Automotive

£1bn fund for EV charging network yet to launch after three years

24th October 2023
Paige West
0

Over three years since its initial announcement by Rishi Sunak, almost £1bn designated for the enhancement of Britain’s electric vehicle charging infrastructure remains unallocated.

This ‘rapid charging fund’, unveiled in March 2020 prior to the onset of the first COVID-19 lockdown during Sunak's initial tenure under Boris Johnson's chancellery, was devised to bolster electrical capacity at motorway service stations. Its main objective was to facilitate grid upgrades to accommodate simultaneous rapid charging for a larger number of electric vehicles.

However, the fund has not opened its doors for applications. A pilot project was initially slated for the latter part of 2022 but was postponed to spring 2023 and then to the summer. Indications from the government suggest further delays are anticipated. This comes after Jesse Norman, the transport minister, acknowledged to the House of Commons that they are still "in the process of developing a pilot … which will open in due course". Sunak has previously faced scrutiny for perceived retractions on net zero commitments.

Industry insiders have expressed concerns that the pilot might not see the light of day before the festive season. They also cautioned that these delays might push back the fund's full release until after the anticipated general election next year.

Simon Williams, the RAC's Head of Policy, expressed his disappointment, stating: "It’s very disappointing that the rapid charging fund is still not open for business." He also drew attention to the government's likelihood of not fulfilling its promise of establishing six high-powered chargers at every motorway service area in England by 2023's conclusion. Williams further elaborated: "Drivers making journeys beyond the range of their vehicles need to know they can quickly and simply recharge at these key locations. If this commitment isn’t delivered on it risks slowing down the transition to zero-emission driving even more."

Conceived with the vision of readying for an all-electric car and van fleet and alleviating ‘range anxiety’ among drivers, the rapid charging fund was structured to underwrite the setting up of charging stations at motorway and principal A road service areas.

The fund was a cornerstone of Johnson’s blueprint for a ‘green industrial revolution’ proposed in late 2020. The government, in its electric vehicle infrastructure strategy the following year, committed to initiating a pathfinder scheme in select locations in 2022, with a comprehensive launch in 2023.

Nevertheless, the fund has encountered scrutiny from the Competition and Markets Authority concerning potential subsidy-induced imbalances in competition among motorway service area operators. Following a final report in June, companies voiced reservations about suggestions to foster competition by mandating two charge point operators at each funded motorway service station.

Bill Esterson, Labour's shadow business minister, commented on the government's perceived shortcomings in delivering to drivers, asserting: "The bare minimum electric vehicle drivers should expect is a functioning charging network, but constant delays from ministers are holding back the rollout."

However, opinions are divided on the necessity of the fund. Maurice Hochschild of Osprey Charging hinted that while his company might explore the fund, many in the industry don't see a pressing need for such financial aid, especially considering the attention from global energy enterprises and infrastructure funds.

On the other hand, Mike Hawes of the Society of Motor Manufacturers and Traders believes that the fund is indispensable for the necessary grid enhancements for a national ultra-rapid charging network.

A spokesperson for the Department for Transport noted that around 96% of motorway service areas are already equipped with charging facilities, and the industry has intentions to augment this number in the forthcoming months.

David Hall, VP of Power Systems at Schneider Electric, said: “The rapid charging fund was originally intended to boost electrical capacity at enroute destinations like motorway services that lack the infrastructure and energy resources to support EV charging. Regardless, it’s still possible for device locations to optimise energy consumption, minimise their carbon footprint and monetise EV charging assets.

“The solution lies in greater cooperation between the government, EV charging operators, building owners and other stakeholders to ensure an even distribution of charging hubs across the UK. This will help to create an ecosystem capable of delivering a charging infrastructure based on smart technology and renewable energy that isn’t constantly placing new demands on the grid.

“In the short-term we can optimise existing capacity by deploying digital tools that monitor power consumption to help with capacity planning. In the longer term, investments in microgrids will work to relieve pressure on the national grid and produce localised energy supplies, tapping into solar, wind and even green hydrogen. EVs are only as green as the energy that fuels them, which is why clean energy is so vital to the expansion of a sustainable EV charging infrastructure.”

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