Why we need equitable access to EV charging
This is part of a series of influencer blogs for Economist Impact's rEV Index.
The switch from internal combustion engine (ICE) vehicles to electric vehicles (EVs) is gathering pace across the world. Driven by policy announcements such as the phase-out of ICE vehicles, options for drivers are increasing rapidly with an expanding range of zero-emission cars, light goods vehicles (LGVs) and even heavy goods vehicles (HGVs).
The deployment of public EV charging infrastructure is ramping up to meet growing demand. The IEA estimates around 1.3m public chargers installed globally by the end of 2020,1 which is expected to grow to 16–25m by 2030.2
However, when you look closer it becomes clear that this deployment is far from evenly spread.
Source: CenexUneven distribution
Across the globe, more than 80% of EV chargepoints are located in China and Europe,3 and even within countries chargepoints are heavily focused towards urban environments.
This would seem to make sense—China has the highest population in the world, and if Europe was a single country then it would have the third-highest population. However, even the combined population of China and Europe accounts for only 24% of the global population.
You could also argue that Europe and China account for over three-quarters of global EV stock. More people and more EVs mean that more chargepoints are needed. However, EV charging infrastructure deployment and EV uptake can be seen as deeply interrelated. Our studies at Cenex show that in areas where EV charging infrastructure is available, EV uptake rates increase. According to a study by EV charging company Connected Kerb, 67% of EV owners would not have bought an EV if they weren’t able to install a charger at their home.4
But does this matter? In markets such as Europe and China where there is high EV penetration, the low-hanging fruits of home charging, rapid charging and destination charging are being leveraged from technology, customer and commercial perspectives. This is great because it means that countries that are just starting their electric journey can adopt mature and lower-cost solutions, de-risking the transition. However, most of the developments to date focus on meeting the needs of a small user group—car drivers with off-street parking.
So, where does this leave the rest of us who don’t have off-street parking, or who drive a two- or three-wheel vehicle rather than a car? These archetypes are often lower-income or classified as “disadvantaged”. As EVs are cheaper to operate, this means that those with access are able to reduce their cost of living. They will also live in healthier communities because of the lower vehicle emissions, meaning that they are likely to live longer and suffer from fewer air pollution-related illnesses. Conversely, those who can’t afford to switch to an EV may experience greater localised air pollution and have a higher cost of living.
As we move forwards with this transformation of the transport industry, it is important to make sure that it is truly equitable and does not increase the inequality gap.
Equity explained
The terms “equality” and “equity” are often used interchangeably in policy discussions, but are in fact distinct. So, before we move on, let’s make sure we know what we are talking about.
Equality refers to treating people in the same way. For example, a programme to give away a standard-size bicycle to every resident might promote equality. However, this assumes everyone starts from the same place.
By contrast, an equity-focused approach aims to ensure that people receive what they need to be successful and recognises the need to overcome the impact of their current situation and history. For example, it might recognise that some people need adaptive bikes, whereas others may need smaller or larger bikes.
Map Source: Electromaps.comWhat does this mean in practice? Let’s take a look at a hypothetical example:
Consider a group of four friends working in London. Two are EV owners and are demographically identical in every way, except one can charge at home and the other cannot. They get the same EV with efficiency of 3 miles per kilowatt hour (m/kWh), and both drive 9,000 miles per year, therefore using 3,000 kWh every year.
The lucky one who has access to a domestic chargepoint pays £0.05/kWh (US$0.07/kWh) to recharge their vehicle overnight on a special EV tariff, costing them £150 (US$210) a year. The unlucky one pays £0.35/kWh (US$0.50/kWh) to use public charging infrastructure, costing them £900 (US$1,200) per year.
The third person drives a diesel vehicle with an efficiency of 40 miles per gallon (mpg). Based on the same mileage and a diesel price of £1.34 (US$1.80) per litre, this will cost £1,370 (US$1,900) per year.
Now, let’s say that the final person in the group has a large family and expensive health issues, so they can’t afford a car. Instead, they rely on the local bus network. In London, a bus costs on average £1.20 (US$1.60) per mile. For the same annual mileage this person will pay £10,800 (US$14,700).
Towards a fairer charging network
How do we tackle this inequality and create an EV charging network that is fair for everyone? Here are some of my personal recommendations:
- Know your market: Make sure infrastructure is targeted at the types of vehicle used in your area. In countries like India, the largest vehicle group is two- or three-wheelers, which are often better suited to battery-swapping hubs5 rather than chargepoints. Equally, more rural areas are likely to need to focus on higher-power charging as residents are more geographically spread out, meaning that low-powered charging would not be well-utilised. By contrast, in urban areas low-power charging may be better suited to residents’ needs.
- Avoid a “postcode lottery”: Deployment of public EV charging is often based on commercial opportunity—in short, chargers are placed where they will make the most money in the shortest timeframe. It is the responsibility of governments and regional authorities to ensure that EV charging is installed where it is needed and where it will support more equitable adoption of EVs. This may mean installing chargepoints in areas that won’t make any return for a number of years to ensure that chargepoints are where they need to be, rather than where they will make the most money. It is bold, but it will help to level the playing field and support EV adoption in areas that would otherwise take much longer to make the transition.
- Reduce VAT: Public EV chargepoints require a lot of additional technology—such as payment systems and user identification—which makes them more expensive than a charger installed at home. However, what really makes public charging expensive in the UK is that the electricity is subject to a higher rate of VAT—20% compared with the 5% VAT applied to domestic electricity. Dropping this to align with domestic electricity rates would knock almost £200 a year off the cost of using public charging.
- Reduce the emissions and cost of public transport: In many cases there are better options than driving your own EV. Improving public transport routes and reducing their cost could accelerate the transition to zero-emission transport since many bus and rail services are already decarbonising. However, as long as prices are higher than vehicle ownership, people will avoid using it. By driving forward with lower-cost, lower-emission public transport, we can help residents switch to zero-emission transport without the high up-front cost of buying an EV, while also tackling the side-effects of our culture of personal transport such as congestion.
- Build infrastructure for active travel: The average length of a journey in the UK is about eight miles. Historically, this has been too far for most people to consider anything other than driving. However, such distances are perfectly feasible with the introduction of electric bikes and scooters, as demonstrated in 2020 during the Covid-19 lockdowns, when demand for bikes went off the charts. The main barrier then is infrastructure—dedicated bike lanes which are separated from other vehicles; changing and showering facilities; and secure storage for bikes, clothes and even luggage. These are all essential in helping people to feel comfortable giving up their cars and trying something more sustainable.
In short, it can feel like enabling an equitable switch to zero-emission transport is too great a challenge. However, a few small but significant changes can make a big difference and ensure that this transition doesn’t leave anyone behind.
Find out more about EV readiness across the UK and in other important markets in Europe and globally from the rEV Index.
About the author:
After a decade leading research and innovation projects in the energy industry, Chris joined Cenex in 2018 leading Cenex’ activities relating to energy and infrastructure for transport. This includes innovative R&D projects in areas such as vehicle-to-grid, wireless charging and microgrids as well as strategic and technical consultancy. He is a certified project manager, chartered engineer and member of the Institution of Mechanical Engineers (IMechE). Chris has had a varied career, also working in areas such as tidal/wave generation, virtual power plants, energy storage and smart homes; and he is passionate about reducing emissions relating to energy and transport.
Sources
- 1International Energy Agency (2021), “Global EV Outlook 2021”. Available at: https://iea.blob.core.windows.net/assets/ed5f4484-f556-4110-8c5c-4ede8bcba637/GlobalEVOutlook2021.pdf
- 2Ibid.
- 3Ibid.
- 4Connected Kerb (2020), “Electric Vehicles: Moving from early adopters to mainstream buyers”. Available at: https://www.connectedkerb.com/thought-leadership
- 5Battery swapping simply refers to removing a discharged battery and replacing it with a fully charged one. For smaller vehicles where the batteries are low-weight, this can provide a quick and efficient means of charging EVs.