The Energyst: SEEIT enters rapid EV charging sector with £50m EVN deal, eyes £150m more
General/ 06 August 2020
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Listed energy efficiency fund SEEIT is set to take a significant stake in the EV charging market, agreeing to fund an initial 112 rapid and ultra fast EV charging stations to be developed by Electric Vehicle Network (EVN).
Within three years, EVN aims to grow the network to almost 500 sites, with SEEIT having first option as backer.
The initial deal is worth up to £50m and all 112 sites, taking between 6-12 weeks to build, are expected to be operational and generating revenue within 18 months.
The sites, at forecourts and car parks with large site owners, will then be contracted to inflation-linked 20 year fixed price energy service agreements to charge point operators.
Electric Vehicle Network, through its subsidiaries, will also manage the construction and operation of the assets, via asset management and maintenance contracts in accordance with the period and terms of the ESAs.
EVN has plans to develop a further 380 EV charging sites, requiring some £150 million additional funding in the next 36 months, for which SEEIT has a right of first negotiation.
“EVN’s unique business model offers CPOs charging infrastructure as a service,” said Jonathan Maxwell, CEO of Sustainable Development Capital, which operates the SEEIT fund.
“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.”