In January 2023, the government announced an electric vehicle smart charging action plan.
In this post we’ll briefly examine what this plan involves, and the possible implications this might have on different road users – including everyday motorists and fleet managers.
What is the Electric Vehicle Smart Charging Action Plan?
The electric vehicle smart charging action plan is a collaboration between the government and The Office of Gas and Electricity Markets (Ofgem). The action plan outlines the steps they will take to provide affordable green power through delivering energy flexibility from smart electric vehicle charging.
What is Smart Charging?
Smart electric vehicle charging essentially involves two things:
- Allowing electric vehicle users to charge their electric vehicles at times when electricity is cheaper or cleaner (i.e. overnight, when there are lower demands on the electricity system)
- Allowing consumers to power their home or business premises using the electricity stored in their electric vehicle, or to sell their stored electricity back to the grid for profit.
With a smart charging system, it’s estimated that consumers, particularly high mileage motorists, could save up to £1,000 a year on energy bills.
Electric Vehicle Smart Charging Action Plan Categories
The government and Ofgem action plan covers three categories:
- Make smart electric vehicle charging the most affordable and convenient choice for consumers. This will involve working to build consumer confidence in smart charging, and using a shared evidence base to inform policy.
- Provide the right business landscape for smart charging products. This will involve investing in the potential of public smart charging while developing regulations, standards and innovations to encourage consumer choice and service flexibility.
- Build an energy system ready for smart electric vehicle charging. This will involve quantifying energy system costs and potential charging costs to inform policy, while working towards affordable tariffs and flexible services to incentivise smart charging uptake.
The government and Ofgem have also announced the V2X (Vehicle to Everything) Innovation Programme. This is funding for technologies designed to maximise the potential of smart charging. These include smart street lampposts (to allow drivers to access smart charging while out and about), and a range of domestic appliances that could integrate into a smart energy system.
For more detail, read the electric vehicle smart charging action plan in full.
Is It Time to Install Smart Charging Tech In Your Business?
From July 2022, all new charge points sold for private use (which presumably includes for business use) are required to have smart functionality. So if you’re yet to install smart points at your business premises, you can rest assured that anything you invest in from now will be compatible with future smart charging schemes.
But if you’ve already got charging points on your business premises, it might be time to talk to your supplier about their plans for smart charging.
Though industry leaders have welcomed the action plan, some have expressed reservations. Just like any “smart” or connected technology, smart charging systems could be vulnerable to cyber-attacks. Part of the action plan is to establish a new policy and technical framework to enhance the cybersecurity of flexible energy. But will businesses happily embrace smart charging tech if it provides another potential attack point for cyber criminals?
Get Advice on the Latest Risks
If you’re in the process of reviewing your fleet operations, and considering electrifying your fleet, we can advise you on all the risks you might face. Alongside the standard risks that would be covered in a standard commercial motor insurance policy, we can also advise you on the latest emerging cyber security threats.
Whether you manage a small fleet of cars or vans, or a large haulage business, we’re always happy to help. For a friendly chat with one of our fleet experts, call us today on 020 8290 9099 or email us at commercial.motor@anthonyjones.com.
