The Convenience Technology Vision Group (CTVG) has released its second Vision Report based on the group’s June quarterly meeting which focused on EV charging infrastructure.

The full report includes a summary of the discussion (“CTVG Views”), the full transcript of the meeting (“In the Room”) and the Center for Sustainable Energy (CSE) data presentation. It is also accompanied by supplemental articles and perspectives worthy of making anyone’s mustread list on EV’s and EV Infrastructure.

The main topics include:

  • EV growth
  • The role of utility companies
  • Government funding programs
  • Operators moving forward

To get this CTVG Vision Report CLICK HERE. On the same page you can also download the first CTVG Vision Report and Vision Reports from the Convenience Leaders Vision Group (CLVG).

John Gartner, senior director of transparency and insights at the Center for Sustainable Energy (CSE), started the meeting off with sharing data and insights around EV charging infrastructure.

 

Where’s EV Charging Infrastructure to Meet the Growth?

According to CSE’s forecasts roughly 1.75 million electronic vehicles will be sold in 2024 which translates to almost 12% of total new vehicle sales; by 2028 that number is expected to grow to 21% of new vehicle sales. Beyond growth, the bigger question is the charging infrastructure need in the future as the switch to EV’s moves forward.

Gartner cited that by 2028, based on projected EV sales growth, 210,000 public DC chargers will be needed to support the anticipated number of EVs on roads – today CSE reports roughly 22,000 DC fast charging locations exist in the U.S. Addressing this significant deficit comparing
number of vehicles with the number of chargers, Gartner noted that “the market really does need to keep up” and went on to say that federal government programs are designed to do just that.

Federal Government Incentives When discussing NEVI (National Electric Vehicle Infrastructure Formula Program) – the most widely used source of funding for EV charging infrastructure — Gartner told CTVG members: “I think now is the time to really be investigating this, because if convenience stores are not looking at it, many other retail locations are lining up.” It amounts to a real estate race in his view.

Jason Collins, director of IT at Englefield Oil, shared that the Ohio-based fuel distributor and c-store owner has already started the process of working with the NEVI program and is currently waiting to hear from the state regarding five locations the company submitted for NEVI back in
January. He expects some locations will be awarded this summer with additional sites in another round of funding under NEVI. “It’s a long process,” Collins said. Assuming the five locations come through, he believes it will be 2025 or 2026 before the sites are installed and up and running.

 

Utility Companies

One contentious topic surfacing as EV charging infrastructure and the related funding sorts itself out across the U.S. is the potential role utility companies may play. Raymond Huff, president of HJB Convenience Corp., noted that in his operating market of Colorado the electric provider, Xcel Energy, is proposing ratepayers fund the $140 million cost to build a statewide Xcel Energy-owned high-speed EV charging network. He questions if this will create a monopoly and if the move would essentially cut out the convenience store operator since Xcel Energy would become an operator – a fair question without a clear-cut answer. Related developments in other states point to some future guidance.

The role power companies will play in the development of EV infrastructure is an ongoing debate that swings in both directions, Gartner said, with no blanket rule for the whole country.

 

Opportunity for the Private Sector

“There is plenty of opportunity for the private sector to add charging at retail locations,” Gartner pointed out. Indeed, he reasoned that if the private sector does not meet the future infrastructure need, the shortfall would likely mean congestion at the charging locations that do exist. The gas station/c-store visit comes with a shorter dwell time, which consumers may decide is not the ideal spot to recharge. However, the existing locations of c-stores/gas stations make the segment attractive for EV charging companies and fills many gaps in terms of the number of
locations (there are still more gas stations/c-stores in a set radius than mass merchandisers, for instance).

C-store operators continue to evaluate the business case for investing in EV charging and many of the dominant players have already added at least a few EV charging stations. Part of Gartner’s presentation included the pros and cons of EV charging business models – levels of risks and
rewards.

 

Role of Loyalty Programs/Incentives

A number of retailers chimed in when it came to discussion of loyalty programs and incentives. Mike Templeton for one, director of digital guest experiences at Casey’s said, “We’ve got a robust loyalty program and robust digital experiences — what does it take to connect that to these
charging experiences?” He went onto say that so far the charging experiences for guests are disconnected. Regarding incentives, CTVG members talked about finding the right ones to entice EV charging users, as well as the traditional gasoline customer, to come into the store.

 

About Convenience Technology Vision Group

Convenience Technology Vision Group brings together invited tech leaders for quarterly virtual meetings to discuss technology issues impacting the convenience channel. The group is committed to sharing its views and perspectives in order to advance the convenience retailing and mobility industry. CTVG operates under Vision Group Network, which gathers the collective knowledge and ideas of its members to create a legacy of sharing within the retail community. For more information about CTVG visit https://tvgsolutions.com/CTVG/ or contact us. To join
the mailing list for all Vision Reports CLICK HERE.