Leading the Charge - EV Charging Report 2021 - Fuels For Ireland

 
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Leading the Charge - EV Charging Report 2021 - Fuels For Ireland
Leading
                          EV Charging Report 2021

the Charge.

EV Charging Report 2021
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Leading the Charge - EV Charging Report 2021 - Fuels For Ireland
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
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Leading the Charge - EV Charging Report 2021 - Fuels For Ireland
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.

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Leading the Charge - EV Charging Report 2021 - Fuels For Ireland
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

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Leading the Charge - EV Charging Report 2021 - Fuels For Ireland
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/

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Leading the Charge - EV Charging Report 2021 - Fuels For Ireland
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

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Leading the Charge - EV Charging Report 2021 - Fuels For Ireland
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.

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Leading the Charge - EV Charging Report 2021 - Fuels For Ireland
Fuels for Ireland        EV Charging Report 2021

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Leading the Charge - EV Charging Report 2021 - Fuels For Ireland
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Leading the Charge - EV Charging Report 2021 - Fuels For Ireland
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