The UK's electric vehicle charging market is facing a challenging outlook due to policy uncertainty and reduced demand for new EVs, EDF-majority-owned charging company Pod Point said April 18.
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Register NowPod Point's 2023 revenue fell 11% to GBP63.8 million ($80 million) mainly due to a 38% year-on-year decline in home charge point installations to 33,513. Commercial charge point installations fell 10% to 5,231.
"The market is likely to remain challenging with increased consumer uncertainty in anticipation of potential changes to UK government policy and ongoing volatility in private new EV demand," CEO Andy Palmer said.
There should be "significant tailwinds", however, from the government's zero emission vehicle (ZEV) mandate, Palmer said.
The legislation requires auto makers to increase zero emission car and van sales in the overall UK mix from 22% in 2024 to 38% by 2027, 80% by 2030 and 100% by 2035.
UK battery electric vehicle registrations in March were up 3.8% year on year to 48,388 units, although, at 15.2%, BEVs' market share was down one percentage point year on year, according to Society of Motor Manufacturers and Traders data.
National Grid ESO estimates there will be up to 37.4 million EVs on UK roads by 2050, up from just over 1 million as of end-March (not including 645,000 plug-in hybrid EVs).
Pod Point CFO David Wolffe said the company expected the mix of vehicles to continue to shift to EVs on the back of more choice for consumers, "with more new battery electric models expected to be launched in 2024 at more accessible price points."
A potential constraint, however, could be the UK's behind-schedule power network expansion.
"The addition of an EV typically will double a household's electricity usage. This is a huge challenge at the national level. In parallel with this, there has been rapid growth in the contribution of wind and solar power to our national grid, which are both more volatile," Wolffe said.
On the plus side for Pod Point and EDF, these factors may double the value of the grid flexibility market by 2030 to around GBP4 billion. The vehicle-to-grid concept sees EVs helping network operators balance their systems.
"Pod Point has already established itself as an emerging player in this exciting market, delivering revenue and profit in 2023. We have delivered flex in two markets during 2023 and have signed multiple partnerships with key players, including EDF, Centrica and UK Power Networks," it said.
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