EV Power Pulse Issue #18

Current EVents

EV Industry Updates

Shell unloading 1,000 retail locations and expanding EV charging network

Shell has announced plans to close 1,000 retail sites over the next two years as part of its strategy to expand its EV charging infrastructure.

The company will divest 500 retail sites annually in 2024 and 2025. This is roughly 4% of their existing retail footprint. This divestment is part of Shell's plan to expand its public charging network by increasing the number of charging points from 54,000 to 200,000 by 2030.

Shell sees significant growth opportunities in the EV charging business, with an expected internal rate of return of 12% or higher. The company plans to roll out most of these new charging points in China and Europe, where demand for EVs and public charging infrastructure is rapidly increasing.

Shell's acquisition of Volta in 2023 has provided the company with one of the largest charging networks in the United States. Despite the divestment of retail sites, Shell believes that owning and operating physical locations, especially those with existing convenience stores and car wash facilities, will continue to be advantageous for its charging business.

The shift towards EV charging infrastructure is a strategic move by Shell to adapt to the changing energy landscape and meet the evolving needs of its customers. By expanding its public charging network, the company aims to play a significant role in facilitating the transition to electric mobility.

–Steve

Automotive Charging Solutions (ACS) and EV Connect are partnering to deliver world-class EV charging solutions to the hospitality industry. With ACS and EV Connect, you get a turnkey solution that provides industry-leading equipment, software, and EV charging network solutions, preferred pricing with flexible financing options, dedicated project and account management, and 24/7 technical support. Click to find out more. 

Power and Policy

Biden Administration issues long-awaited rule meant to drive electric car sales

Last week the Biden Administration announced the final version of the Environmental Protection Agency's Clean Cars rule. This groundbreaking regulation sets stringent standards to reduce carbon emissions from passenger cars and trucks. This rule aims to boost the adoption of EVs and marks a significant step towards transitioning to electrified mobility.

Centered on promoting EVs, the rule marks a profound shift in the U.S. auto market towards sustainable transportation options. Automakers will be required to meet ambitious pollution standards, pushing them to prioritize the production of electric and hybrid vehicles. 

The EPA estimates that by 2032, two-thirds of new cars and passenger trucks could be electric, representing a substantial increase from current levels. This transition is crucial to President Biden's broader climate agenda, which aims to cut the nation's carbon pollution in half by 2030. The EPA estimates that this transition could save American drivers around $6,000 in fuel and maintenance costs over the lifetime of their vehicles. 

Of course, the Clean Cars rule is not without its detractors. The rule faces opposition from industry groups and political opponents who argue it will increase the cost of gasoline-fueled cars, making them unaffordable for many Americans. Despite these concerns, environmental organizations have largely welcomed the regulation as a significant step toward addressing air and climate pollution.

The Clean Cars rule is accelerating the US’s transition to electric vehicles and the need for reliable charging infrastructure has never been more important. Experts estimate the US will require 2 million public chargers by 2030 to meet the objectives of the Clean Cars rule. 

–Rob 

EV Industry Insights

EV charging stations proving to be profitable

Last year, there was significant doubt about whether public EV fast-charging stations could be profitable, as we discussed in our January newsletter. However, during the past few months, that path to profitability has become clearer.

EV charging stations are proving to be profitable business ventures as utilization rates rise. In the United States, the average utilization of non-Tesla fast-charging stations doubled from 9% to 18% over the past year. Most stations become profitable at just 15% utilization. 

Retail businesses, in particular, are capitalizing on this trend by installing EV charging stations in parking lots. A recent Consumer Reports study found retailers providing EV charging services see a four percent increase in foot traffic and a five percent jump in revenue. Additionally, 89% of EV drivers make purchases while their vehicles charge, highlighting the potential for charging stations to drive retail sales.

Government incentives further enhance the financial viability of EV charging stations. The Bipartisan Infrastructure Law’s Charging and Fueling Infrastructure (CFI) Discretionary Grant Program and NEVI program are centerpieces to the Biden Administration’s commitment to EV infrastructure. However, tax credits are also available to retailers for installing charging stations, providing up to 30% of the installation costs.

Forward-thinking business owners recognize EV charging as both an amenity and a strategic asset to attract and retain customers. With favorable market conditions and government policies, including the previously mentioned Clean Cars rule, the EV charging industry continues to accelerate toward an electric future. 

–Steve and Rob

How to further connect with us

If you’d like to stay plugged into the latest EV news, you’re in the right place.

To be a part of the conversation and stay up to date with ChargeCorps, you can follow us on LinkedIn and Twitter.

If you want to get in touch with us to learn more about ChargeCorps, reach out here.

Until next time, stay charged!
- Steve and Rob