Across Europe, progressively more restrictive mandates phasing out carbon-emitting vehicles in favour of electric vehicles (EVs) are coming into effect, but at present the lack of charging infrastructure is partly prohibiting wider adoption. As a result, the EV Charging Masterplan for the EU-27 estimates that by 2030, approximately €280 billion needs to be invested in installing public charging points (hardware and labour), upgrading the power grid, and building capacity for renewable energy production. Of this, approximately €185 billion is assigned to passenger cars, €50 billion to light commercial vehicles (LCVs), and €45 billion to heavy duty vehicles (HDVs). 

Allowing more expansive adoption within the logistics industry, in 2023 the European Council and European Parliament put in place an agreement to enable the development of electrically charged HDVs, with €1.5 billion being made available for alternative fuels infrastructure. Recharging stations dedicated to HDVs are now required to be installed every 60km along the Trans-European Transport Network (TEN-T) core network, and every 100km on the larger TEN-T comprehensive network from 2025, with complete network coverage due by 2030. This will have a significant impact on the logistics sector as occupiers will be equipped to electrify fleets in accordance with corporate environmental requirements in the knowledge that chargers will be available, and incentivise landlords to incorporate charge points in future developments.

Barriers to widespread adoption of electric vehicles

While fiscal support will certainly aid the expansion of charging networks, other barriers to electrification remain. 

Grid capacity is one of the main challenges to network growth, alongside electricity generation and problems with accessing the grid. Certainly, in some countries, access to the grid will be difficult where there is limited power, and high grid reinforcement costs can further prohibit expansion. 

As a result of such grid pressures, there is new AI technology called vehicle-to-grid (V2G) management, whereby the grid ‘borrows’ power from fully-charged vehicles that are plugged into chargers and the technology can then calculate when the vehicle will be next utilised by the consumer, and ensure the power is returned by then. 

Alternatives to help ease grid pressures

One alternative to plug-in charge points is battery-swapping, an EV technology that allows owners to swap a discharged battery for a fully charged one. This would both ease pressure on the grid and be more cost-effective, enabling it to compete against charge points when taking into consideration cheaper total expenditure. The attractiveness of battery-swapping is expected to grow as a result of predicted lithium shortages, resulting from the increased demand for lithium used in EV batteries. 

Hydrogen-fuelled vehicles are another increasingly popular alternative to EVs. These vehicles would be refuelled via a pump of hydrogen gas, similar to the way petrol and diesel vehicles are refuelled. In the same EU agreement mentioned previously, hydrogen refuelling infrastructure that serves both cars and HDVs must be deployed every 200km along the TEN-T network and in all major urban junctions from 2030 onwards.

Growing EV adoption, expanding charging infrastructure and developing new technologies will all drive new real estate requirements. These could include everything from manufacturing space for the development of lithium batteries, land acquired for industrial outdoor storage (IOS) to store large fleets of electric HDVs, and retail space in flagship retail locations used as a marketing tool by EV brands.

Further information

Contact Georgia Ferris

European Electric Vehicles – Supercharging: the turning point