Om Shankar, Vice President and General Manager of Konect, considers how fuel retailers can accelerate electric vehicle charging infrastructure in the US.
BRIDGING THE GAP
As electric vehicle (EV) adoption continues to rise and new funding for charging infrastructure is announced, the US is making encouraging strides toward wider EV usage.
This transition is crucial, especially with upcoming emissions targets for vehicle manufacturers and the urgent need for fleet decarbonization.
However, significant challenges remain. While the push toward EVs is gaining momentum, it’s evident that global markets are falling behind in expanding public charging infrastructure.
The current situation in the US serves as a reminder of how much more progress is needed. Despite being the second-largest EV market globally, there are still fewer than 200,000 publicly available charging ports across the country.
To put that into perspective, experts estimate that over one million additional charging ports will be needed by 2030 – requiring a staggering 550 percent increase from today’s numbers.
At the current pace of infrastructure installation, the US will struggle to meet the growing demand for electrification.
To overcome this, smart solutions are needed. These could include unlocking more funding, developing feasible financing options for charge point operators (CPOs), and addressing local energy grid limitations.
EVOLVING THE CHARGING EXPERIENCE
As EV adoption grows and driving EVs becomes more common, the charging experience itself needs to evolve.
Drivers’ expectations of what they should find at a charging station are shifting rapidly. They want the charging process to be as convenient and seamless as refueling at a gas station, with similar access to facilities and amenities.
Unfortunately, many current public charging stations fall short of these expectations – they may have poor lighting, be difficult to locate, or lack basic amenities to keep drivers occupied during the charging process. For drivers who lack home charging options, these shortcomings can be deal-breakers.
The transition to electric mobility is driven by necessity, but it also needs to be focused on creating a convenient and positive experience for drivers.
When these two factors are considered, it’s clear that fuel retailers have a unique opportunity to help bridge the gap.
These retailers are already strategically located along major highways and provide familiar services to drivers, including essential amenities.
Encouragingly, fuel retailers are already beginning to embrace this potential. In fact, 68 percent of applications for National Electric Vehicle Infrastructure (NEVI) funding have been awarded to fuel retailers.
However, it’s important to acknowledge the challenges fuel retailers face in making this transition. These challenges can hinder the ability to provide effective service and create a solid business case for offering reliable, profitable EV charging.
According to a study conducted by Konect of several charge-point operators, over 71 percent find it difficult to track charge point downtime at their locations. Additionally, more than half (57 percent) identified a lack of support from service partners as the main obstacle to improving uptime.
WATTS-TO-WHEELS
For fuel retailers to unlock their potential in the EV charging space, the industry must ensure that they have access to the right support and technical expertise.
At the outset, this means helping retailers assess how many chargers to install, evaluate the capacity of their local energy grid, and determine the most efficient business model for their charging services.
Profitability is a key concern for fuel retailers as they move into the EV charging market. To make their investments in EV infrastructure worthwhile, they need dependable charging equipment as well as ongoing maintenance and servicing to maximize charger uptime.
Beyond that, retailers also need to explore new revenue streams that can help make their operations more profitable. This can be achieved by integrating the entire charging and retail ecosystem, creating a comprehensive ‘watts-to-wheels’ experience for customers.
This kind of model presents multiple revenue opportunities for retailers. They can potentially generate income from carbon credits, sell stored energy back to the grid, and take advantage of the longer dwell times associated with EV charging by attracting customers into their premises.
By offering more services and experiences while customers wait for their vehicles to charge, fuel retailers can turn this challenge into a lucrative opportunity.
The current shortfall in EV charging infrastructure is a significant challenge for the automotive industry, but it also presents an exciting opportunity to rethink both charging stations and fuel retail for a new era.
By supporting fuel retailers in making a successful and profitable transition to electrification, the industry can unlock the full potential to accelerate infrastructure development and ensure that it meets the needs of the clean mobility future.
Fuel retailers are well-positioned to take on a crucial role in this transformation. With the right approach, they can help close the infrastructure gap and provide drivers with a charging experience that meets their expectations.
This will be vital in ensuring that the shift to EVs continues to gain momentum and that the US remains on track to meet its electrification goals.
