at scale.

AGL made a formal submission in response to the Discussion Paper, a copy of which is available here.

AGL welcomes the Australian Government’s focus on enabling consumer choice, stimulating industry development, and reducing emissions in the road transport sector. The uptake of electric vehicles will be an integral technology pathway for decarbonising Australia’s economy.

We consider the Strategy provides an optimal opportunity for the Australian Government to set a direction on a national EV strategy and provide a framework for the states to put in place complementary EV measures. We would encourage the Commonwealth and State governments to work together through the Energy and Infrastructure and Transport National Cabinet Reform Committees and national market reform processes to develop a national EV roadmap that establishes a nationally agreed EV target and supporting policy initiatives.

We support the Australian Government’s five priority initiatives articulated in the Discussion Paper.

On EV grid integration in particular, the Strategy should support cross-government collaboration to deliver a nationally harmonised regulatory framework that serves to reduce cost to consumers and support consistent consumer outcomes. To facilitate customer choice, the Strategy should also seek to promote a competitive-based mechanism for DER integration that incentivises and empowers EV consumers to provide services to support the broader energy market system.

Beyond the five priority initiatives articulated, we consider the Strategy should also capture the following areas to achieve its policy objectives:

1. Increase the variety (diversity) of choice and affordability of new and used EVs in the Australian market - through emissions targets, vehicle fuel efficiency standards, quantitative EV targets and government fleet targets.

2. Consider complementary policy levers to phase out internal combustion engine vehicles to support accelerated transition towards EVs.

3. Ensure fuel and transport pricing reform accelerates the uptake of EVs in the short-term whilst laying the groundwork for a nationally harmonised distance-based road user pricing framework in the long-term.

4. Improve consumer confidence in the emerging market for EV products, systems and services - by ensuring a harmonised national customer protections framework that is fit-for-purpose and through which customers receive the same rights and protections irrespective of how they choose to receive their EV energy supply and services.

We provide key recommendations and more detailed responses to improve outcomes on some of the proposed priority initiatives in our submission.