Electric vehicle (EV) charging stations are finally reaping the benefits of growing EV adoption in the United States. According to data from Stable Auto Corp., the average utilization of non-Tesla fast-charging stations doubled from 9% in January to 18% in December of last year. This surge in usage indicates that charging stations are becoming profitable as they need to be actively used around 15% of the time to turn a profit.
Brendan Jones, CEO of Blink Charging Co., which operates 5,600 charging stations in the US, noted the noticeable increase in EV market penetration. Even if the market stays at 8% penetration, there won’t be enough charging infrastructure to meet the demand. This rise in utilization has prompted numerous charging stations to become profitable for the first time.
The situation marks a significant milestone for the industry. Cathy Zoi, former CEO of EVgo Inc., expressed her optimism during an earnings call, stating that the profitability of charging networks is stronger than ever. EVgo, with around 1,000 stations in the US, had almost one-third of its stations operating at least 20% of the time in September.
EV charging has faced challenges due to a lack of infrastructure and slow EV adoption. However, the National Electric Vehicle Formula Infrastructure program (NEVI), which is distributing $5 billion in federal funding, aims to ensure a public fast-charging station exists at least every 50 miles along major travel routes. This initiative, combined with 1,100 new public fast-charging stations added in the second half of last year, has brought the US closer to achieving parity between EV charging infrastructure and the number of EVs on the road.
States like Connecticut, Illinois, and Nevada have already surpassed the national average for charger utilization rates. Illinois boasts the highest average rate at 26%. Despite the increase in charging stations, their utilization has grown, indicating that EV adoption is outpacing infrastructure expansion.
While charging stations need to reach approximately 15% utilization to be profitable, once the utilization approaches 30%, it can lead to congestion and driver complaints. However, the improved economics of charging networks, fueled by increased usage and federal funding, will encourage the construction of more charging stations, further driving EV adoption.
Stable Auto, a San Francisco startup, analyzes various factors to determine suitable locations for fast chargers. With their model giving the green light to more sites, the availability of attractive locations for charging stations is expected to increase. Additionally, Tesla’s decision to open its Supercharger network to other automakers will expand charging options. Tesla currently operates over a quarter of all US fast-charging stations, with about two-thirds of all cords specifically designed for Tesla vehicles.
As EV charging infrastructure continues to grow and profitability becomes more evident, the industry is poised to meet the increasing demand for convenient and accessible charging options, accelerating the transition to electric mobility in the United States..
Lesley
Sichuan Green Science & Technology Ltd., Co.
sale03@cngreenscience.com
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www.cngreenscience.com
Post time: Mar-22-2024
