Auto Trends Magazine: Occhiuzzo Debunks 4 Misconceptions Surrounding EV Fast Charging Stations

Our co-founder and CEO, Gustavo Occhiuzzo, is quickly emerging as a thought leader in the world of electric mobility, becoming someone stakeholders can count on to demystify obscurities and address falsehoods surrounding the installation and application of charging infrastructure. Like any new technology, resistance to adoption is often based on fallacious notions, some of which may be perpetrated by those with a financial interest in competing technologies. Therefore, countering such notions with facts is crucial if both drivers and site hosts are to make an informed decision about EV adoption. Occhiuzzo most recently addressed four of the biggest misconceptions surrounding chargers in the article below for Auto Trends Magazine.

EVCS charging stations await the morning work rush

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Los Angeles, CA – June 25, 2021

Every industry is guaranteed to experience a technological revolution at some point, and currently, we are witnessing a major shift in the automotive industry away from traditional combustion engine vehicles to electric vehicles, or EVs. As with any widespread adoption of new tools and technologies, misconceptions abound, particularly around fast-charging stations and how long an EV actually takes to charge. In an effort to address these misconceptions, below is a roundup of the most circulated ideas surrounding charging stations, along with facts and expert information to set the record straight.

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Misconception No. 1:

Fast charging stations are not adequately future-proofed for newer generations of EVs.

Fact:

Future-proofing does not mean installing the most powerful chargers now, as the majority of EVs currently available cannot utilize the high 350KW charging rate. In fact, only one EV currently available for purchase can utilize this level of charge. Instead, future-proofing in the context of charging stations means guaranteeing that a site has capabilities to host more powerful chargers when EV charging requirements and economics align. That way, vendors can quickly upgrade charging sites without having to massively upgrade infrastructure.

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Misconception No. 2:

Before EVs can be adopted on a widespread scale, more powerful – not just fast – charging stations are required.

Fact:

This is entirely untrue. In fact, a number of studies have concluded the main requirement for the widespread adoption of EVs is an increase in the number of fast chargers available, not more powerful, 350K stations. Additionally, many charging companies are rapidly expanding their networks and placing them strategically to help solve this.

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Misconception No. 3:

50KW fast chargers become obsolete the moment they are installed.

Fact:

The majority of EVs currently being manufactured cannot accept a faster rate of charge than 50 kWh, and fast chargers are roughly ten times faster than Level II chargers, with the ability to fully charge an EV within an hour and a half. Additionally, most people are careful to not let their EV charge drop too low, so they only charge their car partially, which is much faster.

It also needs to be considered that once an EV battery begins to fill up, charging occurs at a lower rate regardless of charger output. In fact, after an EV reaches a 75 percent charge, the rate of charge is identical regardless of whether it is a 50KW charger or a 350KW charger.

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Misconception No. 4:

Operational expenses are the same for fast chargers as for more powerful chargers.

Fact:

Unfortunately for vendors, the biggest operating expense is the demand charge or the fees applied to the electric bills of business customers. The average cost of a demand charge is roughly $10 a KW per month, so 50KW charging stations will cost the vendor $500 per month in demand charges. A 350KW powerful charger will cost $3,500. To cover these costs, huge utilization is required but, as it stands, with only one EV model suitable to utilize these stations, recuperating these costs is not possible.

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Additionally, the industry average is also less than a 5-percent utilization rate right now, so the economics currently does not work for higher output chargers. Let’s say you install four 350KWs at a site and you are unlucky enough to have 4 vehicles charging at the same time; you will be paying $14,000 for that month just in demand charges, not including the actual cost of electricity.

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Installation of the Month (June 2021): Hyatt Place Riverside/Downtown

The ability to travel is something many of us take for granted. Our Interstate Highway System allows us to freely traverse state boundaries – to go wherever we choose whenever we choose – from the snow-capped Colorado Rockies to the soupy Everglade swamplands to the historic lighthouses of coastal New England. However, EV drivers are more acutely aware of their travel limitations because many areas of the country have yet to adopt pro-electric infrastructure policies, often leaving them with few ground-travel options other than ICE vehicles. We knew getting more Americans to embrace the electric revolution would require buy-in from the hospitality industry. As such, much of our focus has gone toward hotels that, by serving as site hosts for charging stations, can help kickstart that ubiquitous access required to convert many EV holdouts.

Wall Street Journal Piece Brings Up Questions… And We Answer

Stephen Wilmot’s recent article in the Wall Street Journal, “Investors Look for an EV Charge,” debates the merits of investing in EV infrastructure, admitting that while chargers likely make for better investments than cars, the sector still holds many potential pitfalls that should be considered before jumping in. While that may be true, many of the examples backing up this assertion cite the business models of the largest EV installers in the country while failing to consider what less visible but faster-growing companies like EVCS are doing to mitigate such risks. Below are a few quotes from the article and our thoughts on them, including how we’re different.

Commentary on EV Industry Profitability Claims

In a recent Driving.ca article titled “EV-Charging Industry is Doing Everything Except Making Money,” author David R. Baker makes a compelling argument that the EV infrastructure sector is a revenue desert, essentially incapable of generating enough cash flow to sustain profitability due to a lack of interest from motorists. “The dilemma boils down to demand,” he states, before adding that “lots of people still driving gasoline-powered cars won’t consider going electric until they see charging stations widely deployed.”

Installation of the Month (May 2021): LADOT Lot 656

The Los Angeles Department of Transportation (LADOT) notes on its website that ICE vehicles are one of the city’s top contributors to air pollution, accounting for 19% of all greenhouse gas emissions, before proclaiming, “We can do better… We’re investing in public transit, testing new technology, and adopting mobility innovations for a cleaner environment and brighter future.” At first, it might just sound like flowery rhetoric, but we can personally attest to that commitment. Starting in 2019, LADOT partnered with us to install DCFCs at 57 city-owned lots, with almost 30% of those installations now completed. This alliance has been integral in promoting our goal of zero-emission mobility in the City of Angels by facilitating greater access to infrastructure.

Addressing Pain Points in Creating EV Infrastructure

A recent GovTech.com article titled “How Biden Plans to Build 500 EV Charging Stations” discusses the President’s goals for creating a nationwide network of 500,000 such installations by 2030. While it does a smart job laying out many of the pain points we face in facilitating EV adoption, the mention of solutions was far less prevalent, and ones that were mentioned seemed speculative or tenuous. However, over the last three years, EVCS has already taken the lead in addressing many of these challenge areas, allowing us to dominate the installation market across the West Coast.