Skip to content

EU-27 & UK Electric Vehicle Charging Market Comparative Study

Analysis delves into the extensive electric vehicle (EV) recharging sector in the EU27 plus UK, centering on open-to-the-public charging infrastructure and associated services. The aim is to scrutinize industry trends, regulatory actions, public funding, and competitive landscapes across the...

Analysis of Recharging Market Competition in EU-27 and the UK
Analysis of Recharging Market Competition in EU-27 and the UK

EU-27 & UK Electric Vehicle Charging Market Comparative Study

The European Union (EU) has witnessed a significant shift towards electric vehicles (EVs) in recent years, with the number of public recharging points increasing from about 90,000 in 2016 to over 450,000 in 2022. This growth mirrors the surge in EV adoption, with passenger EV penetration among new sales rising from 1% in 2016 to nearly 20% in 2022.

The key players in the public EV recharging ecosystem are Charge Point Operators (CPOs) and eMobility Service Providers (eMSPs). Competition concerns in this market are categorised into five areas: exploitative conduct, unilateral conduct, exclusionary conduct, coordinated conduct, and considerations around public funding.

Exclusionary conduct arises from vertical integration between CPOs, energy suppliers, eMSPs, and local authorities, potentially limiting access to the market for new entrants. Exploitative conduct may lead to price discrimination and higher access fees in less competitive areas. Unilateral conduct concerns revolve around market "tipping" and potential first-mover advantages. Coordinated conduct focuses on horizontal agreements between CPOs, CPOs granting access to eMSPs, and agreements with roaming platforms.

Regulatory frameworks should be flexible enough to accommodate technological advancements and changing market dynamics while maintaining a level playing field for all participants. The European Union has established regulations, such as the Alternative Fuels Infrastructure Directive (AFID) and subsequent packages, to foster the interoperability and growth of EV recharging networks. An update to the AFID, called the Alternative Fuels Infrastructure Regulation (AFIR), aims to create an interoperable recharging network and promote the growth of the EV industry in the EU.

Promoting competition can be achieved through measures such as facilitating market entry, encouraging new business models and innovative solutions, promoting open access to data, and fostering cooperation among stakeholders. Public funding considerations revolve around ensuring fair competition and avoiding distortions caused by state aid or subsidies. Regulatory authorities and competition agencies should actively monitor and enforce competition rules, ensuring non-discriminatory access to recharging infrastructure, promoting interoperability, and monitoring the behaviour of dominant players.

The average range of battery electric vehicles (BEVs) has increased from approximately 200 km in 2015 to around 350 km in 2020, addressing one of the main barriers to EV adoption. Competition is expected to drive innovation, lower prices, attract private investment, and improve service quality in the EV sector.

European countries with a "developed" status in the public charging network and infrastructure adequacy for electric vehicles include Norway, Sweden, the Netherlands, France, Germany, the UK, Spain, and Italy. Norway and Sweden are especially advanced due to high EV adoption and extensive charging networks, while Germany exhibits rapid growth with over 184,000 public charging points and robust E-LKW (electric truck) infrastructure development. The Netherlands is noted for dense charging networks and environmental zones.

A smooth transition to EVs requires a dense and accessible recharging network. As the EU continues to push for a greener future, the focus on developing a robust EV recharging infrastructure will remain crucial. The growth in EV recharging deployment, while impressive, has not kept pace with EV adoption growth, leading to an imbalance between EVs and available rechargers. Bridging this gap will be key to ensuring a successful transition to electric vehicles across the continent.

Read also:

Latest