Ultra-E: Market and Business Models for Fast Charging Stations

A good two years ago, the starting signal was given for the Ultra-E pilot project, which was to establish a Europe-wide ultra-fast charging network in Europe by the end of 2018. In this pioneering project, 25 ultra-fast charging stations with CCS plugs and a charging capacity of up to 350 kW will be set up along TEN-T network corridors, thus connecting the Netherlands, Belgium, Germany and Austria E-mobile. As a partner in this project, which is co-funded by the "Connecting Europe Facility" of the European Union, Bayern Innovativ has conducted a study to shed more light on the future market and business models for ultra-fast charging technologies.

Long-range e-cars need a powerful charging infrastructure

In principle, it is clear that long-range electric cars will exist alongside e-cars with a shorter range in the future. The vehicle types "Urban", "Universal" and "Long-Distance" can be distinguished on the basis of their range and charging power (see graphic). Especially the vehicles of the types "Universal" and "Long-Distance" will be equipped with larger batteries and therefore need a powerful public charging infrastructure.

Future long-range electric cars will coexist with shorter-range e-cars. (Photo credit: Bayern Innovativ)

More flexibility and shorter charging time through fast charging stations

The customer survey conducted in the study shows that ultra-fast charging stations are attractive to respondents. For example, 77% of respondents say they would be interested in an electric car if the ultrafast charging network were expanded accordingly. Of these, 52% say that the greater flexibility and spontaneity offered by ultrafast charging stations would be the deciding factor. For 24% of those interested, fewer stops and a shorter charging time are particularly important.

Ultra-E Study Charging Time Electromobility

According to the customer survey conducted, a network of fast charging stations increases interest in electric cars. (Photo credit: Bayern Innovativ)

The ultra-fast charging network has business customers in its sights

Business customers are identified as the largest target group for the ultra-fast charging network, for whom the time factor is decisive and who prefer a maximum charging speed (350kW) on highways (26% of business customers compared to 8% private customers). Especially for long-distance trips, customers expect ultra-fast charging stations on highways to provide a clean, bright environment and other amenities, such as a restaurant, restrooms, and shopping facilities, similar to traditional highway service stations. According to the survey, respondents also appreciate simple and transparent payment (e.g., Plug & Charge) and ultra-fast charging stations approximately every 50 km near the highway.

Ultra-E Study Business Customers

Business customers are the largest target group for the ultra-fast charging network due to the time factor. (Photo credit: Bayern Innovativ)

What is preventing the expansion of an ultrafast charging network?

The biggest hurdle to the establishment of ultrafast charging stations, according to the study, is the current investment and operating costs, which are still too high, with too few electric vehicles on European roads. Support measures for private investors are still needed to enable the development of charging infrastructure at this early stage. However, adjustments to the legal framework to meet the new requirements of electromobility, such as building permits, energy law, calibration law, etc., could also help. Another way to reduce investment costs is through technological solutions such as the use of local battery storage. The advantage of this would be that, in addition to a low electricity connection, additional revenue could also be generated (thanks to extra services for grid stabilization).

In a subsequent project, even more efficient and sustainable solutions for operating ultra-fast charging stations will be researched, e.g., by combining local storage with locally generated green electricity.

Lastly, corresponding incentives for end customers could also increase the attractiveness of electric vehicles. The Ultra-E study will be published in the course of the next few months.

What is the Ultra-E charging network?

The Ultra-E charging network has 25 stations: four of them in Austria, four in Belgium, twelve in Germany, five in the Netherlands.
The charging power varies between 150 kW and 350 kW.
The distance between the charging stations is between 150 km to 200 km
Charge time: In 20 minutes a car charges for a range of 300 km.

The consortium of the EU project ULTRA-E led by Allego includes the car manufacturers Audi, BMW and Renault, the supplier Magna, the charging platform operator Hubject, the Austrian electricity utility Verbund, the service provider Smatrics and Bayern Innovativ GmbH. Bayern Innovativ is supporting the project with its extensive networks to develop suitable charging points in Bavaria and is preparing a study as part of the project that will shed light on future business models for ultra-fast charging technologies. The Competence Center for Electromobility located at Bayern Innovativ accompanies other national and international projects in addition to ULTRA-E.

The study "Market and Business Models for Ultra Charging," which will be available shortly, presents, among other things, important findings on buyer behavior, technological developments and trends, analyzes funding measures as well as legal barriers, and makes recommendations for the EU region.