Leading the Charge - EV Charging Report 2021 - Fuels For Ireland
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Fuels for Ireland Fuels for Ireland EV Charging Report 2021 Contents Introduction 4 Achieving Ireland’s EV targets 7 Leading Europe and paving the way 8 Barriers to further progress 11 Accelerating our energy transition: 12 Key steps to take www.fuelsforireland.ie 2 3
Fuels for Ireland EV Charging Report 2021 Introduction Transport is one of the key areas within Ireland’s ambitious strategy to achieve net-zero carbon emissions by 2050. As part of this overall objective, the Government has set a target of having almost one million electric vehicles (EVs) on Irish roads by 2030. Fuels for Ireland - which represents Ireland’s This is not enough, however. While we have taken forecourt operators and liquid fuel providers - is the necessary steps in developing an expanding EV committed to tackling the climate emergency and charging infrastructure for consumers, our members making this net-zero aspiration a reality. Last year, have identified a range of obstacles to expanding we released our ‘Powering today and tomorrow’ this further, from infrastructure costs to challenges strategy, which set out our plans to achieve this in accessing electricity networks. There are solutions by dramatically cutting emissions in the transport, to these problems, which are laid out in this report, aviation, maritime and home heating sectors. and implementing progressive policies in this area We welcome the Government’s commitment to will help our industry to greatly increase the number boosting the numbers of EVs, plug-in hybrids and of charging points in place. hybrids on our roads, while recognising the need to take additional steps to reduce emissions from Irish forecourt operators are proud of our long conventional vehicles which will remain the biggest history of fuelling Irish road transport; with the right component of our national fleet for many years support, we are confident that we can accelerate the to come. energy transition, continue to lead Europe and help Ireland to become a world leader in sustainable road More importantly, our members have made steady transportation. and measured progress in recent years in increasing the number of EV charging points on Irish forecourts. Kevin McPartlan This is demonstrated by the new UNEM analysis CEO, Fuels for Ireland which shows that our industry leads Europe when it comes to having access to EV charging on forecourts. Far from lagging behind, our members are leading the way, and helping to facilitate this ongoing transformation. 4 5
Fuels for Ireland Fuels for Ireland EV Charging Report 2021 Achieving Ireland’s EV targets The Climate Action Plan which was published in 2019 commits to increasing the number of EVs in Ireland to 936,000 by 2030 (with 840,000 of these being passenger EVs), while developing an EV charging network and infrastructure which can support this rapid technological shift in mobility.1 With just 14,000 fully electric vehicles currently Fuels for Ireland’s members have already taken registered in Ireland,2 and with the CSO’s figures significant steps in offering electric charging showing that EVs make up less than 5% of newly facilities on their forecourts. licensed vehicles as of February 2021,3 a key challenge in the coming years will be expanding As noted in our strategy for achieving the EV charging infrastructure in order to allow more car owners to switch to vehicles which are carbon neutrality by 2050, the total fully or partially reliant on electricity. number of EV charging points in place across the networks increased To help reach its targets over this decade, the Government has convened the Electric Vehicle by almost 50% between 2015-2020. Policy Pathway (EVPP) Working Group to establish a roadmap for achieving the 2030 target.4 In In fact, as a direct result of this large-scale addition, the Programme for Government includes investment by our members, Irish service stations a commitment to publishing an “EV strategy to now surpass their European counterparts in ensure that charging infrastructure stays ahead providing this vital service to more and more of demand,”5 and this EV infrastructure strategy of their customers. is expected to be published in 2021.6 Clearly, large numbers of people are not going to invest in EVs or plug-in hybrids (PHEVs) if they do not feel confident that a charging infrastructure is in place to fully support their transportation needs. As a result, progress towards the 2030 goals will be dependent on developing more EV charging points all across Ireland. 1. Government of Ireland, ‘Climate Action Plan 2019,’ https://assets.gov.ie/25419/c97cdecddf8c49ab976e773d4e11e515.pdf 2. Minister Eamon Ryan, Oireachtas.ie, https://www.oireachtas.ie/en/debates/question/2021-03-10/253/#pq_253 3. Central Statistics Office, ‘Table 6: Number of new and used (imported) private cars licensed for the first time by fuel type,’ 4. Minister Eamon Ryan, Oireachtas.ie, https://www.oireachtas.ie/en/debates/question/2021-02-24/115/#pq_115 5. rogramme for Government: Our Shared Future, Gov.ie, https://www.gov.ie/en/publication/7e05d-programme-for-government-our- P shared-future/ 6. Minister Eamon Ryan, Oireachtas.ie, https://www.oireachtas.ie/en/debates/question/2021-02-18/82/#pq_82 6 7
Fuels for Ireland EV Charging Report 2021 Leading Europe and paving the way In 2020, Unione Energie per la Mobilità (UNEM) - the Italian mobility association which brings together companies operating in the fuel sector7 - carried out a survey which examined service stations across 19 countries in the European region. In it, UNEM looked at the total number of service stations in each country, where they are located, what fuels they provide and whether or not they are equipped with EV charging points. The findings - outlined below - show that Irish forecourt operators are already leading the way. Aside from having the highest percentage of service Enormous numbers of people do not have the Position Country % of service stations Total number of Service stations with EV charging points service stations equipped with EV stations with EV charging points, Ireland also fares ability to charge their vehicles at home - including charging points very well when the figures are examined on the basis many of those who live in apartments or in houses of population,8 which puts us in a strong position where home charging is not feasible - and this 1 Ireland 7.46% 1,797 134 when it comes to rolling out a comprehensive makes improving the EV charging infrastructure 2 Denmark 5.37% 2,048 110 national EV charging infrastructure network quickly on forecourts all the more relevant and important. and effectively. Compared to the United Kingdom, 3 Sweden 5.02% 2,790 140 for instance, there are almost 8,000 people for Another challenge right now is the small size of 4 Portugal 3.66% 3,145 115 every service station, and almost 453,000 people the existing fleet of Battery Electric Vehicle (BEV) for every service station which is equipped with and Plug-in Hybrid Electric Vehicle (PHEV) fleet, 5 Netherlands 3.14% 4,145 130 an EV charging point. In contrast, in Ireland, there and the fact that a considerable proportion of the 6 Austria 2.6% 2,733 71 are around 2,760 people for every service station overall electric vehicle category is made up of Hybrid and 37,000 people for every service station which Electric Vehicles (HEV) which are not powered 7 Belgium 2.26% 3,091 70 is equipped with an EV charging point. We already using charging points.10 This limits the size of the 8 Hungary 2.1% 1,998 42 have the facilities which consumers rely on, and as market and therefore makes installing EV charging more and more forecourts develop charging stations, points less attractive from a viable business case to 9 Switzerland 2.08% 3,362 70 our widespread footprint will help to ensure that forecourt operators who are under pressure when it 10 Spain 1.99% 11,602 231 the population can access the charging they need, comes to maximising the value of the space on their regardless of where they are based or where they forecourts. We cannot increase the pace of change 11 France 1.79% 11,193 200 are travelling from and to. without developing the charging infrastructure, and 12 United Kingdom 1.76% 8,396 148 so we need to carefully consider the barriers which In the coming years, Fuels for Ireland’s members will are preventing consumers from switching to electric, 13 Poland 1.05% 7,628 80 be expanding this charging network significantly. It and which as a result of this, are hampering our 14 Germany 1.04% 14,449 150 is important to consider the issue of spare capacity, forecourt operators’ efforts to cater to this market. however. At present, industry estimates suggest 15 Turkey 0.61% 13,098 80 that just 2.4% of EV charging capacity is being used. 16 Greece 0.33% 6,100 20 One reason for this is that home charging currently accounts for 80% of EV charging in the country.9 17 Italy 0.28% 21,750 60 18 Czech Republic n.a. 4,008 n.a. 19 Slovakia n.a. 970 n.a. 8. urostat, ‘EU population in 2020,’ https://ec.europa.eu/eurostat/documents/2995521/11081093/3-10072020-AP-EN.pdf/d2f799bf-4412- E 05cc-a357-7b49b93615f1 9. Minister Eamon Ryan, Oireachtas.ie, https://www.oireachtas.ie/en/debates/question/2021-02-24/104/#pq_104 10. entral Statistics Office, ‘National Travel Survey 2019,’ https://www.cso.ie/en/releasesandpublications/ep/p-nts/ C 7. UNEM, ‘Who we are,’ https://www.unem.it/chi-siamo-2/ nationaltravelsurvey2019/electricvehicles/ 8 9
Fuels for Ireland Fuels for Ireland EV Charging Report 2021 Barriers to further progress The recent upsurge in the purchase of new EVs and Given the small size of the EV market currently, hybrids is proof of growing consumer demand for operators sometimes feel that dedicating space these vehicles. Yet the current size of the market to an EV charging point which will go unused most comes nowhere close to matching the Government’s of the time is not a cost they can afford. target of having 936,000 EVs on the road by the end of this decade. We need to think about the obstacles Access to local area networks which are preventing more people from moving A crucial part of providing electric power to to electric. customers is being able to access the local ESB area networks. Some service stations considering Even with the extensive range of financial supports installing EV charging points have experienced to incentivise the purchase of EVs, the cost premium prolonged delays in accessing information on associated with them remains a major impediment whether they can connect to the grid, and at what for many people, given that purchase price is the cost. Another recurring challenge - particularly in main influencing factor when buying a car.11 Another urban areas where consumer demand is high and key concern is range anxiety, and the fear that EV where home charging facilities are often unavailable owners may not be able to charge their vehicles in a - is that the grid can be up to capacity in the place time efficient manner when they are on longer trips. where a forecourt wants to connect. This means that grid upgrades have to be done, with the cost Over the next decade, the continued rollout of more being shouldered by the service station. These EV charging points on Irish forecourts will be vital costs are run in the hundreds of thousands of euros, in assuring drivers of EVs and plug-in hybrids that prohibiting the feasibility of moving forward with their needs can be met. In spite of the fact that the EV installation. Irish forecourt operators are much more likely to have installed EV charging points compared to their Lack of an environmental incentive European counterparts, a range of other inhibitors Electrification of transport can reduce emissions are slowing their progress and preventing more significantly. Forecourt operators and others in the stations from installing charging points – an overview transportation sector are working hard to achieve of some of these challenges is included below: the emissions cuts required by the EU’s Fuels Quality Directive,12 but in spite of investing considerable Infrastructure costs sums in installing more EV charging points, there EV chargers are very expensive, costing up to is currently no incentive for businesses to enable €100,000, but there are other significant costs significant CO2 emissions reductions to take place apart from the device itself, including installation by providing electricity to consumers. and cabling costs, which often present a serious challenge. New super-fast electric vehicle charging Average cost estimate facilities offer the prospect of saving time and thus The purchase and installation of an EV charging making EVs far more attractive, but the installation point - combined with the ancillary costs associated of such facilities can require construction work, with connecting to the local area network - is adding further costs. a considerable burden on forecourt operators, particularly small businesses in the sector. It costs Spatial constraints several hundred thousand euros to set up an EV One important factor - particularly for smaller charging hub consisting of 2 rapid fast chargers operators - which is rarely discussed is the issue with access to ample power from the ESB grid. of spatial constraints. Service stations operate on a business model where customers spend very little time on the forecourt, and many forecourts cannot accommodate large numbers of cars at once. 11. entral Statistics Office, ‘National Travel Survey 2019,’ https://www.cso.ie/en/releasesandpublications/ep/p-nts/ C nationaltravelsurvey2019/electricvehicles/ 12. European Commission, ‘Fuel Quality,’ https://ec.europa.eu/clima/policies/transport/fuel_en 10 11
Fuels for Ireland EV Charging Report 2021 Accelerating our energy transition: Key steps to take Everyone agrees that we need to see major reductions in carbon emissions in the road transport sector as we work to make Ireland a net zero emitter by 2050. Electric vehicles and hybrids are an important part of this strategy, and Irish forecourt operators are perfectly positioned to build on their track record of success and provide the world-class EV infrastructure we need. Ireland’s 1,797 service stations are spread across Matching funds Energy savings credits Maintaining a diversified approach every community in the country, and forecourts are FFI members have invested heavily in providing Our forecourts can also track exactly how much The increased use of electrification in the transport situated on all of the key commuter routes leading their customers with more options, and therefore electricity is being dispensed from charging points. sector is a crucial part of Ireland’s environmental into, and out of, our cities and towns. The teams helping many to make the switch to electric. They One of the key ways for Ireland to meet its Fuel policies. However, even if the target of having which service them draw upon generations of will continue to invest heavily over the next decade, Quality Directive obligations in reducing CO2 936,000 EVs on the road is achieved by 2030, experience in fuelling Irish life and keeping our society but many forecourt operators will find it challenging emissions is via EV adoption, which forecourt a majority of vehicles in this country will continue moving forward. Our customers trust us to provide to justify large-scale investment, on the grounds operators are helping to promote. The provision to be fuelled by petrol or diesel. Due to this, an the support and assistance they need: not just in that the EV market will remain relatively small of energy savings credits for the quantifiable exclusive reliance on any one technology or policy having EV charging points available, but in ensuring for years to come. One effective way of using CAF reductions in emissions would provide a major would be a mistake. that equipment is maintained and operated to the funding would be for the State to provide matching incentive for businesses considering the installation highest standards. funds for EV charging point projects, thus reducing of more charging points. That does not mean that we cannot make enormous the initial outlay for businesses. progress: whether that be by incorporating more What those loyal customers want is made clear Waiving the PSO levy biofuels within our fuel, boosting efficiency gains by the rising numbers of people who are switching “Many forecourt operators will find The PSO (Public Service Obligation) levy is charged further or providing more consumers with access to EVs and hybrids. Drivers want transportation to all electricity customers and supports the to exciting new products such as hydrogen. It is that works for them and protects the environment. it challenging to justify large-scale generation of electricity from sustainable, renewable entirely possible that the technologies which will Crucially, they want assurance that they can access investment, on the grounds that the and indigenous sources. Installing electric charging make net zero a reality have yet to be developed, the support they need: and there is no better place EV market will remain relatively small facilities on a typical forecourt usually involves or else are at a very early stage in their evolution. to do this than on Irish forecourts. But to accelerate increasing the Max Import Capacity (MIC) to allow Above all else, we need to maintain a diversified the energy transition in road transport and make it for years to come.” for the significant intermittent power demand policy approach aimed at one core objective: a success for everyone, we need the right supports: in charging a vehicle. This dramatically increases cutting emissions as quickly as possible. Providing a speedy response the costs for businesses carrying out this work, Climate Action Fund Slow-moving bureaucracy does not help to achieve and often has the effect of making an EV charging Our sector has led the way in Europe in The Climate Action Fund (CAF) exists to provide rapid results. Businesses considering installing EV point installation commercially unviable. Given constructing an infrastructure which is allowing the financial support to projects which will help Ireland charging points need to be provided with information the role EVs play in supporting more sustainable energy transition to happen. With the right supports, to achieve its energy targets. Given the role which about the feasibility in accessing the grid, the consumption of energy and cutting emissions, the we can further build on this success and play a service stations have already played - and given the timeframes involved, and the costs which would Government should consider waiving the PSO levy crucial role in helping to achieve Ireland’s ambitious unique advantages they offer for achieving further be necessary to achieve this. A more consistent in these circumstances. climate targets. progress - it is vital that they can access CAF approach and streamlined process with set timelines funding to allow them to ramp up the number would be welcomed by those forecourt operators of EV charging points over the next five years. wishing to invest in EV charging. 12 13
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