- As economies worldwide shift from ICE vehicles to electric vehicles, the issue of charging infrastructure reliability has become paramount.
- Keeping in mind the significant loss of revenue, the government has intervened and has taken a range of measures to improve the reliability of the charging infrastructure in the US.
- It is advisable that as the market evolves, the government revises these programs to meet the changing requirements on the ground, be it technological or financial.
Economies worldwide, especially the US, are investing heavily in electric vehicle charging infrastructure to facilitate the widespread adoption of EVs. However, over the years, a range of concerns regarding the reliability of the EV charging infrastructure has surfaced, deterring the consumers' confidence and leading to revenue loss. Recently, a study of 678 chargers at 181 stations in the Bay Area by the University of California, Berkeley found that nearly one-fourth of the electric vehicle supply equipment (EVSE) was not functional.
Around 4.9% of the EVSE cables were too short to reach the EV inlet, while 22.7% of the chargers had issues with screens (unresponsive or unavailable), payment system failures, charge initiation failures, network failures, or broken connectors. Additionally, there are issues with the calibration of EV chargers that do not correctly measure the energy consumption in kWh or MWh.
In this article, we will explore major bottlenecks on the supply side of electric vehicle charging infrastructure, the impact of charger reliability on the adoption of electric vehicles, and revenue loss due to charger unavailability. This will be followed by a discussion of government interventions that are already in place and those required to improve charger reliability.
Major Bottleneck on the EV Charger Supply Side
According to PTR’s research, one of the leading charge point operators (CPOs) claims that their replacement time is 96 hours, which includes 72 hours to diagnose the issue and another 24 hours to replace the equipment (this arrangement is part of the service level agreement they sign with their client).
However, mainly due to the unavailability of spare parts, it is observed that even a leading CPO cannot carry out the chargers' maintenance swiftly. Additionally, charger OEMs are also unable to provide spare parts for faulty chargers in a timely manner.
Impact of Reliability on the Uptake of EVs
As economies worldwide shift from ICE vehicles to electric vehicles, the issue of charging infrastructure reliability has become paramount. While the initial focus was on reducing charging time, the need to enhance the reliability and uptime of the charging infrastructure is now urgent. It's concerning that a significant portion of US public charging stations are inconvenient and fail to function properly.
PTR firmly believes that a successful transition to electric vehicles hinges on OEMs prioritizing reliability and uptime in the manufacturing of EV charging stations. Low charger reliability is going to affect not only the business of CPOs and charger OEMs but the entire value chain of the EV industry.
Revenue Loss Due to Unavailability of Chargers
As per PTR estimates, in 2023, AC public chargers in the US numbered beyond 125,000, whereas DC public chargers were close to 40,000. With a 100% uptime, these chargers were expected to generate a revenue of nearly $2.12 billion, and in the case of a 75% uptime, these chargers were expected to generate $1.59 billion.
So, as per the model and estimates of PTR, the charge point operators can incur a net loss of nearly $53 million due to the non-availability of the charging infrastructure. This significant revenue loss due to charger downtime is a clear indicator of the urgency of the issue.
Figure 1: AC and DC public chargers in the US in 2023. Source: PTR Inc.
Figure 2: Loss of revenue due to 25% downtime of chargers (in billion USD). Source: PTR Inc.
Government Interventions to Improve Reliability
Keeping in mind the significant loss of revenue, the government has intervened and taken a range of measures to improve the reliability of the charging infrastructure in the US. A crucial step toward improving the reliability of chargers is the rollout of the National Electric Vehicle Infrastructure (NEVI) program, which requires a minimum uptime of 97% for funding. On the other hand, the Electric Vehicle Charger Reliability and Accessibility Accelerator, part of the NEVI program, is a $100 million program that focuses on improving the reliability of existing EV charging infrastructure through repairing and replacing broken or non-functional EV chargers.
Looking Ahead
Over the years, the US has made significant investments and rolled out programs for the widespread deployment of charging infrastructure. These programs are aimed at facilitating the electrification of the transport sector, which releases a significant amount of carbon dioxide equivalent emissions.
However, issues regarding the reliability of the EV charging infrastructure have emerged, which require immediate attention from the market stakeholders, especially from the US government, which has made international commitments to curb greenhouse gas emissions.
There is a dire need for programs like NEVI that incentivize improvements in the uptime of the EV charging infrastructure. Similarly, through the Electric Vehicle Charger Reliability and Accessibility Accelerator (part of the NEVI program), the government is pushing to improve the reliability of the existing charging infrastructure. It is advisable that as the market evolves, the government revises these programs to meet the changing requirements on the ground, be it technological or financial.
About the Author
Muhammad Rafey Khan, Senior Analyst - PTR Inc.
Rafey Khan is a Senior Analyst II and Team Lead for the Electric Vehicle Charging Infrastructure service. His research focuses on e-mobility topics, specializing in electric vehicles and it’s charging infrastructure. He has worked with major EVCI system and component manufacturers, utilities, and CPOs to conduct research and provide consulting to 30+ markets around the world. He holds comprehensive knowledge of the E-Mobility market of the USA particularly around EV and EVSE technologies, emerging market trends, and the regional competitive landscape.
He is an electrical engineer from the Lahore University of Management Sciences (LUMS) and holds a MBA from the Institute of Business Administration (IBA). Before joining PTR, Rafey gained valuable experience in Schneider Electric and K-Electric, which are a digital automation company and a utility company, respectively.
Ruweda Memon, Junior Analyst - PTR Inc.
Ruweda Memon is working as a Junior Analyst at Power Technology Research (PTR). She has expertise in time series forecasting using machine/deep learning with a focus on electric load forecasting. She equally takes interest in Electric Vehicles (EVs) and forecasting. In her current role at PTR, she is closely working on Electric Vehicle Charging Infrastructure (EVSI) and analysis. She holds a master’s and a bachelor’s degree in electrical engineering from the National University of Science and Technology (NUST), Islamabad, and Sukkur IBA University respectively.
About PTR:With over a decade of experience in the Power Grid and New Energy sector, PTR Inc. has evolved from a core market research firm into a comprehensive Strategic Growth Partner, empowering clients’ transitions and growth in the renewable energy landscape and E-mobility, particularly within the electrical infrastructure manufacturing space.
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