Fleets can unlock momentum on energy transition

Opinion Piece: Transitioning Government and Business Fleets for a Faster Shift to Electric Vehicles

Andrea Persico, Amped Consulting

Date: 14/11/2023

The Tasmanian state government is currently consulting on its transport emission reduction plan (open to 29 November). Whilst our island state can boast 90-95% clean electricity year to year, according to the Federal Government’s Energy Statistics (2021) our total energy use on the island is only about 42% clean energy, with the rest being fossil fuels - petrol, diesel, coal and gas (in that order).

Right now, the price to buy an Electric Vehicles is falling, with 2023 being the breakout year for availability of different models and with prices for entry level vehicles converging at around $50,000 (brand new). This upfront cost is offset over time by many savings - EVs are cheaper to run, cheaper to maintain and currently enjoy an exemption for fringe benefit tax (new EVs).

Business and government fleets purchase new vehicles each year, creating an opportunity to increase the pool of lower cost, second hand EVs available in the market, and creating, for many fleet users, their first experience with an Electric Vehicle. At Amped Consulting, I regularly see the challenges and opportunities of transitioning government and business fleets to Electric.

The major challenges I see in the context of fleet transition are charging infrastructure and user education, which currently falls outside the remit of most fleet managers. With adequate planning and upskilling, fleet managers can best train fleet users and determine what charging infrastructure is needed. The Tasmanian Government should assist fleet managers in developing transition plans, providing training resources for fleet users, and provide rebates for fleet charging infrastructure, particularly if that is then available to staff or to the public.

With this relatively small change in incentive structure, the state government can unlock millions of dollars of investment in infrastructure across the state by fleets, create jobs and rapidly increase the pool of second hand vehicles, in turn driving down prices and emissions.

This will also help the government reach its laudable target of transitioning its own fleet (or fleets, if we include government business enterprises) to 100% electric vehicles by 2030.

We have reached a decisive moment in our fight against climate change. With clean Hydro electricity, and relatively short driving routes, Tasmania is the perfect place to transition its transportation sector to electric vehicles. By leading the way in transitioning government and business fleets, Tasmania can unlock the potential for cheaper EVs, and set an example for the rest of Australia to follow.