It's time to invest in the electric revolution

by Cheryl Ashton, erpecnews Feature Editor

The facts

The market share for electric vehicles continues to grow at a very healthy rate, with pure-electric vehicles representing around one in ten new cars appearing on European roads in 2022.

The catalyst for this dramatic increase in the popularity of electric vehicles (EVs) is primarily attributable to the global drive toward net zero. Twenty-four nations and a group of leading car manufacturers have committed to ending the era of internal combustion engine (ICE) vehicles by 2040 at the latest.

As a consequence, those in the market for a new car after that date will be presented with a choice of battery-electric vehicles or cars powered by hydrogen, with no fossil fuel options on the table.

Many countries have already embraced the transition to EVs and their supporting charge infrastructure is strong, others are struggling to keep pace with charge point demand as EV sales soar.

As established fuel suppliers, large forecourt networks and independent retailers are in a strong position to claim natural ownership of EV charging. By treating it as incremental business and capitalising on their existing locations and facilities to deliver charge points, they could generate a high return on investment via supplementary store and café sales.

However, as with any large-scale investment, it is always wise to exercise due diligence to identify past and current trends of EV sales within a site’s vicinity and establish a baseline for electric vehicle penetration.

The uncertainty

The biggest hurdle motorists have to overcome surrounds ‘range anxiety’ - the inability to complete a trip without running low or out of energy is a real fear for some EV drivers, due to a potential lack of operational charging facilities en route. The truth is that EV motorists miss the convenience and security of a filling station every few miles throughout the journey.

In reality, most daily trips are ten miles or less and the likelihood of needing a recharge during their journey is very slim. In addition, the latest range of EVs boasts a mileage range similar to that of equivalent petrol models, when coupled with rapid charging speeds and reduced charging times, EVs are fast becoming a very attractive proposition.

"World leaders strive to achieve the ambitious ideal of net zero."

The opportunity

To address these concerns, there are already schemes in progress such as BP Pulse, an economical subscription-based programme that provides EV drivers with access to thousands of public chargers, via an easy-to-use app. Additionally, EV chargers are now popping up in numerous public and semi-public places, such as shopping centres, gymnasiums, car parks, hotels and restaurants – typically referred to as ‘destination charging’.

Whilst there is still a shortage of workplace chargers, employers now recognise that offering charging facilities to their EV-driving employees is a valuable tool for attracting and retaining staff.

But the most straightforward solution to alleviate this problem is for forecourt owners to add electricity to their energy offering and in doing so attract additional customers to their store. The vast majority of EV drivers were once ICE vehicle owners and as such, they were familiar with frequenting forecourts for fuel and other daily essentials, but now, that familiarity has gone and EV drivers are taking their custom elsewhere.

It is time for forecourt owners to take the plunge and invest in charge points to halt the gradual erosion of their customer base, as more and more people make the switch to EVs.

EV v ICE - Total cost of ownership (TCO)

Electric cars are often more expensive to buy than their petrol and diesel-engine counterparts, and many cost more to insure. However, the total cost of ownership comprises far more elements than the initial outlay – it is important to consider mileage costs and the service/ maintenance charges.

On average, the cost per electric mile is one-third of unleaded petrol, however, in recent months the exorbitant rise in fuel cost has seen that figure drop to one-fifth – meaning every mile covered in a petrol vehicle will cost five times more than an EV. It is worth noting that purchasing EV energy via a monthly subscription plan is far more cost-effective than adopting a pay-as-you-go approach.

As with fuel, so it is with servicing: electric vehicles generally work out much cheaper to service and maintain than the equivalent traditional models, largely because they have fewer moving components and fewer parts prone to wear.

As car buyers become increasingly aware of the time limit on internal combustion engines, the depreciation of these vehicles is gathering pace. Meanwhile, EVs are gaining traction in the marketplace and their residual values are growing stronger by the day, making them a far more lucrative investment.

Taking everything into account, it is easy to see that the EV is a clear winner in the TCO stakes and should be forgiven for its higher purchase price, as over the EV’s lifetime there are generous savings to be made.

Looking to the future

The global EV market share has taken a tremendous leap forward in the past decade, and this trend is expected to gather pace as world leaders strive to achieve the ambitious ideal of net zero.

The current EV charging infrastructure is being stretched to capacity to keep abreast of this growth, however, new technological developments are furthering the evolution of European charging facilities in a very ‘electrifying’ way.

>> WIRELESS CHARGING

Wireless car charging works in a similar way to the wireless smartphone charger, only on a much bigger scale. In both cases, the technology required is called inductive charging.

Wireless charging pads are strategically installed in recognised stopping/parking places, and the corresponding wireless charging kit is fitted to the vehicles to ensure compatibility. The vehicles need to be parked so that both the transmitter and receiver are aligned before charging can begin. The energy is then seamlessly transferred through an air gap from the charger to the car.

If this preliminary investigation into the viability of wireless EV charging goes to plan, it is feasible that wireless chargers will be installed into roads and car parks across the land, and the worry of finding the next functional charge point will become a thing of the past.

>> DRIVERLESS CARS

Autonomous Electric Vehicles (A-EVs) rely on artificial intelligence to operate with varying degrees of human input. By computing billions of data points each second from an array of sensors, cameras and radar systems, A-EVs can effectively ‘see’ the road and respond to changing conditions or navigate obstacles. Tesla has recently taken this technology to a whole new level, but will electric vehicles ever become truly autonomous?

The answer is a resounding yes – with new technologies being developed at an exponential rate, it is simply a case of ‘watch this space’.

>> BATTERY SWAP

Chinese car manufacturer Nio has introduced a very successful ‘battery swap’ scheme to eliminate lengthy recharge waiting times. In simple terms, car buyers purchase an electric vehicle without a battery, reducing the retail price by thousands of pounds and consequently addressing the higher-price pain point of EVs. Customers then pay a monthly subscription fee for the battery which includes several ‘swaps’.

Instead of plugging in to recharge the battery, motorists simply drive to the nearest Power Swap station and the battery is exchanged for a fully charged power pack. The process takes between three and five minutes, and the driver is back on the road.

This game-changing subscription model is only available in Norway at the moment, but Nio has promised it will enter at least five European markets [in addition to Norway] by the end of 2022.

It is surely a scheme that warrants serious consideration from other major car manufacturers wanting to make their mark on the EV scene.

>> SUPERCAPACITORS

A supercapacitor, like a battery, is designed to store and release electricity. But rather than storing energy in the form of chemicals, supercapacitors store electricity in a static state, making them far more efficient at rapid charging and discharging energy.

Supercapacitors already exist in cars with regenerative braking systems, thanks to their greater power density than lithium-ion batteries. They store the energy generated whilst braking and then discharge it rapidly upon acceleration.

But is it realistic to believe that the EVs of the future will be powered by supercapacitors, charging from zero to full in a split second? At the moment it is simply a pipedream, but who knows what the future holds, it will be here sooner than we think.

>> EV HUBS

EV charging hubs are public stations solely dedicated to electric car charging and will benefit the local communities, businesses, commuters and visitors to the area.

The concept was derived to provide the ultimate consumer experience to EV drivers who are looking for a fast charge, and comfortable surroundings, in a convenient location with ample refreshment and shopping facilities. Shell has recently opened the world’s first EV hub in Fulham, UK creating a template for forecourts of the future.

Alternatives

>> HYDROGEN

In the short term, hydrogen is not regarded as a pragmatic opponent to electricity when it comes to everyday cars and vans, as the technology behind it lacks maturity. However, hydrogen prevails over electricity in the haulage industry and public transport sectors such as trains and buses, as it offers a far greater range with much shorter refuel times.

The foremost challenge for the hydrogen economy is finding a viable solution to the problem of storage. At present, hydrogen can be stored as either a compressed gas in high-pressure tanks or as a liquid at -253°C in cryogenic tanks. Both of these methods are considerably more expensive than conventional storage systems for petroleum products.

This article appeared in the October issue of erpecnews magazine, published by McLean Events, Conferences & Media Ltd