4 Factors Impacting Success of Electric Vehicle Adoption
The hot topic of automobile electrification has raised concerns for convenience stores and gas stations across the United States. “Will gas stations become non-existent?” “Should I install electric charging stations at my facility?” These are some of the questions that arise for a variety of owner-operators of traditional gas stations who ponder on the impact that electric vehicle adoption has on their bottom line. While the transition from ICE (Internal Combustion Engine) to EV is inevitable, there are several factors that must occur in order for complete EV adoption to take place.
#1: Charging Access and Availability
Electric vehicle charging must be convenient and hassle-free for interstate and long-distance travelers. Having access to nearby facilities that host electric charging allows EV drivers to charge without the need of worrying about if they “have enough fuel or juice” to last on their trip. According to a research study conducted by Nature Energy, 1 in 5 people - or 20% - switch back to ICE vehicles. Reasons cited for switching back include 1) Dissatisfaction with the convenience of charging, 2) Lack of charging at home, and 3) Reliance on EV as their main form of transportation. A diverse set of options must be available to drivers to provide flexibility and reliability in driving their vehicles on a frequent basis. This includes fast charging at places of residence, employment, and public places (i.e. grocery store, theaters, gyms). 7 Eleven recently announced its mission to capture the EV audience by rolling out 500 EV charging stations by the end of 2022.
#2: Fast Charging Stations
In addition to accessible charging, charging must be quick and efficient. Traditional ICE vehicles can take as little as three minutes to fill up a tank whereas even some of the EV fast charging solutions can take up to 30 minutes. However, as technological advancements in battery cells and charging continue to take place, the charge time on electrical vehicles may gradually decrease. Companies such as Tesla have been able to capitalize on fast charging through their Supercharger network. Tesla’s existing V3 Superchargers can support up to 250kW per car. Other companies also offer their variations on fast charging solutions, such as Tritium’s 50kW DC fast charger and ChargePoint’s 250 DC fast charger.
#3: Utility Infrastructure Capacity
Utility companies will be required to upgrade their existing infrastructure in order to handle future demand of electric charging. If not handled responsibly, consumers could see their electric bills exponentially increase. A greater electric-grid capacity will be required to meet the pent-up demand expected to occur within the next 10 years.
#4: EV Car Demand and Charging Supply Equilibrium
As more EV cars hit the market, more charging stations will be required to manage the influx of interstate EV travelers. Although most electric vehicle owners will have at-home chargers to accommodate for overnight charging, those traveling long-distance will require a quick recharge to ensure they reach their destination. However, the common chicken and egg situation is currently taking place with EV adoption: “Which comes first, the charging network or the electric vehicles?” Without EV charging, consumers are hesitant to rely on electric vehicles to get them to their destination. Without EV cars on the road, businesses and prospective charging sites are hesitant to implement and invest dollars because of the lack of uncertainty and low short-term ROI associated with spending money on charging stations. Government incentives such as federal tax credits will play a vital role in eliminating this friction and spurring investment in EV charging infrastructure and EV cars on the road.
Even though the reduction and demand for gas in the next coming decades is forthcoming , convenience stores and gas stations can view this as an opportunity to become market leaders and role models in the electric vehicle segment. Although EV vehicles make up roughly 2% of the entire fleet of vehicles in the United States, interstate travel facilities and rest stops can implement EV charging stations early on as an opportunity to capture incremental traffic and drive in-store sales. Traditional owner-operators of gas stations can also use charging stations to their advantage by investing in EV charging stations and collecting payments from consumers.