Road Traffic Technology: SEEIT signs deal to invest in EV charging infrastructure in UKGeneral/ 06 August 2020
SDCL Energy Efficiency Income Trust (SEEIT), a company which invests in the energy efficiency sector, has signed an agreement with Electric Vehicle Network (EVN) to invest in electric vehicle (EV) charging infrastructure in the UK.
As agreed, SEEIT will acquire an initial 112 rapid and ultra-fast EV charging stations for up to £50m.
EVN will be responsible for developing and funding the charging stations. SEEIT will acquire the site when they are construction ready.
The consideration will be drawn in tranches, with the first portion to be paid later this year.
The construction of each charging station is expected to be completed in six to 12 weeks.
Once complete, the EV charging sites will be contracted through 20-year, fixed price, CPI-inflated energy service agreements (ESAs) to charge point operators (CPOs).
The sites will also sign long-term land-lease agreements with the site owners.
SDCL CEO Jonathan Maxwell 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.”
EVN was founded in 2017 as an EV charging infrastructure development company.
The company now plans to establish an additional 380 charging sites in the UK. The move will require an investment of around £150m. SEEIT has a right of first negotiation for this prospective deal.