Powering the EV transition: Why Victoria’s Inquiry matters

Victoria has taken an important step toward Australia’s clean transport future. The Victorian Parliament’s Economy and Infrastructure Committee Inquiry into how to better align electric vehicles (EVs) with electricity supply and demand could be one of the most thorough examinations yet of the opportunities and challenges in EV integration. 

For the Australian Energy Council (AEC), this inquiry represents exactly the kind of structured, evidence-based policymaking needed to align rapid EV uptake with our decarbonising electricity system.  The Inquiry asks the right questions; about timing, infrastructure, the consumer experience and market design.  And it comes at a time when Victoria has the chance to show national leadership in linking transport and energy policy. 

Victoria’s unique position in the energy transition 

Victoria is particularly well placed to lead.  The state combines high renewable penetration, near-universal smart meter coverage, and an electricity retail market that could support time of use and dynamic pricing.  These ingredients give the state a natural advantage in integrating EVs in a way that benefits both consumers and the grid. 

And EVs also represent a paradigm shift for electricity systems. They are large, flexible, mobile loads that if left unmanaged at high levels of EV ownership could strain networks and increase costs.  If well integrated, EVs can soak up renewable generation and provide valuable flexibility.  Getting this right is critical to achieving net zero at lowest cost. 

The Committee’s inquiry provides an opportunity to bring coherence to this challenge.  It can help ensure that policy, regulation, and infrastructure planning evolve together rather than in silos. 

Smarter charging through markets and data 

The AEC’s submission is built on a straightforward principle: empower consumers and markets with clear information to drive charging behaviour, rather than relying on prescriptive rules. 

Most EVs are parked more than 90 per cent of the time. That means when and where they charge can be highly flexible if chargers are in the right place and if consumers have the right price signals and confidence to respond to them.  Victoria already has almost all the building blocks: high renewables penetration, universal smart meter coverage, and an electricity retail market that could support time of use and dynamic pricing 

What’s missing is the integration layer that allows retailers, aggregators, and charge point operators to build services that reward off-peak or high renewable charging.  That layer requires better data, clearer consumer consent frameworks, and interoperability standards so devices can respond to market signals.  The often cited temporary demand management mechanisms have a place, particularly in constrained network areas.  But they should be a last resort.  Long term efficiency will come from price signals and innovation, and not prescriptive control. 

A forward looking policy environment that clarifies the rules and data access arrangements will encourage private investment, reduce the need for network overbuild, and ultimately deliver lower prices and broader services for consumers. 

Building equitable access to public charging 

The next challenge is ensuring no one is left behind in the EV transition.  Public charging infrastructure has expanded rapidly across Australia, but coverage remains uneven.  Inner-urban areas with little off-street parking, and outer suburbs where cars dominate but driveways are limited, both present barriers to home charging. 

Victoria leads the nation in the growth of fast chargers, but these still tend to cluster in commercial zones and highways rather than residential streets.  For EV uptake to be equitable, some public and kerbside charging programs must fill this gap. 

That means: 

• Undertaking spatial needs assessments to identify areas with high renter populations, limited off street parking, or multi-unit dwellings; 
• Local councils need to streamline approvals and standardise planning requirements; 
• Encouraging funding models for fast chargers at workplaces, shopping centres, and service stations; and 
• Ensuring redundancy and reliability through multi-charger sites and maintenance programs. 

Equity also means safety, security, and convenience’; features often overlooked when chargers are installed on the basis of network hosting capacity and not consumer demand.  And these require ongoing management. 

A focus on local accessibility will not only accelerate uptake but also strengthen consumer confidence.  It’s one of the most important areas where the Committee’s recommendations could shape tangible, everyday outcomes for all Victorians. 

Clarifying the role of distribution networks 

The AEC’s position is clear: distribution network service providers (DNSPs) should be facilitators, not competitors, in the rollout of EV charging.Their role should focus on: 

• Network planning and hosting capacity mapping, 
• Transparent, streamlined connection processes, and 
• Timely data sharing to support market participants. 

DNSPs are important.  They possess the expertise and infrastructure to ensure the grid remains reliable as EV loads increase.  However, because they are regulated monopolies, their involvement in commercial charging risks distorting competition and discouraging private investment, and therefore should be excluded. 

To achieve this, regulatory frameworks that limit DNSP competition with commercial providers must be maintained and enforced.  And priority should be given to resourcing the DNSP connections teams adequately so that charger installations can proceed without unnecessary delay.  This is particularly true for public fast chargers. 

Network tariff reform will also matter.  Over time, tariffs for high-capacity public chargers should start to reflect locational and temporal network costs.  But transitional arrangements will be needed to avoid stalling any rollout.  These might include smoothing demand charges, and adjusting customer contributions for network upgrades.  Getting this right can foster a genuinely competitive charging market underpinned by efficient network investment. 

Accelerating bidirectional charging and vehicle-to-grid innovation 

Bidirectional charging, or enabling EVs to discharge electricity back to homes or the grid, is the imagined and plausible frontier.  Properly designed, it can unlock new value streams for households and system operators alike. 

The AEC supports progress toward clear technical standards, consumer protections, and market frameworks that allow vehicle-to-grid (V2G) and vehicle-to-home (V2H) participation. This means: 

• Certification and interoperability standards for chargers and vehicles; 
• Metering and settlement arrangements so exports can be measured and rewarded; and 
• Consumer education to explain the costs, benefits, and implications of bidirectional charging for their battery life and warranties. 

ARENA and other agencies have already begun road mapping this space.  But Victoria can complement that work by ensuring its regulatory settings and network frameworks are ready to support their early deployment. 

For most consumers, the first practical step will be smart unidirectional charging.  Charging at the right times and not necessarily exporting energy.  But the policy and technical groundwork for full bidirectionality needs to be considered now in any no regrets steps, so as the option is ready when technology and markets mature. 

Second life for EV batteries and circular economy opportunities 

Every EV sold today represents not just a car, but a mobile load and even a future battery resource. As the first generation of EVs reaches their end of life, their batteries may still retain significant capacity.  Enough to serve as household or community energy storage. 

The AEC recognises the potential of these second life batteries, but we stress the importance of national standards for safety, performance, and traceability. Without uniform testing and certification, consumers and insurers will lack confidence, and reuse markets will likely remain small.  To ensure the second life potential is lived up to, Government support could include: 

• Developing inexpensive state of health testing protocols for reconditioned batteries; 
• Supporting pilot projects for second life batteries in community energy and low income energy support programs; 
• Using government procurement policy to create early demand for second life batteries; and 
• Establishing clear end of life rules linking the reuse and recycling pathways. 

These measures could extend asset life, reduce waste, and improve access to affordable storage.  All while building a local circular economy for energy technologies. 

Building a local EV supply chain 

Beyond batteries themselves, the Committee’s terms of reference rightly ask about the broader opportunities for local manufacturing, reconditioning, and recycling in Victoria. 

While Australia is unlikely to compete directly with major global manufacturers, it can carve out valuable niches in battery testing, reconditioning, recycling, and advanced materials recovery.  With appropriate regulatory certainty and investment signals, Victoria’s industrial base could host the first wave of domestic facilities focused on these high skill, lower emission supply chain activities. 

The key will be coordination.  Aligning industrial policy, energy policy, and waste regulation so businesses have clear and consistent investment frameworks. 

Why the Committee’s work matters 

The Economy and Infrastructure Committee’s inquiry is timely and essential.  As EV adoption accelerates and electricity supply decarbonizes with high levels of customer owned solar, the gap between transport policy and electricity market design is closing rapidly.  This inquiry provides the opportunity to bring those worlds together under a coherent framework that recognises consumers as active participants in both systems. 

It also matters because it reflects a good style of policymaking: one that listens to evidence from across the energy supply chain, that values market-based solutions, and that focuses on data, evidence, and consumer trust. 

The way forward 

The AEC’s message to the Committee is that Victoria already has the ingredients for success in: 

• Strong renewable growth, 
• Smart metering infrastructure, 
• Competitive energy markets, and 
• A government willing to ask the questions about the EV transition. 

What will be needed is the follow through to ensure that the Victorian regulatory environment empowers the market, protects consumers, and encourages investment in the right places. 

We believe that the transition to electrified transport will be one of the defining shifts in the next decade.  If managed well, it will deliver lower costs, cleaner energy, and greater system resilience. The Committee’s inquiry is a vital step in making that vision real.