Megawatt Fast EV Charging and Grid Coordination
The future of electric vehicles (EVs) took a significant step forward this week in China. The Chinese automaker BYD unveiled a new battery technology that provides its latest electric models with over 600 miles of range. Impressively, BYD claims that this battery can be charged with 150 kilowatts of power in just five minutes. If these claims hold true, the traditional advantages of petrol vehicles—namely long driving range and rapid refuelling—are beginning to diminish.
However, such advanced battery technology depends on the availability of ultra-fast charging points. A single megawatt charger can draw as much power as a small town in Britain. BYD's system utilizes megawatt chargers delivering approximately 1.5 megawatts of electricity, which is more than four times the capacity of the fastest chargers currently available in the UK. China is rapidly expanding this infrastructure, with plans to install thousands of megawatt charging stations within the next two years.
UK's Infrastructure Limitations
In contrast, the UK would face significant challenges in supporting a comparable network today. Without substantial upgrades to substations and local distribution networks, the existing system cannot accommodate the power surges generated by ultra-fast EV charging. The UK's electricity sector is fragmented, with responsibilities divided among numerous organizations and companies. This fragmentation slows progress and complicates infrastructure development, especially when compared to China's centralized approach. The Chinese model bears similarities to Britain's postwar electricity system.
Historical Context: Britain's Centralized Electricity System
During the era of the Central Electricity Generating Board (CEGB), generation, transmission, and system operation were integrated within a single organization that planned and managed the network. Economic historian Arthur Downing noted that the CEGB linked large power stations through a national grid operated as a unified system. This integration produced decades of efficiency improvements and declining electricity prices.
Britain's abundance of electricity did not arise from state withdrawal but from the creation of institutions capable of coordinating a complex industry. The UK built its first national electricity grid in 1938. Today, some transmission projects require twice as long to complete just to secure planning permission. Developing the infrastructure necessary for the low-carbon transition demands institutional capacity rather than mere deregulation.
Privatisation and Its Consequences
The CEGB, viewed by Margaret Thatcher as an outdated institution, was dismantled and privatised in 1989. The Labour Party warned that this would lead to increased prices, which indeed occurred. According to a 2020 report by the Commonwealth thinktank, nearly a quarter of the average household energy bill—approximately £450—now goes toward corporate profits, a phenomenon dubbed the "privatisation premium." Similar impacts are observed in other essential services. For example, in the English privatised water system, 40% of a water bill is allocated to shareholder returns and debt servicing, whereas publicly owned Scottish Water spends only 10% of its revenue on borrowing costs.
These elevated costs are not primarily due to physical infrastructure such as pipes, power stations, or grids. Instead, they reflect differences in financing and ownership structures. Public entities can borrow funds at rates close to those of the government, while private firms must also provide returns to shareholders, increasing the cost of capital and, consequently, household bills. Over a 30 to 40-year period, these cost differences accumulate to billions of pounds.
Fragmentation and Loss of Institutional Knowledge
Privatisation fragmented Britain's electricity system, replacing the integrated model with a complex array of competing companies. Infrastructure networks rely heavily on knowledge developed over decades by engineers and operators. When these institutions are dismantled, much of that expertise is lost. The UK now faces a critical decision: either rebuild the capacity to coordinate and manage the grid effectively or risk falling behind as technologies like BYD's megawatt charging system emerge elsewhere.
"Britain now faces a choice: rebuild the capacity to coordinate the grid – or watch technologies like BYD’s arrive elsewhere."
