AEMO confirms EVs are now part of Australia's energy system
Electric Vehicle Council
The Electric Vehicle Council (EVC) has welcomed the release of AEMO's 2026 Integrated System Plan (ISP), which confirms electric vehicles will play a central role in Australia's future energy system and recognises EVs and charging infrastructure as consumer energy resources like rooftop solar and home batteries.
AEMO’s ISP is the national roadmap for how Australia’s main electricity grid should develop generation, storage and transmission to meet consumer needs and government energy targets at the lowest practical cost over the next 20-plus years.
The ISP forecasts that by 2050:
- Around 80 per cent of vehicles on Australian roads will be electric; and
- Road transport electricity demand - primarily through the increase in electric cars and trucks on our roads - will grow from approximately 1 terawatt-hour (TWh) today (1 trillion watt-hours) to 61 TWh.
To put that into context, 61TWh is enough electricity to power around 90% of Australia’s current housing stock for an entire year.
Significantly, AEMO now treats EVs and EV charging devices as consumer energy resources (CER), placing them alongside rooftop solar and batteries as part of Australia's future distributed energy system.
The ISP also identifies workplace, kerbside, commuter carpark and on-road charging as important components of Australia's future charging network.
Electric Vehicle Council CEO, Julie Delvecchio said the ISP reflects the increasingly important role transport electrification will play in Australia's energy future.
"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 playing an increasingly important role in supporting the grid," Ms Delvecchio said.
"This is about changing how we think and how we do things.The energy system of the future won't just be built around big coal and gas generators supplying energy via transmission lines. People will be increasingly at the centre of the energy system by driving EVs which are big batteries on wheels."
Dr Alina Dini, Head of Energy, Infrastructure and Commercial at the Electric Vehicle Council, said the ISP asks a question about the EV infrastructure required to support Australia's electrification journey.
"AEMO has answered an important question: how much electricity are electric vehicles are we likely to need? The next challenge is understanding what charging infrastructure Australia needs to support that demand," Dr Dini said.
"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. That's exactly why Australia needs a coordinated national outlook for charging."
Bi-directional Charging Opportunities
The ISP also reinforces the growing potential of bidirectional charging technologies such as vehicle-to-grid (V2G), forecasting that more than 10 per cent of household EVs could participate in V2G programs by 2050, providing approximately 4.3 GW of flexible capacity and almost 49 GWh of storage to support the electricity system.
"AEMO's modelling confirms the enormous potential of bidirectional charging. Even under more conservative participation assumptions than those considered in the Draft ISP, EVs are still forecast to provide one of Australia's largest distributed storage resources," Dr Dini said.
Freight Electricity Demand Set To Grow
The ISP forecasts that approximately half of the road transport electricity demand growth to 2050 is expected to come from commercial and freight vehicles.
"One of the most significant findings in the ISP is the scale of future freight electrification. Around half of future transport electricity demand is expected to come from commercial and freight vehicles, yet many of the questions around truck charging, depot charging and freight charging corridors remain unresolved," Ms Delvecchio said.
"As Australia moves toward a more electrified transport future, ensuring we have the right charging infrastructure in the right locations will be just as important as forecasting the electricity demand itself."
Key findings from AEMO's 2026 Integrated System Plan:
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By 2050, around 80% of vehicles on Australian roads are forecast to be electric.
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Road transport electricity demand is forecast to increase from around 1 TWh today to 61 TWh by 2050.
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Approximately half of future transport electricity demand is expected to come from commercial and freight vehicles.
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EVs and EV charging devices are now explicitly recognised as Consumer Energy Resources (CER).
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AEMO forecasts more than 10% of household EVs could participate in V2G by 2050.
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V2G could provide approximately 4.3 GW of flexible capacity and 48.8 GWh of storage.
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The ISP specifically identifies workplace, kerbside, commuter carpark and on-road charging as important future charging infrastructure.
About us:
The Electric Vehicle Council is the peak national body representing the electric vehicle industry in Australia. Representing members from across the value chain of the electric vehicle sector, the EVC is a trusted advisor and advocate to governments and decision makers across Australia. Our mission is to drive investment and awareness to accelerate the electrification of transport, for a more sustainable and prosperous Australia.
Contact details:
Todd Hayward - 0412 205 151