Electric Vehicle Charging Market Study Final Report
Total Page:16
File Type:pdf, Size:1020Kb
Electric Vehicle Charging market study Final report 23 July 2021 © Crown copyright 2021 You may reuse this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government- licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected]. The Competition and Markets Authority has excluded from this published version of the market study report information which it considers should be excluded having regard to the three considerations set out in section 244 of the Enterprise Act 2002 (specified information: considerations relevant to disclosure). The omissions are indicated by []. Some numbers have been replaced by a range. These are shown in square brackets. Contents Page Summary: Building a comprehensive and competitive electric vehicle charging sector that works for all drivers ....................................................................................... 5 Overview of our findings ....................................................................................... 5 Very limited competition along motorways ............................................................ 7 Risk of ‘charging deserts’ ...................................................................................... 7 Challenges for local authorities supporting on-street roll-out ................................ 8 Frustrations facing EV drivers ............................................................................... 9 Markets alone cannot deliver – government support is critical ............................ 10 Our recommendations ........................................................................................ 11 Next steps ........................................................................................................... 12 Summary of the CMA’s recommendations ............................................................... 15 1. Introduction ......................................................................................................... 16 Work undertaken ................................................................................................. 17 This report ........................................................................................................... 18 2. Background to electric vehicle charging and the sector ...................................... 19 How electric vehicles are charged ...................................................................... 19 Where charging takes place ............................................................................... 20 Charging and the electricity system .................................................................... 22 Developments in technology ............................................................................... 23 Chargepoint operators and private investment in the sector ............................... 24 Policy approach and public funding .................................................................... 26 Regulatory framework ......................................................................................... 31 3. Scale of the challenge facing the EV charging sector ......................................... 32 Introduction ......................................................................................................... 32 Why EV charging is important ............................................................................. 33 Progress of roll-out to date .................................................................................. 34 Significant growth needed in the sector .............................................................. 37 Broad factors impacting EV charging roll-out ...................................................... 40 Measures to meet the overall challenges ............................................................ 45 4. En-route charging ............................................................................................... 47 Introduction ......................................................................................................... 47 How EV charging is developing along motorways .............................................. 49 Key issues in motorway charging........................................................................ 53 Investment challenges in en-route charging in remote locations ........................ 57 Measures to unlock entry and competition .......................................................... 60 5. On-street charging .............................................................................................. 63 Introduction ......................................................................................................... 63 Background ......................................................................................................... 64 How on-street charging is developing ................................................................. 68 Key issues in on-street charging ......................................................................... 71 Measures for on-street charging ......................................................................... 81 6. Home, workplace and destination charging ........................................................ 83 Introduction ......................................................................................................... 83 How home EV charging is developing ................................................................ 84 Problems people can experience in home charging ........................................... 85 Measures in home charging ................................................................................ 90 How workplace EV charging is developing ......................................................... 90 How destination EV charging is developing ........................................................ 91 3 7. Problems people face using public charging ....................................................... 93 Introduction ......................................................................................................... 93 Importance of a positive public charging experience .......................................... 94 Problems people are facing ................................................................................ 97 Emerging developments ................................................................................... 106 Measures to make public charging easier ......................................................... 108 8. Conclusions and recommendations .................................................................. 112 Our recommendations and next steps .............................................................. 114 Appendices A: En-route charging B: On-street charging C: Home and workplace charging D: Problems people face using public charging E: Data and analysis overview Glossary 4 Summary: Building a comprehensive and competitive electric vehicle charging sector that works for all drivers Overview of our findings 1. The UK has committed to reducing greenhouse gas emissions by 28% by 2035 and moving to Net Zero by 2050. Transport, in particular cars, is the largest source of emissions (accounting for 27%). Transitioning from petrol and diesel cars to electric vehicles (EVs) is therefore key to reducing emissions and meeting Net Zero. Reflecting this, the UK Government has committed to end the sale of new petrol and diesel cars/vans from 2030. 2. For this to happen, however, it is essential that there is a comprehensive and competitive EV charging network in place, one that people can trust and they are confident using – much like filling up with petrol or diesel. If this is not the case, and the charging network is perceived as inadequate, or as not offering a fair deal to people, that will be a major barrier to EV take-up. 3. The scale of the shift to EVs – requiring the development of an entirely new network – should not be underestimated. While it is difficult to know precisely how much charging will be needed, forecasts suggest that at least 280- 480,000 public chargepoints will be needed by 2030 – more than ten times the current number (around 25,000). 4. There will also need to be a suitable mix of different types of charging spread across the UK. While many people will regularly charge at home or work (if they can), a sufficient range of public charging is important to encouraging EV-take up. Rapid charging on longer journeys (such as on motorways and in remote areas) and on-street charging at the kerbside (for those without a driveway or garage) will be particularly important. But this is currently far from the case - access to suitable charging can be a ‘postcode lottery’. For example, outside London there are only 1,000 on-street chargers (out of 5,700). Some areas are at risk of getting left behind – for example, the number of total chargepoints per head in Yorkshire and the Humber is a quarter of those in London. 5. We have examined how this critical new sector is developing and whether the sector left to its own devices can deliver what is needed. While some parts of the sector are developing relatively well (such as rapid charging at destinations like shopping centres and charging at home or work), other parts are lagging behind. We found greater challenges in rolling-out charging along motorways,