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An evidence-based approach for investment in rapid-charging infrastructure

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  • Serradilla, Javier
  • Wardle, Josey
  • Blythe, Phil
  • Gibbon, Jane

Abstract

To date, real cost data for Electric Vehicle (EV) rapid charging infrastructure is largely missing in the literature, preventing development of economic models to encourage private investment and limiting policy decisions. A business model has been constructed using actual capital expenditure, operating costs and usage data from the Rapid Charge Network project (RCN) which can be used to assist future investment and policy decisions. The model is run under a wide spectrum of EV uptake scenarios to provide plausible answers to a variety of research, policy and investment questions, including minimum growth rates to break even under current policy. Using real-world data we have confirmed that a financial business opportunity does exist for investment in rapid chargers on main highways and have identified the operating area in which a profit can be made. However, since UK EV adoption is still at the Innovators stage in a niche market where innovations in technology, user practices, supporting infrastructure and functionality are still required to achieve wide user acceptance, the case is also made for continued fiscal incentives to encourage investment in rapid-charging infrastructure.

Suggested Citation

  • Serradilla, Javier & Wardle, Josey & Blythe, Phil & Gibbon, Jane, 2017. "An evidence-based approach for investment in rapid-charging infrastructure," Energy Policy, Elsevier, vol. 106(C), pages 514-524.
    • Handle: RePEc:eee:enepol:v:106:y:2017:i:c:p:514-524
    DOI: 10.1016/j.enpol.2017.04.007
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    References listed on IDEAS

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    15. Ardeshiri, Ali & Rashidi, Taha Hossein, 2020. "Willingness to pay for fast charging station for electric vehicles with limited market penetration making," Energy Policy, Elsevier, vol. 147(C).
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    17. Bekli, Seyma & Boyacı, Burak & Zografos, Konstantinos G., 2021. "Enhancing the performance of one-way electric carsharing systems through the optimum deployment of fast chargers," Transportation Research Part B: Methodological, Elsevier, vol. 152(C), pages 118-139.
    18. Antonia Golab & Sebastian Zwickl-Bernhard & Hans Auer, 2022. "Minimum-Cost Fast-Charging Infrastructure Planning for Electric Vehicles along the Austrian High-Level Road Network," Energies, MDPI, vol. 15(6), pages 1-26, March.
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    20. Münzel, Christiane & Plötz, Patrick & Sprei, Frances & Gnann, Till, 2019. "How large is the effect of financial incentives on electric vehicle sales? – A global review and European analysis," Energy Economics, Elsevier, vol. 84(C).
    21. Dimanchev, Emil & Fleten, Stein-Erik & MacKenzie, Don & Korpås, Magnus, 2023. "Accelerating electric vehicle charging investments: A real options approach to policy design," Energy Policy, Elsevier, vol. 181(C).
    22. Byungki Kim & Jae-Bum Park & Dae-Jin Kim, 2021. "A Study on the Power Line Operation Strategy by the Energy Storage System to Ensure Hosting Capacity of Distribution Feeder with Electrical Vehicle Charging Infrastructure," Energies, MDPI, vol. 14(21), pages 1-17, October.

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