EVs – simplified business fleet switching and new funding platform in UK
Octopus Energy and Elmtronics are partnering on business switching to electric vehicles (EVs) and Zenobē Energy has launched a new funding opportunity.
The new partnership between independent energy company Octopus Energy and the EV charge point supplier Elmtronics adds the charge point services, including supply, installation, back office software and maintenance, to the supplier’s portfolio of EV solutions for business customers.
These include EV leasing, smart tariffs for charging overnight, EV roaming through its Electric Juice charging network and Electric Dreams, a salary sacrifice scheme for EVs.
The two companies also intend to collaborate to educate and support businesses in their mission to introduce EVs into their operations.
Have you read?
Charging up for an EV future
Report identifies disparities in EV charging costs across the UK
Local flexibility can help the UK reduce peak energy demand by 23% – study
“Octopus Energy and Elmtronics will work together to keep making it easier for business customers to go electric, by offering charge point supply, install and aftercare all rolled up into one,” says John Szymik, CEO of Octopus Energy Services.
The first Octopus Energy customer to have charge points supplied and installed by Elmtronics is the Wye Valley Brewery in Herefordshire. Two dual charge points have been installed in the brewery’s customer car park for visitors’ use and two in the staff parking area for employees.
The new partnership expands an existing relationship. In October 2020, the two companies signed a roaming agreement to allow Octopus Energy customers to charge on Elmtronics’ Hubsta network. With the integration of the two networks, charging on the go is simplified by taking away the need for using different cards and apps and rolling charging costs into a single bill.
New debt structure for EVs
Zenobē Energy, a London headquartered EV fleet and battery storage specialist, has established a multi-source debt structure of £241 million (US$326 million) with which it intends to radically accelerate the expansion of the EV fleet sector.
The funding platform, believed to be a first of its kind, draws on the support of several financial institutions, and with it Zenobē plans initially to service and finance up to 430 new e-buses in the UK and Ireland.
“This innovative funding structure marks the coming of age of structured finance solutions for fleet electrification, and signifies substantial growth for our business, allowing us to accelerate the rollout of electric buses across the UK,” says Nicholas Beatty, Founder Director of Zenobē Energy.
The structure takes total debt finance support from financial institutions to over £300 million ($407 million). Since 2017, the company has also raised equity of over £220 million ($298 million), including a £150 million ($203 million) investment in November 2020 from Infracapital.
It comprises long-dated term financing alongside a shorter term facility, which will be used to raise additional financing over time and in so doing broaden the funder base as Zenobē expands fleet activities in the region.
Zenobē has 175MW of operational and contracted storage assets and 394 EV buses, amounting to an estimated 25% market share of the UK operational EV bus sector.
