Challenging procurement tenders for charging infrastructure
Are procurement tenders the best way for local authorities to access quality charging infrastructure at zero cost? Martin Hale, UK MD, Qwello explains.
The UK’s increasing demand for EV infrastructure is driving local authorities to expedite the installation of public charging infrastructure, often relying on traditional tendering methods. This might not always be the optimal solution for accessing high-quality EV charging infrastructure at zero cost.
Based on Qwello’s Pan European experience and international best practices, it’s time to challenge the assumption that traditional procurement tenders are the most effective method.
The Limitations of Traditional Procurement Tenders
While tenders have for a long time been a go-to solution, they are often lengthy, complex, and expensive to organise. More critically, they typically bind local authorities to long-term contracts with specific Charge Point Operators (CPOs), limiting flexibility. This rigidity can stifle innovation, reduce competition, and inadvertently slow the rollout of essential infrastructure.
Another major issue is that procurement tenders frequently focus on awarding contracts based on the highest revenue share or bay fees. This can lead to a race to the bottom, where the focus on immediate financial returns compromises the long-term reliability and quality of the charging network. CPOs under such pressure may prioritise meeting minimum tender requirements, rather than striving to maximise service quality, coverage, and customer experience.
In many cases, local authorities may also lack the necessary expertise to choose the optimal sites for chargers. Factors such as power availability, existing permits, Traffic Regulation Orders (TROs), and pavement widths should influence site selection, but procurement processes often do not account for these complexities. Instead, allowing CPOs, who have the on-the-ground expertise to take the lead in site identification could lead to better outcomes.
The Case for a New Approach: Land Leases and Location Bidding
Instead of relying solely on procurement tenders, local authorities could benefit from adopting a more dynamic and flexible approach; one already in use in cities like Stockholm, Berlin, Frankfurt and Essen. These cities have replaced traditional procurement with land leases and location bidding.
By granting CPOs licences or leases for specific sites and allowing them to bid on locations based on demand, local authorities can ensure a more organic and demand-driven infrastructure rollout.
This approach also enables CPOs to compete for high-demand sites without being locked into long-term, restrictive contracts. CPOs also have the freedom to invest in infrastructure and innovate without the constraints of a procurement process. If a CPO fails to deliver, the site can be
reassigned, ensuring accountability and the continuous development of the network.
In Practice: European Success Stories
In Stockholm, CPOs are invited to apply for site licences based on a publicly available map, allowing for a demand-driven rollout of infrastructure. Berlin has implemented a similar approach, where CPOs propose sites based on demand and are required to install charging points within a given period. Both cities have seen rapid infrastructure growth without relying on formal procurement tenders, highlighting the benefits of a more flexible, competitive process.
LA Tenders: Optimising Site Selection
When local authorities do opt for tenders, they should give precedence to better site selection criteria. Instead of selecting sites themselves, authorities should allow CPOs to identify the most suitable locations. CPOs have the industry knowledge to factor in power availability, permits, and TROs, ensuring efficient infrastructure deployment. Local authorities can support this by preparing “shovel-ready” sites that meet all regulatory requirements, thus speeding up deployment.
Moreover, tenders that focus on the highest revenue share often lead to poor site maintenance and unreliable infrastructure. A better approach would be to rank instead the long-term sustainability and reliability, which ensures better public service, rather than focusing on short-term financial returns.
The Importance of Time/Energy Tariffs
Incorporating time/energy tariffs into tenders is another area where local authorities can make a significant impact. A flat energy-only tariff model can be restrictive and lead to inefficient charging behaviour. Allowing for flexible tariffs that consider both the time spent and the energy consumed encourages more responsible and efficient use of charging points, ensuring greater availability for other users and helping to manage energy demand more effectively.
Favouring Expertise Through Technology Lots
Another way local authorities can improve tenders is by dividing them into technology-specific lots. Grouping on-street AC chargers, discrete AC units, lamppost chargers, and DC fast chargers into separate lots allows for specialisation. CPOs can focus on the technology they know best, ensuring that expertise is applied effectively, and infrastructure is delivered by operators who are masters of their specific technology, rather than “jacks of all trades.”
For UK local authorities, adopting a similar approach could unlock the potential for rapid, zero-cost infrastructure development. By shifting from rigid procurement processes to flexible land leasing and bidding models, authorities can tap into private sector expertise, encourage competition, and accelerate the EV charging network’s expansion.
It’s time for UK local authorities to rethink their approach to EV infrastructure. Traditional procurement tenders may no longer be the best way to ensure high-quality, reliable, and rapidly deployed charging networks. Instead, embracing models that promote flexibility, expertise, and competition – like land leasing and location bidding – can deliver better outcomes for both local authorities and the public.
Looking to other parts of Europe demonstrates quicker, more flexible, and equally capable approaches delivering high-quality, zero-cost charging infrastructure. It’s time for the UK to challenge the status quo and consider these alternatives to enable faster rollout and adoption.
Let’s move away from the race to the bottom and towards a future where high-quality EV infrastructure can be developed at zero cost, ensuring a sustainable and reliable charging network for all.
Martin Hale and Quello will be attending the Transport + Energy Forum on 21 November. Book your place at the event here.
