Utility Week

UTILITY WEEK | 20TH - 26TH JULY 2018 | 11 Policy & Regulation vexes Oliver Rix, a partner in consultancy Baringa's energy advisory practice. He says: "In the long run, the network issues are manageable, but it [The Road to Zero] has skipped over the shorter- term issue of clusters of vehicles that could pose problems at specific points in the distribution network where mul- tiple vehicles are potentially charging at the same time. "If your network company tells you you can't charge your vehicle, it won't be good for consumer perceptions and could be a reason not to buy an EV." The issue is "not insoluble" but is going to "need some attention", Rix believes. Smart technology will be key to minimising these peaks and troughs on the electricity system, says Erwin: "There will be pinch points that need to be reinforced, but if we can harness smart technology, there is the capacity." And given that the typical vehi- cle is stationary 95 per cent of the time, he believes they could be an asset for the grid rather than a drain upon it. EVs could be a "real threat" to moves to establish grid connection batteries, says Erwin: "If you have loads of storage at the end of the network, you don't need that much storage in the middle of the network." Ed Gill, head of public affairs at the Energy Networks Association, believes the government is not being complacent about the electricity system's ability to cope with upsurges in demand. "The clear message from members is that we are ready and prepared if the government brings forward the target from 2040." Key barriers Some reinforcement will be required, though. The Road to Zero says the govern- ment will gather further evidence of key network connection infrastructure barriers that may prevent further uptake of ultra-low emission vehicles (ULEVs). And the more flexible network this rein- forcement must deliver will have impli- cations for the upcoming review of the networks' RIIO price control framework, says Gill: "Research shows that because of the systemic change taking place, the cost of equity is going to be higher than Ofgem suggests. "The model of how that works is still being worked," he says, adding that investors "will demand a slightly higher cost of equity". And it is vital that networks can see as soon as possible about future demands on their systems, Gill says. Here, though, there is still considerable uncertainty about where the pinch points on the network will be. The Road to Zero backs a commitment by Highways England to ensure charge points every 20 miles along the strategic road net- work by 2020, which would impose strains on the network that it is not currently geared up for. The trunk road agency will run a pilot project to increase electrical capacity at a motorway service area. But Erwin doesn't think there will be suffi- cient demand to justify a mass rollout of fast chargers at service stations. While people are forced to go to service stations now because it's the only place to buy fuel, in the future they will be merely somewhere to top up, he says: "Most people are pretty predictable and drive 30 to 40 miles a day. They don't need a fast charger and have loads of time to charge. "Motorway service areas will be an important part of address- ing range anxiety when people get caught, but won't have 500 fast chargers. Some people argue that every motorway parking space should have a fast charger, but if you can charge at home and work, most people won't go to a service station by choice but because they have to." This of course assumes that convenient home charging will be available. Charge pledge The Road to Zero contains a pledge to consult on a requirement for charge points at all new homes in England. But these must, it says, be installed in the "most cost-effective way" so they do not hinder the government's objective to enhance housing supply. In addition, the home-charging point requirements look set to only apply "where appropriate", which would seem to rule out a lot of inner-city areas where off-street parking is scarce. In these built-up areas, the government says it want all new street light posts to include charge points. Baringa's Rix believes this is an area where the government needs to give a stronger steer, given the myriad interests that need to be co-ordinated to deliver this infra- structure, notably councils and DNOs. And Moixa's Wright is sceptical that lamp posts will be able to cope with the amount of electricity that will be flowing through them. "The trouble with lamp posts is that the wiring is designed to deal with 100W light bulbs, not a 7kW charger, which is signifi- cantly more problematic." The government has stated its ambition to be a world leader on EVs, an ambition that it aims to parade at a conference in the West Midlands in September. But right now, such claims are hard to justify, says Wright: "At the moment, there's no sense that the UK is leading on this." He's not the only one worried that the UK could end up in the EV slow lane. "If you set a really clear long-term stake in the ground, people will work to that. It feels like a shame to take a clear statement and essentially blur it." OLIVER RIX, PARTNER IN BARINGA'S ENERGY ADVISORY PRACTICE

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