November 14, 2024

Guest Editorial | True Competition for EV Adoption Is Power Companies, Not Gas Stations

by Aatish Patel, XCharge

From 2011 to 2021, the number of electric vehicles (EVs) registered rose from 20K to over two million, and entering 2023, more than 130,000 EV charging stations are currently being utilized. Notably, according to Edison Electric Institute, EV driving is predicted to continue growing year-over-year, with upwards of 18 million to 26 million EV drivers expected by 2030. In tandem, the Biden administration established a 500,000+ new public charger goal by 2030 to support the predicted rise in EV drivers. However, domestic EV adoption is sluggish compared to other international markets, primarily due to limited charging accessibility for drivers.

Without the proper electrical grid and infrastructure innovations to meet the rising demand for accessible charging, growth will stagnate. The lack of charging accessibility, in turn, increases the reluctance of drivers to adopt electric vehicles. Increasing charging station accessibility, particularly installing chargers in consumer-friendly locations, will accelerate consumer adoption and reduce the need for further government-established initiatives to meet the determined U.S. sustainability benchmarks and goals. However, introducing new charging isn’t a quick fix to increasing EV technology usage, as solutions depend on the power available, especially in environments – like rural regions – with limited grid accessibility.

Hurdles to adoption and electrical transportation implementation

EV charging limitations exist because the North American electrical grid is outdated, especially compared to the European and Asian infrastructure, and is a key restrictor to installing new chargers. The U.S. electrical grid needs grid innovation and superior infrastructure to make deployments possible.

This isn’t the first time, nor will it be the last, that the U.S. utility industry had to rise to the impending challenge of the increased potential of electrical grid strain and usage. For instance, in the 1960s and 70s, air conditioning wasn't a common household amenity but a luxury. As we’ve progressed, air conditioning is now considered commonplace, but the electricity industry had to innovate to meet the sharp rise in demand. Successful adoption relied on deliberate thought into how and where the electricity could be distributed effectively and efficiently to support improved accessibility.

The same electricity challenges and concerns of the 60s and 70s are currently being identified for EV drivers and charging adoption – how will our electrical grid handle the new pressure? Effective and efficient storage and distribution of generated electricity will be essential, but so will unifying all dispersed and usable generating nodes. Ensuring that EV technology is uniform and specifically built to maximize U.S. electrical grid energy transfer efficiency is necessary to increase accessibility and certify no consequential demand from expanded grid use. Furthermore, superior EV solutions can save and restore energy back into the grid, as necessary, to intelligently improve grid resiliency.

A bigger hurdle to relying primarily on EV transportation is charging access, specifically fast chargers which are defined as providing more than 22kW of voltage and serving power ratings up to 350kW. These chargers significantly reduce the idle charge time for drivers to approximately 35-45 mins, compared to the 90+ mins from Level-2 chargers. As of 2021, the US has approximately 22K fast chargers publicly available, but that’s less than half of Europe’s (approx. 49K chargers) and one-tenth of China’s (470K).

Updating charging perception

EV charging station availability is vastly narrower compared to gas stations, as EV drivers are forced to be more conscious and intentional when seeking to charge, or “fill up” their vehicles. Currently, most EV drivers rely on a home charging station for most of their charging needs. But these equipment stations are costly to implement and practically impossible for drivers that live in an apartment complex. Some homes are beginning to offer “charger-ready” homes – but this introduction isn’t a feasible or realistic way to increase charging for everyone across all economic backgrounds.

EV charging could be much more accessible with proper investment, as charging stations don’t need to be limited to specialized areas. Theoretically, charging can be done anywhere. But this concept relies on the EV industry overcoming the pre-established electrical grid determined by the power industry, which will require intensive updates to North America’s current electrical grid to make charging availability not limited to just ‘stations.’

A key obstacle to making charging locations more widely available is the lack of standardization and interoperability within the nation’s EV charging industry. Most EV automakers are designing and implementing their own solutions since there are no governmental standardization requirements for solutions, as noted by Tesla’s business model. Additionally, even the cost of charging isn’t uniform, with some providers charging based on time while others charge based on kilowatt hours (KwH).

Through the creation of EV charging standards, designing and upgrading domestic EV infrastructure can be much more efficient and effective, resulting in fewer rip-and-replace stations. Introducing regulations will establish unified networks that are easier for local businesses and companies to invest in as an additional revenue-generating opportunity. This can only be made possible through collaboration amongst EV technology manufacturers, automakers, policy regulators and the power utility industry, resulting in a more favorable EV ecosystem and cost-effective marketplace.

Municipal and consumer benefits of increasing EV technology

Unsurprisingly, a leading contributor to U.S. carbon emissions is transportation; with one-third of America’s greenhouse gas emissions coming from cars, buses, flights, etc. Electrifying public transportation is a key accelerator for a more sustainable future, particularly for metro metropolitan areas. Right now, the primary location for EV charging is in homes with workplace environments growing. Successful EV transportation adoption requires public charging to be widely available in consumer-friendly locations, such as fast-food locations, coffee shops and malls.

Introducing chargers in these locations creates a mutually beneficial scenario, where drivers can charge in locations they naturally gravitate towards while these local locations generate a new source of income. While initial installation can be slightly higher compared to alternative chargers, deploying an intelligent DC fast charger presents the best ROI for businesses, in addition to consumer benefit. These chargers will not only enhance the overall municipal experience but increase local property value for businesses that have charging available.

Furthermore, a well-considered EV infrastructure is a key component of a functioning smart city, as this technology has a vital role in ensuring sustainability in both rural and metro regions. To track location demand, establishing an EV-per-charger ratio will identify the gaps in a city’s infrastructure to better understand where development will be most impactful. Additionally, an upgraded electrical grid that supports intelligent EV solutions supports superior grid stability, as these solutions can serve as power reserves, as needed.

Companies are pledging to support EV transportation development to help meet domestic greenhouse and carbon emission reduction goals. For instance, General Motors aims to only sell zero-emission vehicles by 2035, while other automakers – including Telsa, Ford and Volkswagen – announced dozens of new EV solutions to be released in the upcoming years. In parallel, Walmart and 7-Eleven recently announced investment in EV charging stations at their facilities, but charging accessibility won’t be effective or successful without proper network grid infrastructure and intelligent EV station investment.

For gas-powered vehicles, drivers have ample dedicated areas to refuel their vehicles, which most drivers take advantage of daily. While filling a battery currently takes longer than filling a tank, there’s an opportunity to create advantages of idle time, like running needed errands or grabbing a snack. If consumers are already stopping to grab groceries or lunch, head to the gym, or even run errands at the mall, why not take advantage of the time by having their EV idle charge?

EV adoption’s biggest competition isn’t gas stations, rather it’s the power companies’ ability to upgrade their transmission networks. To ensure sustainability for the current and growing demand for EV transportation is developing a proper charging infrastructure that’s affordable and easily available in public locations.

Aatish Patel is the president and co-founder of XCharge North America. Before Patel became a founding member of XCharge North America, he was an XCharge customer. He previously worked in hospitality, where he installed an EV charging station at one of the hotels he oversaw. Patel united with XCharge and utilized his engineering and product development expertise to redesign their EV chargers in accordance with the North American grid infrastructure. Before leading XCharge North America, Patel received a B.S. in mechanical engineering from New York University and an M.A. in management from Harvard.