Developing China's Electric Vehicle Charging Stations

Developing China's Electric Vehicle Charging Stations

China is a global leader in electric vehicle sales, but the country also faces challenges in developing its charging infrastructure.china ev charging stations Its crowded market, uneven distribution and questions over profitability are among the issues that could slow down the country’s progress in this key area of its green mobility revolution.

Despite the challenges, policymakers and commercial charging-point operators remain bullish on China’s future.china ev charging stations Leading players are expanding rapidly, and the national EV charging infrastructure network is projected to expand by more than 20 million units by 2030. The market is expected to reach a total of 175 million recharging points by then, according to the latest data from the China Electric Vehicle Charging Industry Association (EVCIPA).

There are now more than 2.china ev charging stations 5 million public charging points in China, including those managed by commercial operators along roads, at car parks and at restaurants and other businesses. However, the overall utilisation rate of chargers is low, meaning that profits are a struggle for most operators. In addition, the high capital expenditure on equipment, installation and software to operate a charger can eat into profits. The EV charging business is also heavily dependent on government support, with the country offering the second-most generous purchase grants to customers who buy new EVs. The government has also been granting charging station developers dedicated infrastructure subsidies and exempting them from “basic charges” based on electricity usage, which are typically reserved for significant industrial consumers.

Many factors contribute to the underutilisation of chargers, from the fact that most EVs can only use J1772 or Chademo standard ports to the speed at which chargers need to charge, which is usually around 2 hours.china ev charging stations Some charging station operators are seeking ways to improve efficiency and utilisation. Shenzhen-based TELD, the largest EV charging network in China, is working with EV makers to incorporate artificial intelligence into their planning and deployment strategies.

For example, TELD is using data on EVs’ charging habits and patterns to better focus its expansion efforts.china ev charging stations It is also leveraging cloud technologies to recommend charging, swapping or upgrading of batteries based on each driver’s specific habits and requirements.

Other companies are focusing on battery swapping stations to enable drivers to quickly change their batteries – a process similar to that of refuelling a conventional vehicle - and to continue driving. Chinese EV maker Nio, for example, has built a network of more than 1,300 battery swap stations.

As the EV charging market continues to grow, a reassessment of policies and the need for better data will be needed to ensure that the infrastructure is optimised to meet EV demand. As prices rise and EVs become more widely used, the charging system will need to adapt accordingly in order to maintain its leadership status in this rapidly-growing sector of the world’s transport market. The author is a senior analyst at Counterpoint Research. Follow him on Twitter at @IvanLambour.

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