Appendix 2 – EVIF Infrastructure Expansion Plan Summary Table
Perth and Kinross Council · 31 May 2023
Back to Climate Change and Sustainability Committee — 31 May 2023 and its agenda
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Appendix 2 Expansion Plan and Approach to Delivery – Summary Table EVIF Assessment Framework Criteria PKC’s Intended Approach Number, type, and envisaged localities of additional charge points PKC are seeking to expand their current owned EV charging network by installing: 40 rural fast chargers (7-22kW) throughout the region 40 urban fast (7-22kW) chargers in Perth 3 mini hubs (3 x rapid, 2 x fast per hub) in pre-determined areas 3 x rapid (50kW) units in Kinross service station 3 x rapid (50kW) units at the South Inch car park This additional infrastructure expansion is ambitious and will help provide the region with an improved charger coverage throughout the area, both urban and rural. Phasing of capital investment and the forecast spend profile The total capital cost for the infrastructure outlined is £1,465,000. PKC are therefore requesting a total grant amount of £1,045,762 as determined by the SFT model. This results in the total public funding capital cost of 71%. The other 29% would be sourced from private industry during the prior information notice (PIN) and tendering stage of this project. The programme will be phased over the next three years with all funded charge points installed by 2026. Major one-off costs (e.g., network upgrades, site enabling works, etc.) It is envisaged that the additional chargers at existing hubs will require an additional grid connection, substation and potential switch gear cabinet. Early discussions will take place with SSEN for suitable connections and possible funding options. The rapid charger units will be installed at the existing hub sites at the South Inch and Kinross. These sites have pre-existing grid connections so these units can be installed without any additional works. The smaller on street charge points will be deployed in groups of 2 or 3 and only require a small feeder pillar, these costs are included in the financial assumptions. The community chargers will be deployed at existing facilities or in any new developments and are likely to only require similar connections to the on-street solutions. Preferred contract structure(s) PKC wish to retain some control in the network so it is likely to mean a Concession or Landlord type model will be the most appropriate. The preferred contract structure would be with a single supplier to take on the operation of the entire network or agreed bundles as decided by the PKC.
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The contract is likely to be produced with the charging options as a layered approach, grouping the individual lots together to make sure the less profitable solutions are not left for the council to operate solely. The mini charging hubs will be packaged along with the on-street/rural fast charging solutions so that private industry does not just select the most financially viable sites to invest in. PKC will offer the operation, maintenance and back-office functions of their current infrastructure as an added incentive to one or all of the contracts above, the appetite for this will be sounded out during market engagement exercise. It is expected that the above contracts would be subject to set of KPIs to ensure the levels of service required are achieved, including; 1. Charger operation time 2. Charger repair time 3. Overall satisfaction levels. Due to the shared approach to additional revenue, it is envisaged that all parties will benefit from an active marketing and advertising campaign to encourage utilisation of the network. Envisaged approach(es) to procure new delivery models Issue a Prior Information Notice (PIN) and invite further feedback from the market prior to commencing the various procurement options. This stage may be bypassed when information has returned regarding the Dundee City Council pathfinder. Any lessons learned during this process could be used so PKC can avoid the PIN process. Explore further joint working arrangements with Dundee and Angus to inform the approach to procurement, the two authorities will be included on the tender documents to allow for future use of the frameworks when the EVIF reports are completed. The 15-year concession type agreements should be the start of long-term partnerships with Charge Point Operator’s (CPO) and are envisaged to allow for future expansion, either through a similar risk split or new arrangements to be agreed. Attracts private sector investment PKC are in a privileged position with high utilisation rates in the region already. This would make the region very attractive for private investment as it is highly likely that there will be a very good return on investment. Quantum and timing of capital subsidy being sought from TS TBC Proposed tariff regime for any retained EVI and new EVI The tariff for all council owned charge points in the region will be set using a tariff plus model which will ensure that all costs involved in the operation and maintenance (O&M) of the network are covered. The
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private sector will receive the O&M element, the replacement element and a % of the plus element dependent on the overall % invested. PKC will continue to own the assets and be responsible for the energy provided, ensuring that customers benefit from the councils lower rate. The control of tariffs across the whole network will ensure the tariff is fair and equitable across the region. The electricity element of the tariff is treated separately to allow for adjustment when prices change. As part of a nationwide purchase of electricity by public bodies PKC benefit from annual set costs. As part of the review of charges within PKC they have permission to increase tariffs as required. PKC plan to increase their tariff towards a market rate during the EVIF project which runs until March 2026. The increase in tariffs will allow the council to move away from a publicly funded network to a more commercial model. The proposed grant amount of £1,045,762 is based on a tariff of £0.50/kWh for an AC charger and £0.60/kWh for a DC charger (Inc. VAT). All overstay charges currently in place will be retained by PKC, however as people begin to adhere to the rules this income is expected to reduce over time and so has not been calculated in the costs. The full staff costs for PKC are included in the tariff calculations. Approvals PKC to secure initial approval for this business model and tariff. A full report would be taken for committee approval following the market engagement exercise with a defined approach for information only. All capital projects and procurement exercises would follow the standard reporting practices within the council. Next steps and key activities prior to commencing procurement Prior Information Notice (PIN) developed and released – Q2/Q3 2023 Formal procurement documents prepared – Q2/Q3 2023 Committee approval for way forward – Q3/Q4 2023 Full procurement exercise – Q3/Q4 2023 Ongoing engagement with SFT and Transport Scotland