Cars are back on the road! It’s time to speak about the rising Demand for Public EV Charging Stations in America, which is the title of the next happy hour organised by Women in Cleantech and Sustainability and Marin Energy & Transportation Group.

What are the biggest challenges of EV charging in the US? How does public connected charging stations work? Who should lead this transformation? These are the topics that Richard Albrecht, Founder & CEO will have the opportunity to address in this session!

Get seated, prepare your refreshments and join us Thursday, July 16, 2020, at 5 pm PT for this Virtual Happy Hour! Please, book your event now! The event has a small entry fee but as friends and partners of Saascharge, you can benefit from 30% discount with this code. Please contact us for further information.

Public charging networks are growing all over the world but are they competitive? Of course, all marketing managers will surely promote the performance of charging station with great power output, coverage with number of charging points, great services with smartphone applications and 24/7 hotline. Despite all these parameters, Pricing is often underestimated as if EV drivers should be thankful to have access to public charging stations. This is often the case when new markets are opening but will quickly change when competition arise. Thankfully, this is already happening in multiple eMobility markets. The upcoming interconnection of charging station networks thanks to eRoaming solutions do offer access to thousands of public charging points all over Europe. When you get access to almost the same product, pricing become highly strategical! So, what should be the right price?

Let’s first try to understand the elements to determine a charging price:

1. Costs: Energy, service and infrastructure
2. Offer and Demand: Driver readiness to pay for charging
3. Strategy: Competition, tactics and goals

What are the cost of public charging?

The cost of public charging is depending of all elements needed for a driver to stop and charge a car. In a gasoline station we would calculate the brute price of oil, refinery costs and finally different taxes and a margin to cover all running costs (location, salaries, infrastructure and payment system…).

In the electricity world, we don’t have to refine the product, we just have to deliver it with the right power and that depends of the infrastructure and the way we can access it. The biggest difference with gazonline is that public EV charging networks are organised around a “Service provider” structure which makes them closer to Mobile operators than a gaz station model.

Here is a representation of the structure and all elements that you have to take into account to run a public charging network:

Next to these, you have to take into account all commercialisation costs to acquire and manage drivers and owners of charging stations and of course the electricity costs.

Offer and demand: Driver readiness to pay?

Despite a growing eMobility service provider competition with a variety of prices, the biggest benchmark remains the retail price of electricity. Basically, what drivers are paying at home to charge a car. This is rather unusual in comparison to the gasoline world and makes Drivers less dependent to public charging network. At least for a radius of 150 to 500 km where customer have to charge a car and may more interested about the location, ease of use (access, payment) and charging time (power output) rather than the price. It means that they are quality oriented but not ready to pay fantasy prices and would compare eMobility provider offers.

Strategy: How do you want to charge your customers?

The concept and way of billing is strategical. The objective is to gain, retain and finance Charging station investors. We can already see 2 major pricing concepts and various pricing types.

Pricing concepts:

1. Per station-based pricing

The benefit of this model is that owners of charging stations can define price schemes according to their needs. For example, a low pricing policy, to attract customers for other services (e.g. restaurant, coffee clients…) or a progressive pricing per minute to encourage drivers to free up charging stations for the next driver. The weakness is that it does generate a multitude of prices which can only be checked over a smart phone application. We can compare this pricing concept with the gas station model where prices can be openly set. There are however 3 massive differences:

• 1^st Gas station prices are clearly indicated on the facilities. You do not have to open a smartphone application to check prices
• 2^nd Way of billing per litre or gallon is always the same. There is no multiplicity of type of pricing such as minimum amount, setup or per minute billing.
• 3^rd price disparity is very low. eMobility drivers have to count with charging prices with differences of almost single to double in a radius of a few miles.

2. Network pricing

Country with Zones:

In summary, the difference of both prices is about the logic of pricing calculation from the Driver or from the Charging Station. I tend to prefer the pricing approach from the Driver which is the customer of these networks. 

Billing plan types:

Billing plan types are about the way drivers can be billed for charging transactions. There are a lot of possibilities depending on system capabilities, regulation and goals.

All these prices have a reason to exist. However, the best way could be a mix of all these pricing types. For examples, this charging plan that I have seen recently in the US:
– Setup to give access to the charger
– Per kW until the car is charged
– Per minute for all remaining time after completion of the charging process

Image courtesy of Juice Technology AG.

Electric vehicle public charging Networks are more than just charging stations set randomly in an area. The prime objective is to support EV drivers with reliable, available and fast charging. In my last February blog post, I was referring to the concept of a public charging network, here we are talking about general characteristics. This post is based on my experience working for a public charging Network and frequent exchanges with market players. From technical aspects to the business model, the idea is to give an overview of what a public network shall be composed of.

1. Charging Efficiency: Time to get you going

The speed of charging is important but not always essential, it has to be adapted to the situation. For example, charging a car overnight would be acceptable if the charging point is in a hotel. On the other hand, if you are stopping at a highway service area, you would expect to get a fast-charging station able to get you going in 10 to 15 minutes. That’s why the industry has come up with the following segmentation:

1. Coffee and Charge: 15 to 20 minutes for a full charging process / Power around 50 to 150 kW
2. Shop and Charge: 1 to 2 hours for a full charging process / Power around 22 kW
3. Sleep and Charge: 6 to 8 hours for a full charging process / Power around 3.6 kW

It has to be noticed that the time of charging is indicative and depends on car type and battery size.

2. Charging Cable Plug compatibility

There are currently different charging standards which are being used in the EV market. DC (Direct current) charging for fast charging and AC (Alternative Current) with lower capabilities. These are the different available systems:

• CHAdeMO: DC
• CCS (Combined Charging System): DC
• Type 2: AC

European and North American car maker are investing more in type 2 and CCS cables rather than CHAdeMo which is currently used by the Asian competitors. We could expect an uniformisation but this is unlikely to happen in the next 5 years. That’s why charging stations shall be compatible with multiple socket formats.

3. Diverse Access solution

E-mobility Providers offering public charging Station access to Drivers, generally propose 2 types of identification systems for subscribers; RFID cards and/or QR code that can be used with a Smartphone Applications. Mobile SMS or NFC (Near Field Communication) are used by “pay as you go” consumers. As the market is not yet set, the idea is to be compatible with a broad type of access technologies.

4. Location, location, location

A great location is a key element of a public EV charging network. It is even more significant than with traditional Gaz stations because a fast charging process can take 15 to 120 minutes. It is, therefore, essential that these charging Points are based in areas with activities such as coffee shops, Restaurants, businesses or leisure facilities.

5. Network Interoperability: Open to access and be accessed

EV public charging networks shall be open for a maximum of drivers. The interconnection via Roaming Platforms such as Saascharge eRoaming or/and directly via a peer to peer roaming protocol with the Open Charge Point Interface (OCPI) are crucial for the comfort of drivers. This will increase the amount of charging possibilities and improve the adoption of EVs. Profitability of charging stations will also benefit from this additional frequentation.

6. Charging Points numbers

Taking into account that a car could occupy a charging spot for a while and that this technology is still fragile, a multiplicity of charging points matters! This could, however, be improved with a booking of charging location but this is not a practical concept (not ideal when a driver is late due to traffic jam). it is, therefore, important to follow the utilisations of charging stations and plan the construction of additional points accordingly.

7. Smart pricing model

Affordable and smart pricing model could encourage drivers to use more often public charging facilities. Some E-mobility Providers (EMP) set prices per charging Stations while other define prices per networks.  A smart pricing has to be uncomplicated, attractive and transparent. That’s why I do prefer a network pricing approach rather than a “gaz station” type of model.

Examples of pricing:

• Flexible kWh or minute transaction billing with subscriptions or “pay as you go” type of pricing.
• Differentiated prices for local or national usage which is ideal for urban drivers using exclusively public EV charging infrastructure.

8. Customer Service

Customer service for drivers is essential considering that EVs and public charging Stations are still new technologies with high complexities. Cases such as blocked cable or system breakdown have to be solved as soon as possible. We are not in the Apple world where Software and Hardware are manufactured by the same company and work perfectly together. Cars, charging stations and system backends are all from different vendors. Even with the best market standards for charging plugs or communication protocols, this is still not stable yet and requires a competitive customer service.

9. Charging Station Design: It must be adapted to the landscape

The design of a charging station is especially important when it is located in an urban area. It has to be discreet and visually integrated into the landscape. Ultra-fast charging stations have generally the look of a giant box mixed with a bunch of cables which makes them look like a Christmas tree. These kinds of charging Stations are appropriate on a Motorway but definitely not at the Champs-Élysées in Paris! As you can see in the illustration picture, the Swiss charging station manufacturer, Juice Technology has understood that design is a major argument when it is located in a nice area.

10. Solid Business Model

Last but not least, a business model involving every market players from the drivers, network, and investors (charging station owner) is essential. This would ensure sustainability and growth. This does include partnerships with communities for support and access to prime locations. Commercial partnership with the automotive industry and fleet management companies are prime to grow a customer base (drivers).

In summary, as the market is not defined yet, it is important that public charging station networks are available, open and compatible with multiple standards, infrastructures, and network.

WHAT IS A PUBLIC EV CHARGING NETWORK AND HOW DOES IT WORK?

With the growing number of Electric Vehicles (EV) on the road, it is important to understand the importance of public EV Charging Networks. Tesla has successfully advertised his exclusive US and European Charging Station Network. However, multiple other networks are starting to invest in this market with the expectation to get important future revenues.

Public EV networks have basically the same utility as traditional gas stations, the structure of a mobile phone network and a similar profile than financial payment cards.

First of all: Is a Public EV Charging Network really important?

This is a fair question, because, despite the gasoline cars, the electric vehicle can actually be charged at home.  Moreover, with today’s electric cars reaching already 500 km and soon 800 km, “Home charging” is definitely going to be the prime source of charging. However, Public EV Networks are essential for three groups of customers:

• Urban People:  Car Driver without assigned Parking lot. In some countries that could represent up to 40% of the population
• Occasional travellers: e.g. weekend & holiday trips
• Frequent travellers: e.g. Delivery Service, Sales Rep. Taxi…

What are the equipments of a Public EV Network?

A Public EV Charging Network is equipped with Smart Charging Stations connected to a central control unit called a backend to manage EV driver Charging requests. Smart Charging Stations communicate over a wireless network thanks to an M2M (Machine to Machine) card which is basically a Mobile SIM card for machines.

Drivers have to use an RFID (Radio Frequency Identification) card or Smartphone application to identify and generate the charging process. The concerned Charging Station would then remotely manage the authorization request with the connected Backend.

How does a Public Charging Network work?

With the geographical complexity of Europe and the future EV market attractiveness, competition becomes obvious and wished. Indeed, a single public Charging Network covering every business roles from the Charging Station to the EV driver cannot be sustainable. It should be open and connected!

We can distinguish three main roles for public EV Network:

1. Charging Station Operator (CSO)
CSO do manage EV Charging Networks. It means that they manage Charging Stations which belongs to multiple owners. For example Restaurant, Public Parking, Shopping Mall…
Example: Utilities (e-on, Vattenfall, Groupe E, Alpiq,, EDF…) EV-point (Belgium), Smatric (Austria)…

2. E-Mobility Provider (EMP)
EMP do offer Charging Station Network access to EV Driver. This is a Service Provider for Retail customers with subscription or “Pay as you go” type of offers.
Example: OEM (VW, Renault, BMW…), Plugsurfing (Germany), The New Motion (Holland), Blue Corner (Belgium)…

3. Mobility Network
The E-Mobility Network have the role to link the EMP with the CSO. This is the so cold “Network” or “E-Roaming platform”.
Example: International Roaming Platforms (Gireve, Hubject, e-clearing.net…), Move (Switzerland), Ladenetz (Germany)…

It has to be noticed that some important Market players do currently manage every role (EMP, CSO, Mobility Network). Companies such as “The New Motion” in Holland or Charge point in USA.

Payment transfer: Who is paying for the charging?

These market actors (CSO, EMP, Mobility Provider) are linked together to manage the financial clearing (payment process) of Driver charging transactions.

Payment Process
a. EV Driver charge at a Public Charging Station (e.g. Restaurant Parking)
b. EV Driver pays for the charging to the EMP
c. EMP pays for the EV Driver charging to the CSO via the E-Mobility Network
d. CSO do compensate for the EV Driver Charging to the Charging Station Owner (Restaurant Charging Station)

Comparison with the Credit Card Market
We can compare this structure to the Payment Card Business Model. For example, a Public Charging Station can directly be compared to a Bank ATM compatible with different payment cards (Visa, American Express, Master Card…). The EMP is the Issuer, the Credit Card Network is the E-mobility Network and the CSO is the Acquirer. This payment card model, like the E-Mobility one, do supports different competitors.

Business Model: Who is offering what?

E-Mobility Provider (EMP)
EMP do provide Charging services for EV drivers. They offer the following type of services:

• EV Charging Network access: Yearly Subscription fees or “pay as you” type of offers
• Charging transactions: Price pro kWh or minutes

EMP offers can be compared with what we can find with mobile phone network provider with subscriptions and usage price models.

Charging Station Operator (CSO)
CSO do provide services for Charging Station Owner. They offer the following type of services:

• Charging Station Sales and Installations
• Charging Station Service Management
• Access fees to the Public Charging Network
• Billing Services (Compensation for EV Driver charge processes)

Mobility Network
The Mobility Network Business Case is very similar than the Payment card (credit card) Business Model as mentioned in the example above. Mobility Network makes money with the generated Charging transactions on their network. However, as this market is not yet mature, different other models are currently applied.

• Licence price per EV driver
• Fix setup cost per Charging

I want to buy a Charging Station and be part of this market. What should I do?

The best way to add a Charging Station to a Public EV network is to contact a Charging Station Operator (CSO). They are going to offer you the best options to connect your Charging Station to multiple Mobility Networks. So that you can be reachable from the biggest amount of EMP’s, basically from Drivers.

What are the Success triggers of a public EV Charging Network?

The main success of a public EV Charging Network will simply be measured with the amount of Charging transactions. In other words, more EV drivers charging equals more transactions! Let say, that any Public Network is linked with the success of electric vehicles.

Efficiency, quality and Charging Stations infrastructure compatibility is mandatory to ensure the maximum of EV drivers stopping by. More the Public EV Network is open for multiple EMP’s, with the connection to multiple Networks (E.g. Roaming Platform), more charging transactions are likely to happen! Of course, great locations are key to ensure that EV Drivers have something interesting to do while their cars are charging. Last but not least, pricing concepts have to be smart and affordable to ensure continuous success.

Market roles are set, charging stations and EV cars numbers are growing. Everything is progressing to become a mass-market product in the years to come!

Next Steps?

Creating a network is possible with Saascharge. Please contact us for more information