Comment: 2022 to be UK’s EV breakout year
2022 is shaping up to be the year of the EV in the UK, with fleets once again leading the charge. Tanya Sinclair, policy director UK & Ireland, sets out ChargePoint’s predictions for the EV and charging market for the next 12 months.
2021 was not the best of years for many reasons, but for the UK automotive industry supply chain issues has led to October being the weakest in 30 years. This follows a a nearly 30% year-on-year (YoY) drop in 2020. Is this a sign of an industry in terminal decline?
Whilst petrol- and diesel-powered passenger car sales hit historic lows, registrations for electric vehicles were soaring to new heights. Last October’s terrible number for automakers did have a silver lining; registrations for new plug-in vehicles were up 43% YoY— nearly a quarter of all cars sold during the month.
What we’re seeing is more a reinvention than a decline.
With fossil-fuel bans in place across Europe and ambitious climate goals being placed worldwide, I believe we will look back on the early 2020s as an end of transport as we know it and a new beginning for a cleaner, more sustainable and ultimately better way of moving people and goods. But what will take us over the tipping point this year?
Expansion of the Renewable Transport Fuel Obligation (RTFO)
Currently, traditional fuel providers can take advantage of the Renewable Transport Fuel Obligation (RTFO) to trade credits for alternative fuels such as biofuels and hydrogen. Expanding the remit of the RTFO in 2022 to cover electricity will allow EV charging networks the same advantage. It is crucial that the industry has access to additional revenue streams and a robust export industry so these new technologies can compete fairly in a new and necessary transport ecosystem. By extending and expanding the RTFO, planners, business leaders and fleet managers will have more insight into how charging infrastructure fits into the big picture, including the manufacture, installation and operation of electric fueling for transport throughout the economy.
Increasing EV adoption with a ZEV mandate
Meeting the 2030 deadline for the phase out of diesel and petrol vehicle sales means that automakers are feeling the pressure to pivot to EVs. For such a dramatic switch to occur in time, change must start now. A zero-emission vehicle (ZEV) mandate is the only way to ensure manufacturers scale up EV sales steadily and in line with demand. Waiting until the end of the decade not only delays the inevitable, but it also deprives businesses, fleets and drivers a clear line of sight into how much charging infrastructure will be needed and where it should be located. That’s why getting the details right the first time is critical. Fortunately, both California and British Columbia have pioneered successful ZEV mandates that could serve as a model for one here at home.
Equitable access to charging
In 2022, expect more focus on equitable access to electric vehicles and EV charging stations. Whether it’s ride-hailing, public transport or delivery services, we all win when there is a robust charging infrastructure, with chargers located where drivers need them, when they need them, and at the appropriate charging speeds for the need.
For example, workplaces and car parks have little need for costly rapid charging solutions as vehicles remain parked for several hours each day. Alternately, travelers and commuters can benefit from faster chargers strategically placed at motorway junctions, petrol stations and shopping centers. Depending on their size and operations, fleets may require a combination of both AC and DC charging offerings.
Additionally, tax scheme variances between home and on-street charging must be addressed so that people who wish to drive electric are not disadvantaged by where they reside. Currently, drivers pay a five per cent VAT when they charge off-street at home, but twenty per cent VAT to charge on the street. This needs to be remedied if EVs are to be widely and quickly adopted to meet the Government’s own climate targets.
To conclude, drivers want EVs for a superior experience, fleets want them for their exceptional efficiencies and a lower total cost of ownership, and we all need them for our continued existence on the planet.
With EV registrations expected to set new records again this year, the question becomes: “What on earth is everyone waiting for?”