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Governments’ Role in the EV Charging Establishment

A central coordination and governance body for EV charging infrastructure is a key step for fostering the sector. In 2009, six Dutch electricity grid operators launched the Elaad foundation, which installed EV charging infrastructure in collaboration with municipalities. Today, it coordinates connections between public charging stations and the grid. Without such a central body, markets will struggle to create a system that provides equitable access to EV charging stations.

Governments should define a high-level market structure, the role of different players and level of competition for the sector. Considering country-specific objectives, governments must also decide what part of the value chain they would like to control, and how they want to see the market develop. In general, the trend is toward a market-based charging model, which is economically viable even without government support. However, governments should also consider how to ensure that the EV charging infrastructure is compatible with existing grids.

To facilitate EV charging infrastructure, governments should consider various business models. Some service providers lock subscribers into a closed network, requiring them to pay a monthly fee or create a specific account. Such services don’t meet the standards required by federal funding. Additionally, the charging infrastructure must be located along alternative fuel corridors, and governments should be involved in connecting them. This will help ensure that they are able to keep up with the demand for clean and affordable electric vehicles.

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