Item 11 - Electric Vehicle Charging Collaboration
West Dunbartonshire Council · 22 May 2024
Back to Infrastructure, Regeneration & Economic Development Committee — 22 May 2024 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Roads and Neighbourhood Infrastructure, Regeneration and Economic Development 22 May 2024 Subject: Glasgow City Region: Electric Vehicle Charging Infrastructure Collaboration 1 Purpose 1.1 This report provides Members with an update on work undertaken to develop a collaborative approach to expanding the public electric vehicle charging infrastructure network across the eight local authorities of Glasgow City Region and seeks approval for the next steps required to progress towards a commercial delivery arrangement. 2 Recommendations 2.1 It is recommended that Committee: a) Note the content of the report and the collaborative work undertaken to date; b) Note the content of the West Dunbartonshire Public Electric Vehicle Charging Strategy and Expansion Plan (Appendix 1) and the forecast number of required charging units and cost of installation; c) Approve the participation of West Dunbartonshire Council in a collaborative procurement to engage a commercial partner via a concession type contract through a partnership with all eight local authorities in Glasgow City Region, to deliver the benefits set out in the report; d) Agree in principle to entering into an Inter Authority Agreement among the eight local authorities, and delegate the subsequent nomination of a lead authority for the service delivery period as well as procurement and commercial decisions relating to the commencement and conclusion of the procurement process to the Chief Officer – Regulatory and Regeneration, in line with the approach set out in the report; e) Agree that Glasgow City Region Programme Management Office, through Glasgow City Council, will utilise local authorities Electric Vehicle Infrastructure Fund external grant allocations to engage programme management and expert technical consultancy support, that will assist in taking a Glasgow City Region proposition to market and subsequent appointment of a commercial partner; and, f) Note Officers will provide update reports on the progress of the work to Members as required throughout the development of the project. ITEM 11
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3 Background 3.1 This section summarises the work that has been undertaken to date to support the expansion of the electric vehicle changing infrastructure network across the eight local authorities in Glasgow City Region. 3.2 In January 2022, the Scottish Government launched the Electric Vehicle Infrastructure Fund with the objective of unlocking private sector investment to expand the publicly accessible charging network on local authority land and assets. A requirement to access this fund was to develop an Electric Vehicle Strategy and Expansion Plan. £140k was allocated to each local authority to undertake this activity with a further £300k unlocked upon completion to support the implementation of the electric charging units. 3.3 Transport Scotland engaged the Scottish Futures Trust to support local authorities in the development of each council’s electric vehicle strategies and is also actively encouraging local authorities to collaborate in their strategy and delivery activity to expand the charging network. 3.4 In December 2021 the Glasgow City Region Cabinet agreed to progress an initial report into current electric vehicle charging provision, tariffs, and forecast future needs of the eight Glasgow City Region local authorities, jointly funded using the external funding allocations from Transport Scotland for each local authority. The report was concluded in June 2022. 3.5 It was further agreed by the Glasgow City Region Cabinet in August 2022 that the Glasgow City Region Programme Management Office would engage consultants on behalf of the local authorities to develop local Electric Vehicle Strategy and Expansion Plans. 3.6 Following the development of the strategy and expansion plans, the Glasgow City Region Electric Vehicle Senior Officers’ Group was established with senior officer representation from each of the eight Glasgow City Region member authorities. 3.7 The Senior Officers’ Group oversaw a Prior Information Notice, published in June 2023, to engage with the Charge Point Operators, explore market appetite and inform Glasgow City Region’s approach to the expansion of the electric vehicle charging infrastructure. There was significant private sector interest with 33 responses received and a clear preference expressed by most Charge Point Operators to engage collaboratively with all eight Glasgow City Region local authorities as part of a planned and strategic approach. 3.8 In August 2023, the Glasgow City Region Cabinet agreed that a collaboration between the local authorities to expand the electric vehicle charging infrastructure network should be based upon a clear set of agreed principles: a) To deliver a just transition, we must ensure equitable access to electric vehicle charging infrastructure, with a clear recognition of geographical characteristics and the different solutions that may be applicable.
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b) Ensure that all residents are able to access electric vehicle charge points close to their home. c) Align with the priorities of the sustainable travel hierarchy to ensure that public transport, walking, wheeling and cycling options are prioritised wherever possible. d) Collaborate across the Glasgow City Region member authorities to identify cost savings and ways to deliver a high standard of customer experience. e) Work together to identify and overcome grid capacity issues. f) Identify opportunities to develop joint public and fleet electric vehicle charging infrastructure projects, and where there are opportunities to align with HGV, hydrogen refuelling and the introduction of rapid and ultra-rapid charging stations. 3.9 At the request of the Glasgow City Region Chief Executives’ Group, further commercial and financial analysis was undertaken during the summer of 2023, to more fully understand the risks and opportunities of the different commercial arrangements that local authorities could use to expand the network of electric vehicle charging infrastructure. On 7 November 2023, the Cabinet was advised of the conclusion of this stage of the work, and that the Chief Executive’s Group proposed a preferred approach to progress through a continued collaboration among the eight local authorities on the basis of a concessionary-type commercial model. 4 Main Issues 4.1 The work to date indicates clear advantages of progressing with the expansion of the public electric vehicle charging infrastructure network as a collaboration of Glasgow City Regions’ eight local authorities. 4.2 Collaborating to expand the electric vehicle charging infrastructure offers a range of benefits for the local authorities’ wider policy objectives and these are described in the following paragraphs. 4.3 Leveraging Private Sector Investment Proceeding with a collaborative concession type contract provides the opportunity to maximise the amount of private sector investment to pay for the majority or totality of the new electric vehicle charging infrastructure. The market testing exercise indicated an appetite from a number of Chargepoint operators to fully fund the expansion of the network, with none of the capital costs being provided by the local authorities (this was dependent on other contract conditions, such as the contract term). 4.4 The additional charge points forecast in the Strategy and Expansion Plan indicated a total capital cost of £71 million across the City Region. There will be an amount of capital grant available from the Electric Vehicle Infrastructure Fund to assist in the delivery. The amount has not yet been agreed by Transport Scotland. It will be an objective to develop a proposal that can be fully funded by the commercial partner along with any Electric Vehicle Infrastructure Fund grant
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from Transport Scotland with no requirement upon the local authorities to fund the infrastructure and service delivery costs. 4.5 Financial and Commercial Considerations A concession-type commercial arrangement would allow the local authorities to transfer the potentially significant commercial, financial, technical, and regulatory risks to a commercial partner. It is proposed that a private sector partner would be invited to take on the operation, maintenance, and ownership of the existing network of 600 (approx.) local authority owned charge points in Glasgow City Region, as well as providing the investment required to significantly expand the number and location of charge points equitably across the City Region. 4.6 Generating an Income Stream Allowing a commercial partner to operate electric vehicle charging infrastructure on local authority land and assets has the potential to generate an income stream for the Glasgow City Region local authorities. This could be through a variety of different arrangements, for example income share, revenue share, a rental fee, or a combination. The amount and type of income stream will be influenced by the broader commercial arrangements of a contract, such as the contract term and where the risks and responsibilities are assigned between the local authorities and private partners. Collaborating regionally will allow the Glasgow City Region local authorities to pool resources generated through revenue to meet ongoing contract management costs, as described later in this report. However the intention would be to transfer most of the risk to the private partner and as a consequence the level of income potential for the Council must take this into account. Although it is not possible to determine at this stage what level of income could potentially be delivered, what must be recognised is that the principle intention of this proposal is to increase, at pace, the level of electric vehicle charging infrastructure across the Glasgow City Region which in turn will encourage the shift to electric vehicles. This will by default assist with the Council’s net zero ambitions. In summary therefore, although there may be a level of income generated from the proposal it will not be at a level which will significantly address any future saving requirements for the Council. 4.7 Economies of Scale and Reduced Duplication of Effort While the objective of this project is to expand the electric vehicle charging infrastructure network at no/minimal cost to the local authorities, collaboration offers significant economies of scale and financial savings during the developmental and delivery phases. The cost of technical consultancy support, procurement, and programme management will be shared among the eight local authorities. Discussions between the Programme Management Office and consultants during initial soft market testing prior to going to the market indicate that this saving could be in the region of £500,000 across the authorities. 4.8 There will be other, currently unquantified, savings in an arrangement where one lead local authority, acting on behalf of all eight, enters into a contract with a commercial partner, avoiding the need for eight individual procurement and contracting exercises and the costs associated with this. It is also proposed the long-term contract management arrangements could be undertaken by a central
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team, with the ongoing costs of this met through the pooling of an element of the local authority income stream generated by the contract. 4.9 Ensuring All Communities Can Access the Chargepoint Network Through collaboration we can take a strategic approach to locating electric vehicle charging infrastructure that supports a just transition. Operators will be able to make commercial decisions looking across a much larger number of chargers and will be able to balance high usage sites against lower usage areas. The scale of a Glasgow City Region collaboration will enable private investment in the network where individual local authority initiatives on their own may be too small to be commercially attractive. 4.10 Collaborating will also offer benefits to service users through opportunities to establish a consistent approach across Glasgow City Region to service delivery and ‘back-office’ functions such as payment mechanisms and charging policy. 4.11 Taking a package of sites across all local authority areas within the City Region to the market will also avoid a situation where local authorities are going individually and competing to secure engagement with Charge Point Operators. This would disadvantage those areas seen as less attractive and wouldn’t meet the objective of making electric vehicle chargers available to all, especially more disadvantaged communities within the City Region. Taking a Glasgow City Region collaborative approach will allow Glasgow City Region to go to the market at scale, giving a stronger voice in the sequencing of installation and the locations in which chargers are sited, ensuring that no communities are neglected. 4.12 Community and Supply Chain Benefits Responses to the Prior Information Notice, issued in June 2023, indicated that given the scale and commercial attractiveness of a Glasgow City Region collaboration, some Charge Point Operators were explicit in their intention to work with local supply chains during the installation and the ongoing maintenance of such a large electric vehicle charging network. These opportunities will be explored during the procurement process. As with all major contracts, there will be a requirement for the inclusion of community benefit clauses in the tender and procurement process. 4.13 Charge Place Scotland At present the back office support (payments, fault reporting, mapping etc.) for all the current publicly owned electric vehicle charging network is managed by the publicly funded Charge Place Scotland. The Scottish Government have made it clear that this funding will cease December 2025 and all back-office support will be removed. It is critical therefore that an appropriate solution is in place for this time and the consortium approach being proposed would include the provision of this support and avoid each individual local authority delivering their own back office solution. 4.14 Potential Shape of a Glasgow City Region Electric Vehicle Charging Infrastructure Collaboration In early January 2024, the Scottish Futures Trust and officers from Glasgow
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City Region Programme Management Office undertook a series of workshops with officers from each of the eight local authorities. The workshops were structured around discussion of key issues relating to potential: • commercial arrangements with a private sector partner; • joint working arrangements between the local authorities; and • procurement options and routes to market. 4.15 A number of the key technical aspects of a future commercial arrangement with the private sector were discussed at the workshops, providing a firm basis to develop joint tender documents that would be used in the procurement process to identify a private partner. 4.16 The total number of residential, destination, and journey charge points that were forecast in the Glasgow City Region area are set out in the table below and broken down by local authority. Residential AC (7kW) Destination AC (7 – 22kW) Journey - Rapid DC (50kW +) East Dunbartonshire 105 66 17 East Renfrewshire 143 122 29 Glasgow City 1,317 207 53 Inverclyde 172 93 36 North Lanarkshire 481 276 34 Renfrewshire 405 258 51 South Lanarkshire 467 242 33 West Dunbartonshire 141 81 9 GCR Totals 3,231 1,345 262 4.17 Following discussions among the local authorities, Scottish Futures Trust and Transport Scotland, and informed by the consultation with the market through the Prior Information Notice issued in June 2023, the proposed approach discussed with the Electric Vehicle Senior Officers’ Group and the Chief Executives’ Group, is to split the total number of forecast charge points into a series of phases. This pragmatic approach will help to align installation with the capacity of the market and of local authorities to deliver across the proposed sites. Prior to going to market we are unable to put a time on when works will be completed but anticipate that works will be completed in a three year period from commencement. 4.18 The proposed approach for the Glasgow City Region is that the first phase of charge points should include: - all existing EVCI (approximately 600); - all destination AC (7-22kW) charge points (approximately 1,345); - all rapid DC (50kW) charge points (approximately 262); and, - 20-25% of the forecast residential charge points (approximately 650-800). The indicative figures for new infrastructure for West Dunbartonshire is as follows: - all destination AC (7–22KW) charge points (approximately 81);
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- all rapid DC (50KW) charge points (approximately 9); and - 20-25% of the forecast residential charge points (approximately 28-35). 4.19 In addition, it is also proposed that the first phase will also include sites where there is the opportunity to install Ultra Rapid Charging (100kW to 350kW). A number of sites have been identified that meet a set of basic criteria where they may be attractive as ultra-rapid charging stations. Further work will be required to identify which of these sites can be progressed. At present West Dunbartonshire has identified approximately eight sites. 4.20 The exact number of locations and charge points will be determined during the site selection process. Each local authority will require to undertake their own analysis about the suitability of the proposed locations for charging infrastructure included in the Strategy and Expansion Plan and to provide a list of sites within their area to be included in the package that is offered to a commercial partner. Each local authority will also be asked to prioritise these sites. Charge Point Operators may suggest alternative sites based upon experience in delivering Electric Vehicle Hubs and this may assist the local authorities in identifying and agreeing alternative charging locations as required. 4.21 It is anticipated that subsequent phases will be weighted towards the remaining residential charging infrastructure, and any additional journey and destination sites that are identified. During the development of the procurement documents a strategy for bringing future phases to the market will also be considered. 4.22 Joint Working and Procurement Options The feedback from the officer workshops demonstrated support for a collaboration across Glasgow City Region through the planning, procurement and delivery stages. There was also a recognition of the need to put in place an Inter-Authority Agreement to facilitate this collaboration. 4.23 There was a consensus view expressed in the workshops that one local authority should contract with a commercial partner on behalf of all eight member authorities, with a preference for a single procurement, rather than establishing a framework for local authorities to draw down from. This learning has been taken from the successful Clyde Valley Residual Waste partnership. 4.24 Draft Timeline The operational timeline for delivery of the project is indicative at this time and the key milestones are set out below: Action/Milestone Estimated Date/Timescale Appoint Consultants to Support Development of Tender and Proposal May/June 2024 Preparation of Tender Documents June to November 2024 Commence Procurement December 2024/January to April 2025 Evaluation of Tenders May to June 2025
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Contract Awarded to CPO July to August 2025 Charge Place Scotland Transition Network Planning & Mobilisation September to December 2025 New Chargepoint Installations January 2026 onwards 4.25 Governance and Support Arrangements A collaboration of the eight Glasgow City Region local authorities will require a clear governance and decision-making process. In addition to endorsement by the Glasgow City Region Cabinet, the key decisions will require the approval through the relevant local governance structures of each of the eight authorities. In West Dunbartonshire’s reports will be presented to the Infrastructure, Regeneration and Economic Development Committee for consideration and approval. 4.26 The collaboration will also require an Inter Authority Agreement to be put in place and signed off by all eight Glasgow City Region local authorities. In order to allow the project to meet the proposed timeline set out above, this report proposes that: - the approval of the Inter Authority Agreement; - issuing of the tender documents; and, - approval of the preferred bidder and agreement to enter into a contract; is delegated to the Chief Officer – Regulatory and Regeneration on behalf of the Council. 4.27 All eight local authorities will require to approve the proposed approach through their own local governance structures prior to any contract being entered into. A longer-term agreement between the eight Glasgow City Region local authorities will be finalised at the point of entering into a contract with a commercial partner and this will include the ongoing contract management arrangements. 4.28 In order to support the development of the tender documents, site selection process, and development of the Glasgow City Region Electric Vehicle Charging Infrastructure proposal, the Programme Management Office will continue to provide support to the Electric Vehicle Senior Officers’ Group. Expert technical consultancy support will be engaged and funded by contributions from each local authority through their allocations from Transport Scotland’s Electric Vehicle Infrastructure Fund. 4.29 To ensure each local authority is engaged in the development process and able to influence the development of the tender, officer support groups will be established to provide expert advice and to update their own organisations as required. In addition to the existing Electric Vehicle Senior Officers’ Group, it would also require groups with a focus on legal, procurement, and technical aspects.
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5 People Implications 5.1 Resources within Procurement, Legal, Finance, Assets and the Roads Service will be required to both develop and monitor the Inter Authority Agreement, review and shape the Procurement Strategy and undertake a site selection process to ensure that the needs and requirements of the council are reflected within the tender scope. 6 Financial, Legal & Procurement Implications 6.1 The Transport Scotland’s Electric Vehicle Improvement Fund to meet the costs of the development of the Glasgow City region proposal, development of the procurement documents, specialist external legal advice, and other costs associated with the development of the collaboration. Each local authority will contribute a portion of their grant award which will be pooled by the Glasgow City Region Programme Management Office who will engage the required consultancy and advice services on behalf of the eight local authorities as required. 6.2 The overarching aim of the approach set out in this report is to leverage private sector investment so that no/or minimal capital investment is required from the local authorities to deliver the expansion in electric vehicle charging infrastructure. On this basis there is not anticipated to be any requirement for capital investment. 6.3 It is anticipated that the long-term contract management of the commercial arrangement will be met by the collective income stream that is generated. It is suggested that the income stream from a commercial partner is pooled to meet the central contract management costs, with the surplus income then being distributed among the local authorities based upon an agreed formula. 6.4 Overall, there should be no cost to the local authorities from this proposed approach. However, this will depend on the market appetite to engage with Glasgow City Region and can only be confirmed on conclusion of the procurement process. 6.5 The main legal requirement will be the establishment of an Inter Authority Agreement that allows one local authority to act as lead in the process to procure and contract with a commercial partner on behalf of the other eight authorities. 6.6 There will be a requirement for expert external legal advice to support the development of the proposal and this will be engaged by the Programme Management Office. 6.7 A legal support group, consisting of solicitors from each of the eight local authorities, will be established to support the development of the project.
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7 Risk Analysis 7.1 Due to Transport Scotland’s decision not to renew the Charge Place Scotland contract all local authorities are required to put in place an alternative arrangement for the back-office and maintenance of their charge points before December 2025. Glasgow City Region’s proposal is to have these 600 (approx.) existing charge points included within the scope of the first phase of implementation, however there is a significant risk that the timing of this new arrangement being in place will fail to align with Transport Scotland’s ending of the Charge Place Scotland service. The Programme Management Office is liaising closely with Transport Scotland to identify potential mitigations for this risk. 8 Equalities Impact Assessment 8.1 Screening and impact assessments will be carried out as required as detail is available on the phased implementation of the electric vehicle charging infrastructure. 9 Consultation 9.1 The preparation of the Inter Authority Agreement and tender documents will be undertaken in consultation with the appropriate Officers. 10 Strategic Assessment 10.1 The project will support the successful delivery of the strategic priorities and objectives of the Council. Chief Officer: Gail Macfarlane Service Area: Roads and Neighbourhood Date: 23 April 2024 _____________________________________________________________ Person to Contact: Liam Greene Roads and Transportation Manager Liam.greene@west-dunbarton.gov.uk Appendices: Appendix 1: Public Electric Vehicle Charging Strategy and Expansion Plan
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Wards Affected: All