The mass uptake of electric cars could stabilise the grid and reduce power bills if charging is well managed, a new study has found.
Electricity costs could go down and the power grid may become more stable if there's a mass uptake of electric cars under a policy put forward by the federal opposition, an industry lobby group says.
Evenegi on Tuesday published a report it said had the support of the Australian Renewable Energy Agency, South Australian government and SA Power Networks.
It says electric vehicle charging could be used to help manage supply and demand of the power grid.
"By encouraging EV [electric vehicle] charging at times when there is surplus energy and limiting the amount of charging during times of peak demand we can potentially create a more efficient, balanced, and flexible grid," Evenergi chief executive Daniel Hilson said in a statement.
"Evening out demand would unlock more value from existing power network assets. If managed correctly, this would ultimately lower costs for consumers."
The report by Evenergi, which aims to make driving electric cars more affordable and ramp up the adoption of electric transport, also looks at the potential of electric cars to provide networks with a collective battery.
"EV batteries plugged into the network can be drawn upon during times of peak demand," Mr Hilson said.
"This technology already exists and there are mechanisms through which consumers can be compensated for assisting the network."
Prime Minister Scott Morrison has criticised Labor's proposal for 50 per cent of all new vehicle sales to be electric powered by 2030 as a "war on the weekend" that would prevent people from buying cars "with a bit of grunt".
A Senate committee heard on Monday Australia was behind other countries in taking up electric vehicles, which the Clean Energy Finance Corporation sees as important to reducing emissions across the transportation sector.