It’s been hard to keep up with the news over the last year in the UK with three prime ministers, the rising cost of living, and the tragic loss of Queen Elizabeth II, so we’ll forgive you for forgetting some of the key moments in electric vehicle news that may have slipped your mind.
Alok Dubey
Here’s our summary of the key moments in 2022 that impacted the electric vehicle industry, and how we expect these trends to develop this year and beyond.
January: Monta secures €15 million in series A funding!
We start off the year strong and ready to grow the business. In 2023, cleantech and EVs will be seen as a key area of growth for VC firms and investors.
February: Global electric car sales doubled
Even in a difficult car market that was down in sales overall, electric vehicles (EVs) bucked the trend and showed growth in February. We anticipate this trend will continue as we inch ever closer to the 2030 deadline.
March: The UK government published their charging infrastructure strategy
The strategy outlined the need for 300,000 public charge points in the UK by 2030. We’re currently at 36,752 public charge points, so in 2023 we predict more public charge points will be installed, but also private charge point sharing will become more important to plug the gap between charge points available and the 2030 target.
April: The UK government ends the Electric Vehicle Homecharge Scheme (EVHS)
A new scheme replaces it for landlords or people who own or rent a flat, meaning that homeowners in a house now pay full price for their private charge point. Private charge points still seem to be growing in the UK, so we predict this trend will continue in 2023 even without government subsidy.
May: Costs of charging on public charging networks soared by 21% in May
This was due to the energy crisis but also a 20% VAT on public charging. In 2023 we predict that the high VAT rates will continue, but publicly available private charge points will create a new pricing tier for charging that will make public charging slightly more affordable for those willing to compromise on speed.
June: The first part of the UK smart charging regulations came into effect
The focus was on smart charging and interoperability. In 2023 we expect to see more focus on interoperability. We think that interoperability will continue to be necessary in 2023 to ensure that EV drivers can charge consistently using minimal apps and services.
July: 21 million smart meters have now been installed in homes across the UK
For EV drivers this creates an opportunity for smarter billing and reduced costs of charge as energy providers eye flexible EV type of use tariffs and rewards for reducing energy use during peak hours.
August: OFGEM announce that the energy price cap will be raised to £3549 in October
This has left many UK EV drivers concerned about the rising cost of charging. It doesn’t look like energy will be getting cheaper any time soon, so in 2023 we’re predicting a greater reliance on technology like smart charging to make charging cheaper and reduce grid strain.
September: Public charging costs increased by 42% over 4 months
Even though prices had already increased YoY by 21% in May, over the next 4 months prices continued to rise an additional 42% due to the energy crisis and the continued 20% VAT rate.
Monta also received €30million in additional funding, demonstrating January’s prediction!
October: Amazon announces £300 million investment in an EV fleet
The move comes as part of its UK operational effort to be carbon neutral by 2040. In 2023 we predict even more businesses making the switch to EVs as the pressure to decarbonise grows.
November: New chancellor introduces vehicle tax on EVs from 2025
With a new chancellor comes a new budget introducing vehicle tax on EVs from 2025 and an increase in fuel duties on petrol and diesel. Rising electricity prices are already making EVs more expensive to own, but still marginally cheaper than ICE vehicles.
Further government policy will be needed this year to help drive EV adoption and meet the 2030 ICE ban goal.
The UK’s renewable energy production by wind reached 20MW for the first time in November supplying 53% of the UK’s energy. We’re seeing further expansion of UK wind in 2023, but also a need for grid balancing technology to be introduced and expanded in the UK for EV drivers to control demand and ensure wind power can be used effectively.
December – Schedule 1 of the UK smart charging regulations came into effect
The regulations prioritise private charge point safety and security. In 2023 we expect to see more standardisation of cyber security requirements.
Author: Alok Dubey, UK country manager from Monta
