EV Power Pulse Issue #27

EV charging stations will outnumber gas stations in 8 years, Biden announces $4.3B for local climate initiatives, and EnergyHub and Wallbox partner on residential EV charging.

Author

Steve Taylor
August 03, 2024

Illustrated by Kaylin Duynstee

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Hi everyone,

Here are today’s stories:

  • EV charging stations are expected to outnumber gas stations in 8 years.

  • The Biden Administration allocates $4.3B for local climate initiatives, including EV charging.

  • EnergyHub and Wallbox partner to enhance residential EV charging programs.

Enjoy this morning’s issue. 

–Steve 

Current EVents

EV Industry Updates

According to a Bloomberg Green report, the expansion of public fast-charging stations is accelerating, with 704 new stations added in the second quarter of 2024 alone. This 9% increase brings the total number of public fast-charging sites in the U.S. to nearly 9,000.

At the current growth rate, EV charging stations are projected to surpass the number of gas stations in the U.S. within eight years. This rapid expansion is supported by significant investment, with North American operators expected to spend $6.1B on charging infrastructure in 2024, nearly double the amount invested in 2023.

The surge in charging stations aligns with the increasing adoption of EVs, which now account for almost 10% of U.S. car purchases. Retailers, particularly gas station operators, are recognizing the potential of EV charging as a strategy to attract customers.

Despite concerns about a slowdown in EV demand, the International Energy Agency estimates that U.S. sales of fully electric vehicles will reach 2.5M in 2025, more than doubling the 1.1M EVs sold in 2023.

Steve's Take:

The rapid expansion of EV charging infrastructure brings both opportunities and challenges to the industry. Drawing from my experience managing operations at Lyft in the Mid-Atlantic and New York, I notice parallels between optimizing driver and rider utilization and the challenge of balancing EV adoption and charging infrastructure.

The critical question now is whether the rate of EV adoption will match the expansion of charging infrastructure. If charging stations proliferate too quickly, we may end up with an oversupply that leads to underutilization and unprofitable operations for Charge Point Operators (CPOs).

This situation represents a dramatic shift from the long-standing challenge of inadequate infrastructure that has hindered EV adoption. Now, we could risk overextending. It is essential for government planners and industry stakeholders to strike the right balance between the growth of charging infrastructure and the pace of EV adoption.

As the industry manages this transition, closely monitoring utilization rates, adjusting to evolving consumer behaviors, and exploring innovative business models will be vital to ensuring the long-term viability of the expanding charging network.

–Steve

Power and Policy

The Biden Administration has announced a substantial investment in local climate initiatives, allocating $4.3B in grants to state, municipal, and tribal governments across the United States. This funding, derived from the Inflation Reduction Act, will support 25 diverse initiatives focused on transitioning to cleaner energy and reducing greenhouse gas emissions.

The grants will finance a variety of projects, including the deployment of solar and wind farms, installation of EV chargers, and implementation of heat pumps. These initiatives are expected to reduce approximately 971 million metric tons of CO2 emissions by 2050—a reduction equivalent to eliminating the annual climate pollution produced by about 5 million American households during that time frame.

Among the major beneficiaries is Pennsylvania, which has been awarded $396 million for its new RISE PA initiative. This program focuses on decarbonizing industrial facilities, the state's largest source of greenhouse gas emissions. Strategies include electrifying buildings and equipment, on-site CO2 capture, and increasing the use of renewable energy.

This funding aligns with the Biden Administration's Justice40 Initiative, which aims to ensure that at least 40% of the benefits from specific federal investments reach disadvantaged communities. The timing of this announcement is crucial, given the upcoming presidential election that could significantly impact U.S. climate policy.

Rob's Take:

The allocation of $4.3B for local climate initiatives is a strategic move by the Biden Administration in light of the uncertain political landscape leading up to the 2024 election. The focus on Pennsylvania is particularly significant.

As the nation’s second-largest gas producer and a pivotal battleground state, Pennsylvania’s $396M grant for the RISE PA initiative may carry substantial political weight. Governor Josh Shapiro's involvement and the speculation around his potential Vice Presidential candidacy further complicate the implications of this funding.

The push for electrifying buildings and industrial processes aligns with trends we've discussed in previous issues. However, the success of these grants hinges on how effectively states and local governments can execute their proposed initiatives. Transitioning away from fossil fuels in states like Pennsylvania, which has deep ties to the gas industry, will likely be a complex endeavor.

As we approach the 2024 election, we will be watching how these climate investments impact voter sentiment in critical states. The outcome of this election could have significant ramifications for the future of U.S. climate action and the EV charging sector.

–Rob 

Emerging EV Tech

EnergyHub and Wallbox have announced a new partnership aimed at enhancing utility programs for managed EV charging in North America. This collaboration integrates Wallbox EV chargers with EnergyHub's platform, increasing the range of devices eligible for utility-managed charging programs.

The partnership comes at an important time, as demand for residential charging solutions are increasing with growing EV adoption. Wallbox devices are expected to be enrolled in utility programs this month, providing financial incentives to customers through rebates and rewards.

This initiative offers advantages for both utilities and EV owners. Utilities will benefit from improved management of EV charging loads, while customers may enjoy reduced costs associated with EV charger ownership. Together, the partnership seeks to create a more reliable and decarbonized energy system.

Steve's Take:

This partnership between EnergyHub and Wallbox highlights the growing trend of strategic partnerships, especially in the managed charging space. I expect this trend, which we’ve previously discussed, to continue, especially as charging companies seek new revenue streams and strive to grow market share and brand awareness.

What stands out with this partnership is its focus on residential charging. While in previous issues we’ve discussed partnerships predominantly centered on public charging infrastructure, this shift toward home-based solutions is particularly significant. With 80% of EV charging taking place at home, removing barriers to residential charging is essential for increasing EV adoption.

The emphasis on managed charging is also significant. As the number of EVs on the road increases, balancing charging loads will become critically important for utilities. This partnership could play a significant role in ensuring grid stability as EV adoption accelerates.

–Steve

EV INDUSTRY STAT OF THE WEEK

Proximity to public charging infrastructure significantly influences EV purchase intention. According to Pew Research, about 50% of people living within a mile of a public charger are “very” or “somewhat likely” to consider buying an EV. In contrast, only 27% of those living more than 2 miles from the nearest charger express the same level of interest.

EV Charging the News

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Until next time, stay charged!
- Steve and Rob

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