Origin Energy, Australia’s largest energy retailer, has announced a new trial that will offer electric vehicle (EV) owners the opportunity to charge their cars for less than $5. The trial, called EV Power Up, is part of Origin’s plan to manage the demand on its network and increase the use of renewable energy.
The trial will involve 200 Tesla EV owners, both with and without solar panels at home, who will use an app to set when they want their car to be fully charged. Origin will then charge the car based on when the electricity is most available and cheapest, using as much solar energy as possible.
The participants will pay only eight cents per kilowatt hour (kWh) to charge their car, which Origin estimates could save them $451 over a year compared to a standard plan. The trial will run for 12 months, starting from next month.
Origin’s future energy general manager Brendan Manzie said the trial was designed to test the best ways to manage the EV charging demand and benefit the customers and the grid.
“We’ve had a huge amount of interest in a very short time for this so there’s a lot of pent-up demand in this space,” he said. “We think this is where the future is for EV drivers.”
Why the trial matters
The trial is significant for several reasons. First, it could encourage more people to switch to EVs by reducing the cost of running them. According to the Electric Vehicle Council, the average cost of charging an EV in Australia is 33 cents per kWh, which is equivalent to paying $1.50 per litre of petrol. By offering a much lower rate, Origin could make EVs more affordable and attractive.
Second, the trial could help balance the grid and integrate more renewable energy. By charging the EVs when the demand is low and the supply is high, Origin could avoid overloading the grid and wasting excess solar power. This could also lower the wholesale electricity prices and benefit all consumers.
Third, the trial could pave the way for more innovative services and products for EV owners, such as vehicle-to-grid (V2G) technology, which allows EVs to feed power back to the grid when needed. Origin is already working on a V2G project with Nissan and the Australian Renewable Energy Agency (ARENA).
How the trial compares to other offers
Origin is not the only electricity provider that offers discounted rates for EV charging. Other companies, such as AGL, Ovo Energy and Simply Energy, also have plans that charge between six and eight cents per kWh for EV charging during off-peak hours, usually between midnight and 6am.
However, Origin’s trial is different in that it does not limit the charging time to a specific window, but rather allows the customers to choose when they want their car to be ready. It also uses an app to control the charging process, rather than relying on a smart meter or a dedicated charger.
Ross De Rango, the energy and infrastructure head of the Electric Vehicle Council, said charging off-peak was great for the drivers and the system, and urged more consumers to shop around for the best deal.
“Charging off peak is great for the drivers with access to these pricing arrangements because it saves them a lot of money,” he said. “‘Well behaved EV charging’ means that the energy system is getting more efficiently used, which puts downward pressure on electricity prices for everyone.”
