By Christopher Thorneycroft-Smith, co-founder of Aegis Energy
In the last few weeks, Britain’s electric vehicle industry has been buzzing with news of the Government’s investment in Connected Kerb. Delivered via the National Wealth Fund (NWF), and in partnership with Aviva, the £65m injection in the electric car charging company signals the importance of public–private collaboration to further low-carbon transport in the UK.
But while the announcement is certainly a welcome step, it only accounts for a part of the puzzle. The transition to EVs cannot succeed without a strong focus on commercial vehicles, particularly vans, which account for 18% of total road transport emissions. Whilst current offerings of government support for electric vans, such as the Plug-in Van Grant (PIVG), are signs of positive progress, more must be done to help decarbonise this vital sector.
The market for electric cars is more mature than it is for vans, but many of the challenges overlap. With 4.5 million UK vans on the road and the Government mandating all new vans to be zero-emission by 2035, now is the time to apply the lessons from the car sector to accelerate this transition. Measures such as PIVG have formed a decent foundation for future policy – how the Government chooses to build on this will decide the future of our nation’s logistics and freight transportation sector.
Barriers to progress
One major barrier to commercial EV adoption is the high upfront cost, particularly for SMEs that lack the capital to invest in electric fleets. Governments worldwide have prioritised electric cars with subsidies tax breaks, and grants to make them more attractive to consumers. To lower the upfront cost of electric vans, the same principle must be applied.
But even as the total cost of ownership for EVs reduces, there is another barrier we must address: charging infrastructure.
In the Logistics UK Van Report 2023, a third of respondents cited power supply infrastructure as one of their biggest challenges for fleet electrification. The majority of commercial fleet drivers lack access to home charging, so they rely on public charging networks, but these sites are largely designed for smaller vehicles. Charging bays are a prime example of this, with many proving too small in width and length to be suitable for vans. Equally, they do not provide the ability for bookings, which can be vital for fleet logistics – an industry where delays are significantly more costly than for the consumer. Without sufficient adaptation, as public charging infrastructure expands, commercial vans risk being excluded further.
Installing depot infrastructure presents its own significant challenges for operators, primarily due to high costs and logistical complexities. In most cases, there is a need to secure planning permission, which can be challenging in the face of local resistance, as well as grid connection upgrades required, which can be time consuming and expensive.
Range anxiety also remains a key concern, especially for commercial operators that rely on consistent, long-distance travel. Delivery vehicles, tradespeople, and logistics companies can’t afford delays and require greater assurances of reliability and availability of charging stations. Improvements must be made to mitigate this, or commercial fleets will remain hesitant to transition.
The need for more funding
Improvements, however, require investments. The Treasury’s funding of Connected Kerb demonstrates the success of public–private partnerships, as does its significant financial commitment to expanding public EV charging infrastructure for passenger cars through the Rapid Charging Fund and the Local Electric Vehicle Infrastructure (LEVI) scheme.
Similar policies are required to incentivise the installation of chargers at key commercial hubs like depots, industrial parks, and distribution centres. Tax incentives for fleet operators that invest in on-site charging, or grants to help businesses cover the cost of upgrading substations and electrical connections, could accelerate this.
Scandinavian countries offer successful models for the UK to follow for private–public partnerships. Denmark has exempted businesses from paying taxes on electricity used for public charging stations and Norway has installed over 22,000 public chargers in commercial hubs, and removed VAT on new EV purchases.
The UK must keep pace. Aegis Energy is working to deliver similar success by developing clean, multi-energy hubs for vans and trucks. Our initial five-station network, in Sheffield, Immingham, Warrington, Corby and Towcester, will complete by the end of 2027 and will provide bookable, high-speed charging for even the largest vans, up to 7.4m in length. Each hub is expected to reduce carbon equivalent emissions by 14,300 tonnes per annum, and the impact of this could increase tenfold with enhanced collaboration from industry, investors, and government.
Roadmap for net zero transport
Ultimately, road transport can’t reach net zero without decarbonising commercial fleets. Vans form the backbone of our economy, and without targeted investment in charging infrastructure, tax incentives, and grid upgrades, businesses will struggle to make the switch.
With diesel ban deadlines fast approaching, and charging infrastructure sites requiring several years to develop, we need to see immediate action. The Government’s investment in Connected Kerb is a step in the right direction, but the same level of commitment must be extended to vans. Rachel Reeves has an opportunity to change this trajectory. By prioritising van fleets in the UK’s EV investment strategy, she can drive forward both economic growth and emission reductions.