ALTERNATIVE FUELS INFRASTRUCTURE REGULATION

EV drivers not subscribed to any specific charging provider’s service shouldn’t face any problems charging. That’s why AFIR demands ad hoc card payments to be available at all EV charging stations via a payment terminal. This card payment option will come on top of the other available payment options.

EV drivers who are roaming or don’t want to have a subscription with one single provider can pay with a debit or credit card directly at the EV charger on an ad hoc basis.

EV chargers that can’t be equipped with a card reader (as if often the case for AC chargers) must be accompanied by a stand alone payment terminal, such as the Virta Payment Kiosk. One Payment Kiosk can process payments from up to 100 individual EV chargers.

AFIR specifies that e-mobility service providers (EMSP) must provide EV drivers with transparent and updated pricing information via digital tools like a mobile app.

The possibility of ad hoc payments on public charging infrastructures is due to come into effect from April 2024 throughout Europe. For all CPOs who have not been able to install a payment terminal in advance, it's possible to offer payment via a uniquely generated QR code displayed on the charge point screen. Uniquely generated QR codes instead of QR code stickers significantly reduce the risk of QR code fraud - otherwise known as quishing.

The EU wants to bring consistency into the often-complex world of EV charging pricing. These changes regarding pricing policies puts pressure on CPOs but makes it possible to meet a strong expectation of EV drivers. The goal is for EV drivers to have access to accurate pricing information before the start of the charging session.

The question of ’How much will the charging session cost?’ often concerns EV drivers because of differing tariffs and pricing models from one charging network to another. 

EV drivers now have access to over 550,000 EV charging points in the EU, but pricing transparency still must improve to boost convenience.

Reasonable, transparent prices

The AFIR specifies that charging prices must be reasonable, transparent and not causing any discrimination.

The regulation also indicates that CPOs are allowed to charge additional fees to prevent EV owners from blocking a parking space designated for EV charging long after charging their own car. These additional fees might be charged by the minute and must be clearly indicated.

Standardisation of pricing models

Nowadays, the diversity of pricing models can be quite complex. Billing for public charging can be done in several ways:

• Time-based – based on how long the charging session lasts
• Energy-based – based on how much electricity is charged during a charging session
• Fixed-rate – e.g. a monthly subscription
• Hybrid pricing – a combination of time and energy based

AFIR requires that at charging points of 50 kW or more, the pricing is energy-based, i.e. per kWh.

The European Union stresses that the installed charging stations must be able to connect to a back-end system and offer the possibility of roaming. 

Chargers must have an internet connection via a SIM card for this to happen. The charging stations must constantly exchange real-time data to validate the payments, track energy consumption, and optimise the charging experience. 

This is called smart charging.

Smart charging allows for instant communication between the charging point operator (CPO), the e-mobility service provider (EMSP), roaming platforms (Hubject or Gireve), and finally, the end-users: EV drivers.

There are currently no set common standards regarding communication between the EV and the charging point, communication between the charging point and the back-end system, communication related to the roaming service and communication with the electricity network. The EU plans to solve this issue to ensure higher personal data protection.

Finally, with the future development of V2G (vehicle-to-grid), generating energy consumption data is essential to guarantee the stability of the electricity network and promote the efficient use of EV charging services.

Smart charging systems help encourage charging at lower rates during off-peak periods, which benefits the end user.

Another point the European Parliament addresses is interoperability, meaning the possibility of any electric vehicle charging at any charging station. That's achieved by various actors in the e-mobility ecosystem being able to interact digitally.

To address that, all Member States should appoint an Identification Registration Organisation (“IDRO”) to be responsible for issuing and managing identification codes (“IDs”) to identify CPOs and EMSPs easily and to create a standard referencing system. The use of unique IDs supports the cross-border use of EV charging stations by EV drivers.

As open data is crucial to achieve interoperability in EV charging, each operator of publicly accessible charging points must set up an Application Programme Interface (API) that provides free and unrestricted access to static and dynamic data. Let's see what the difference between the two is:

Static data

• Geographical location of the charging points
• Number of charging points
• Number of parking spaces for people with disabilities
• Contact details of the owner and operator of the charging station
• Opening hours
• Identification codes of the charging point operator
• Type of charging station
• Type of current (AC/DC)
• Maximum power (kW) of the charging station
• Compatibility with the vehicle type

Dynamic data

• Operational status (operational/non-operational)
• Availability (in use/available)
• Ad hoc price
• Energy source (renewable/non-renewable)

A charging infrastructure must provide facilities for older people and people with reduced mobility and disabilities. A charging point operator must ensure that:

• There is sufficient space around the parking space
• The charging station is not installed on a sidewalk
• The buttons on the charger display are at an appropriate height
• The charging cables are not too heavy and are easy to handle
• The charging station is equipped with an emergency button and adequate lighting

What does the AFIR mean for us at Virta and for our customers? And how do we, as a company, meet the EU requirements?

Price visibility

EMSPs must make all pricing information available to end users before the start of the charging session. With Virta, you completely control the prices you set for charging at your charging points. Whatever you decide that price to be, one thing’s for sure: it will be displayed in the Virta mobile app or on our one-time payment website, clearly visible to your customers.

To make pricing as transparent as possible, Virta offers an Alternate Tariff feature that allows adding tariff settings that replace the default tariff at a set period. This is good for reflecting real electricity prices and increasing transparency with customers.

Card payments

For charging points installed from April 2024, ad hoc charging will be possible either with a card reader or a contactless payment device. For those installed before this date, we have a solution to comply with the legislation: the Virta Payment Kiosk. This stand-alone device can be retrofitted to your existing charging infrastructure for a minimal cost and connect to up to 100 chargers.

Digitally connected

By April 2024, CPOs must ensure that all publicly accessible charging points are digitally connected. In addition, all charging stations installed after April 2024 must support smart charging.

This paves the way for large-scale demand flexibility and bi-directional charging services in which EVs are used to create virtual power plants. Virta already offers several smart energy management services that future-proof your EV charging operations and bring added value to you and your customers.

The other requirements that AFIR addresses, such as accessibility and static and dynamic data availability, will gradually come into play. They require CPOs and eMSPs to introduce new features to existing charging services and/or improve them to comply with the regulations. 

At Virta, we’re ensuring our services are all compliant with the new regulations so that all of our customers can also ensure compliance.

We work proactively with regulatory authorities, NGOs and industry lobbies to ensure that the Virta Platform offers capabilities that allow our customers and partners to take advantage of the rapidly changing EV charging markets.

Is AFIR ambitious enough?

According to ACEA - the Association of European Car Manufacturers - AFIR needs to go further. Car manufacturers fear that the new regulations won’t solve the current lack of charging infrastructure, hindering the adoption of zero-emission vehicles.

The association also mentions that the number of granted exemptions would further limit the charging network coverage. And that the infrastructure plans need to be revised to cater to electric trucks.

ACEA estimates there will be about 400,000 battery-powered electric trucks on European roads by 2030 and about 50,000 EV chargers adapted to charge heavy-duty trucks, including about 35,000 ultra-fast chargers. They say Europe’s objectives need to be more ambitious in this area. 

Progress report and corrective measures

The EU, aware of the speed of technological advancement and the climate emergency, regularly plan multiple updates of the regulations, which should allow for adjustments over time to reflect newly found requirements.

Each Member State will have to provide a national progress report every two years justifying the national objectives’ achievement level and indicate what measures they plan to take to achieve the future goals. 

What will be detailed in the report:

• the total charging power
• the number of publicly accessible charging points installed
• the number of electric and plug-in hybrid vehicles registered on their territory by 31 December of the previous year

Member States will also have to assess, as early as June 2024, how EVs could contribute to the energy system’s flexibility, including their participation in the grid balancing market. 

They will also evaluate the potential contribution of bi-directional charging to the power system and its power to reduce costs for the end users.

If a Member State doesn't achieve national objectives, it will be requested to take corrective measures.

AFIR represents a considerable investment opportunity for many industries. The regulation is a good ground for future innovations, especially in the field of payment solutions and the reliability of the charging equipment.

For companies, AFIR facilitates the transition to more environmentally friendly vehicle fleets by ensuring accessible charging. This clear regulatory framework paves the way for a significant expansion of the sector in the coming years.

With AFIR, the EV charging ecosystem in Europe is evolving towards enhanced accessibility and improved safety resulting in reduced ecological footprint.