China today said it will build a nationwide charging-station network to cater to the power demands of five million electric vehicles by 2020, a move to provide big thrust to the battery powered car sales.
The network will cover residential areas, business districts, public space and inter-city highways, a set of guidelines approved by the central cabinet said.
Under the guidelines, new residential complexes should build charging points or assign space for them, while public parking lots should have no less than 10 per cent of parking spaces with charging facilities.
There should be at least one public charging station for every 2,000 NEVs, the guideline said.
To finance the project, the government will encourage private investment, allow charger manufacturers to issue corporate bonds and seek investment from pension funds.
Following the announcement, shares in charging companies were favoured by investors during today’s morning session.
Shenzhen Auto Electric Power Plant Co, rose 0.95 per cent to 33.87 yuan (USD 5.33).
China has rolled out subsidies and tax cuts to promote NEVs, cut emissions and save energy. The sector has seen explosive growth in the past two years.
In the first eight months of 2015, NEV sales surged 270 per cent to 108,654, according to the China Association of Automobile Manufacturers.
Despite restrictions of sales of new cars in several cities to reduce traffic congestion, over 23.49 million automobiles were sold in China last year.