The UK's streets and car parks could see thousands more charging points for electric and plug-in hybrid cars thanks to £30 million of Government funding.

Transport Secretary Andrew Adonis has invited cities and businesses to join together to bid for the money which will help fund the installation of charging points on streets, car parks and in commercial, retail and leisure facilities.

This initiative – called Plugged-In Places – will support the development of between three and six electric car cities and regions across the UK which will act as trailblazers for electric car technology. The experiences of these locations will inform the future development of a national charging infrastructure.

Overall, the Government is investing around £400m to encourage the development, manufacture and use of next generation ultra-low carbon vehicles. Delivered by the Office for Low Emission Vehicles this support is being targeted to create new jobs in a low carbon automotive sector and to cut carbon from UK road transport.

Transport Secretary Andrew Adonis said: "The UK can be a world leader in electric and low carbon cars which is why the Government has already committed around £400 million of support to encourage development and uptake of ultra-low emission vehicles.

"Our aim is for electric and low carbon cars to be an everyday feature of life on UK's roads in less than five years. There is still a lot of work to be done, however Plugged-In Places is one very significant step putting us firmly on the path to a low carbon future."

Encouraging companies to get involved, Business Minister Pat McFadden said: "The move to lower-carbon forms of transport is a turning point for the automotive industry, opening up new opportunities for existing UK automotive companies and with the potential to create new jobs and new industries, for example around the charging infrastructure.

"I urge British companies to get involved and seize these new opportunities for growth and jobs... Our aim is for Britain to become a global centre for low carbon transport development, manufacturing and delivery – the Government is backing businesses who want to help make this happen."

The total number and location of charging infrastructure supported by this initiative will depend on local plans and requirements. The intention is that successful applicants will match the Government's investment.

These plans build on existing measures to support alternative fuels and today the Government is announcing the seven schemes that will benefit from £500,000 of funding through the Alternative Fuels Infrastructure Grant Programme. These schemes will see the provision of 72 electric charging points and four gas refuelling stations in areas across England.

NewRide map of UK recharging points, Office for Low Emission Vehicles

The idea that a wholesale switch to electric cars would automatically reduce CO2 emissions and dependence on oil is challenged by a major new report conducted by the European Federation for Transport & Environment on behalf of the UK's Environmental Transport Association (ETA).

The report found that whilst there were significant potential environmental benefits to be had from a switch to electric vehicles, these were wholly dependent on changes in the way electricity was generated, energy taxed and CO2 emissions regulated.

For example, under the current EU emissions trading system, sales of electric cars are likely to result in higher overall CO2 emissions and oil consumption.

Director at the ETA, Andrew Davis, said: "Whilst the report is not intended to dampen enthusiasm for electric vehicles, their introduction should not be viewed as a panacea; significant changes to the way we produce and tax power are needed before we will reap any benefits."

The key findings of report include:

Performance – Electric cars powered by wind or solar energy are obviously superior, but if the electricity comes from coal, hybrids perform better.

Price – There is potential for improvement in performance and reduction of costs in the medium term, but not enough to suggest electric cars could compete head–on with conventional vehicles within the next two decades.

CO2 emissions – The EU emissions trading system implies that plug–in electric cars would not increase CO2 emissions because the power sector is covered by the scheme. If this trading scheme remains unchanged, sales of electric cars are likely to result in higher overall CO2 emissions and oil consumption.

Popularity – Low running costs of electric vehicles would lead to extra demand for car transport and make necessary the taxation of electricity. On–board metering of electricity use would be a key requirement.

Electric Grid – Even if the National Grid has the capacity and the basic infrastructure to meet the needs of electric cars, the new demand patterns they will create may mean greater use of coal and nuclear power.

Several recommendations are made by the report. While the study considers it unlikely that electric vehicles will number more than 25% of new sales by 2050, but in order to speed the uptake of the technology and manage the transition, the report recommends the following three measures:

(1) The most certain way to promote electric–powered transport is to tighten long–term CO2 standards for cars to 80 g/km by 2020 and 60 g/km by 2025 whilst at the same time increasing fuel taxes. A lack of stringent CO2 standards removes the main incentive for motor industry to invest in electrification. Road tax exemption and grants for electric cars should be abolished; electric cars must be rewarded for their energy efficiency, not for moving emissions from exhaust pipes to power station chimneys.

(2) The quantity and quality of electricity used in electric cars must be measured. On-board metering of the amount of electricity will be critical in order to manage and regulate demand for electric vehicles.

(3)The power sector has to be de-carbonised Existing loopholes in the Emissions Trading Scheme need to be closed and the cap further tightened.

ETA, Download report: How to avoid an electric shock: Electric cars: from hype to reality (1.8MB)

Peugeot's revolutionary electric vehicle of the future – the BB1 – will be visiting Covent Garden on 7th and 8th November.

The BB1 is a glimpse of what could be urban mobility in the future. A cross between a car and a scooter, it is powered by two electric motors mounted in the rear wheels and has enough power from its lithium-ion battery packs to travel up to 75 miles between recharges.

Unlike many small electric cars, this vehicle can accommodate up to four adults due to its innovative layout and controls which are more scooter than car. Solar panels also help power the vehicle's onboard systems and it will communicate directly with a modern smart phone, so you can operate your music, images, hands-free phone and navigation.

The Peugeot BB1 will be on show in Covent Garden from 10 am until 7 pm, on 7th and 8th November, enabling the general public to have a close up look into the future of urban mobility.

Twenty five Peugeot BB1 branded rickshaws will also be operating around Central London to ferry interested individuals to the BB1 display, free of both cost and of course emissions.

Newspress, twitter.com/PeugeotNews