Offer of local public land and engagement of a private sector player as project developer

1. Collaboration with external project developers

For the installation and operation of publicly accessible charging stations, the municipality can provide suitable areas to private-sector project developers in an open, transparent and non-discriminatory process. The project developer then takes care of the realisation or the development and maintenance. Since the municipality is not permitted to operate a commercial charging infrastructure itself, this provides it with the option of having a charging infrastructure set up without major financial and planning effort.

 

The desired cooperation/partnership can be specified further in a general agreement. In this context, the influence of the municipality on the project as well as a possible remuneration (lease/rent) can be contractually stipulated. The Ministry of Energy and Spatial Planning (MEA) provides the municipalities with model documents.

 

The investor may submit projects with a total charging capacity of more than 175 kW to one of the national tenders under the Law of 26 July 2022 on the aid scheme for companies investing in charging infrastructure for electric vehicles, so that there is a possibility of state co-financing. In this case, work must not begin (and no firm order may be placed) before the project has been submitted to the tender procedure, otherwise it will not be eligible for financial support. In any case, a basic agreement between the municipality and the potential project developer(s) must already have been signed in advance.

Advantage
  • Municipality initiates public charging infrastructure without needing to start its own commercial activity
  • Installation and maintenance by third parties and significantly reduced organisational/administrative effort
  • No financial risk
  • A general agreement gives the municipality planning influence
  • Project is eligible to participate in national tender for co-financing (from 175 kW)
  • A national tender will select a suitable project developer on the basis of an open, transparent and non-discriminatory process
Disadvantage
  • Requires a long-term partnership with a private company

 

Auxiliary resources

procharging.lu

MEA model documents prepared under the national call for tenders

Key steps
1. Advertising the area
2. Negotiation with project developer
3. Selection
4. Contract
5. Operation and maintenance

2. Municipality as shareholder in a private company

A municipality may, in accordance with Article 173bis of the Law on Municipalities, participate in a company under private law which performs activities in the interest of the municipality. This option also exists for the development of the charging infrastructure as a municipal interest. Such a company with municipal participation can participate in a tender procedure of the municipality and can also benefit from the state subsidies.

Advantage
  • The municipality, as a shareholder, retains control over the company that builds the charging infrastructure
  • The municipality can be the sole partner of the company, or work with partners who bring specific expertise to the project
  • The company may generate profit with the activity
  • Project is eligible to participate in national tender for co-financing (from 175 kW)
Disadvantage
  • Administrative complexity
  • The municipal company must participate in the tender process

 

Auxiliary resources

Klima-Agence planning principles

Key steps
1. Establishment
2. Tender
3. Participation
4. Development

3. Charging stations as a municipal activity in the sense of the common interest of the municipality

If no private project developer can be found for a project, it may also build and operate publicly accessible charging infrastructure on its own. In this case, the municipality must not make a profit with this activity in the municipal interest.

Advantage
  • The charging infrastructure can be developed even if no private project developer shows interest
  • Free choice of design and characteristics
Disadvantage
  • Adequate resources (staff, maintenance...) must be available
  • No state co-financing possible

 

Auxiliary resources

Klima-Agence planning principles

Key steps
1. No project developer
2. Planning
3. Commissioning
4. Maintenance