Episode 11 with Asif Ghafoor: The Real Cost of Building an EV Charging Network

The electric vehicle revolution promises cleaner air and reduced emissions, but the infrastructure powering this transformation faces challenges most drivers never consider. Behind every seamless charging experience lies a complex web of site selection science, multi-year development cycles, and patient capital requirements that demand both precision and deep pockets.

In the latest Auto Futurecast episode, Asif Ghafoor CEO of Be.EV, a charging network operator that has grown from start-up concept to managing networks across Greater Manchester with £110 million backing from Octopus Energy Generation, reveals the intricate reality of building charging infrastructure from scratch. Their experience demonstrates that success in this sector requires far more than simply installing chargers, it demands understanding human behaviour, obsessing over operational details, and committing to the ultimate long game.

As the UK's charging infrastructure continues its rapid expansion, the lessons from operators like Be.EV highlight both the opportunities and obstacles facing this critical industry. From seven-year payback periods to the science of site selection, building a sustainable charging network requires navigating unique challenges that separate successful operators from those struggling to secure the funding needed for growth.

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The Science Behind Strategic Site Selection

Successful charging network deployment begins with understanding customer behaviour at the most granular level. "We spend a huge amount of time in carparks watching people charge," Asif explains. Their approach involves extensive on-site observation, with team members spending considerable time in car parks studying how people interact with charging infrastructure. This hands-on methodology reflects a fundamental principle: location success depends not merely on convenience, but on seamlessly integrating charging into people's existing daily routines.

The company's site selection strategy targets consumer-facing locations where customers naturally spend extended periods. Retail parks, drive-through restaurants, and amenity stops feature prominently in their criteria, but these choices are underpinned by sophisticated data analysis incorporating current EV ownership patterns, fleet movement data, and future adoption projections.

Each potential site requires comprehensive evaluation of multiple factors. Power infrastructure capacity, planning permission requirements, and customer flow patterns all influence viability assessments. The development process itself spans up to two years from initial site identification to operational status, with lease agreements typically extending 20-25 years to justify the substantial upfront investment.

Be.EV's initial expansion strategy demonstrated the importance of proving operational competence before scaling. By remaining focused within Greater Manchester during their first year, the company validated their ability to execute the complete site development process, from securing locations and bringing power infrastructure to obtaining planning permissions and achieving operational status.

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Evolving Customer Expectations and User Experience

The charging customer base has undergone significant transformation as EVs transition from early adopter enthusiasm to mainstream acceptance. Initial EV drivers were typically eager conversationalists, happy to discuss their vehicles and charging experiences at length. Today's customers represent a different demographic with distinctly different expectations, they want efficient, straightforward charging experiences without complications or extended interactions.

This shift demands meticulous attention to user experience details that might appear minor but can significantly impact customer satisfaction. Everything from signage clarity and cable management systems to payment processing reliability requires constant refinement based on observed customer behaviour patterns.

Payment system complexity illustrates these challenges perfectly. Be.EV supports multiple payment methods including contactless cards, app-based transactions, and roaming partner networks. The company has even reintroduced chip and PIN payment options after discovering that contactless transactions sometimes fail due to banking system issues completely beyond their control.

The ultimate goal involves implementing auto-charge technology that would eliminate payment friction entirely by automatically processing charges when vehicles connect. However, this advancement requires extensive collaboration with vehicle manufacturers, highlighting the interconnected nature of charging infrastructure challenges.

Customer observation continues revealing optimisation opportunities. The company regularly identifies friction points that could disrupt the charging experience, leading to iterative improvements in everything from user interface design to physical infrastructure layout.

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Reimagining Charging Infrastructure Design

Be.EV's newest project, the Charging Oasis in Manchester, represents a fundamental departure from traditional petrol station design principles. Rather than adapting existing layouts, the company purchased land specifically to create purpose-built charging infrastructure, collaborating with architect Ed Lipton to develop a circular layout that maximises vehicle capacity whilst providing safer, more spacious customer areas.

This design philosophy recognises that charging sessions create different customer behaviours compared to traditional fuel stops. Extended charging times mean customers might walk dogs, supervise children, or simply need space to move around during longer sessions. The circular layout eliminates vehicle movements near charging bays, creating safer environments particularly important for families.

Aesthetic considerations also feature prominently in the design approach. The company invested in landscaping, regenerative design elements, and architectural aesthetics that acknowledge charging as a fundamentally different experience from traditional refuelling. These design decisions reflect understanding that charging infrastructure must accommodate longer dwell times whilst maintaining customer comfort and safety.

The Charging Oasis project demonstrates how purpose-built charging destinations can differentiate themselves from adapted petrol station layouts. By designing specifically for EV charging behaviours, operators can create more appealing customer experiences whilst potentially commanding premium pricing for superior service quality.

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The Economics of Patient Capital Investment

Building sustainable charging infrastructure requires understanding unique financial dynamics that distinguish this sector from traditional retail businesses. Be.EV's business model involves lease agreements spanning decades, construction costs ranging from £500,000 to £1 million per site, and average payback periods extending seven years.

These extended timeframes reflect the infrastructure nature of charging networks. Current EV adoption rates of approximately 4% mean operators are building capacity well ahead of demand materialisation. However, projections suggesting future adoption rates reaching 30% justify the patient capital approach, provided operators can maintain financial stability during the growth phase.

Demand forecasting relies heavily on EV adoption projections, making government policy stability crucial for investment confidence. Policy changes affecting industry outcomes can significantly impact operator planning and investment decisions, highlighting the importance of consistent regulatory frameworks for sector development.

Be.EV maintains operational efficiency through a lean staffing model with 30-40 core employees, outsourcing construction, maintenance, and back-office functions to manage costs during the growth phase. This approach allows the company to focus internal resources on core competencies whilst maintaining flexibility as market conditions evolve.

The economics also depend on electricity pricing structures and grid connection costs, which can vary significantly between locations. Operators must factor these ongoing operational expenses into site viability assessments alongside initial construction costs and expected utilisation rates.

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Market Consolidation and Industry Evolution

The UK's current landscape features approximately 150 charging point operators, a level of fragmentation that industry experts consider unsustainable long-term. Market consolidation appears inevitable, with several operators already seeking buyers and others struggling to secure the substantial funding required for network expansion.

Some operators have secured site contracts without adequate capital backing, hoping to use these agreements to attract investment. This approach contrasts sharply with Be.EV's strategy of securing funding before site acquisition, providing greater operational stability but requiring investors who understand infrastructure investment timescales.

The consolidation process faces technical challenges beyond simple business acquisitions. Different operators employ incompatible systems for payment processing, customer management, and operational monitoring, making integration complex and expensive. However, recent government standardisation requirements should ease some technical barriers to consolidation.

Market dynamics suggest that operators with strong financial backing, proven operational capabilities, and established site portfolios will be well-positioned to acquire struggling competitors. This consolidation could ultimately benefit consumers through more consistent service quality and simplified payment systems across networks.

Early market entrants who have successfully navigated the initial development challenges while building sustainable business models may find significant acquisition opportunities as the industry matures and weaker operators seek exit strategies.

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Future Vision for Charging Infrastructure

Asif envision a future landscape where major road junctions feature comprehensive amenity and charging infrastructure combinations. Traditional motorway service stations lack both the land area and power capacity required to meet projected future demand, creating opportunities for new charging destination concepts.

The continued development of frictionless charging systems represents a key technological advancement. These systems would eliminate the need for apps, user accounts, or physical payment interactions, with vehicle integration proving crucial for seamless implementation.

Automatic charging technology promises to make EV charging as simple as traditional refuelling, but requires extensive collaboration between infrastructure operators, vehicle manufacturers, and payment processing companies. Success depends on industry-wide standards adoption and seamless system integration.

Infrastructure operators are also exploring value-added services that can improve site economics during the customer acquisition phase. These might include retail partnerships, food service options, or business services that generate additional revenue streams whilst customers charge their vehicles.

The geographic expansion of charging networks will likely follow major transport corridors initially, with urban infill following as EV adoption rates increase. Rural and remote area coverage presents different challenges due to lower utilisation rates and higher infrastructure costs per customer served.

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Building Tomorrow's Transport Infrastructure

The transition to electric vehicles represents one of the most significant infrastructure challenges of the coming decades. Companies like Be.EV are demonstrating that success requires far more than technical competence in installing charging equipment, it demands deep understanding of customer behaviour, unwavering focus on user experience, and commitment to long-term value creation.

Their experience reveals the complex interplay between site selection science, customer psychology, financial planning, and operational excellence that defines successful charging network operators. As the industry matures and consolidates, these lessons will prove invaluable for understanding which operators will thrive in the evolving marketplace.

The infrastructure challenge is undoubtedly complex, involving patient capital, regulatory navigation, and technical integration across multiple systems. However, for operators willing to commit to the long-term vision whilst obsessing over customer experience details, the opportunities remain substantial.

Success in this sector ultimately depends on understanding that charging infrastructure is not just about providing electricity to vehicles, it's about creating seamless experiences that integrate naturally into people's daily routines whilst building sustainable businesses that can weather the extended development cycles inherent in infrastructure investment.

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