Challenge two: Access to charging
Access to charging is not only an issue in countries with poor or little electricity infrastructure. With the cost of EVs declining, and their penetration increasing, the availability of charging infrastructure is rising in importance as a barrier to EV uptake.
While first-generation EV buyers relied mainly on private charging in 2020, 80% of EV buyers in Europe had access to private charging (McKinsey, 2021), the next generation will depend on public charging to a large degree. More than 50% of Europeans live in multifamily households without private charger access, and public chargers will ensure practicality of EVs for long-distance trips, which prospective EV buyers still consider a main concern.
Innovative business models and use of parking spaces and land are key to solving these challenges for EV owners. Novel solutions such as rapid charging hubs, lamppost chargers, and bookable overnight parking are all being explored to allow drivers easier access to charging near their homes.
Charging infrastructure and EV purchases are sometimes seen as a “chicken and egg” situation where private investors need to see more guaranteed returns before investing in hardware. This is where governments mandating ICEV bans will send clear signals to markets. Direct subsidies will still be required in most regions to fix market failures where high grid connection costs and uncertain demand will lead to certain routes or communities with insufficient chargers.