The Challenge
The demand for green energy to be used in EV charging stations is going to be eventually very big depending on the rate of migration from conventional ICE (internal combustion engine) vehicles to EVs (electric vehicles).
Especially in closed circulation highways which comprise the major intercity road transport network in Greece, the green energy availability at such scale is a multidimensional issue that cannot be easily resolved without specific addressing of the matter, considering also the significant size of the required RES production investments.
On the other hand, the financing of such investments could not easily be undertaken by the state, considering the overall state funding requirements of the public investments programme, so the ability to have the private sector step in would ease significantly the resolution of the issue.
To have the private sector undertake such investments across the highway network would imply that the pertinent concessionaires would have adequate time to recover such investment - at arm’s length with the yield for their highway construction, operation and maintenance investments.
Especially for 5 of these highway concessions, the time horizon of their current concession contracts would not be enough to accommodate significant additional investment for RES production to be used to power EV charging across the specific highways and as such the competent Ministry of Transport and Infrastructure has been contemplating extending the duration of the 5 concession contracts providing the concessionaires with more time for the recovery of the new investments to be made.
Considering the EU regulatory framework, Greece – as a member state – should first ask the competent EC DGs for their approval of such concession contract extensions, before proceeding any further with the idea.
The Approach
PLANET has supported the above complex issue by articulating the case and providing technical, financial and legal insight (the latter in collaboration with a prominent Greek law firm very competent in concessions) so that the case is presented at first stage to the competent EC DGs and a potential dialogue is initiated first for approval at EU level and based on a positive outcome engaging afterwards in more detailed discussions with the 5 concessionaires.
Articulating and documenting technical, financial and legal aspects in relation to a challenging issue across the energy, transport and infrastructure domains.
Aspects considered include among other:
- Sizing the energy production investment taking into consideration EV adoption rates until 2050 under 3 scenarios.
- Assessing the economics of the investment vis a vis the toll revenue potential based on projected vehicle traffic.
- Preparing a preliminary legal argumentation on the eligibility of a concession extension on the grounds of the specific needs.
Results & Impact
The process is ongoing and results of the first step are expected within 2025.
