The long and winding road

Fast-charging infrastructure for EVs

Road transport accounts for c 16% of global carbon dioxide emissions so widespread adoption of electric vehicles (EVs) is essential if governments are to achieve their net zero ambitions. This report explores how the roll out of EV rapid-charging infrastructure is central to EV adoption and how battery-buffered rapid-charging systems from companies such as ADS-TEC Energy ensure that rapid-charging infrastructure is available everywhere drivers need it, regardless of the condition of the local power grid.

EV charging infrastructure key to achieving net zero

The International Energy Agency (IEA) calculates that to achieve its Net Zero Emissions by 2050 Scenario, the global EV car fleet needs to expand to over 300m by 2030, with EVs accounting for 60% of all new car sales. Since the adoption of EVs has been held back by the higher purchase cost and the availability of publicly available rapid-charging points, governments keen for their citizens to transition to EVs are making material investments in charging infrastructure.

Infrastructure enhancements required

The IEA expects only a modest increase in total demand for electricity associated with EVs by 2030. However, the distribution infrastructure in rural areas is typically sized for low loads and slow predicted load growth so it may not have the capacity required to support a motorway service station with multiple fast-charging points. One option for a potential charge-point owner is to apply for the local power grid to be upgraded, which is a lengthy process requiring high capital costs. The alternative is to deploy battery-buffered charging points such as those from ADS‑TEC. Here, an integrated battery storage system charges slowly from the grid power available, even if it is low, and stores the energy until needed. These battery-buffered charging points can be installed quickly and relatively inexpensively. Since a battery-buffered system can charge outside peak tariff times, the operating costs of battery-buffered systems are typically lower than for non-battery-buffered systems as well.  

Investing in EV charging infrastructure

There are investment opportunities at every level of the charging infrastructure supply chain: critical materials; power electronic components; equipment providers; charge-point operators; and investment trusts. This report focuses on companies supplying charging systems. These systems can be split into DC-based fast-charging systems, which may potentially be battery-buffered, and AC wallboxes for residential use. In our opinion, fast-charging systems provide more opportunity to create differentiated high-margin product than consumer wallboxes.

Click here to read the full report.

Andrew Keen

MD – Head of Content, Energy & Resources, Industrials

akeen@edisongroup.com