Financing a public EV charging network

  • Project Duration: 08/2021 - 02/2022

The project aims to develop recommendations for the best structure of an EV charging network in Germany given the need to provide both widespread and affordable EV charging.

The market design for an EV charging network is important both for investments in as well as for continued operation of charging infrastructure. Investors will only invest in a dense network of charging infrastructure if a future payoff can be expected. In Germany the public sector currently provides financial aid for the construction of charge points while the private sector is responsible for the operation of these charge points. Another boundary condition is that costs should not be too high as that would deter potential clients from switching to an electric vehicle. We are also interested in how refinancing of charging infrastructure can be ensured over time.

In this nexus this project analyses the question which kind of market design (free market or some kind of public sector intervention) is most likely to lead to comprehensive network of charge points while at the same time maintaining a reasonable charging price. These questions will be analysed from a macroeconomic perspective with a view to attaining Germany's climate targets.

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