Global EV Transportation Review

The subsidy scheme of electric passenger car for private individuals (SEPP) was introduced in 2000. It has continued since then with a progressive scaling down in quantum. The key factors of eligibility are the same. SEPP covers only fully electric vehicles for private purchase. To qualify, the vehicles’ list price must range from €12,000 to €45,000 with minimum travel range of 120km. Used electric vehicles are mandated for purchases from dealerships. Most important, among all factors, is the budget allocation. The subsidy disbursement is subject to the availability of budget for that period.

The government offers incentives to the enterprises involved in the electric vehicle charging business. The public charging points have been a major focus area in the government policies. The government policy document indicates an active engagement with the local city-level authorities and grid operators to determine locations of fast chargers and electric bus chargers. Under Environmental Investment Deduction (MIA) and Random Depreciation of Environmental Investments (VAMIL), enterprises are eligible for investment reduction of up to 45% and 75% respectively, for the cost of charging point. The budget for MIA and VAMIL during 2023 is €192 million and €25 million respectively. At an individual consumer level, a request can be placed with the local municipal authorities for a free (implies no cost for purchase or installation) public charging point.

The government’s ‘right to charge’ norm entitles electric vehicle owners to raise demand for network with the respective municipal authorities. Municipalities are required to set up charging points within 250m of the vehicle owners’ residence. Typically, upon receiving a request, the charging points operators validate the demand and identify the charging location based on a variety of factors, such as available capacity, accessibility, visibility, and local impacts. The actual implementation takes place in collaboration with the power distribution system operators.

Public charging has a significant position in the scheme of things planned to enhance network access. For most of the projects, public-private partnership is the key avenue adopted by policy authorities. The municipalities have increased their collaboration for a rapid charging infrastructure rollout. The National Charging Infrastructure Agenda is thus structured as one involving multiple stakeholders for a mix of local and macro-level issues.

Smart charging is among the priority areas identified in the ongoing network expansion efforts. Grid operators’ concerns about network stability and management add heft to the argument for smart charging systems. With policy emphasis, the investments appear to be picking up in this sub-segment. For instance, the planned 10,000 charging stations by the airport operator, Royal Schiphol Group, includes the smart charging and related technology systems to be implemented by the suppliers and developers Ecotap and FIMIH. Pilot projects for smart charging technologies could help reinforce the business case. A test case of smart charging was undertaken from December 2021 to October 2022 across 126 charging points spread in ten Amsterdam districts. The test results revealed that with a smart charging system in place, three to four times more charging points could be installed within the existing power network boundary.

There are several variants being considered for smart charging rollout based on local requirements. In July 2022, for instance, the municipality of Renkum received the first of 12 ‘CityCharge’ smart street lighting systems that double-up as smart electric vehicle charging points. The project was under the auspices of Smart City Netherlands – a collaboration between Primevest Capital Partners and BNG Bank. Smart City Netherlands’ projects on street lighting-cum-charging was subsequently extended to other cities and municipalities. In November 2022, one such set was installed in Eindhoven, with a plan to set up at least 23 units for trial phase. Importantly, in December 2022, the Smart City Netherlands project consortium entities (Dutch Charge, Heijmans Emobility and Primevest Capital Partners) won the tender for deploying 150 smart charge and street lighting systems at the city of Arnhem.

The emerging demand for fast-charging network aimed at heavy-duty commercial transportation is finding interest from market players seeking an early-mover position. WattHub fast-charging plaza is one of the first projects of its kind initiated in the Netherlands, aimed at catering to the electric trucks and other electrically powered heavy equipment. Its planned 39 charging stations, at rated capacity of 600kW, will be powered by renewable energy. The project is under development, in partnership by Van Oord, Dura Vermeer, Ploegam and Betuwewind, and is scheduled for commissioning by April 2023. Notably, the surplus energy of the proposed hub could be utilized by the adjoining enterprises.

There are alternate charging modes under testing for deployment in electric trucking. In this regard, the manufacturers have been asked to develop the standards for all steps involved in the charging process by the end of 2023. The next step will entail tenders for a phased development and expansion.