Electric vehicles (EVs) are an increasingly common choice for Canadians. This is good news since Canada plans to phase out combustion vehicles by 2035 and replace them with EVs. It’s ambitious — some even say unrealistic because of the lack of charging infrastructure.
But who’s responsible for building the charging infrastructure for this massive transition? Is any money collected through carbon taxation used for this?
The Carbon Tax
The carbon tax policy is designed to reduce greenhouse gas emissions and combat climate change. The Canadian government collects revenue intended for redistribution to households and businesses through rebates and grants. The government expects to have $600 million left for the 2024-25 fiscal year, with annual growth to $1 billion by 2030-31 as carbon prices rise. From April 2022 to March 2031, this could result in $5.7 billion. [12]
These public funds are NOT primarily used to build the charging infrastructure.
Instead, Canada expects the private sector to fill the gap. Yet private companies are not incentivized to build anything until after a rise in EV ownership. Of course, large-scale EV ownership is impossible with the current infrastructure.
Types of EV Chargers
There are three main types of EV chargers: Level 1, Level 2, and DC Fast Charging (sometimes referred to as Level 3).
Level 1 EV Chargers – The most basic and accessible, use standard 120-volt household outlets. They provide only 5-8 kilometres of range per hour and are convenient for home use, especially for PHEVs. However, they’re inadequate for fully electric vehicles due to long charging times.
Level 2 Chargers – The most common type for home and public charging stations use 240-volt power and can provide between 30-48 kilometres of range per hour. They’re ideal for overnight charging at home or topping up during longer stops.
DC Fast Charging (Level 3) – Offers the best charging speed. These chargers deliver high-voltage DC power directly to the battery, charging an EV to 80% capacity in 20-30 minutes. They’re ideal for long-distance travel but have higher operational costs, potential impact on battery lifespan, and limited compatibility with some EV models. [16] [17]
Who is building EV chargers in Canada?
What we know for now is that there are not nearly enough charging stations in Canada. And the situation is not changing fast enough. Most EV owners charge at home, but those living in condos are out of luck (more on that in our article Condos and BEVs: Powering Up the Future with Charging Infrastructure). There’s not enough incentive to go with EVs.
The responsibility for building charging infrastructure in Canada is shared among multiple stakeholders, including various levels of government and private sector entities. Natural Resources Canada (NRCan) is responsible for delivering the Zero Emission Vehicle Infrastructure Program (ZEVIP), which provides funding for deploying electric vehicle chargers and hydrogen refuelling stations across Canada. [1]
Its target is 84,500 chargers by 2029. Not nearly enough.
Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers Association, says “We need at least 442,000 public charging ports by 2025.” [2]
Natural Resources Canada also reports that while more than 43,000 electric vehicle chargers have been funded through two federal infrastructure programs since 2016, less than 20% actually work — most are just “selected for funding.” So far, only one in five are operational. [11]
An analysis for the federal government done by Dunsky Energy and Climate says Canada likely needs:
52,000 chargers in place by the end of 2025
200,000 by 2030 to meet the national sales targets for more EVs on the road. [11]
By 2040, we’ll need as many as 679,000 public charging ports.
In this scenario, policies would require all new housing to be EV-prepared starting in 2030, with governments and building owners jointly investing in retrofitting 1.6 million parking spaces in multifamily properties. [4]
There are currently 30,321 charging ports in Canada, with 24,590 being Level 2 ports. In March of last year there were 16,579 Level 2 charging ports.[5] The progress is there, but it’s too slow.
Provincial and municipal governments contribute to charging infrastructure development. Some provinces have their own initiatives.
Ontario – $91 million investment and Rural Connectivity Fund for building local EV chargers
Quebec – Electric Vehicle Charging Strategy aims to establish 116,700 public charging stations, including Level 3 DC fast chargers and Level 2 chargers, by 2030. [3]
Private Help for the EV Charging Infrastructure
The federal programs are not enough. At this pace, there’s no hope of getting to the numbers we need based on current studies. The federal government has funded approximately 20% of all public chargers in Canada, with the rest being funded by provinces, territories, municipalities, and the private sector. [18]
Private sector companies play a significant role in developing EV charging infrastructure across Canada — or at least, they are expected to. FLO, the leading North American EV charging network operator, has partnered with the Canada Infrastructure Bank (CIB) to install approximately 2,000 fast charging ports across Canada by 2027.[6]
Parkland received a $210 million loan from the CIB to support the installation of up to 2,000 new fast-charging ports. The CIB’s financing structure provides an 18-year payment plan, where principal repayment is tied to the actual usage levels of the EV chargers. [14]
Tesla recently surpassed 2,000 Supercharger installations across Canada. In September 2024, Tesla updated its map to show Supercharger plans for approximately the next 18 months, adding about 25 new locations across Canada. [15] While Tesla chargers are not yet universally compatible with all EVs in Canada, the trend is moving towards greater accessibility. By 2025, most new EVs are expected to have built-in compatibility with Tesla’s charging network, and adapters are becoming increasingly available for existing models. [19]
Overall, the federal government, through NRCan, has played a key role in expanding EV charging infrastructure. As of August 2024, NRCan’s programs have funded 41,799 chargers. Over $1 billion has been allocated to support the nationwide deployment of electric vehicle charging stations. [9]
Although the government has funded 41,799 chargers by August 2024, private companies have also been instrumental in expanding the EV charging network (although distinguishing fully private versus publicly supported chargers remains complex). FLO, for instance, has installed 9,129 public chargers. At the same time, firms like Electrify Canada, Parkland, EV Connect, and ChargePoint have added thousands more. Often, there is overlap between government-funded and privately installed chargers, as private projects frequently benefit from programs like ZEVIP, which can subsidize up to 50% of the capital costs. [10]
While progress is evident, there’s still a long way to go. Canada needs far more chargers at a faster pace, as there are significant gaps between current deployment and future requirements. To meet the ambitious targets for EV adoption by 2035, the government must commit much more and lead the charge (no pun intended) to the EV charger network we will need in the years ahead.
References:
https://www.nationalobserver.com/2023/10/20/news/ontario-charging-ahead-91m-plan-ev-plug-ins
https://institute.smartprosperity.ca/EV-Infrastructure-Canada
https://electricautonomy.ca/news/2024-03-07/2024-canada-ev-charging-networks-report/
https://www.cbc.ca/news/politics/federally-funded-charging-stations-operational-1.6952269
https://carboncredits.com/canadas-5-billion-carbon-pricing-revenue-sparks-debate/?t
https://roborace.com/reasons-to-choose-level-2-charger-over-level-1/?t
https://electricautonomy.ca/charging/2023-11-25/parkland-cib-loan-2000-ev-chargers/?t
https://driveteslacanada.ca/news/tesla-announces-dozens-of-new-superchargers-coming-to-canada/?t
https://www.chargepoint.com/blog/whats-difference-between-level-2-ac-charging-and-dc-fast-charging?t
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