making the connection: the plug-in vehicle infrastructure strategy

8/6/2019 Making the Connection: The Plug-in Vehicle Infrastructure Strategy

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Making the Connec onThe Plug-In Vehicle Infrastructure Strategy

June 2011


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ISBN 978 1 84864 108 2

Photo acknowledgements

Front cover (from left to right): EDF Energy, One North East, POD Point. Page 11: Society of MotorManufacturers and Traders. Page 18: Peugeot. Page 23: Tony Watson/Alamy. Page 24: Mitsubishi,Vauxhall, Peugeot, Citroen, Tata, Nissan, Renault, Chevrolet, Mercedes-Benz UK, Toyota.Page 30: EDF Energy. Page 31: EDF Energy, npower. Page 34: POD Point, EDF Energy, Chargemaster.Page 37: TNT. Page 39: One North East. Page 41: Transport for London. Page 43: One NorthEast. Page 44: POD Point. Page 45: One North East. Page 46: Toyota, Chevrolet, Vauxhall.Page 48: Highways Agency.


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Contents

Foreword 5

Execu ve summary 6

1. Introduc on 11

2. The case for plug-in vehicles 18

3. The role for Government 23

4. Recharging at home 30

5. Recharging at work 37

6. Recharging in public places 41

7. Enabling longer journeys 45

8. Taking this Strategy forward 48

List of abbrevia ons 51


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This Strategy sets out the framework for the development of recharging infrastructure to support plug-in vehicles in the UK. Implementation of the Strategy will be taken forward in a way that recognises and respects the policy responsibilities and powers of the devolved administrations inNorthern Ireland, Scotland and Wales respectively.

In Northern Ireland, planning policy and policy relating to the generation, transmission and supply of electricity are devolved matters.

In Scotland, the generation, transmission and supply of electricity is a reserved matter; while planning is devolved.

In Wales, town and country planning is a devolved matter.


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Foreword

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Foreword

Low and ultra-low emission vehicles are a vital part of the Governments plans for a moderntransport system that promotes economic growth while delivering on its climate change targets.

Road transport is responsible for over 90% of the UKs domes c transport emissions. But thisGovernment believes it is the carbon that is the problem, not the car. The idea that the only wayto achieve our environmental goals is to force people out of their cars is pessimis c, outdateddogma. Low and ultra-low emission technologies, such as plug-in vehicles, o er the poten al toreduce emissions but s ll allow people the mobility that they want and need - assis ng in theba le against carbon without persecu ng motorists.

The automo ve sector already accounts for 12% of the UKs manufacturing employment; lowand ultra-low emission vehicles o er the poten al to secure these jobs and build upon them,suppor ng the rebalancing of our economy that we require for a sustainable, pro table future.

The transi on to ultra-low emission vehicles will not take place overnight. In the short-termemissions reduc ons from road transport will be driven largely by improvements in conven onaltechnology, but in the longer term an increased penetra on of ultra-low emission vehicles will bevital to meet our environmental goals. We are laying the founda ons now with this Strategy tosupport the growth in the ultra-low emission market that we want to see in the future.

Plug-in vehicles are a viable technology now, but, for this market to grow, consumers need to bereassured that they are a ordable and meet their needs. An e ec ve recharging infrastructure,alongside improvements in vehicle range, is a fundamental part of this. However, it is importantthat this infrastructure operates in the most cost-e ec ve way possible to maximise the

environmental, economic and energy system bene ts of plug-in vehicles.

This Strategy sets out our vision for recharging infrastructure in the UK and the steps that we,and other industry players, will need to take to make it a reality in the years ahead.

The Rt Hon Philip Hammond MP

Secretary of State for Transport


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Execu ve summary

The shi to ultra-low emission vehicles presents unique environmental and economicopportuni es for the UK. It o ers the poten al to decarbonise road transport while s ll enablingmobility and s mula ng the kind of green jobs and investment that we require to help rebalanceour economy.

Reducing transport emissions will require a range of di erent technologies and solu ons in thefuture. To help support this transi on, the Government is commi ed to growing the market forplug-in vehicles in the UK. This is due to the contribu on that they, and other low and ultra-lowcarbon technologies, can make across our economic and environmental priori es climate change,green growth, energy security, decarbonising the electricity system and air quality.

The Government is taking an integrated and pragma c approach to support market growth:

The Spending Review made provision of over 300m over the life of this Parliament for the Plug-

In Car Grant to reduce the upfront cost of eligible vehicles to consumers and businesses.

Consumers and businesses also bene t from a favourable tax regime , with plug-in vehiclesreceiving Vehicle Excise Duty and Company Car Tax exemp ons, as well as Enhanced CapitalAllowances.

The Plugged-In Places programme has made 30m available to match-fund eight pilotprojects installing and trialling recharging infrastructure in the UK to support the Carbon Plancommitment to install up to 8,500 chargepoints.

Recognising that con nued growth in recharging infrastructure will be driven by private sectorinvestment, which could be constrained by the ability to raise nance, there is the poten alfor the Green Investment Bank to provide targeted nancial solu ons for appropriate plug-invehicle infrastructure projects.

The Government is also suppor ng low and ultra-low carbon vehicle Research, Developmentand Demonstra on focusing on priori es iden ed in conjunc on with the UK Automo veCouncil.

This Strategy sets the framework for the development of recharging infrastructure to support plug-in vehicle owners and industry in the UK. By providing a clarity of approach and removing barriers

for those wishing to invest in, provide or bene t from such infrastructure, this Strategy aims tos mulate and accommodate the expected growth in the plug-in vehicle market.


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Execu ve summary

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In the period up to 2015, we expect to see tens of thousands of plug-in vehicles on the roads inthe UK, with manufacturers bringing increasing numbers of models to market. In the period from2015 to 2020 we expect to see the number of plug-in vehicles accelerate as costs reduce andvehicle manufacturers bring forward a wider range of plug-in vehicle models in order to meet theirstringent 2020 CO 2 targets under the European New Car CO 2 Regula on.

The rate at which the plug-in vehicle market develops in the UK will be determined by a range of factors, such as consumer acceptance and oil prices, which are di cult to predict. Independentforecasts suggest that hundreds of thousands of plug-in vehicles could be on the road by 2020 andwe need to be equipped to deal with this; but we also need to be ready to accommodate an evenmore rapid rate of growth should this occur.

The evidence baseThe Plugged-In Places programme is the key mechanism for commencing the roll-out of

recharging infrastructure in the UK and providing learning to inform the future developmentof a na onal network. In addi on, the Energy Technologies Ins tute Plug-In Vehicle Economicsand Infrastructure Programme and the Technology Strategy Boards Ultra-Low Carbon VehicleDemonstrator Programme have informed this Strategy. We have also worked closely with theenergy u li es, plug-in vehicle manufacturers, chargepost manufacturers and have sought insightsfrom a range of global ini a ves.

Our vision for rechargingOur approach is not to mandate a chargepoint on every corner this is not necessary to helpthe market grow and would be uneconomic. Rather, for plug-in vehicles to appeal to, and be aviable solu on for, consumers, we want recharging infrastructure to be targeted, convenient andsafe. We want to see the majority of recharging taking place at home, at night, a er the peak inelectricity demand. Home recharging should be supported by workplace recharging for commutersand eets, with a targeted amount of public infrastructure where it will be most used, allowingpeople to make the journeys they want.

Recharging at homeRecharging at home, at night, o -peak, is not only most convenient for drivers, but also maximisesthe environmental and economic bene ts of plug-in vehicles by using cheaper, lower carbon

night- me electricity genera on. It also makes the best use of available electricity network capacity.

To help people charge at home as easily as possible, the Government is:

ensuring that smart metering in Great Britain includes the func onality to support smartcharging of plug-in vehicles. This will allow recharging to react to price signals, ensuring that itcan happen when it is cheapest for consumers and the energy system, subject to appropriatetechnology in the chargepoint or plug-in vehicle;

through Ofgems Low Carbon Network Fund , suppor ng smart grid projects linked to thePlugged-In Places projects in London and the North East which will look at how plug-in vehiclesand domes c recharging can be best managed;

facilita ng the installa on of domes c chargepoints through the Plugged-In Places projects;


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proposing the inclusion of policy on plug-in vehicle infrastructure in the Na onal PlanningPolicy Framework , due for consulta on in July 2011. This will encourage local authori es toconsider adop ng policies to include plug-in vehicle recharging infrastructure in new domes cdevelopments; and

exploring whether voluntary standards , such as the Code for Sustainable Homes, can beused to encourage the inclusion of plug-in vehicle recharging infrastructure in new domes cdevelopments.

Recharging at workA er home recharging, we want to see workplaces providing recharging opportuni es, both for

eet vehicles and employees for whom recharging at home is not prac cal or su cient. We expectthat plug-in vehicles will be par cularly a rac ve to eet purchasers. Given the current favourabletaxa on regime, running cost savings and the opportunity for businesses to di eren ate

themselves and demonstrate their leadership on sustainability, plug-in vehicles make commercialsense for many businesses.

To help businesses respond to these demands we are:

establishing a Permi ed Development Right that will allow landowners to install plug-in vehiclechargepoints in car-parking areas without the need to apply for planning permission, removinga barrier for those interested in installing chargepoints;

enabling businesses whose emissions are caught under the Carbon Reduc on Commitmentto discount electricity used to charge plug-in vehicles from their total electricity consump on.

This means businesses with workplace chargepoints will not face addi onal costs;

proposing the inclusion of policy on plug-in vehicle infrastructure in the Na onal PlanningPolicy Framework , due for consulta on in July 2011. This will encourage local authori es toconsider adop ng policies to include plug-in vehicle recharging infrastructure in new workplacedevelopments;

looking at enabling provision of informa on to consumers about plug-in vehicles and workplacerecharging as part of the Green Deal customer journey evidence suggests people taking upcore Green Deal measures for workplaces are also likely to be plug-in vehicle adopters; and

suppor ng the Plugged-In Places projects to install chargepoints in workplaces.

Recharging in public placesThe majority of recharging is likely to take place at home and at work, so an extensive publicrecharging infrastructure would be underu lised and uneconomic. We want public infrastructureto be targeted at key des na ons, where consumers need it, such as supermarkets, retail centresand car parks, with a focused amount of on-street infrastructure, par cularly for residents withouto -street parking.

Although central and local government is currently playing a key role in establishing the early publicinfrastructure, in the longer term a commercial market needs to develop. Public infrastructureneeds to be easy to locate and easy to access, to give the public the assurance that they need tou lise the full range of their vehicles and to support the commercial case for public charging.


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Execu ve summary

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To ensure appropriate targe ng and ease of access we are:

establishing a Na onal Chargepoint Registry that will allow chargepoint manufacturers andoperators to make informa on on their infrastructure, including loca on, available in one place;

suppor ng a common standard for plug-in vehicle smartcards issued by the Plugged-In Placesto access their infrastructure, making it easier for users to access more than one scheme;

challenging industry to specify, by the end of the year, back-o ce requirements that enableusers to easily access chargepoints provided by di erent schemes . As the essen al rst stepwe are developing a central system to allow the back-o ces of the Plugged-In Places, and otherinfrastructure schemes, to communicate with each other (a central whitelist); and

suppor ng the Plugged-In Places projects to install chargepoints in public places where they aremost needed.

To make public infrastructure easier to install and to improve the commercial case for installing itwe are:

establishing a Permi ed Development Right that removes the requirement from localauthori es and owners of publicly accessible car parks to apply for planning permission to installchargepoints;

working with Ofgem to remove regulatory barriers . Ofgem will consult this year on anexemp on that makes it clear that chargepoint owners and operators can sell electricity viachargepoints at the market rate; and

making data freely available on how public recharging infrastructure installed through thePlugged-In Places is used, to help inform commercially viable business models.

We want plug-in vehicle owners to be able to recharge quickly when they need to. Industry favoursmoving to a dedicated plug-in vehicle recharging connector (the IEC6219 6 -2 Type 2) to allow fasterrecharging rates than are possible with a three-pin plug. Given this clear direc on of travel, thePlugged-In Places will start to install public infrastructure with Type 2 connectors.

Enabling longer journeysWe want plug-in vehicles to become a viable, mass-market alterna ve to conven onal cars. Werecognise that, while 95% of trips in Great Britain are less than 25 miles, well within the range of ba ery electric vehicles, consumers purchasing decisions are in uenced by the poten al to travelfurther.

Plug-in hybrids and extended-range electric vehicles, rapid chargers, ba ery swap and exibleownership models all have the poten al to help plug-in vehicle owners undertake longer journeys.We are suppor ng a range of approaches for extending journeys through the Plugged-In Places,including plans to install around 50 rapid chargers at key loca ons. We have also included plug-inhybrids and extended-range electric vehicles within the scope of the Plug-In Car Grant.


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Taking the Strategy forwardWe have set out much in this Strategy that we need to deliver. However, success will require thecombined e orts of many.

Local leaders and local ini a ves will have an important role in driving ac vity to ensureinfrastructure ts with community needs and priori es. Electricity distributors need to factor inaddi onal demand from plug-in vehicles as they plan to reinforce the grid and consider how tointroduce smart grid capabili es. Electricity suppliers have a valuable opportunity to developnew tari s for plug-in vehicle owners and commercial models for the provision of recharginginfrastructure. Businesses and investors need to act on the new commercial opportuni esthat recharging infrastructure presents, including provision of auxiliary services such as media,communica ons and mobility services.

Given this wide range of di erent par es that need to be brought together to make this marketa success we are asking the Society of Motor Manufacturers and Traders Electric Vehicle Group,the Energy Retail Associa on and the Energy Networks Associa on to, by the end of the year:

specify how the back o ce func ons for recharging infrastructure will operate; and

develop recommenda ons on the most cost-e ec ve way to ensure that recharging occurso -peak.

We will not stop here. This is a fast-moving market and, for this reason, we will provide an updateto this document at the start of 2013.


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1. Introduc on


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Introduc onOur vision for plug-in vehicles1.1 The shi to ultra-low emission vehicles presents unique environmental and economic

opportuni es for the UK. It o ers the poten al to decarbonise road transport while s llenabling mobility and s mula ng the kind of green jobs and investment that we requireto help rebalance our economy.

1.2 The UKs Climate Change Act and commitment to Carbon Budgets has set a strongenvironmental framework that requires an ambi ous shi in transport technology towardsultra-low carbon alterna ves. As set out in the UK Automo ve Councils technologyroadmap, 1 we recognise that in the future there will be a por olio of low emissiontechnologies for di erent transport applica ons including plug-in vehicles, hydrogen fuelcells, sustainable biofuels and ultra-e cient internal combus on engines.

1.3 But the emergence of plug-in vehicles as a real op on for consumers and businesses, and asan opportunity for the associated supply chain, has begun, and we are taking prac cal stepsto put the UK at the forefront of this global market.

1.4 We are taking an integrated and pragma c approach to lay robust founda ons now that willsupport con nuing market growth in the years ahead:

The Spending Review made provision of over 300m for the Plug-In Car Grant to reducethe upfront cost of eligible vehicles to consumers and businesses.

Consumers and businesses also bene t from a favourable tax regime , with plug-in vehiclesreceiving Vehicle Excise Duty and Company Car Tax exemp ons, as well as Enhanced

Capital Allowances.

The Plugged-In Places programme has made 30m available to match-fund eight pilotprojects installing and trialling recharging infrastructure in the UK.

Recognising that con nued growth in recharging infrastructure will be driven by privatesector investment, which could be constrained by the ability to raise nance, there isthe poten al for the Green Investment Bank to provide targeted nancial solu ons forappropriate plug-in vehicle infrastructure projects.

The Government is suppor ng low and ultra-low carbon vehicle Research, Development

and Demonstra on , focusing on priori es iden ed in conjunc on with the UKAutomo ve Council.

1.5 This has placed the UK at the global forefront of this market, as demonstrated by Nissansdecision to locate produc on of the LEAF and electric vehicle ba eries in Sunderland;Toyotas produc on of the hybrid Auris in Burnaston; the development of Tata MotorsEuropean Technical Centre in the Midlands; and cu ng-edge research such as theTechnology Strategy Boards Ultra-Low Carbon Vehicle Demonstrator programme. As a resultof this, the UK is regularly recognised as one of the most a rac ve interna onal plug-invehicle markets. 2 The UK is well posi oned to bene t from the growth in the plug-in vehicle

market, but we need to build on this posi on of strength to secure the poten al advantages.1 Automo ve Council, Technology Roadmap, www.automotivecouncil.co.uk/technology-group/reports2 Frost & Sullivan, EV Charging Infrastructure Market: Country Level Analysis of Charging Types (Europe) , 2010 and 2017,

www.frost.com


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Figure 1.1 What is a plug-in vehicle?

Plug-in vehiclesgeneratorengine

gearbox electric motor

fuel battery

Internal Conventional Plug-in Hybrid Extended-Range Batterycombustion hybrid Electric Electric Electric

engine Vehicle Vehicle Vehicle

(PHEV) (E-REV) (BEV)

The term plug-in vehicle is used to describe a wide variety of di erent technologies that useelectric drive to power, or assist in the powering of, a vehicle. For the purpose of this Strategy,

the term plug-in vehicle is used as a generic term to describe Ba ery Electric Vehicles (BEV),Plug-in Hybrid Electric Vehicles (PHEV) and Extended-Range Electric Vehicles (E-REV). Figure1.1 illustrates these technologies for a passenger car but they are equally applicable to vans,heavy goods vehicles and powered two-wheelers.

In a BEV a ba ery pack and electric motor replace the petrol tank and internal combus onengine of a conven onal vehicle. BEVs rely en rely on electricity for fuel.

A PHEV combines both a ba ery pack and electric motor with an internal combus onengine. Both the electric motor and the internal combus on engine can drive the wheels.The ba ery pack is much smaller than in a BEV, tending to only drive the wheels at low

speeds or for limited range, with the internal combus on engine driving the wheels whenthe ba ery is depleted or when extra power is required.

An E-REV also has both a ba ery pack and electric motor, as well as an internal combus onengine. The ba ery pack tends to be larger than in a PHEV but smaller than in a BEV. Theelectric motor always drives the wheels, with the internal combus on engine ac ng as agenerator to recharge the ba ery when it is depleted.

E-REVs and PHEVs can use a number of low carbon technologies to provide their addi onal rangeand power, such as highly e cient internal combus on engines, sustainable biofuels or hydrogen.

All these vehicles are capable of being plugged into mains electricity. This di eren ates them

from a conven onal hybrid, which also uses electricity to help drive the wheels but cannot beplugged into the mains, genera ng electricity only through regenera ve braking.


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This Strategy

1.6 In addi on to making plug-in vehicles more a ordable and s mula ng technologicalinnova on, having the right infrastructure in place to support plug-in vehicle owners is theother cri cal component in maintaining the UKs favourable market posi on. By providing a

clarity of approach and removing barriers for those wishing to invest in, provide or bene tfrom such infrastructure, this Strategy aims to s mulate and accommodate the growth in theplug-in vehicle market that we expect to see up to 2020.

The developing marketGovernments policy framework aims to both s mulate and accommodate the expectedsubstan al growth in plug-in vehicles in the UK.

In the period up to 2015

we expect to see tens of thousands of plug-in vehicles on the roads in the UK, withmanufacturers bringing increasing numbers of models to market. Early purchasers are likelyto be eet or business users and consumers in urban and suburban loca ons. It is thesesegments of the market that are most likely to reap the full environmental and cost of ownership bene ts of plug-in vehicles. The market will expand its reach as consumer andbusiness acceptance con nues to grow.

The majority of recharging will happen at home or back at base, with further rechargingopportuni es provided at key des na ons. The majority of public recharging infrastructurewill be provided through the Plugged-In Places programme (see Chapter 3), genera ng key

informa on, such as how consumers use infrastructure and the impact of plug-in vehicleson the grid. This, and ini a ves like the Low Carbon Network Fund (see Chapter 4), will helpinform Distribu on Network Operators (DNOs) about the best ways to manage their networksto accommodate the increased penetra on of plug-in vehicles that we expect to see. Anumber of commercial organisa ons, such as supermarkets, are already installing publicchargepoints, but further commercial business models will emerge, supported by forward-thinking enterprise and local ini a ves.

In the period from 2015 to 2020

we expect to see the plug-in vehicle market start to accelerate. A range of forecasts is set

out in Figure 1.2 about how the market could develop. We recognise that how the marketactually develops will be determined by a range of factors, such as consumer acceptanceand oil prices, which are di cult to predict. Independent forecasts suggest that hundredsof thousands of plug-in vehicles could be on the road by 2020 and we need to be equippedto deal with this, but we also need to be ready to accommodate an even more rapid rate of growth should this occur.


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Introduc on

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As the EurAs the Eur opean Neopean Ne w Car Cw Car COO22 ttarar ggee tsts 33 ccome fully inome fully in tto f o f ororce, vce, v ehicle manuf ehicle manuf acturactur erer s wills willbring f bring foror wwarard prd pr oducts in oroducts in or der tder to meeo meet their st their stringtringenent 2020 Ct 2020 COO22 ttarar ggee ts. And as vts. And as v ehicleehicleccosos ts rts r educe, so weduce, so w e ee e xpect txpect t o see the number of plug-in vo see the number of plug-in vehicles sold increhicles sold increase morease mor e re r apidlyapidly ..Business models will emerBusiness models will emer gge thae that support the ct support the commerommer cial deplocial deplo ymenyment of rt of recharechargingging

ininfrfrasas tructurtructure in homes, we in homes, w orkplaces and in public. The Goorkplaces and in public. The Go vvernmenernment will monitt will monitor and f or and f acilitacilitaatteethis markthis mark ee t, but dirt, but dir ect inect in tterervvenen ons will phase out.ons will phase out.

As demand f As demand f or plug-in vor plug-in v ehicles grehicles groowws, so rs, so r echarechar ging inging in frfrasas tructurtructur e will se will sttart tart t o be included aso be included asssttandarandar d in incrd in increasing numbereasing numbers of domess of domes c, wc, workplace and rorkplace and re ettail deail de vvelopmenelopmen ts. Rts. Recharechar ginggingsolu ons tsolu ons t o enable longo enable long er diser disttance journeance journe yys (such as rs (such as r apid charapid char ggerers as at kt keey locy loc aa ons, orons, orpotpot enen ally other tally other t echnologies likechnologies lik e bae ba erery sy swwap) will appear in grap) will appear in gr eaea tter numberer numbers.s.

This will put the UK on a sound f This will put the UK on a sound f oo ng f oo ng f or the incror the incr eased peneeased penetr traa on of ultron of ultr a-loa-low emissionw emissionvvehicles thaehicles tha t wt w e ee e xpect txpect t o see in the 2020s, suppor ng the Goo see in the 2020s, suppor ng the Gov vernmenernmen tt s ambi on ts ambi on to ro reduceeducethe UKthe UK s grs gr eenhouse geenhouse g as emissions acras emissions acr oss the ecoss the ec onomonomy by by 50% by 50% b y 2027, plans f y 2027, plans f or which aror which are edue tdue to be seo be se t out in autumn 2011.t out in autumn 2011.

33

FigurFigure 1.2 Plug-in ve 1.2 Plug-in v ehicle upehicle up ttakak e f e f oror ecec asas ts f ts f or 2015 and 2020or 2015 and 2020

12%

10%

8%

6%

4%

2%

0%

2010 2015 2020

14%

s

P l u g - i

n v e

h i c

l e s a s a %

o f n e w

c a r s a

l e

Full range of forecasts

Central cluster of forecasts

Source: Graph based on selected plug-in vehicle uptake forecasts by Arup-Cenex, BCG, Berger, Cheuvreux, Deutsche Bank, Frost &Sullivan and McKinsey

1.7 The role of Government is not to mandate a chargepoint on every corner, nor to setaspira onal targets for chargepoint numbers for some distant future date this is such a fastmoving technological eld that any such predic on produced now will be wrong. Rather,infrastructure should be targeted where it will be most used, to allow people to make the

journeys they want and to foster a commercial market in plug-in vehicle infrastructure

provision.

3 Regula on (EC) No 443/2009


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Our vision for recharging

1.8 For plug-in vehicles to appeal to, and be a viable solu on for, consumers, recharging needsto be convenient and safe. Plug-in vehicles allow a di erent approach from refuelling a car,as it is no longer just a case of vehicles having to go to infrastructure infrastructure can be

located where vehicles are parked for the longest periods, which many consumers may ndmore convenient.

1.9 We want to see the majority of recharging taking place at home, 4 at night, a er the eveningpeak in electricity demand. This is not only most convenient for drivers, but maximises theenvironmental and economic bene ts of plug-in vehicles by using cheaper, lower carbonnight- me electricity genera on. O -peak recharging will also enable best use of availableelectricity network capacity.

1.10 A er home recharging, we want to see workplaces providing recharging opportuni es, both

for eet vehicles and employees for whom recharging at home is not prac cal or su cient.

1.11 Although chargepoints in public places and des na on recharging will be the most visibletype of recharging, we want this to be targeted at key des na ons, where consumersneed them, such as supermarkets, retail centres and car parks, supplemented by a focusedamount of on-street infrastructure. This infrastructure will generally be used for top-uprecharging or to extend journeys, although there is likely to be a role for public infrastructurein suppor ng those plug-in vehicle owners who do not have access to o -street parking.

1.12 Above all we want recharging to be simple for consumers, with trouble-free, safe, recharging

at home or work, supported by public infrastructure that is easy to access, backed up bye ec ve informa on on where it is located.

Implemen ng the Strategy

1.13 This Strategy sets out this vision for recharging in more detail and the ini al steps thatGovernment is taking to make this vision a reality. It sets out how we are:

using the Plugged-In Places trials as a central mechanism to inform the developmentof commercial models for plug-in vehicle infrastructure;

removing barriers to the market , such as the requirement for planning permission forpublic recharging infrastructure, and working to enable chargepoint operators to chargethe market rate for electricity;

producing a conducive environment for private investment , by encouraging infrastructurethrough planning policies, suppor ng the move to standardisa on and, if raising

nance proves a barrier, the poten al for targeted nancial solu ons through the GreenInvestment Bank; and

helping the consumer by enabling all public infrastructure to be interoperable and

improving the provision of informa on about public chargepoints.4 Evidence from consulta ons with industry and data from Element Energys analysis for the Commi ee on Climate Change

suggests that as much as 90% of recharging (and possibly more) is likely to take place at home or at work. The exactpropor ons will depend upon the rela ve uptake of BEVs, PHEVs and E-REVs.


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1.14 The development of this emerging market is characterised by the innova on of, andcollabora on between, businesses. This is why the Government is also challenging theprivate sector through the Society of Motor Manufacturers and Traders Electric VehicleGroup, the Energy Retail Associa on and the Energy Networks Associa on, to, by the endof the year:

specify how the back-o ce func ons for recharging infrastructure will operate in the UK;and

develop recommenda ons on the most cost-e ec ve way to ensure that recharging occurso -peak.

Regulated Asset Base

1.15 Working with Ofgem we have concluded that a commercial market in public infrastructure isthe favoured route to ensure its provision. The alterna ve would be to provide infrastructurethrough a Regulated Asset Base (RAB), such as the local electricity distribu on network.In Great Britain there are 14 Distribu on Network Operators (DNOs), responsible for thedistribu on of electricity from the high-voltage electricity transmission system to homes andbusinesses. Because they are local monopolies, their opera on of local distribu on networksis regulated by Ofgem and they are permi ed to fund their opera ons by charging energysuppliers for the use of their network assets.

1.16 We do not believe that providing infrastructure through the DNOs asset base is the rightapproach. Including public recharging infrastructure within a RAB could:

rule out the commercial provision of infrastructure in the future;

require a centralised approach to set infrastructure quotas for DNOs, rather than beingresponsive to what consumers want; and

spread the cost of chargeposts across all electricity consumers, raising equity issues thatwould need to be considered.

1.17 Therefore, we are not pursuing the use of a RAB at this me, although we recognisethat there may be some discrete sectors of the infrastructure market, such as on-street

infrastructure for those without o -street domes c parking, where a RAB approach couldbe more applicable. We will monitor the development of the commercial market in plug-invehicle infrastructure and if, in the longer term, a commercial market is unable to supportthe level of public infrastructure required for the growth in plug-in vehicle numbers thatwe would like to see, we will revisit this decision.


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2.3 To realise reduc ons in greenhouse gases of 80% by 2050 across the UK economy, certainsectors, including road transport, are likely to need to reduce their emissions by even more.As a result, ultra-low and zero-emission vehicles will need to become commonplace. Apor olio of technologies will be used to drive down emissions, and the role for Governmentis to provide an environment that encourages these new low emission technologies to

emerge at a su cient pace to meet our environmental goals.

Green growth

2.4 The emergence of low and ultra-low emission vehicles o ers signi cant poten al forsustainable economic growth in the UK. The Automo ve Council has already iden ed theshi to low carbon as a strategic impera ve for the UK, with opportuni es available acrossa new value chain for the development, deployment and integra on of plug-in vehicles(Figure 2.2).

2.5 This will build on exis ng strengths in the automo ve sector, which accounts for 12% of the UKs manufacturing employment, including research and development, design andengineering excellence. 6 The UKs compara ve advantage extends from our world-leadingfounda ons in electrochemical research, through technology specialisms in ba eries, motorsand power electronics, to niche and volume vehicle manufacturing.

2.6 Further along the value chain, UK-based infrastructure companies including Chargemaster,Elektromo ve and POD Point are early movers in the market, with ancillary service providersand systems integrators seeing opportuni es in intelligent communica on, links to the smartgrid and billing systems.

Figure 2.2 Value chain for the development, deployment and integra on of plug-in vehicles

Research & Development Manufacturing

Batteries Vehicles Chargepoints Electricity Billing Ancillary Management Sales Installation system Back office services

systems Operation Supply management Advertising Leasing Recycling Smart Systems Wi-fi hosting Servicing Reuse metering integration Downloadable

Smart contentmanagement Information

services

6 www.bis.gov.uk/news/topstories/2011/Jun/uk-car-industry


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Energy security

2.7 Decarbonising the transport sector will not only reduce the UKs carbon emissions, but itwill also reduce security risks associated with our use of fossil fuels and help to ease ourdemand for oil. Global oil demand is projected to increase by around 18% by 2035 comparedto 2009 levels, 7 driven by the emerging economies of China and India. Against a backdropof constraints on global supply, the risk of signi cant rises in oil prices and vola lity is real.Domes cally, North Sea oil produc on peaked in 1999, and the UK is increasingly dependenton imported oil, having been a net importer since 2005. Our reliance on oil imports and

the poten al for higher prices and increased vola lity mean that oil price shocks can havesigni cant impacts on the UK economy. A shi away from vehicles run on oil-based fuels toplug-in vehicles will improve our energy security and reduce the impact of high oil priceson the economy.

Decarbonising the electricity system

2.8 As part of our legally binding commitment to reduce greenhouse gas emissions we arecommi ed to substan ally reduce CO 2 emissions from electricity genera on. By 2020renewables will provide 30% of our electricity, 8 with greenhouse gas impacts reduced yetfurther by other low carbon genera on and the emergence of Carbon Capture and Storage.As we decarbonise the electricity system, the environmental bene ts of plug-in vehicles willincrease and they could provide a use for lower carbon night- me electricity genera on. Inthe longer term, as we see increasing amounts of intermi ent genera on, such as wind, itmay be possible through smart management to shi plug-in vehicle recharging according towhen it is best for the energy system as a whole.

Air quality

2.9 While air quality has improved signi cantly over recent decades, current levels of air pollu onremain harmful to health in some loca ons; experts es mate that human-made ne par culate

7 IEA WEO 2010 analysis New Policies Scenario, www.iea.org/press/pressdetail.asp?PRESS_REL_ID=4028 UK Na onal Renewable Energy Ac on Plan, July 2010, www.decc.gov.uk/assets/decc/what%20we%20do/uk%20energy%20

supply/energy%20mix/renewable%20energy/ored/25-nat-ren-energy-action-plan.pdf


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ma er (PM 2.5) in 2008 reduced life expectancy by six months averaged across the UKpopula on. 9 Ac on to manage and improve air quality is also driven by European legisla on. 10

2.10 Road transport is a signi cant contributor to poor air quality and is the main source of airpollu on in 92% of areas iden ed by local authori es as having problema c pollu on

levels. 11 Ba ery electric vehicles produce no pollutant emissions at the tailpipe, and most useregenera ve braking technology, which has the bene t of reducing par cle emissions frombrake wear. A signi cant penetra on of zero-emission vehicles will help move the UK towardscompliance with its legal obliga ons in many urban areas road transport contributes tonitrogen dioxide emissions exceeding the EU limit values for this pollutant and help reducethe impact of poor air quality on health, par cularly in the worst a ected urban centres.

Wider impacts

2.11 It is important to acknowledge that, although they have a signi cant environmental and

economic role to play in transport, plug-in vehicles will not address all the implica ons of road transport, such as conges on. For some journeys, such as those in rural areas, thecar is the only viable mode and we want to see an increasing number of these journeysundertaken by ultra-low emission vehicles. However, for other journeys, par cularly thosewithin towns and ci es, public transport, walking and cycling can be the more sustainableand e cient modes. This is why the Government recently launched the 560m LocalSustainable Transport Fund and set out our strategy for local transport in Creating Growth,Cutting Carbon: Making Sustainable Local Transport Happen .12

9 The mortality effects of long-term exposure to particulate air pollution in the United Kingdom,

www.comeap.org.uk/membership/128-the-mortality-effects-of-long-term-exposure-to-particulate-air-pollution-in-the-uk.html10 European Union Ambient Air Quality Direc ve (2008/50/EC) sets legally binding limits for concentra ons in outdoor air of major air pollutants that impact public health.

11 In House Policy Consultancy, Review of Local Air Quality Management, 2010,www.archive.defra.gov.uk/environment/quality/air/airquality/local/documents/laqm-report.pdf

12 www2.dft.gov.uk/pgr/regional/sustainabletransport/


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The role for GovernmentWhat we are doing to support plug-in vehicles

3.1 The Government has established a policy framework designed to foster a successful

market for ultra-low emission vehicles in the UK. This Strategy sets out how we aretackling infrastructure to complement the work to tackle vehicle cost and encourage thedevelopment of new technology.

The Plug-In Car Grant

3.2 The Plug-In Car Grant (PICG) was launched in January 2011 and reduces the cost of plug-in vehicles for consumers by cu ng the cost of eligible vehicles by 25% up to 5,000.Combined with tax bene ts (such as VED and Company Car Tax exemp ons) and selectedlocal bene ts, these measures aim to make ultra-low emission vehicles a more a rac veproposi on to consumers in terms of cost one of the key barriers to the uptake of new

technology. Ten vehicles are currently eligible for the grant, mee ng the Governmentsrequirements on performance, safety and warranty.

Vehicles eligible for the Plug-In Car Grant 13

Research and development programme

3.3 Through the Technology Strategy Boards Low Carbon Vehicle Innova on Pla orm theGovernment is suppor ng a wide range of research, development and demonstra onprojects for low and ultra-low carbon vehicles. For example, the Ultra-Low Carbon VehicleDemonstrator programme has seen over 320 electric, plug-in and hydrogen vehicles trialledacross the country, providing key learning to industry and to Government (some of whichhas been used as evidence in the development of this document). In addi on, September

13 Top row, from le to right: Mitsubishi i-MiEV, Vauxhall Ampera, Peugeot iOn; middle row, from le to right: Citroen C-Zero, TataIndica, Nissan LEAF, Renault Fluence; bo om row, from le to right: Chevrolet Volt, Smart fourtwo ED, Toyota Prius Plug-In


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2010 saw 24m awarded to vehicle manufacturers, suppliers and universi es in collabora veprojects developing innova ve technologies such as hybrids, lightweight materials, engineop misa on and catalyst e ciency.

Why does the Government need to support recharging infrastructure?

3.4 The provision of recharging infrastructure will be a signi cant factor in addressing rangeanxiety (the concern about running out of juice), which is one of the key barriers to theuptake of plug-in vehicles. It is important to note that plug-in hybrid and extended-rangeelectric vehicles do not have such range constraints. In addi on, evidence from real-worldtrials 14 suggests that this concern appears to reduce appreciably once people use plug-invehicles regularly. However, we must make sure that the barrier itself does not stop peoplegaining that experience in the rst place. An appropriate and e ec ve infrastructure,alongside expected reduc ons in the cost of vehicles and improvements in vehicle range,is necessary to s mulate a growing market.

3.5 Providing a successful infrastructure requires co-ordina on among a wide range of di erent par es electricity suppliers, distribu on network operators, plug-in vehiclemanufacturers, chargepost manufacturers, planning authori es, businesses and individuals.This, coupled with the rela ve permanence of infrastructure, means that it is important forthe Government to set a strategic framework in which others can operate. This underliesthe commitment to a recharging infrastructure as part of the Coali ons Programme forGovernment.

The evidence base

3.6 The plug-in vehicle market is at an early stage and technology is s ll developing very fast.In producing this Strategy we have drawn on as wide a range of evidence as possible fromthe UK and abroad.

3.7 In the UK, important sources of learning include the Plugged-In Places projects, the EnergyTechnologies Ins tute Plug-In Vehicle Economics and Infrastructure Programme and theTechnology Strategy Boards Ultra-Low Carbon Vehicle Demonstrator programme. We havealso worked closely with the energy u li es, plug-in vehicle manufacturers and chargepostmanufacturers.

3.8 Interna onally, we have sought insights from a range of global ini a ves, through bilateralrela onships as well as par cipa on in global forums, such as the Interna onal EnergyAgency 15 and the Clean Energy Ministerials Electric Vehicle Ini a ve. 16

14 Evere A, Walsh C, Smith K, Burgess M and Harris M, Ultra-Low Carbon Vehicle Demonstrator Programme , May 201115 www.ieahev.org/16 www.cleanenergyministerial.org/EVI/index.html


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The Plugged-In Places

3.9 The Plugged-In Places programme is thekey mechanism for commencing theroll-out of recharging infrastructure in

the UK and providing learning to informthe future development of a na onalnetwork.

3.10 The Government is providing up to30m in matched funding to supportthe installa on and trialling of recharging infrastructure in eight placesacross the country (Figure 3.1). Theseare led by local consor a including

private and public sector organisa ons,local u li es and businesses tosecure investment in plug-in vehicleinfrastructure for their areas.

3.11 As set out in the Carbon Plan, 17 theeight projects in Central Scotland, theEast of England, Greater Manchester,London, the Midlands, Milton Keynes, the North East of England and Northern Ireland aimto install up to 8,500 chargepoints, in homes, workplaces, car parks and on street. Theyare working collabora vely with each other and with the O ce for Low Emission Vehicles(OLEV) to iden fy issues and solu ons on the path to crea ng an e ec ve plug-in vehiclerecharging network in the UK. The early lessons learned have informed this Strategy and wewill con nue to learn more as the projects progress.

3.12 The projects are crea ng a geographical focus for the development of the early market(mi ga ng the risk of spreading infrastructure provision too thinly), with schemes nowstar ng to become opera onal for example, the North Easts Charge Your Car scheme hasbeen opera onal since 2010; the Milton Keynes scheme went live in early 2011 and SourceLondon launched its pan-London membership scheme in May 2011. More will follow soon.

3.13 In addi on, each of the projects o ers unique insights into how the na onal picture willdevelop. For example:

The projects are trialling di erent recharging technologies including standard, fast, rapidand induc ve recharging in a range of di erent loca ons.

Through connec ons to Ofgems Low Carbon Network Fund projects, the North East andLondon are inves ga ng how electric vehicles will connect to the smart grid.

The Northern Ireland project is working closely with a parallel scheme in the Republic of Ireland to test and resolve issues around interna onal and cross-border opera on.

17 www.decc.gov.uk/en/content/cms/tackling/carbon_plan/carbon_plan.aspx

Figure 3.1 The Plugged-In Places projects

North East

Milton Keynes

London

Northern Ireland

Scotland

MidlandsEast of England

Greater Manchester


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The projects are trialling di erent delivery models for infrastructure, including approachesthat are led by the public sector (e.g. Milton Keynes, Scotland, Northern Ireland) andthe private sector (East of England, Greater Manchester), as well as membership models(London, North East), pre-paid models (Northern Ireland) and pay-as-you-go systems(Greater Manchester).

A number of projects are inves ga ng recharging in the home, including East of Englandand Northern Ireland, with the Midlands project aiming to make 1,000 proper es in a newhousing development in Corby plug-in vehicle ready.

3.14 At a na onal level, OLEV is working with all the Plugged-In Places to ensure theinteroperability of the schemes. More informa on on this is set out in Chapter 6.

Energy Technologies Ins tute Plug-In Vehicle Economics and

Infrastructure programme18

The Energy Technologies Ins tute is a partnership between industry and government taskedwith developing mass-scale technologies that will help the UK meet its 2020 and 2050 energytargets. The organisa on is inves ng in a substan al programme of research to determine thebusiness case for the mass-market deployment of plug-in vehicles in the UK and the requiredenergy infrastructure.

The rst three projects, due to be completed in summer 2011, are being delivered by world-class consor a including industry, academic and consultancy exper se.

Detailed projec ons of future vehicle performance (such as electric range and e ciency)and costs to 2050 have been developed for the full range of power-train op ons. Consumera tudes and behaviours have been analysed through real-world trials and extensive surveyswith mass-market consumers. The requirements and costs for the suppor ng recharginginfrastructure and its integra on into the UK electricity system have been iden ed. Lastly,opportuni es for market transi on have been evaluated through in-depth analysis of theeconomics and carbon bene ts.

18 www.energytechnologies.co.uk/Home/Technology-Programmes/Transport_copy1.aspx


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Technology Strategy Board Ultra-Low Carbon Vehicle Demonstratorprogramme 19

In June 2009, as part of the Technology Strategy Boards Low Carbon Vehicles Innova on

Pla orm, with central and regional government support, 25m was allocated to highlyinnova ve, industry-led collabora ve research projects in the eld of ultra-low carbon vehicledevelopment and demonstra on. The compe on is focused on encouraging the developmentof industry-led consor a that can bring signi cant numbers of vehicles onto UK roads.

By May 2011 over 320 vehicles from 16 manufacturers had been used in the trial in eightdi erent loca ons around the UK. Each project comprises at least one vehicle manufacturer,an energy supplier, a local authority, an infrastructure provider and a university. Thedemonstra on will help to understand how the vehicles are actually used, measuring meand dura on of journeys, energy used and recharging loca ons, as well as users percep onand behaviour before and a er use.

Case Study: E-laad, the Netherlands 20

In the Netherlands, the Dutch na onal grid company and most of the local distribu on networkoperators have jointly established the E-laad Founda on. The aim of the founda on is to install10,000 chargepoints by 2012. This early stage deployment is designed to provide a be erunderstanding for the par cipa ng companies of how recharging infrastructure will be used,the impacts on the grid and the market model required for the successful scale up of plug-in

vehicles.

E-laad aims to install 2,000 chargepoints in high-pro le loca ons across the Netherlands, withthe remaining chargepoints installed at loca ons requested by customers. For an annual feeof 100, plug-in vehicle owners can gain access to the infrastructure, which is free to use, andare able to select a loca on for a chargepoint to suit their needs.

Safety and speed of charging

3.15 A plug-in vehicle represents the largest electrical appliance in a household, drawing moreelectricity than a cooker or a power shower. As with all electrical appliances, plug-in vehiclesneed to be treated sensibly and with respect. Owners who plan to charge their vehicles athome should have their wiring checked to ensure that it is appropriate. To support this:

it is a requirement of the Plug-In Car Grant that manufacturers of eligible vehicles set outhow they will engage with purchasers to ensure safe recharging of their vehicles; and

the Ins tu on of Engineering and Technology, the standards body responsible for electricalsafety, is producing a Code of Prac ce to advise electricians how to ensure safe plug-in

vehicle recharging installa ons.

19 www.innovateuk.org20 www.elaad.com/en.html


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3.16 Currently most plug-in vehicles use a three-pin plug to recharge. This allows recharging at10A, which is su cient to allow most plug-in vehicles to charge fully overnight. However,consumers are likely to value the ability to charge faster, par cularly at public infrastructurewhere it may not be possible to park for long periods. Industry as represented by theSociety of Motor Manufacturers and Traders Electric Vehicle Group, the Plugged-In Places

and the Ins tu on of Engineering and Technologys Electric Vehicle Group favours movingto a dedicated plug-in vehicle recharging connector (the IEC6219 6 -2 Type 2) to allow fasterrecharging rates (up to 32A) than are possible with a three-pin plug. Given this clear direc onof travel from industry, the Plugged-In Places will start to install public infrastructure withType 2 connectors.

3.17 How consumers choose to recharge at home will be a personal choice for each consumer.A three-pin cable will remain an op on, but plug-in vehicle manufacturers and electricitysuppliers are also o ering the op on of dedicated domes c recharging units for thoseconsumers who value safe faster recharging speeds at home.


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Recharging at homeWe want people to recharge plug-in vehicles at home, at night, a er theevening peak

4.1 We want recharging at home, 21 at night, a er the evening peak to be the way that thevast majority of plug-in vehicle recharging happens. This is not only most convenient forconsumers but also delivers the greatest environmental and energy system bene ts.

Environmental bene ts

4.2 U lisa on of night- me, o -peak genera on maximises the environmental bene ts of plug-in vehicles. The marginal carbon intensity of night- me, o -peak electricity is 55% lower thanelectricity generated at the peak of the evening peak. 22

4.3 In the longer term, the extent of the environmental bene ts derived from plug-in vehicles

will depend on the rate of decarbonisa on of the electricity system. The poten al issigni cant the average carbon intensity of genera on in the UK could drop from 450gCO 2/kWh in 2010 23 to 50gCO 2/kWh in 2030, and the Commi ee on Climate Change hasrecommended that the grid should be fully decarbonised by 2050.

4.4 This means that plug-in vehicles represent a poten ally signi cant environmental advantageto internal combus on engines now, and this will only increase as the Governments plans toincrease low carbon genera on progress.

21 At home could mean at a depot for eet vehicles.22 This assumes that the marginal plant used to generate electricity o -peak is natural gas and that the marginal plant at peak is

coal. Data from Department of Energy and Climate Change Energy Trends Table 5.4 and UK Emissions Statistics Table 1, 2009,www.decc.gov.uk/en/content/cms/statistics/statistics.aspx

23 Data from DECC Energy Trends Table 5.4 and UK Emissions Statistics Table 1, 2010, provisional


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Energy system bene ts

4.5 Not only does recharging o -peak overnight deliver the largest environmental bene ts, but italso maximises the bene ts that plug-in vehicles represent for the energy system as a whole.

4.6 At a local level, avoiding the peak will lower the risk of stresses being placed on localdistribu on systems and could reduce the need for poten al reinforcement of the local grid(for example sub-sta ons).

4.7 At a system level, concentra ng plug-in vehicle demand in the o -peak period could alsoreduce the need for addi onal electricity genera on capacity. Currently, addi onal demandfor electricity at peak mes comes largely from fossil fuel based genera on. If vehiclerecharging is managed so that it occurs o -peak, it will mi gate the need for more carbonintensive genera on and o er an addi onal use for low carbon night- me electricity.

Figure 4.1 Average within-day electricity demand curve for Great Britain

50,000

45,000

40,000

35,000

30,000

25,000

20,000

15,000

E l e c t r i c i t y D e m a n

d ( M W

)

2 3 : 3

0

0 0 : 0

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0 1 : 0

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0 1 : 3

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0 2 : 0

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0

1 3 : 0

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1 3 : 3

0

1 4 : 0

0

1 4 : 3

0

1 5 : 0

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1 5 : 3

0

1 6 : 0

0

1 6 : 3

0

1 7 : 0

0

1 7 : 3

0

1 8 : 0

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1 8 : 3

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1 9 : 0

0

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0

2 0 : 3

0

2 1 : 0

0 0

2 1 : 3

2 2 : 0

0

2 2 : 3

0

2 3 : 0

0

2 3 : 3

0

Source: Elexon, for March 2010-February 2011

4.8 In the longer term, it is also possible that the recharging pa erns of plug-in vehicles couldbe moved to the point in the day that is best for the electricity system as a whole (known asdynamic demand response). For example, if su cient capability exists via a smart grid, plug-in vehicle recharging could be matched to wind pa erns or to available network capacity.Further into the future, there may even be poten al for plug-in vehicles to be used as a formof energy storage, with any remaining charge in the vehicle used to power the house whenthe vehicle is plugged in during peak periods, before fully recharging overnight (such vehicleto home or vehicle to grid concepts are at an early experimental stage).


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4.9 Some of these energy system bene ts are longer term, beyond the mescale of this Strategy,but it will be important to encourage the right recharging behaviours now to enable thesebene ts to be delivered most easily in the future.

Grid impacts

4.10 The level of uptake in plug-in vehicles to 2020 is not expected to represent an issue forthe Na onal Grid. Clustering of plug-in vehicles recharging in par cular loca ons couldlead to the need for local grid reinforcement. Smart solu ons such as managing demandaround capacity availability may be able to reduce this need, and Government and Ofgemare working to improve incen ves for Distribu on Network Operators (DNOs) and energysuppliers to provide these. There is also poten al to reduce local grid impacts of plug-invehicles where distributed genera on is installed alongside plug-in vehicle charging.

4.11 The DNOs are considering the poten al impacts of plug-in vehicle charging, as well as othergreen technologies, such as heat pumps and distributed genera on, on their networks. These

are likely to be an integral part of the business plans they submit to Ofgem for the next PriceControl Period (201522).

4.12 Government is considering the role of the electricity network in the context of increasingnumbers of plug-in vehicles as part of the Electricity Market Reform White Paper, due to bepublished this summer.

Why do we think home night- me recharging will happen?

4.13 Recharging at home, at night, seems to be the natural recharging behaviour of plug-in vehicle

drivers. Evidence from trials24

suggests that the majority of plug-in vehicle owners want tocharge their vehicles at home, at night, as this is the most convenient me. Incen ves, suchas cheaper o -peak tari s for plug-in vehicle owners, may need to be put in place to ensurethat domes c recharging is o -peak.

4.14 Recharging at home is a viable op on for a signi cant propor on of UK households evidence suggests that 65% of households in England (15 million households) have o -streetparking. 25 In addi on, new car purchasers are more likely than average to have o -streetparking, meaning that recharging at home, at night, is likely to be possible for the majorityof plug-in vehicle owners.

4.15 Electricity generators, suppliers and DNOs are also commercially incen vised to encourageo -peak charging. O -peak, overnight electricity is cheaper to generate, and plug-in vehiclesrepresent a poten ally valuable market for this electricity. Recharging o -peak overnight willalso minimise any reinforcement of the electricity grid, for which the DNOs are responsible.The market is now beginning to respond with new commercial business models. At the meof wri ng, Bri sh Gas, EDF Energy and npower have recently announced home installa onpackages, alongside low overnight o -peak tari s, with more expected to follow.

24 Evere A, Walsh C, Smith K, Burgess M and Harris M, Ultra-Low Carbon Vehicle Demonstrator Programme , May 201125 Communities and Local Government, Survey of English Housing 200809 ,

www.communities.gov.uk/publications/corporate/statistics/ehs200809headlinereport


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4.16 To support o -peak recharging, Government has:

ensured that smart metering in Great Britain will include the func onality to supportsmart charging of plug-in vehicles. This will allow charging to react to price signals,ensuring that it can happen when it is cheapest for consumers and the energy system,subject to appropriate technology in the chargepoint or plug-in vehicle; and

through Ofgems Low Carbon Network Fund supported smart grid projects linked to thePlugged-In Places projects in London and the North East, which will look at how plug-invehicles and domes c recharging can be best managed.

Smart meteringIn March, the Government published its response to the Smart Metering Prospectusconsulta on. 26 This was accompanied by an updated func onal requirements catalogue for

the smart meter and the wider smart metering system. It is envisaged that plug-in vehiclesand chargepoints could have the poten al to interact with the system as smart appliances(Figure 4.2). This could allow them to respond to price signals and poten ally to responddynamically to real- me signals sent to plug-in vehicles via a future smart grid. Smart meterswill o er:

a common applica on layer and protocols allowing, through the end-to-end smartmetering system, remote communica on with compa ble chargepoints and plug-invehicles;

the opportunity for energy suppliers to introduce me-of-use tari s to incen vise o -peakplug-in vehicle charging;

the opportunity to meter and transmit plug-in vehicle usage separately, allowing energysuppliers to develop tari s speci cally for plug-in vehicles; and

the ability to support dynamic Demand Side Response (DSR) in conjunc on with a futuresmart grid, poten ally allowing plug-in vehicle recharging to respond to signals from thegrid in mes of high electricity demand or high genera on from wind.

The Governments inten on is to consult on an obliga on on suppliers to e ec vely complete

the roll-out of smart meters in 2019.

26 www.decc.gov.uk/en/content/cms/consultations/smart_mtr_imp/smart_mtr_imp.aspx


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Low Carbon Network Fund 28

CE Electric: Customer-led Network Revolution

A major project in North East England and Yorkshire is making important links betweenthree key components of a smart grid: plug-in vehicles, smart meters and microrenewables.This 54m project is the largest in Ofgems Low Carbon Network Fund and will exploreinterdependencies between these technologies, their impact on the electricity networkand the poten al to in uence customer behaviours such as overnight recharging of plug-invehicles.

A partnership of CE Electric, Bri sh Gas, Durham University and EA Technology, the projectwill engage around 11,000 households and up to 300 plug-in vehicle drivers. Working closelywith North East Englands Plugged-In Places project, incen ves have been devised to integratethe installa on of home chargers with the provision of smart meters. This will facilitate the

monitoring of electricity usage and trialling of innova ve tari structures to develop smartgrid responses to the introduc on of plug-in vehicles.

Low Carbon London

The 29.9m Low Carbon London programme will inves gate how best to develop a smarterelectricity network that can con nue to deliver a safe and secure electricity supply in a lowcarbon economy, while keeping costs as low as possible for electricity customers.

Plug-in vehicles will be one of the de ning features of this low carbon economy and Londonaspires, via the Mayors Source London ini a ve, to be the electric vehicle capital of Europe.Low Carbon London is looking at how the behaviour of recharging plug-in vehicles in public,at home and at work impacts on the electricity network. It will also inves gate the scope fordi erent tari s to reward customers for changing their plug-in vehicle recharging pa erns tore ect periods of low electricity demand or high availability of greener electricity. Businessesand private plug-in vehicle owners may be able to realise signi cant reduc ons in theirelectricity bills by trialling these new tari s.

28 www.ofgem.gov.uk/networks/elecdist/lcnf/pages/lcnf.aspx


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Recharging at workThe role of businesses

5.1 We want workplaces to be the second main pillar of the UKs plug-in vehicle recharging

infrastructure. We want workplaces to be used primarily for top-up charging, although it willbe the main recharging loca on for some plug-in vehicles, such as eet vehicles or vehiclesthat cannot charge at home.

5.2 We expect businesses will want to install recharging infrastructure for a number of reasons.In the short term we expect that plug-in vehicles will be par cularly a rac ve to eetpurchasers. The current favourable taxa on regime through Enhanced Capital Allowancesand Company Car Tax exemp ons for plug-in vehicles, as well as running cost savings, meanthat plug-in vehicles make commercial sense for many eet purchasers. Plug-in vehicles arealso likely to represent an opportunity for businesses to demonstrate their leadership on

sustainability and poten ally di eren ate themselves from compe tors.

5.3 Plug-in vehicles within business eets will also be an important way for individuals to useand experience the vehicles, contribu ng to wider consumer acceptance of this technology.Over me, businesses will need to accommodate demand for workplace recharginginfrastructure from their employees who may choose to purchase plug-in vehicles and wantor need to recharge at work.

5.4 Workplace recharging will be par cularly important if there is a signi cant take up of Plug-inHybrid Electric Vehicles (PHEVs) or Extended-Range Electric Vehicles (E-REVs), as these may

need a di erent pa ern of charging to deliver their maximum environmental and nancialbene ts, making the bene ts of workplace top-up recharging poten ally signi cant.

Case Study: Durham County Council Workplace ChargepointsDurham County Council, as part of its commitment to the plug-in vehicle agenda and theNorth Easts Plugged-In Places project, has installed 28 chargeposts across County Durham,including in the Council o ce car park to support their Nissan LEAF pool car.

Over 30 sta are now able to use the pool car for business trips, and the vehicle is used everyday for site visits within the county. The vehicle is being driven primarily by the Tra c Studiesteam and it is o en used to promote plug-in vehicles at events, including summer shows,educa onal visits and seminars.

John Mcgargill, Strategic Tra c Studies Manager, said: We tend to charge overnight whichgives us enough range for the days journeys, and we es mate that during our rst month thecar was driven 502 miles. The cost of electricity for these journeys was only 8.21. Fuellinga conven onal vehicle to make the same journeys would have cost around 48 so we arealready seeing signi cant bene ts to the Council owning an electric vehicle.


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6. Recharging in public

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Recharging in public placesWe want to see targeted public infrastructure that is easy to use andcommercially viable

6.1 Although central and local Government is currently playing a key role in establishing the earlypublic infrastructure, 30 in the longer term a commercial market for public recharging needs todevelop.

6.2 We do not want to see a chargepoint on every corner; this is an unnecessary and expensiveapproach to allaying range anxiety. The majority of recharging is likely to take place at homeand at work, so an extensive public recharging infrastructure would be underu lised andrequire a level of public subsidy that is neither sensible nor a ordable. Instead we want publicinfrastructure that is targeted at those places where it is needed and is commercially viable.

6.3 Public infrastructure needs to be easy to locate and easy to access. Making it easy to locateand accessible will give the public the assurance they need to u lise the full range of theirvehicles, and it will support the commercial case for public charging.

A targeted infrastructure

6.4 We are taking a number of steps to ensure that infrastructure is where it is needed and thatpeople are aware of its loca on:

We are suppor ng the Plugged-In Places projects to install around 4,000 chargepoints inpublic places. Across the projects we have encouraged an approach, pioneered by London,

to use demographic, trip pa ern and parking data to target public infrastructure where itis most likely to be needed.

Figure 6.1 Targe ng plug-in vehicle infrastructure in London

Where are plug-in vehicle owners likely toKey consumer segments... live in 2015?

... With off -street parking

... Owning more than one car

... Driving 10-50 miles per day

Highest density Lowest density

Source: Transport for London

30 Public recharging infrastructure includes chargepoints in public, private and retail car parks, as well as on-street. Public charginginfrastructure will not necessarily be owned by the public sector.


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Commercially viable

6.8 Private sector investment will be required to support the futureprovision of public recharging infrastructure. The Government isfacilita ng the development of this market through the Plugged-

In Places, but it is not appropriate to create an infrastructurethat is consistently reliant on public subsidy. There is a rangeof poten al revenue streams that could support a commercialpublic recharging infrastructure in the future, including the saleof electricity, infrastructure as part of a wider mobility serviceand the sale of ancillary services, such as wi- hos ng in publicinfrastructure.

6.9 Consumers will determine which business model for publicinfrastructure is most successful. Governments role is to create an

environment that will allow successful businesses to develop.

6.10 To help create an a rac ve business environment we are:

sharing data on the Plugged-In Places programme . We will make data freely available onhow public infrastructure installed as part of the programme is used to help inform, de-riskand validate commercial business models;

working with Ofgem to remove regulatory barriers . We do not think Maximum ResalePrice rules should apply to electricity sold to recharge plug-in vehicles through publiclyaccessible chargepoints. Ofgem plans to consult on an exemp on that would makethis clear, enabling a free market to develop for the sale of electricity through publicchargepoints; and

suppor ng the sorts of infrastructure development needed toenable the transi on to a green economy through the GreenInvestment Bank (GIB) . 3bn is available over the period to2015, commencing with the Government making direct

nancial investments prior to the establishment of the GIBas a stand-alone ins tu on, following State Aid approval.Depending on the choice of revenue mechanism for plug-invehicle infrastructure and the business case for GIBinterven on, it could poten ally play a role both in terms of innova ng new nancial products to mobilise private sectorinvestment and in ac ng as a co- nancier to help introduceaddi onal capital into the sector.


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7. Enabling longer

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Enabling longer journeys7.1 We want plug-in vehicles to become a viable, mass-market alterna ve to conven onal

cars. Recent data suggests that 95% of trips in Great Britain are less than 25 miles 32 and theaverage trip length by car is only 8.4 miles, 33 well within the range of Ba ery Electric Vehicles(BEVs). However, consumers purchasing decisions are in uenced by the poten al to travelfurther, not just their average journey pa erns. Therefore it will be important for consumersto be reassured of the ability to make longer journeys and own plug-in vehicles, par cularlywhen looking ahead to breaking into the mass-market of consumers in the 2020s and 2030s.

How to enable longer journeys

7.2 There is a variety of ways that plug-in vehicle ownership is compa ble with longer journeys:

Plug-in Hybrid Electric Vehicles/Extended-Range Electric Vehicles PHEVs and E-REVs arethemselves a means of extending the range of a plug-in vehicle. In these cases the ba eryis recharged not by an external charger but by an on-board generator in the form of aninternal combus on engine, or an internal combus on engine driving the wheels when theba ery is low.

Rapid chargers rapid charging technology enables ba eries to be recharged much morequickly, for example a 24 kWh ba ery can be recharged from at to 80% in less than anhour, represen ng a method of enabling longer distance journeys without the need forlong recharging stops.

Ba ery swap has the poten al to allow vehicles to be recharged with comparable speedto refuelling an Internal Combus on Engine (ICE) vehicle. However, there are a number of signi cant challenges that remain before this has a mass market applica on, for example,standardisa on of ba ery size and loca on, the number of compa ble vehicles and cost.We watch interna onal pilot projects with interest.

Alterna ves for many, even ownership of a BEV is unlikely to be a constraint on theirability to make longer distance journeys. Thirty-two per cent of households in the UK havemore than one car, 34 and demographically these households are most likely to be amongthe rst to purchase plug-in vehicles, which will allow them to use their ICE vehicle for

32 National Travel Survey 2010, Average number of trips by trip length and main mode: Great Britain, 2009www2.dft.gov.uk/pgr/statistics/datatablespublications/nts/latest/nts2009-03.pdf

33 National Travel Survey 2010, Average trip length by main mode: Great Britain, 2009www2.dft.gov.uk/pgr/statistics/datatablespublications/nts/how-mode/nts0306.xls

34 National Travel Survey 2010, Household car availability: Great Britain, 1951 to 2009www2.dft.gov.uk/pgr/statistics/datatablespublications/nts/driving-availability/nts0205a.xls


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Enabling longer journeys

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longer journeys. For many longer journeys, rail travel will also present a viable alterna veto the car. In addi on, a range of innova ve business models is being developed to addressthis issue for example, the Peugeot Mu scheme allows plug-in vehicle owners access tothe whole range of Peugeot vehicles, and car clubs are exploring whether they could playa role.

7.3 Given the early stage in the plug-in vehicle market, it is not clear which of these willbecome the dominant business model to enable longer distance journeys. At this stage,as Government, we are suppor ng the demonstra on of these business models in a numberof ways:

The Plug-In Car Grant applies to PHEVs and E-REVs, as well as BEVs.

We are linking up the Plugged-In Places . The projects plan to install around 50 rapidchargers. We are working with them to ensure that their plans are properly co-ordinated

so that the maximum number of journeys are enabled. For example, strategic placementof rapid chargers by the projects in the north of the country would enable journeysbetween Manchester, Newcastle, Edinburgh and Glasgow.

7.4 We will con nue to monitor the development of this market alongside industry tounderstand whether further steps are necessary to support the market.


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Taking this Strategy forward

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Taking this Strategy forward8.1 Rolling out infrastructure for plug-in vehicles is going to require the combined e orts of

several sectors. The chapters above set out the framework being established by centralGovernment to facilitate the provision of recharging infrastructure and our vision for how themarket will develop. This is a fast-moving market and we will therefore provide an updateto this document at the start of 2013. Central Government will also con nue to work withthe EU and interna onal partners to ensure the right incen ves and standards are introducedto help the UK market grow further.

8.2 However, to realise this vision for the UK, it will be essen al that a range of others play theirpart too:

Local leaders and ini a ves in ci es, towns and communi es will have an important rolein s mula ng the provision of infrastructure in their areas. Those involved in Plugged-

In Places projects will make a cri cal contribu on to the development of na onalinfrastructure. Others should look to the experience of these and projects elsewhere, suchas in Amsterdam or Paris, to assess how such schemes might t with their local priori esand could be promoted through tools such as local planning policy.

Electricity distributors will need to take account of addi onal electricity demand fromthe growing plug-in vehicle market. They will need to factor addi onal demand, includingwhere and how vehicles are recharged, in their plans for network reinforcement, workingclosely with Ofgem. They will also need to inves gate ways to achieve consistency andtransparency in connec ng recharging infrastructure to the distribu on network. Finally,

they must con nue to work with the Department of Energy and Climate Change (DECC)and the plug-in vehicle industries to ensure that the development and roll-out of smartmeters and the smart grid appropriately consider the requirements of plug-in vehicles.

Electricity suppliers have a valuable opportunity to take advantage of the growingmarket for plug-in vehicles and recharging infrastructure. We encourage them tocon nue developing commercial models for the provision of recharging infrastructureat home, at work and in publicly accessible loca ons. This will include the introduc onof innova ve tari s for plug-in vehicle owners that allow them to bene t from cheapero -peak recharging and poten ally to spread the costs of domes c infrastructure. Finally,

it is essen al that they work with electricity distributors, DECC and the plug-in vehicleindustries on the roll-out of smart metering and the smart grid.

Business and investors need to act on the new commercial opportuni es presented byrecharging infrastructure and harness revenue from the sale of electricity and auxiliaryservices, such as media, communica ons and mobility services, recharging infrastructureand back-o ce systems. The opportunity exists for businesses that have a strong interestin the plug-in vehicle market to engage through the Society of Motor Manufacturers andTraders, the Energy Retail Associa on and the Energy Networks Associa on in developinga consensus view on immediate challenges, including interoperability, commercialisa onand o -peak charging. Planning policies should ease the installa on of infrastructure, andGovernment is ini a ng the development of the tools needed to create an interoperablenetwork and keep users informed about recharging loca ons as

making the connection: the plug-in vehicle infrastructure strategy

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