Concession Contract for the Provision of Electric Vehicle Charging Points...

Hampshire County Council (The Authority) is procuring a Concession Contract for the provision of Electric Vehicle Charging Points along with the associated infrastructure and software to help deliver local, on-street Electric Vehicle (EV) charging infrastructure. This will be primarily for low (less than 22kw) power charger points to aid the transition to EV's and shift away from traditional petrol / diesel powered cars. The project is predominately aimed at supporting residents without off-street parking (i.e. driveways) by reducing the barriers of entry for EV take up. To assist with the roll out of this project nationally, central government has allocated grant funding through the Local Electric Vehicle Infrastructure (LEVI) fund. The Office for Zero Emission Vehicles (OZEV), Energy Saving Trust (EST), The National EV Insights and Support Service (NEVIS) and PA Consulting are all involved with administering the fund. The Authority has secured grant funding of £6.662 million from LEVI. Further details can be found here: On-Street Residential Chargepoint Scheme guidance for local authorities - GOV.UK (www.gov.uk). The grant funding will exclusively be allocated towards Standard [up to 7.9kW] EVCP and Fast [8kW to 22kW] Electric Vehicle Chargepoints (EVCP). The Authority has been set a target by central government to provide a range of on-street charging points by 2040. The figures below have been set by The National EV Insights and Support (NEVIS). The projected volumes for Hampshire are: • 15,414 standard charge points [up to 7.9kW] • 1016 fast charge points [8kW to 49.9kW] • 848 rapid / ultra-rapid charge points [50kW and above] Outside of the LEVI subsidy the Electric Vehicle Charging Infrastructure may be delivered in a variety of ways either through on-street provision or for example via ‘hubs’ within designated areas which may be existing car-parks / park and ride, or other sites as identified by the Authority. The contract may also include the requirement and cover, for example, delivery of Mobility Hubs or Section 106 agreements. Estimated Deployment Numbers & Contract Value It is anticipated that potential revenue generated over the lifetime of this agreement could be significantly impacted by the overall number of chargepoints installed and speed at which the Deployment Plan is rolled out. For the purposes of this procurement, the value of this concession contract has been estimated and advertised as having an maximum revenue income of up to £4bn. This value as been estimated based on a target of 17,278 Electric Vehicle Chare Points (EVCP) being delivered within the first 5 years of the contract commencement, at 50% of total possible energy consumption available 24-hours a day and 365 days per year, at the maximum allowable tariffs rates adjusted for Consumer Price Index (CPI) increases on an annual basis. The figures used for the basis of this estimate are available in Section 19 of Appendix 1 Technical Specification. Please note, the contract value is an estimation and is no guarantee of revenue levels. Suppliers need to be aware the contract value will potentially be impacted over time by several external factors outside of the Authority’s control which may further increase or decrease the contract value over its 16-year period (15+1). These factors may include but are not limited to: • The take up of electric vehicles and their market price impacting future customer demand • On-street charge point usage • Developments in charge point technology • Developments in electric vehicle and battery technology • ChargePoint downtime for repairs and maintenance • Developments in customer charging arrangements (e.g. the ability to charge customers via their domestic supplier billing arrangements) • Future additional Government investment in Electric Vehicle markets and infrastructure • Electricity price changes over time (we have attempted to account for these in our modelling) • Local Government Reorganisation and potential future changes in Local Authority areas. Any changes required to the contract, including value, will be managed via a contract change/modification process and supported by the appropriate statutory notices.