Optimizing EV Charging: Why More Plugs Outperform Higher Power
A recent analysis by Kempower, a prominent provider of EV charging hardware and software, sheds new light on the most effective strategies for electric vehicle charging infrastructure. Contrary to the prevailing industry trend of emphasizing ultra-fast, high-powered chargers, the study suggests that increasing the number of charging points at a location is a more critical factor for profitability and user satisfaction. The research, which draws from extensive North American charging data, indicates that stations with a greater number of available plugs experience significantly higher utilization rates and deliver more energy overall, regardless of the maximum power offered by individual chargers. This finding encourages charging network operators to reconsider their investment priorities, shifting focus from sheer power to broader accessibility and availability to meet diverse driver needs.
Reframing EV Charging Economics: Plugs Over Power
A recent white paper by Kempower, a Finnish company specializing in electric vehicle charging solutions, has challenged conventional wisdom regarding the development of EV charging infrastructure. Published after an in-depth analysis of North American charging data from its ChargEye analytics platform, the paper argues that focusing on the quantity of charging connectors rather than the peak power of individual stalls leads to greater financial success for charging network operators. This insightful report, released earlier this month, highlights that while megawatt charging capabilities capture headlines, they don't necessarily translate into higher revenue or better return on investment.
Kempower's findings reveal a strong correlation between the number of charging points at a station and its utilization rate. The company explicitly stated that "installed power barely moves the needle," while "charging site utilization climbs steadily as sites add charging points." For instance, a charging station equipped with eight plugs can achieve a utilization rate three times higher than a smaller station with fewer, albeit more powerful, stalls. Data presented in the white paper illustrated that increasing the number of plugs from two to eight can boost utilization from approximately 2% to nearly 10%. Furthermore, eight-plug sites deliver over double the energy (an average of 128,342 kilowatt-hours) compared to four-plug sites (61,453 kWh).
The optimal power output for maximizing a charging station's utilization, when all connectors are in use, is estimated to be around 100 kW. This is attributed to the fact that most electric vehicles rarely sustain their peak advertised charging power throughout an entire charging session. Even if an EV can briefly accept 300 kW, the average input during a typical 10% to 80% charge often hovers between 100 kW and 150 kW.
Kempower, established in Finland in 2017, advocates for a distributed power approach with dynamic power management, similar to Tesla's Supercharger network. This method not only optimizes power distribution among active chargers but also facilitates easier and more cost-effective expansion of charging stations in the future, minimizing the need for substantial reinvestment after initial setup.
This research underscores a pivotal shift in understanding the economic viability and user experience of EV charging, suggesting that accessibility and choice provided by more plugs are more impactful than the allure of ultra-high power.
This research presents a compelling argument for a more pragmatic approach to EV charging infrastructure development. Instead of chasing ever-higher power ratings, which may offer diminishing returns in real-world usage and profitability, operators should prioritize expanding the sheer number of available charging points. This strategy not only enhances accessibility for a growing EV fleet but also optimizes the financial performance of charging networks by boosting utilization. It's a reminder that sometimes, quantity and widespread availability can be more valuable than peak performance in meeting broad consumer needs and ensuring sustainable business models within the rapidly evolving electric vehicle ecosystem.