Charging challenges: Why utilization is key for eMobility Service Providers

The rapid advancement of electric vehicle technology in recent years has led to an explosion of new electric mobility services seeking to capitalize on increasing consumer interest in more sustainable transportation options. While many of these new services have focused heavily on vehicle acquisition and software development, a crucial component for long term success and scalability has received less attention: efficient charging infrastructure utilization. For eMobility services to achieve mainstream adoption and financial viability, maximizing the use of available charging stations will be essential.

The rapid growth of electric vehicles is outpacing the charging infrastructure

The rapid adoption of electric vehicles is outpacing the rollout of charging infrastructure in many areas. As more individuals and businesses transition to EVs, the demand for public charging will intensify in the coming decades. However, high costs and long wait times are barriers to use that can only be overcome if service providers implement innovative strategies to optimize the charging infrastructure. Although expanding charging networks is important, the key to unlocking electric mobility at scale lies in utilizing existing infrastructure as efficiently as possible. Those electric mobility companies that can develop systems to keep more vehicles on the road by reducing charging downtime will be best positioned to shape the future of transportation.

Low charging station utilization creates inefficiencies

While the number of public charging ports is growing globally, a large portion experience low utilization. Studies show that in some areas, over 50% of ports are used less than once per day, which creates significant inefficiencies for electric mobility service providers and could discourage further investments.

Electric vehicle charging stations require high upfront capital investments to install but generate revenue primarily through usage over time. However, experiencing low utilization rates, especially in the initial years of operation, can potentially result in a longer payback period and reduce profitability.

There are several key factors that contribute to the underutilization of charging stations:

• Limited accessibility: Charging stations may not always be located in convenient or highly trafficked areas. This can lead to lower usage rates as potential users may find it difficult to access these stations.
• Inadequate infrastructure: In some areas, the infrastructure to support eMobility is lacking or insufficient, making it difficult for users to take advantage of these charging stations.
• Lack of awareness: A significant number of potential users may not be fully aware of the locations of these charging stations or how to use them, leading to underutilization.
• Charging time: The length of time it takes to fully charge an electric vehicle can also be a deterrent for potential users. If charging times are too long, users may opt for more traditional fuel methods.
• Cost factors: The costs associated with using charging stations can also play a role. If the costs are perceived as too high, it could deter potential users from utilizing these services.

In summary, while the charging infrastructure enables electric vehicle adoption, underutilized stations can potentially block the growth and profitability of businesses. However, electric mobility service providers can implement several strategies to improve charging station utilization and accelerate the return on their investments.

Strategies to optimize charging station utilization

Strategic planning around charging infrastructure utilization is key for eMobility service providers to succeed.

Optimizing location selection

Carefully selecting charging station locations based on usage data and projections can maximize utilization. Locations should be chosen based on:

• Traffic patterns and vehicle dwell times. High-traffic areas where vehicles remain parked for extended periods are ideal.
• Proximity to amenities. Stations near shopping centers, restaurants, and entertainment venues will attract more use as drivers can charge while frequenting nearby businesses.
• Residential and workplace charging gaps. Areas underserved by residential and workplace charging are good targets, as more public stations will be needed.
• Varying power levels for different use cases. While fast charging stations cater to customers looking to quickly recharge and continue their journey, normal and slow charging options may be more suitable and cost-effective for overnight charging at home or work.
• Future mobility trends. Locations should align with projected increases in electric vehicle adoption and usage in the coming years. This helps ensure high utilization rates over the long term.

Setting competitive, dynamic pricing

Utilization can be increased by setting pricing that incentivizes station use. Pricing should be:

• Lower than residential and workplace charging costs. Lower prices will draw more drivers to public charging.
• Competitive with local fueling costs. Pricing near the cost of gasoline will make public charging an attractive option for most drivers.
• Dynamic based on time of day and demand. Higher peak period rates encourage off-peak use, balancing overall utilization. Surge pricing during high demand deters overcrowding at stations.
• Bundled with amenities. Bundling charging with promotions at nearby businesses, like discounted parking or meals, provides added value to drivers and boosts station traffic.

Improving user experience

An overall positive experience at charging stations also drives utilization. Key factors include:

• Modern, well-maintained equipment. Up-to-date charging hardware with connectivity and technical support will give users a seamless experience.
• Clear payment options. Simple tap-and-go payment, subscription plans, and bundled promotions make paying to charge convenient.
• Safety and comfort. Well-lit, secure locations with basic amenities like shelter, seating, and restrooms encourage longer dwell times and return use.
• Real-time data access. Apps and station displays providing details on pricing, availability, wait times, and charge status give drivers the information they need to confidently use public charging.

By focusing on these strategies, electric mobility companies can optimize their charging networks to handle more vehicles and gain a competitive advantage, which is the key to higher utilization and ultimately, an improved charging experience.

How increased utilization can enable electric mobility success

Improving the charging experience through higher utilization is essential for the large-scale adoption of electric mobility. When the charging infrastructure is frequently used, the total cost per charge decreases, wait times are reduced, and range anxiety is mitigated as more charging options become available, which is a win-win for both companies and customers in the electric mobility ecosystem.

More charging occasions

With a larger customer base comes more opportunities for charging. Each time an electric vehicle is charged, utilization increases. Providers should aim to attract as many customers as possible to their charging networks by offering competitive pricing, premium charging locations, and a widespread charging footprint.

Faster charging speeds

Faster charging means each session is shorter, so the charger can be used by more vehicles in a day. Providers can install more high-powered chargers that are able to charge a vehicle in 30 minutes or less. While fast charging does require higher capital costs, the potential for greater utilization and more charging sessions per day helps offset costs.

Vehicle-to-grid integration

Some providers are exploring how to use electric vehicle batteries as an energy storage system when vehicles are plugged in but not charging. Known as “vehicle-to-grid” or “V2G” technology, it allows energy to flow from the vehicle to the grid and back. This creates additional revenue opportunities for providers by selling stored energy back to the grid during peak demand. V2G also gives electric vehicles a new purpose when not in use, further improving asset utilization.

Partnerships and interoperability

Interoperability between charging networks and partnership agreements allow more electric vehicles to use a provider’s chargers, expanding a provider’s reach and customer base. Integrating public charging into existing parking infrastructure via partnerships with businesses, municipalities, and property owners helps ensure chargers are frequently used. Working together, electric mobility stakeholders can build a robust and well-utilized charging network.

To sum up, increasing utilization through more charging occasions, faster charging speeds, vehicle-to-grid integration, partnerships, and interoperability is key to the success and scalability of electric mobility. With higher utilization comes greater revenue opportunities, lower costs, and the ability to accelerate transportation electrification.

Conclusion

As electric mobility continues to expand, service providers must focus on developing charging infrastructure that is heavily utilized to ensure long-term success. Simply installing more charging stations is not enough: stations must be strategically placed in locations that maximize use and meet drivers' needs. Partnerships with businesses and municipalities to provide public charging are also key.

Service providers that are able to build a robust, well-utilized charging network will thrive as electric vehicles become more mainstream, while those who struggle with utilization and meeting demand risk losing customers to competitors with more convenient, readily available charging options. Overall, charging utilization is the metric that matters most for realizing the promise of sustainable transportation, and success is within reach for those ready to make the necessary investments in our shared electric future.