Electric Vehicle Infrastructure Fund – Strategy & Expansion Plan
Perth and Kinross Council · 31 May 2023
Back to Climate Change and Sustainability Committee — 31 May 2023 and its agenda
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PERTH AND KINROSS COUNCIL Climate Change and Sustainability Committee 31 May 2023 ELECTRIC VEHICLE INFRASTRUCTURE FUND – STRATEGY & EXPANSION PLAN Report by Head of Planning & Development (Report No. 23/165) 1. PURPOSE 1.1 This report notes the work undertaken as part of the Scottish Government’s Electric Vehicle Infrastructure Fund (EVIF). This includes the development of an Infrastructure Strategy and Expansion Plan, which will form the basis of the Council’s funding request to the EVIF programme. 1.2 The report also details the preferred future operational model and associated tariff that will allow for the current and planned Council infrastructure to be self-sufficient, operating on a more commercial basis. This will mobilise private sector investment in the implementation and operation of the public charging network in Perth and Kinross. 1.3 It also highlights the key next steps including market engagement, procurement and continued working with partner authorities through the Regional EV Forum. 2. RECOMMENDATIONS 2.1 It is recommended that the Committee: • agrees that officers should commence formal market engagement, and continue to engage with partner authorities, the Scottish Futures Trust and Transport Scotland to secure funding to enable the delivery of the required infrastructure. • notes the work undertaken on a needs-based assessment of future Electric Vehicle (EV) infrastructure, and the development of a strategy and expansion plan in accordance with the Electric Vehicle Infrastructure Fund (EVIF) requirements. • approves the option to move to a tariff plus approach • requests that officers provide a full report on the EVIF project to a future meeting of the Climate Change & Sustainability Committee.
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3. STRUCTURE OF REPORT 3.1 This report is structured over the following sections: • Section 4: Background • Section 5: Proposals • Section 6: Conclusion • Appendices 4. BACKGROUND Electric Vehicle Infrastructure Fund (EVIF) 4.1 In January 2022, Scottish Government published its draft vision for Scotland’s Public Electric Vehicle Charging Network and announced the intention to launch a new £60 million fund for local authorities over the next four years. Approximately half of this funding is anticipated to be invested from the private sector. 4.2 £30 million of the programme is funded by Transport Scotland and is designed to meet the following objectives: • consumers benefit from a seamless network of public electric vehicle chargers that anyone can access safely and intuitively. • private motorists and businesses in every part of Scotland have access to reliable network coverage to meet daily and seasonal demands. • Scotland has secured private sector investment, while maintaining the benefits of an integrated, consumer focused network. • the network and consumers are benefiting from advancements in energy storage, SMART tariffs, and local network design. • the location of electric vehicle charging points actively encouraging public transport and active travel choices. 4.3 Initial funding of £60k was provided to each local authority to develop a strategy and expansion plan that would meet these objectives. Perth & Kinross Council engaged specialist consultants Urban Foresight to assist with this process. 4.4 While the strategy and expansion plan have been developed primarily to respond to the requirements of the EVIF fund, they are in alignment with the Council’s own Corporate Plan, the approved Climate Change Action Plan and the emerging Mobility Strategy (report 23/105 refers) which will deliver wider transformational change in how citizens get around. 4.5 This first phase of the project will build on the network that already exists and form part of an overall strategy for the region out to 2045. It also builds on significant work undertaken in collaboration with neighbouring authorities in developing the Tactran Regional EV Strategy.
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Previous funding and infrastructure investment 4.6 The Council has benefited from significant funding of approx. £1.7m since 2013/14 from Transport Scotland, primarily through the Local Authority Installation Programme (LAIP). This, combined with direct investment by the Council, has resulted in the installation of 29 rapid (50kW) and semi rapid (25kW) DC/AC chargers as well as 23 fast (7-22kW) AC chargers across the council area available for public use. The funding from the LAIP ended in 2022/23. 4.7 In the 2023/24 Council budget, an additional £250k of funding was provided to support the roll out of the EV charging infrastructure across Perth and Kinross. Officers are currently assessing how best to utilise this funding to address more immediate EV charging requirements, including replacement of end-of-life units. This will also include maximising the long-term benefits, by ensuring this investment aligns with the strategic approach adopted through the EVIF project, including attracting private investment. Private Network operators within Perth and Kinross 4.8 More recently, as the EV market develops and matures, several private Charge Point Operators (CPOs) have invested in sites in Perth and Kinross. This includes a Tesla Supercharger site at Broxden Park & Ride and an Ionity ultra rapid (350kW) charging hub at Inveralmond along with a planned Gridserve hub at Dobbies, Perth. 4.9 A summary of the key publicly available fast (7-22kW), rapid (50kW) and ultra- rapid (100+kW) charging points operated privately are shown the table : Location Network Provision Kinross Services (M90) Gridserve 1 x 50kW DC 2 x 22kW AC Porsche Perth (Broxden) Porsche 2 x 350kW DC Broxden Park & Ride Tesla 12 x 150kW Perth Inveralmond BP Pulse 3 x 150kW Perth Inveralmond Ionity 4 x 350kW Ballinluig Osprey 2 x 50kW DC Lidl Blairgowrie Pod Point 1 x 50kW DC 1 x 7kW AC Tesco Perth (Edinburgh Road) Pod Point 1 x 22kW AC 1 x 7kW AC Bankfoot (Taste Perthshire) CPS 2 x 50kW DC 4 x 11kW AC Collaborative working & Stakeholder Engagement 4.10 As part of the EVIF project, a collaborative approach was encouraged by Transport Scotland and the Scottish Futures Trust. This has involved the Council working with neighbouring authorities, primarily through the Tactran Regional EV Forum. This has allowed knowledge and best practice to be shared across the Local Authorities, along with opportunities for future joint working to be explored, including collaboration on procurement.
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4.11 Initial informal engagement with the private sector has been undertaken to inform the proposed strategy and expansion plan. This has included speaking to service providers working within the region currently, as well as linking with other known organisations at industry events. 4.12 Council officers continue to work with officials from the Scottish Futures Trust. It is providing targeted support to local authorities to identify their future investment needs and new approaches to expanding Scotland’s public charging network at scale and pace which can mobilise private sector capital. Modelling and forecasting 4.13 The strategy and infrastructure expansion plan development were undertaken using a range of analytical and forecasting tools. This allowed for a needs- based assessment to be made of future EV infrastructure requirements as evidenced by future demand modelling. 4.14 This work was augmented by using spatial and demographic data to determine areas of demand and need, based on metrics such as off street parking availability, car ownership rates and population density. Other considerations included the distance to EV charge points (to reflect rural demand) and also identifying areas with higher deprivation through the use of SIMD data. 5. PROPOSALS 5.1 A summary of the response to the EVIF strategy requirement is shown in Appendix 1 with the key objectives and outcomes being: • the Council wishes to deliver an ambitious, accessible and expansive EV charging network that meets the needs of all users throughout Perth and Kinross, especially rural communities. This will be achieved through the delivery of strategically placed mini rapid charging hubs, offering a mix of rapid and fast chargers, supported by a range of local fast chargers in both urban and rural areas. It is recognised that in the more rural locations, the public network may also be used by council fleet vehicles or other service vehicles to ensure they have sufficient coverage to carry out their duties. • by creating substantial network coverage, it is intended to deliver an efficient, sustainable and expansive proposition to the private sector and reduce the need for future public subsidies. The proposed approach is expected to attract private investment into the council area where, without an element of public sector support, it may not develop, with a mix of various types of charge points, allowing for flexibility across the network. • an accessibility audit will be created and maintained for future installations that ensures that each charge point is as accessible as possible for users with mobility impairments.
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• a reliable charging network will increase public confidence in the network and potentially drive forward the transition to EVs in the region. Future procurement exercises will ensure that the correct levels of planned and unplanned maintenance are covered. • continue Perth & Kinross Council’s approach to sustainable travel and supporting a just transition by taking an area wide approach to the setting of tariffs. This is to take advantage of commercially viable sites to cross subsidise more remote rural locations. • community based charge points should be linked to future active and sustainable projects, encouraging people to leave their cars for shorter journeys. EV Infrastructure Expansion Plan 5.2 As previously noted, a number of analytical and forecasting tools were used to develop a proposed expansion plan for EV infrastructure with the high-level proposals outlined below. A summary of the proposed expansion plan and approach to delivery is shown in Appendix 2.
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5.3 As illustrated, the focus for the Transport Scotland funding is on four main themes: • Mini hubs (3 x rapid, 2 x fast) strategically placed across the area. • 40 x fast chargers installed in rural areas which are seen as potentially less desirable for private investment. • 40 x fast chargers placed in Perth where there is a high population density but with limited off-street parking. • 6 x rapid charging units to be added at existing sites (3 at the South Inch hub, 3 at the Kinross hub). Phase 1 Deployment Cost Cost per unit Cost per Solution 3 x mini hubs £225000 £675000 80 x fast chargers £8000 £640000 6 x additional rapid units £25000 £150000 TOTAL CAPITAL EXPENDITURE £1465000 5.4 The available public sector funding available to implement the proposed expansion is dependent on a number of factors that are integrated into the Scottish Futures Trust financial tool, including the anticipated future tariff rates. It is anticipated that around 70% of the required funding will be secured through the EVIF programme with the remainder sought from the private sector. 5.5 A number of future tariff models were explored during the development of the EVIF strategy and expansion plan, as summarised below:
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5.6 Based on the financial modelling and forecasting undertaken, to ensure the long-term viability of the network within Perth and Kinross, the recommendation is that the Council moves towards the tariff plus option (Option 4). 5.7 This option not only ensures that the operational and maintenance costs of existing and proposed assets can be fully covered. It also ensures that revenue can be generated that will be used for future rounds of investment in the network across the council area. 5.8 This will involve incrementally increasing the Council’s current EV tariffs to better reflect the full costs associated with its provision and ensure continued private sector investment. The timescales for implementing these increases will be determined once a formal funding agreement is in place, including a review of the associated terms and conditions. The financial modelling is currently based on moving to a tariff of £0.50/kWh for an AC charger and £0.60/kWh for a DC charger (Inclusive of VAT). These tariffs are based on current operational and energy costs and will be subject to ongoing review. 5.9 Based on this option, the Scottish Futures Trust financial tool indicates that approximately 70% of the capital cost of the infrastructure investment would potentially be eligible for Transport Scotland funding, with the remaining 30% investment to be secured from the private sector. Next Steps 5.10 Once the proposals have been reviewed by the Scottish Futures Trust, it is anticipated that a formal agreement on the potential grant will be received in the second half of 2023. This will then allow more formal market engagement and procurement exercises to be undertaken later in 2023, with installation anticipated to commence in the first half of 2024.
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5.11 Officers will continue to engage with the Scottish Futures Trust and Transport Scotland, as well as exploring opportunities to work collaboratively with neighbouring authorities, in particular through the procurement phase of the project. 6. CONCLUSION 6.1 This report provides members with an update on the work undertaken as part of the Scottish Government’s Electric Vehicle Infrastructure Fund (EVIF). It includes the development of an Infrastructure Strategy and Expansion Plan which will form the basis of the Council’s request to the fund. 6.2 The report also details the preferred future operational model and associated tariff that will allow for the current and planned Council infrastructure to be self-sufficient, operating on a more commercial basis. It is anticipated that this will mobilise private sector investment in the implementation and operation of the public charging network across Perth and Kinross Authors Name Designation Contact Details Mike Lee Transportation & Development Project Officer (EV Infrastructure) (01738) 475000 ComCommitteeReports@pkc.gov.uk Niall Moran Transportation & Development Lead Officer (Projects) Approved Name Designation Date Barbara Renton Executive Director (Communities) 19 May 2023 APPENDICES • Appendix 1 – EVIF Strategy Summary Table • Appendix 2 – EVIF Infrastructure Expansion Plan Summary Table
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement No Corporate Plan No Resource Implications Financial Yes Workforce Yes Asset Management (land, property, IST) Yes Assessments Equality Impact Assessment No Strategic Environmental Assessment No Sustainability (community, economic, environmental) Yes Legal and Governance Yes Risk Yes Consultation Internal Yes External Yes Communication Communications Plan Yes 1. Strategic Implications Community Plan/Single Outcome Agreement 1.1 N/A. Corporate Plan 1.2 N/A. 2. Resource Implications Financial 2.1 The proposed future operational model will ensure that the council’s EV infrastructure operational and whole life costs are adequately funded while allowing for future investment. It will also ensure continued investment in public EV charging infrastructure from the private sector. Workforce 2.2 As part of the Council’s Budget setting for 2022/23, a new Post of EV Infrastructure Project Officer was created. This staffing resource will potentially require to be augmented depending on the future operational model, including back-office operations.
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Asset Management (land, property, IT) 2.3 The Council will ultimately operate, own and maintain both existing and any new EV related infrastructure. The proposed operational model will ensure that the council’s EV infrastructure operational and whole life costs are adequately funded while allowing for future investment. 3. Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council must eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments (EqIA) for plans and policies allows the Council to show that it is meeting these duties. 3.2 The proposals have been considered under the Council’s Integrated Appraisal Toolkit. No impacts on equality were identified and the document was assessed as not relevant for the purposes of EqIA. A full EqIA was not needed. 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. However, no action is required as the Act does not apply to the matters presented in this report. This is because the Committee are requested to note the contents of the report only and the Committee are not being requested to approve, adopt or agree to an action or to set the framework for future decisions. Sustainability 3.4 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. Under the Climate Change (Scotland) Act 2009 the Council also has a duty relating to climate change and, in exercising its functions must act: • in the way best calculated to delivery of the Act’s emissions reduction targets; • in the way best calculated to deliver any statutory adaptation programmes; and • in a way that it considers most sustainable. 3.5 The proposals introduce a more financially sustainable way of making sure infrastructure which is required for the development and growth of Electric Vehicles is in place. As set out in national and local climate strategies the growth of EV is crucial in achieving in our wider transport emission targets.
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Legal and Governance 3.6 There is no impediment to charging for the use of the EV infrastructure. The Scottish Government have actively encouraged charging as the market has begun to develop to a point of maturity. Officers continue to engage with the Scottish Futures Trust and Transport Scotland on future contractual and public/private relationships. Risk 3.7 N/A. 4. Consultation Internal 4.1 Ongoing engagement with internal stakeholders as the proposals will require input from procurement, legal, financial and property. External 4.2 As above. 5. Communication 5.1 Future comms strategies will be developed in association with our Communications team. 2. BACKGROUND PAPERS 2.1 None.