The electric car charging network is a house of cards

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The proliferation of fast-charging operators could turn into a real rout for electric mobility if they fail to be reliable and profitable. This was the theme chosen for the editorial of the Watt Else newsletter on September 12.

The electric car cannot develop without charging infrastructure, but the opposite is also true. If there are not enough electric cars, the charging network is not viable. If France is one of the good students in terms of covering its territory with charging stations, a question has been bothering me for a while: are all the current players strong enough to survive? I have some fears on the subject.

Not a month goes by without a press agency coming to me to praise the qualities of a new charging operator. There are more than twenty of them that have launched themselves on the fast charging market. Competition is generally quite healthy, but too much competition can also contribute to bringing down a house of cards whose foundations are not solid enough.

Costly development

The proliferation of charging points is a treat for motorists who drive electric cars. The apprehension of recharging is starting to become a thing of the past, there are terminals almost everywhere. But this peace of mind comes at a cost, and not just for the motorist who will pay up to 5 times more for recharging than at home if they do not pay attention to the pricing of certain suppliers.

Electra station in Beaune // Source: Electra
Electra is one of the operators that have developed rapidly in the territory // Source: Electra

The creation of ultra-fast stations (more than 100 kW) is also particularly expensive: each high-power terminal is sold for several tens of thousands of euros. Added to this are the civil engineering and connection works, not to mention the cost of electricity and land location. It would take between 6 and 10 years to make the installed fast terminals profitable, provided that they have a good utilization rate. Once the installation is complete, the expenses do not stop: maintenance turns out to be an expense item that is not always well anticipated by operators.

To go further

Xpeng Beijing charging stations // Source: XpengXpeng Beijing charging stations // Source: Xpeng

THE cut cost of breakdown

A certain TF1 report proved to what extent broken terminals could bring shame on electric cars. We do not thank IECharge or TotalEnergies for describing EV journeys as a real hassle for the user. We should also not bury our heads in the sand by saying that this never happens. Journeys without coming across at least one out-of-service terminal are rare in my own experience. The latest Avere barometer from the end of July gave an availability rate of fast terminals of only 75%. This considerably increases the risk of coming across a faulty terminal. Meanwhile, Tesla claims an availability rate of its superchargers of close to 100%.

Charging station out of service // Source: Raphaelle Baut for NumeramaCharging station out of service // Source: Raphaelle Baut for Numerama
Charging station out of service at Total // Source: Raphaelle Baut for Numerama

Sometimes, a simple remote reboot by support allows the terminal to work again. Software crashes are unfortunately frequent. Otherwise, it could be a hardware failure, and in these cases, the response times go from a few minutes to several days (or months). The repair then becomes a question of the availability of a technician and spare parts. This is often the level at which the sorting, between serious companies and those that are heading straight for the wall, can be done.

Many (too many) actors

This still-flagging market regularly sees new players arrive. European and French subsidies have helped charging companies get started. However, they now have to ensure they are viable for several years, and that’s a different story. Poor choices of locations, terminal suppliers, pricing or even poor maintenance will quickly drive customers away to a more reliable competitor.

Monitoring the opening of charging stations in France (situation as of August 2024) // Source: Produced by Didier ToulouzeMonitoring the opening of charging stations in France (situation as of August 2024) // Source: Produced by Didier Toulouze
Monitoring the opening of charging stations in France // Source: Produced by Didier Toulouze

Even the biggest players are not immune to going off the rails: Total almost lost some of its customers at one point due to recurring failures of its charging stations, in addition to high prices. Fortunately, Total was able to get back on track in time. Ionity, which seemed to have all the cards in hand to compete with Tesla, now finds itself playing with fire in its strategic choices.

According to a report from the Transport Regulatory Authority (ART), 12 companies are able to respond to calls for tender to equip service areas. Many candidates for few places. The war is now also being played out on the outskirts of these major routes. There is no doubt that the question of profitability will quickly arise. Let’s just hope that this does not turn into a new episode reminiscent of Izivia’s setbacks in 2020. Its network was shut down overnight on the motorway.

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