In March 2022, the UK’s public EV charging network was given a huge boost as the Government committed to a ten-fold expansion in charge points by 2030, to meet growing demand with a £1.6bn investment in the UK charging network.
The Government committed to delivering around 300,000 public chargers by 2030 and at the end of February 2024, there were just 57,290 electric vehicle charging points across the UK, spanning 32,575 charging locations.
Whilst this represents a 47% increase in the total number of charging devices since February 2023, there is clearly a long way to go when it comes to public charging facilities. To help things along, the Government made all new builds from June 2022 require home charging points to be fitted by law.
To date, most of the provision of EV charging infrastructure has been market-led, with providers such as Tesla and BP leading the way with individual charging networks. Meanwhile, other businesses such as hotels have chosen where to install devices on a case-by-case basis to meet demand.
But with more and more occupiers of commercial property requesting provision of EV charging facilities onsite to meet their ESG and carbon footprint commitments, could commercial property help to plug some of the EV charging gaps?
And what do landlords and investors need to know about installation of EV charging? What do their occupiers want and what are the key considerations to consider – from the practicalities and planning considerations to potential pinch points?
David Thomas, Head of Energy & Sustainability at Vail Williams LLP, explores.
Whilst EV sales faltered slightly at the start of 2024, EV specialists such as Gridserve are expanding rapidly. Their EV rapid chargers are multiplying at motorway service stations and other charging points across the UK, and they recently announced over half a billion pounds in green financing to accelerate the expansion of their EV charging network.
Their EV Forecourts shine a light on the future of the EV charging ‘experience’ which, in addition to superfast high-power chargers, also offer car showrooms, picnic areas, lounge and office facilities with free wi-fi, cafés, dog walking space and children’s play areas.
Whilst these facilities paint an optimistic view of the EV charging future, they will only viable subject to the necessary power connections and power capacity / supply in the network.
In the retail sector, particularly out of town at local retail parks, landlords are installing EV charging as they benefit tenants and customers, increase dwell time, provide additional revenue streams and help to reinforce customer loyalty.
Similarly, landlords of both office and industrial developments – whether newbuild or refurbished assets – are installing EV charging as part of their sustainable real estate offer to tenants, in order to meet occupier demand. The motivation for installing at commercial buildings can also be as a source of additional revenue.
There are, however, stark differences in EV provision between retail destinations and places of work. EV charging points at retail destinations will require high power rapid charging, whereas EV charging at office locations can use trickle charging with a lower power requirements.
We are also seeing a significant increase in tenants wishing to install their own EV charging where not provided by the landlord, and this has to be carefully navigated from both the landlord and tenant’s perspectives.
