View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. Tech
  2. Electrification
4 November 2021

Using private finance to scale up EV charging infrastructure

Public finance will be insufficient to meet the growing investment gap for electric vehicle (EV) charging infrastructure worldwide. Luckily, EV chargers are an easy fit for private finance, says Siemens Financial Services.

By Energy Monitor Staff

Private finance will be imperative to meet the $104.11bn global investment gap for electric vehicle (EV) charging infrastructure by 2024-2026, says technology giant Siemens in a new report.

EV charging infrastructure

EV chargers are particularly appropriate for private financing as they generate an income stream over time. (Photo by Scharfsinn via Shutterstock)

This gap, defined as the difference between EV charging infrastructure already financed and that still being paid for out of capital expenditure, is “considerable” and forecast to grow at an “exponential rate” from $42.25bn in 2021-2023, the paper states. Capital expenditure is the money companies spend to acquire or maintain assets.

Siemens stresses that public funds will be insufficient to close the investment gap due to added pressures on public capital in the wake of Covid-19

EV chargers are particularly appropriate for private sector financing as they will generate an income stream over time that can be used to pay back the capital cost of the investment, the paper says.

Obtaining private finance to support the deployment of EV charging infrastructure can be simple, the report implies, citing the case of German utility SWW Wunsiedel. This company partnered with Siemens Financial Services to obtain financing for a first EV charging infrastructure roll-out in Germany that aligned with expected earnings from the chargers.

Topics in this article: , ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. Keep up with the global energy transition with one of our editors bringing you the best of our data-led news and analysis every Monday and Thursday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU