Taking charge: Why urgent infrastructure planning is critical to reaching net zero 

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By Nick Salkeld, COO of MHC Mobility Europe.

Nick Salkeld, COO of MHC Mobility Europe

As gas prices rise and governments across the globe crack down on diesel and petrol cars to reach net zero goals, the demand for EVs has reached a record-breaking high.   

While consumer demand and government pressure are rising, ongoing challenges associated with charging infrastructure are preventing the widescale electrification of European transport. Charging infrastructure is the pillar of EV adoption; however, high operating costs, availability, uncertainty around access to charging stations and lack of standardisation are preventing charge operators from expanding their current reach.   

As it stands, most EV drivers recharge their cars from a domestic plug point. But as the 2030 cut-off for purchasing new petrol or diesel cars approaches in the UK, and as millions more switch to EVs globally, the public need for charging infrastructure will continue to surge.  

Significant investment is needed to develop the charging infrastructure required to keep pace with the rapid growth in EV adoption. For countries to reach net zero goals by 2050, it’s absolutely essential this infrastructure is effectively delivered.   

Given that the lack of charging infrastructure could be the biggest obstacle to zero-emission motoring across Europe, what are the challenges and opportunities facing effective rollout? 

Charger anxiety  

One major challenge facing widescale EV adoption is the lack of overall charging infrastructure, exacerbating ‘charging anxiety’ in drivers faced with a fear of running out of power when on a journey. If charging point accessibility does not progress, many businesses will go off the idea of investing in EV fleets.  

Across Europe, many drivers remain wary over the limited mileage range of their vehicles, while also faced with a shortage of charging stations. As a result, businesses are hesitant to invest in EV fleets until they know they’ll be able to be recharged at a convenient time and location across the country.   

The availability of charging infrastructure varies from country to country, and region to region. There are disparities within individual countries too, with urban areas being far better covered than rural areas. As it stands, for countries with a lower urban density, the current infrastructure is not yet adequate for long-distance travel. In Slovakia, electric cars accounted for only 3% of the new passenger car sales market in 2021. Without government-led incentives or stronger support for infrastructure development, uptake could remain low, and it may lead to inequalities across regions when it comes to the switch to net zero.  

Despite the clear challenges, there are grounds for optimism. The market is starting to consolidate, and as consumers continue to demand EVs, governments are becoming increasingly aware that investment in charging infrastructure is essential to make the transition to electric a reality. The Netherlands, for example, has seen a 38% increase in EV usage on the roads since mid-2021, having put a solid plan in place to deploy charging stations across the country.   

Similarly, in Belgium, to meet the increasing demands for EV usage, the Government has planned to introduce 30,000 new charging points by 2026. With charging stations on the rise, there is an opportunity for organisations within the sector to work together to explain to businesses the benefit of an electric fleet and demonstrate how the landscape is changing. 

EV charging providers can take this opportunity to come together to change the face of transport and, ultimately, pave the way for decarbonisation. 

Systems thinking 

As well as a lack of charging infrastructure, there is also the issue of a lack of interoperability, which refers to systems communicating with each other. As EVs have developed, many of the charging systems don’t work together. This means that forward-thinking businesses that invest in EV fleets then need multiple cards, apps, payment methods, and sometimes membership accounts to enable a full fleet to move to electric, which is both a hassle and a deterrent. Businesses could be managing over 40,000 types of sockets made up of 81 charging point operators and 52 different subscriptions. As a result, employees and businesses could avoid public charging completely, relying on depot and home charging instead, which can have an impact on range.  

If businesses are to move to EV fleets on a mass scale, we need to make it an attractive and easy decision. EV charging providers must ensure systems can communicate, improving the overall customer experience and encouraging more businesses and individuals to make the switch to electric.    

While action is urgently needed, the current state of charging infrastructure, as it stands, creates an opportunity for forward-thinking businesses to come in and make it an attractive and easy decision for businesses to move to EV fleets on a mass scale. At MHC Mobility, we know that by working closely with customers, consulting and listening to their needs, and ensuring they have the means to go ‘clean’, businesses can improve the overall customer experience and pave the way for more businesses and individuals to make the switch to electric.   

Weak grids   

A major barrier to adoption is that in many countries across Europe, the grid infrastructure doesn’t yet exist to make e-mobility rollout a reality. With 2030 targets in the UK for example, the entire rollout depends on a safe, flexible and resilient grid, supported by efficient technology solutions able to mitigate the impact of EVs on local networks. However, the existing grid – and plans for the future of the grid – would be unable to cope with the growing number of vehicles requiring charging.  

A poorly managed approach could lead to problems such as even higher electricity bills, blackouts, and further reliance on fossil fuels. In countries like Poland for example, as it stands, very weak power grids are currently unable to transfer the high capacity that’s needed to sustain the demand.  

At the moment, businesses planning to build an EV charging hub require a grid connection. However, in many areas – particularly the rural parts – connecting is often a challenge.  

However, while mitigating the impact on the grid is essential for EV rollout to become a reality, there are solutions. Some countries in Europe are beginning to trial new solutions to mitigate the impact of rising EV usage on their grids. New ‘pop-up’ charging hubs are set to be trialled in the UK in 2025 as part of a project to revolutionise EV motoring. These charging hubs will use energy storage technologies to provide green electricity to EVs 24 hours a day, seven days a week, without taking a single kilowatt from the national grid.  

To lessen the strain on the grid, smart charging is a safe and convenient way of charging your EV when electricity demand is lower, for example in the middle of the night when there are less people using electricity. 

New renewable energy installations will of course be needed to set up Smart Grids across Europe, capable of handling future charging demands. But smart charging could help reduce the need for costly electricity networks and grid capacity, while also meaning lower energy bills for businesses and consumers. 

New EU measures mean countries must offer more smart tariffs to consumers. This isn’t enough. Smart charging needs to become the go-to option for all EV drivers across Europe, with charging points everywhere having smart meters, connectivity and allowing for third-party access. 

Looking ahead 

Getting the fundamentals right – and looking at what we invest in and set up – is critical. Most governments have yet to design workable infrastructure, and efforts instead primarily focused on passing CO2-related regulations or focusing entirely on increasing the demand for EVs, with charging left behind as an afterthought. It’s crucial that charging is considered a priority.

To reach net zero, it’s vital that we find industry-led solutions that can be supported by governments across Europe. 

 

  • Nick Salkeld, MHC Mobility COO

Nick Salkeld began his career in automotive finance and leasing in 1983, working with Ford Credit and later, with Nissan Finance.

He became a commercial director for LeasePlan UK in 1998 and three years later he was appointed the managing director of LeasePlan International before becoming regional senior vice-president of LeasePlan Corporation. In 2014, Salkeld joined the Managing Board of LeasePlan Corporation as CCO, responsible for all 32 LeasePlan countries and 7,000 employees.

He joined HCC’s Vehicle Solutions Strategy Division (now Mitsubishi HC Capital Inc., Mobility Solutions Division), in 2018. Now as COO of MHC Mobility Europe, Salkeld is responsible for monitoring sales and operational performance across our European subsidiaries as well as leading on major projects and procurement opportunities.

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