The EV charging sites will be developed and funded by EVN to the point at which they are contracted and construction ready, at which stage they will be acquired by SEEIT.
The commitment of up to £50m will be drawn down in tranches to fund the implementation of projects, with the first draw down of capital expected to take place later this year with the full balance of up to £50m expected to be deployed over the next 12-18 months.
The construction period for each project is expected to be around 6-12 weeks, at which point projects become operational and are expected to generate availability-based revenues.
Once operational, the EV charging sites will be contracted through 20-year, fixed price, CPI inflated Energy Service Agreements (ESAs) to Charge Point Operators (CPOs), which are typically investment grade utility companies.
The charging sites will also enter into long-term land-lease agreements with the site-owners, which are large, established forecourt or car park operators on the same basis. EVN, through its subsidiaries, will also manage the construction and operation of the assets.
In addition to the initial 112 sites, EVN has plans to develop a further c.380 EV charging sites, requiring an additional £150m in the next 36 months, for which SEEIT has a right of first negotiation.
Commenting on the project, Jonathan Maxwell, CEO of SDCL, said: ‘There is a growing need for charging infrastructure in the UK as we transition towards more efficient fuel choices that reduce harm to our environment.
‘We identified EV charging infrastructure as a target area in our June 2020 Prospectus and are pleased to have this opportunity to invest. EVN’s unique business model offers CPOs charging infrastructure as a service. This fits our model of investing in availability-based services with strong counterparties.
‘Project revenues will be generated from energy services agreements with predictable costs, presenting the opportunity for a stable and predictable investment for SEEIT and one we are delighted to add to our portfolio. This will also provide further diversification in terms of technology, counterparty and application.'
