Deloitte has called for a further £1.6bn investment into electric vehicle (EV) infrastructure by 2030, claiming the UK will need around 28,000 public charge points to sufficiently support projected uptake.
In a report on the EV market, Deloitte states that a shortage of public charge points is a deterrence to uptake, as users still have ‘range anxiety’ about how far they can travel on a single charge. Investment into charging infrastructure will help to alleviate those fears, according to Deloitte, supporting drivers who do not have access to charging at home or at work, or who drive a lot for work.
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The accountancy firm said the £1.6bn estimate includes only the charge point equipment, installation and grid reinforcement. It does not include wider costs such as those for land, or ongoing operations such as rent, maintenance or energy costs.
The government has currently committed nearly £300m to EV uptake, including £100m in small scale grants, and a £200m contribution to the Charging Infrastructure Investment Fund.
The issue regarding the investment case for both EVs and EV charging infrastructure, according to the report, is that they both depend on the pre-existence of the other. The development of charging infrastructure needs a continued uptake of EVs, to provide confidence to the market that there will be sufficient demand to warrant the investment.
The report notes that opportunities in the market are ample, but companies need to remain patient. To succeed as a new entrant, Deloitte says firms will need “deep pockets, or strong partnership – ideally both”.
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By GlobalDataMark Lillie, power and utilities leader at Deloitte, said: “A shortage of public charging points will seriously hamper the adoption of electric vehicles. Yet only a continued uptake of EVs will provide the confidence to invest in, and develop, a charging infrastructure – a classic ‘chicken and egg’ scenario.
“However, the government has set ambitious targets for 2030 through its Industrial Strategy Grand Challenges, for EVs to make up 60% of all new car sales and 30% of the total number of vehicles sold.”
