Image caption – Rojan Pandey, Lead Consultant – Energy & Water at HFM Asset Management – a BGIS company
By Alex Sejournee, Lead Consultant – Strategy, HFM Asset Management – a BGIS company
The Western Australian Government has committed to electrifying two per cent of their fleet by 2026 (255 new electric vehicles) and is offering funding for eligible businesses to install electric vehicle charging stations.
Rojan Pandey from HFM shares more about Electric Vehicle (EV) Charging Stations and what landlords and managing agents need to understand when considering installing them at their properties.
Case study:
Rojan provided a story about an office tower where tenants were given permission to install several fast AC (Alternating Current) and DC (Direct Current) EV charging stations. When all the electric vehicles were plugged in and charging at the same time without the control from a load management system, it resulted in a significant higher peak demand and subsequent increase in electricity costs and a decrease in the electricity on-sell profit for the whole year.
When we asked Rojan about what went wrong with this project he stated, “It was an ‘item in isolation’ decision, it looked good but the impact on the operations of the property and their energy contract was not considered. The EV market is new and exciting, and landlords and agents can forget the fundamentals that this is a power device connected to your infrastructure. We are now promoting EV chargers that facilitate decarbonisation of the vehicle fleet but may significantly increase power use if not managed properly.”
So, what should landlords and agents be considering with EV Charging stations in commercial properties?
EV charging stations bring various opportunities and risks to your properties. Opportunities include landlords offering EV charging stations as an incentive to tenants. Retail tenants like cafes can use them to attract customers and increase revenue.
Landlords should consider issues such as available electrical capacity, what types of charging stations will be required and where they will be located. Sites with Solar PV need to review their current load profile to utilise excess solar energy for EV charging. Many large electricity users on a contract maximum demand (CMD) arrangement with Western Power need to understand the potential for an increase in average energy cost due to the EV charging stations, which may have flow on effects to your tenants.
Can you provide some more explanation on software management?
Load management software allows charging station operators to control the flow of electricity to multiple EVs charging simultaneously. The software helps prevent power outages and ensures that each vehicle gets the power it needs to charge efficiently. The load management software can also consider the time of day and the cost of electricity. During peak hours when electricity is more expensive, the software may reduce the amount of power allocated to charging stations or delay charging until off-peak hours when electricity is less costly.
What Should Landlords and Managing Agents expect as a result of government grants?
We would advocate your tenants apply for the grants, as it can provide financial support with the installation; however, ensure you understand both the opportunities and risks that EV chargers bring and how you will manage these.
If you would like to know more about how HFM can assist you capitalise on the opportunities and mitigate the risks of electric vehicle charging stations get in touch with them at [email protected]