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China Investing in EV Charging Network

| Oct 17, 2015 06:55 AM EDT

The creation of more charging stations in parking lots is seen as an important step to the strengthening of the electric vehicle industry.

With the government having launched preferential treatment for the development in electric vehicles (EV) and related industries, there are plans to invest capital for the construction of charging infrastructure for EVs in China in order to increase the number of available units, according to Shanghai Securities News.

China currently has over 100,000 gas stations across the country, while the number of EV charging stations remains insufficient.

By the end of 2014, there were 780 charging stations and 31,000 power charging piles around the country. According to data, the lack of charging facilities has prevented the development of the EV industry.

Recently, the government revealed that it had plans requiring residential complexes to ensure that all parking lots have EV charging facilities. The plan also consisted of equiping 10 percent of parking lots in large public buildings with EV charging facilities.

China plans to develop the energy-efficient and new-energy vehicle industry. By 2020, it targets to have 12,000 charging stations and 4.8 million charging piles for a projected five million EVs.

There are plans by the government to invest no less than 2 trillion yuan ($315 billion) in the construction of this network of charging stations between 2015 and 2020 to meet its goals. This includes 300 billion yuan ($470 million) in 2015 alone, according to Tong Guangyi, deputy director of the National Energy Administration.

The government is also encouraging social insurance funds to become involved in these construction projects, according to Tong.

Shortly after the government's announcement, charging companies have seen a rise in investor interest. During the Friday morning session following the announcement, shares for Shenzen Auto Electric Power Plant Co. rose 0.95 percent to 33.87 yuan.

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