Push for more EV points in Scotland, but who foots bill? - Chala McKenna

All new residential dwellings with a parking space will be required to have at least one EV charge point with a minimum 7kW rating. Exemptions are available if the additional cost of electricity grid connection exceeds £2,000, but developers will instead be required to put in place infrastructure to support future EV charging installation for each of its building’s car parking spaces.

Existing residential buildings with more than 10 car parking spaces will also need to install charging infrastructure when undergoing major renovations, provided it doesn’t exceed seven percent of overall refurbishment costs.

Meanwhile, half of all parking spaces within new non-residential buildings will be required to install infrastructure to facilitate the future installation of EV charging points with one active charge point set up for every 10 spaces. These same rules will apply for major renovations of non-residential properties but also include exemptions if the costs for doing so are above seven percent of the refurb budget.

These measures do seem sensible in further encouraging EV use across Scotland, especially in light of the wider move to phase out diesel and petrol cars. They also help future-proof Scotland’s buildings which are themselves the biggest contributor of global CO2 emissions.

While research published on the ClimateXChange website found that installing EV charge points in new buildings will likely be cheaper than retrofitting within existing ones, these regulations will add costs for developers across the board and could impact on property investment.

These financial implications along with questions about grid capacity and associated infrastructure were raised during the Scottish Government’s recent consultation over these measures.

There is no doubt that this new legislation will increase building costs and these could then be passed on to landlords, tenants and house buyers.

There are also concerns that the rapid, changing nature of technology, including future advancements in under-surface infrastructure and wireless charging, could soon come into effect leaving recently installed charge stations obsolete.

If these additional costs are to be recouped from buyers or tenants, it will mean further financial pressures at a time when we are managing a cost-of-living crisis within a fragile economy.

There are also questions about whether existing infrastructure is suitable to accommodate the required increase in EV charging capacity. Further upgrades to the grid to deploy battery storage technology, which allows energy to be released back to the grid when needed, could form part of a more holistic solution.

In response to concerns about the costs accompanying its new regulations, the Scottish Government has highlighted the exemptions that have been put in place to assist developers and it also points to continued engagement with the Distribution Network Operators and energy providers over grid capacity.

The new regulations on EV charge points are part of a wider strategy to reduce the number of fossil fuel-powered cars and promote a more sustainable travel and transport system. While supporting this ambition, it’s important that these new measures are carefully implemented with the potential of financial support to prevent them from adversely impacting property development activity. This sector is essential in providing much-needed housing and commercial premises that directly contribute to Scotland’s economic growth.

Chala McKenna is an Associate and accredited environmental law specialist at Davidson Chalmers Stewart LLP