Navigating the Path to Profitability in the US for EV Charging Infrastructure

A recent McKinsey survey (link below) has shed light on current obstacles regarding a critical challenge: how to make public fast-charging stations profitable in the US. While demand is growing, current utilization rates and high upfront costs often leave operators struggling to break even. This is where Dodona eMobility (DeM) steps in, armed with data-driven solutions that empower Charge Point Operators (CPOs) to navigate the complexities of the landscape and unlock profitability.

Public DC fast charging stations, crucial for long-distance journeys and those without home charging access, face hurdles due to:

• High capital costs: Setting up a fast-charging station can cost upwards of $100,000, placing a significant financial burden on operators.
• Low utilization: Currently, the average annual utilization rate for public DCFC stations is around 7.5%, significantly lower than needed for profitability.
• Competitive pricing: Balancing affordability for users with revenue generation requires careful pricing strategies and dynamic adjustments based on demand.

Site Selection for Impact and Profit

Location, location, location – it's not just about real estate. DeM leverages extensive data on demographics, traffic patterns, and existing infrastructure to pinpoint ideal sites where demand is high and chargers are scarce…and then combines this data into a model that is more powerful and accurate than the data itself. This ensures you're not just adding to an oversaturated geographical area, but filling crucial gaps and maximizing potential users. DeM goes beyond traditional site selection by leveraging:

• Deep demographic insights: We understand population density, income levels, and EV ownership trends to identify areas with the highest demand and potential impact.
• Detailed traffic analysis: We analyze traffic patterns and commute routes to pinpoint locations where chargers will be readily accessible and utilized.
• Existing infrastructure mapping: We consider existing charging infrastructure and potential gaps to ensure your network fills crucial needs and avoids oversaturation.

Optimizing Utilization

Finding the right spots is just the first step, DeM helps you maximize their value. By analyzing historical usage patterns and predicting future demand, DeM identifies underperforming stations and could inform adjustments to pricing, marketing, or even physical location of planned chargers. This data-driven approach ensures your network operates efficiently and generates consistent revenue.The EV adoption curve and the charging infrastructure necessary to support that is constantly evolving. DeM helps you stay ahead of the curve by analyzing future trends and user behavior. This allows you to proactively adapt your network, adding new charging points where needed and ensuring your infrastructure remains relevant and profitable in the long run.

Ancillary Revenue Generation

DeM can inform opportunities for diversifying revenue streams through ancillary services such as retail sales, advertising, and partnerships with local businesses. By leveraging the foot traffic generated by fast charging stations, operators can explore additional revenue opportunities and offset operational costs.

As the transition to electric mobility accelerates, the profitability of public fast charging stations is essential for ensuring the widespread adoption of EVs. DeM offers a comprehensive solution for charge-point operators to optimize profitability through strategic charger placement, utilization optimization, future-proofing networks and ancillary revenue generation. With Dodona Analytics by your side, you can unlock the full potential of your charging network and power your way to a brighter, more profitable future.

Here is the link if you are interested in full McKinsey Report.

About Dodona Analytics

Dodona Analytics are Europe's leading EV network-planning platform for charging infrastructure and work with some of the most ambitious and successful Charge Point Operators to help deploy many tens of thousands of chargers every year. As Data Scientists who are experts in Future Mobility, we are changing the way we move people, goods and services and we are passionate about building a better future! We have recently launched the Dodona eMobility Platform for the USA and want to help drive the mobility rEVolution across the world.?