Electric Vehicles to Transform Australia’s Energy Future

The Australian Energy Market Operator (AEMO) integrated electric vehicles (EVs) into its 2026 Integrated System Plan, marking a new chapter on 25th June 2026. It recognises EVs as crucial components of the energy system.

By 2050, AEMO forecasts around 80% of vehicles on Australian roads will be electric. The demand for road transport electricity is expected to rise from 1 terawatt-hour today to 61 terawatt-hours, which equals powering 90% of Australia’s current housing stock for a year.

EVs and their charging devices are positioned as consumer energy resources (CER), playing a vital role alongside rooftop solar and home batteries in the distributed energy system.

Role of Charging Infrastructure

The Integrated System Plan highlights extensive charging infrastructure, identifying workplace, kerbside, commuter carpark, and on-road charging as essential for Australia’s future network. Julie Delvecchio, CEO of the Electric Vehicle Council, stated, “These developments illustrate how EVs are becoming integral to the energy system.”

Delvecchio also mentioned, “Electric vehicles are no longer just cars that get you from A to B. AEMO is telling us that EVs are becoming part of Australia’s energy system and supporting the grid.”

The ISP covers bidirectional charging technologies like vehicle-to-grid (V2G), predicting that over 10% of household EVs could engage in V2G programmes by 2050. This involvement could provide around 4.3 gigawatts of flexible capacity and 49 gigawatt-hours of storage.

Dr Alina Dini, Head of Energy, Infrastructure and Commercial at the Electric Vehicle Council, emphasised the need for a coordinated national strategy. “While the ISP confirms charging infrastructure will be critical, it leaves open the question of how much charging infrastructure Australia will need, where it should be built, how freight charging networks should develop, or how deployment should be prioritised,” she said.

AEMO’s ISP predicts nearly half of the anticipated growth in road transport electricity demand will come from commercial and freight vehicles, highlighting the necessity for appropriate charging infrastructure to meet this demand.

Last updated: 29 June 2026, 11:46 am