Across the ditch in New Zealand, public transport buses are leading the way in the nation’s transition to zero-emissions for tailpipe vehicles. According to Drive Electric’s 2023 State of the Nation report, the NZ light fleet of nearly 4.4 million vehicles is only made up of 1.3 per cent battery electric powered variations and roughly two per cent plug-in hybrid electric vehicles (PHEVs).
When looking at 2023 new and used light vehicle registrations, electric and BHEV models only accounted for 11 per cent of sales in the nation. In the heavy vehicle sector, there were less than 150 electric trucks on NZ roads in 2023 at a market penetration of well below one per cent.
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Amid these low numbers, the nation’s bus and coach sector stands out. While the incoming NZ government’s removal of the Clean Car Discount and the application of Road User Charges to light vehicles from April 1 this year will continue to impact zero and low-emissions vehicle sales across the ditch in 2024 and beyond, the nation’s buses have led the way courtesy of various government commitments.
Certain policies, such as ones that require only zero-emissions public transport buses to be purchased from July 1 next year and a target to completely decarbonise public transport bus fleets by 2035, are helping the bus industry become the early adopters of clean vehicle technology in NZ.
Back in June 2019, there were only 30 battery electric buses running in NZ’s entire national fleet. By June 2021, this had grown to around 80, while in June 2023 it was sitting at just under 300 buses.
This rapid rise means the Bus and Coach Association of NZ (BCA) wouldn’t be surprised if the number doubled again between June 2023 and June 2024.
If these targets remain in place over the next 11 years, NZ’s public transport bus fleet is expected to transition to 100 per cent zero-emissions buses by 2035, while the light vehicle and heavy truck fleet will most likely lag significantly behind based on the latest forecasts.
Despite this bus-focused growth, the BCA admits there have been some challenges along the way in decarbonising NZ’s bus network, such as the higher initial upfront capital cost of battery electric vehicle technology, the absence of regulatory safety standards for electric drive-chain vehicles in NZ and questions around whether a used vehicle market for electric buses will be developed.
Coupled with the ongoing questions of how to optimise charging networks around the nation and there are still obstacles in the way for NZ’s bus industry.
The industry is leaving no stone unturned – the New Zealand Transport Agency recently commissioned and published a research report in April that explored the economics of introducing zero-emissions buses to fleets around the country. The report and associated modelling tool contained general findings that the BCA says should be treated with caution.
However, the association’s own modelling found that prematurely retiring a recently purchased diesel buses in 2035 to buy a zero-emissions model has a higher economic and environmental cost when compared to leaving the older model in service for several more years. This results in an additional cost on the taxpayer, ratepayer and fare payer.
When looking towards the future, the NZ industry is interested to see the Australian federal government’s significant budget investment commitments to incentivise the use of clean energy technology. While nothing like this had been signalled in advance of NZ’s budget day that was on May 30, both the BCA and NZ operators will be watching future announcements with interest as they look for a beacon of hope to help their ongoing zero-emissions transition.
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