By Joe O’Brien
Fuel retailers big and small are defining their strategies for serving a new customer base as efforts to establish a national EV charging network accelerate. Companies including Couche-Tard, Phillips 66, Pilot Co. and more have announced plans to expand EV charging within their enterprises. In conjunction with these developments, petroleum equipment suppliers are fielding questions about EV charging. The following Q+A addresses frequently asked questions for fuel sites considering their next EV charging steps.
Q: How can fuel site operators gauge the demand for EV charging?
A: EV Charger Deployment Optimization, a report released by the Fuels Institute in August 2022, estimates that EVs will make up 5.9% of registered vehicles in the U.S. by 2030. The report states that 1.8 million charging stations will be needed in the U.S. to adequately charge the EV fleet by the end of the decade. To help planners and investors understand the level of Electric Vehicle Supply Equipment (EVSE) required to support the growth and adoption of EVs, the report ranks which states most urgently need EV charging equipment to support their state’s rate of EV adoption. StreetLight Data is another resource. This provider of mobility insights has created an EV dashboard that shows the gaps in the existing EV charging network.
Q: What are some of the considerations for selecting charging stations for a retail fuel site?
A: In urban areas, with limited space and generally shorter driving distances, Level 2 charging may make the most sense. Level 2 charging is also a viable option for customers who have a reason to hang around on-site or at a neighboring location for a few hours. Along highways and in suburban and rural locations, where driving distances tend to be longer, Level 3 DC fast chargers (DCFC) can recharge 80% of a battery in 20 to 30 minutes.
In terms of site logistics, proximity to a power supply, existing electrical capacity and parking space size and orientation are among the many considerations when installing EVSE. Power connection occurs in both the public realm—including the public right-of-way—and the private space. This can add layers of complexity to EVSE installations. According to the Fuels Institute report, “regardless of location or charger type, the specific site plan details can actually provide the biggest impediment toward EVSE deployment, as utilities, landowners, operators, and other stakeholders will weigh in on each specific installation.”
Q: What qualities should fuel site operators look for in an EVSE supplier and in the equipment itself?
A: Service and/or solutions providers that provide turnkey project management can be a tremendous asset for EVSE installations. When selecting a supplier, inquire about:
- A market analysis
- A site survey
- Grant money procurement
- Plug-and-play electrical infrastructure
- Charger payment technology options
- Coordination with various stakeholders
- Installation and maintenance
- Monitoring and notification capabilities
Utilities will unquestionably play a role in EVSE development, but they are not the only game in town. In a coordinated effort to promote businesses in the development of EV charging infrastructure, NACS, NATSO, SIGMA, petroleum marketer associations and various companies have joined the Charge Ahead Partnership coalition. Shopping around for service providers may be an opportunity to simultaneously support local business. Learn more about the coalition at www.chargeaheadpartnership.com.
Q: What do fuel site operators need to know about EVSE funding and ROI?
A: With the announcement of the National Electric Vehicle Infrastructure Formula Program (NEVI), the work and proposals for using federal and state funds to build EV alternative fuel corridors is moving forward. Funding opportunities vary widely from state to state and continue to be developed. That notwithstanding, there are programs with zero out-of-pocket costs available.
AC Level 2 chargers are often advertised in the $5,000 range or lower, and the slower delivery rates usually equate to a less expensive charge for the customer. While the slower rate also provides the site operator an opportunity to maximize other revenue opportunities for the duration of charging, Level 3 DC chargers offer a charging experience that is much more akin to the time customers at retail fueling sites expect to experience. The price range for Level 3 DC fast chargers can vary greatly in a range of $30,000 to $80,000, and high-voltage lines needed for DC fast-charging stations are not always easily accessible, which will inflate installation costs. Any investment in DC fast chargers should incorporate obtaining some funding subsidy to produce a return on that investment in a reasonable timeline.
The Fuels Institute report suggests that a “Goldilocks solution” may emerge: “The 25 to 50 kW DCFCs have a smaller footprint than those 150 and 350 kW chargers, and while they require power transformers, they are still much less expensive to install and operate in the long run. Furthermore, they provide a decent charge time to both mainstream and high-end EVs without costing the end user as much in charge session fees.”
As EV charger funding opportunities begin to take shape, guidelines and standards for installing charging stations will also evolve. And although much is still in flux at these early stages of EVSE expansion, fine-tuning an approach to EV charging absolutely needs to be part of each retail fueling operation’s larger business strategy. Partnering with a total solutions provider that is familiar with all the challenges associated with profitably operating a convenience operation may be a fuel marketer’s leg up to a more stable transition.
Joe O’Brien is vice president of marketing at Source™ North America Corporation. Contact him at [email protected] or visit sourcena.com to learn more.
