financing ev charging point infrastructure · ev chargepoints some issues? • la needs to find 25%...

FINANCING EV CHARGING POINT INFRASTRUCTURE

LEVEL CONFERENCE

7 MARCH 2018

JENNY CURTIS

£2.2bn market cap

11 YEAR TRACK RECORD IN UK LISTED INFRASTRUCTURE INVESTMENT

‒ Established in 2006, FTSE 250-listed infrastructure investment company

‒ Invests in long-term infrastructure assets with stable yields and returns

‒ Focused on availability-based infrastructure, including utilities and social infra

£400m fund size

FIRST DIGITAL INFRASTRUCTURE FUND IN THE UK

‒ New investment fund dedicated to UK ‘full fibre’ infrastructure

‒ Established in partnership with HM Government following public tender

‒ First close in July 2017 with HM Treasury as cornerstone investor in the fund

>£1bn assets either

developed or in

development

OVER £1BN OF ASSETS DEVELOPED OR UNDER DEVELOPMENT

‒ Developed or developing over £1bn of assets, including in specialist

accommodation, sustainable energy and retirement living

‒ Preferred bidder on a number of communal heat networks

£112m fund size

FIRST DEDICATED ENERGY EFFICIENCY FUND IN THE UK

‒ Established in 2011 through the European Commission's JESSICA initiative

‒ Invested into energy efficiency and decentralised energy in London

‒ Funding provided by the EIB and Greater London Authority

LARGEST INDUSTRIAL/BUSINESS REAL ESTATE INVESTOR IN SCOTLAND1

‒ Established in 2011 through the European Commission's JESSICA initiative

‒ Invested into CHP, district heating and regeneration across Scotland

‒ Funding provided by the ERDF, EIB and Scottish governments

£66m fund size

1. Since 2011, based on industrial and business real estate which do not rely on pre-letting.

AMBER AND ITS FUNDS

1 ELECTRIC VEHICLE CHARGING POINT NETWORK INFRASTRUCTURE

AMBER’S DEVELOPMENT BUSINESSES

ELECTRIC VEHICLE CHARGING POINT NETWORK INFRASTRUCTURE2

SPECIALIST REAL ESTATE SOLAR

Henley & Balsall Common – 85 units on

site plus pipeline of 200 units

DECENTRALISED ENERGY

STUDENT ACCOMMODATION

Glasgow – 264 bed student

accommodation scheme with Kier

6 Mw solar rooftop array at Marks &

Spencer East Midlands Distribution

Centre

Preferred bidder with Pinnacle Power

to DBFOM UK ESCOs

BATTERY STORAGE

Greenfield and behind the metre

projects in development with Tesla

FIBRE

Amber has appetite to become a

developer of fibre networks

EXPERIENCED TEAM OF OVER 100 ORIGINATORS, ASSET MANAGERS AND IN HOUSE FINANCE DEVELOPING NEW BUSINESSES WHICH

HAVE IMPORTANT LINKAGES AND OVERLAPS WITH EVCP TECHNOLOGIES AND OBJECTIVES

A NEW INFRASTRUCTURE INVESTMENT CLASS?

All new car sales Electric by 2040;

New national network needed

Land grab – start ups hungry for capital

Sizeable investment opportunity

Government support and grant

New national EVCP Infrastructure fund


KEY RISKS TO FUNDER/ ASSET OWNER


Demand – EV uptake

Technology change

Grid & Capacity

Change in law

Demand – driver behaviour

Demand – price sensitivity

WHERE IS THE MONEY?

MANUFACTURING MARGIN

SOFTWARE AND DATA SERVICES

V2G AND ENERGY STORAGE

MARGIN ON ELECTRICITY SALES


ASSET LEASE/ USAGE FEE

CARPARKING/ LAND LEASE FEE

GRANT OR STATE AID

HOST TAKES REVENUE RISK


ManufacturerHost – owns

network

CP Operator

EV Driver

Utility Supplier

Charging Revenues –

pass through

E.g. Workplace

Public sector owned site

Supermarket/ retailer

Petrol station forecourt

House builder

Housing Association

Power Purchase Agreement

Sale or Lease of CP

Charging Revenues:

a) Nil if service provided free

b) Contribution to costs – per

session or per kWh

c) Profit seeking – margin

over costs

Site Surveys

Construction and

Installation

Customer Service

Repairs and

Maintenance

Planning and

Consents

Marketing

Back Office

Software

OPERATOR / SHARED REVENUE RISK


Site Surveys

Construction and

Installation

Customer Service

Repairs and

Maintenance

Planning and

Consents

Marketing

Back Office

Software

ManufacturerCP Operator –

owns network EV Driver

Utility Supplier

Sale or Lease of CP

Land Owner

(Host)

Workplace

Public sector owned site

Supermarket/ retailer

Petrol station forecourt

Lease fee paid to

land owner for use

of site for [10-20]

years

AND/ OR Share of

revenues through

a Concession

Charging Revenues:

PAYG p/kWh with/ without

session fee

Power Purchase Agreement

USING OLEV GRANT TO FINANCE A PUBLIC SECTOR NETWORK


CP

ManufacturerLocal Authority

CP Operator

(DBOM)

EV DriversUtility Supplier

Charging Revenues – pass

through [or profit share]

a) Nil if service provided free

b) Contribution to costs – per

session or per kWh

c) Profit seeking – margin

over costs

Power Purchase

Agreement w. LA or

with EV Driver and

Smart Cable

Sale of CP

OLEV – 75%

capital grant

up to £100k

25% Match

funding

EV

Chargepoints

SOME ISSUES?

• LA needs to find 25% capital

funding

• Cap of £100k per project

• LA purchases and owns assets

• LA responsible for ongoing O&M

revenue costs

• LA will procure operator to provide

network services

• LA takes revenue risk on demand –

opportunity to earn return on

investment but may choose not to

charge or may price at a loss

• LA takes technology risk on chosen

solution

• Risk of stranded assets/ not part of

integrated public network

• Does not facilitate private finance

CONCLUSIONS

1. Classic public sector grant funding for early schemes

2. PE/ VC capital available to support start up operators

3. Not yet an infrastructure investment…but opportunity for innovation to leverage private finance

4. Consider risks and rewards of different business models

5. Government role in infrastructure planning and facilitation


financing ev charging point infrastructure · ev chargepoints some issues? • la needs to find 25%...

Documents