Italy’s Enel expects to add at least two million chargers, including home systems, in North America by the end of the decade
By Jennifer Hiller, The Wall Street Journal, April 13, 2023
Italian energy giant Enel SpA said it would nearly double the amount of electric-vehicle fast chargers in the U.S. by 2030, potentially giving a critical boost to Biden administration efforts to switch more drivers to greener cars.
If Enel follows through on the plan, which it announced on Thursday, it would add 10,000 public fast chargers, considered one of the key pieces necessary for wider adoption of electric vehicles. Enel said it expects to apply for U.S. government subsidies that have been offered to companies willing to build the necessary infrastructure.
The Biden administration this week proposed new, tougher tailpipe emissions restrictions intended to accelerate the switch to EVs and reduce U.S. dependence on fossil fuels that generate greenhouse gases. New standards for light-duty vehicles would apply to the 2027 to 2032 model years.
Mr. Biden’s EV ambitions will hinge in large part on the availability of public places to plug in and repower cars reliably, a network that largely doesn’t exist. Building it won’t be easy.
While the government is pouring billions of dollars into developing a national highway charging network, many companies aren’t sure how they will make money off the nascent business. Fast charging requires expensive utility infrastructure and projects often encounter supply chain hang ups and long wait times to connect to the grid.
Because of that, fast charging providers must try to time a Goldilocks build-out, not so early that equipment goes unused, or too late to frustrate or dissuade drivers in search of a charge.
“The goal is to build a network that meets the demands and expectations of the public, that when they pull up to a charger it will work as intended,” said Albert Gore, executive director of the Zero Emission Transportation Association, a trade group that supports EV adoption.
Enel said Thursday it expects to add at least two million chargers overall this decade in North America. Most of that new gear would come from selling at-home chargers that repower an EV battery over several hours, the most common way to charge, though its plans for building public fast chargers would make it one of the largest operators in that market.
Chris Baker, head of charging subsidiary Enel X Way North America, said that government incentives and an uptick in EV adoption further convinced the company that it was time to enter the public charging market.
“We can come in and make a big commitment and take a long-term view on it,” Mr. Baker said. “It’s an infrastructure play.” He didn’t disclose the size of the investment.
At-home charging is the cheapest way to fuel but it takes time, while fast chargers can repower a car battery in about 30 minutes. Prices vary depending on EV efficiency and the electricity market, but a fast charge can cost around $13 for a midsize car to travel 100 miles.
The U.S. has around 11,500 fast-charging ports now that are open to any kind of vehicle, while EV market leader Tesla Inc. has a network for its own drivers with about 18,700, according to government data.
The business model for fast charging has been troubled because there aren’t enough EVs in most places yet for charging to turn a profit. Yet EV advocates say many drivers will only be comfortable purchasing vehicles if rapid charging is widely available.
Utility companies and gas stations have been arguing across several states about who will own and operate EV chargers. The expensive utility bills that can result from delivering quick jolts of power have been a particular point of contention. Meanwhile, the young companies that provide charging gear and services have struggled with equipment on the fritz, vandalism and driver payment systems, a frequent source of failure.
Government funding is intended to ease the growing pains and jump-start the nascent industry.
Enel’s fast-charging build-out would focus on the U.S., where the government has put billions on the table to try to create a national highway network of the equipment to ease “range anxiety,” the stress that drivers have about running out of juice on longer road trips.
The Biden administration has started giving states $7.5 billion over several years to fund charging build-outs, money included in the $1 trillion infrastructure bill passed by Congress in 2021. State transportation departments will be among the key gatekeepers of the federal infrastructure dollars. Recent technical guidelines outline made-in-America provisions for the equipment. Tax credits for installing EV chargers also were approved as part of last year’s Inflation Reduction Act.
Enel would be in line to qualify for government funding along with charging providers such as Electrify America LLC, EVgo Inc., ChargePoint Holdings Inc., Blink Charging Co. and Canada’s FLO network. Companies planning fast-charging networks range from car-rental company Hertz Global Holdings Inc., partnering with BP PLC, to roadside truck stops TravelCenters of America Inc. and Pilot Co., to Walmart, which said this month that it plans to build its own EV fast-charging network at Walmart and Sam’s Club locations.
Until now, Enel’s charging business has been focused on selling at-home and private commercial equipment in North America, though it has a large public charging network in Europe. Much of its work in Mexico is focused on fleet charging. Enel North America, another subsidiary, is also a large developer of renewable energy and battery projects in the U.S. and is making a massive push into solar-panel manufacturing.
https://www.wsj.com/articles/italian-company-plans-10-000-fast-chargers-across-u-s-to-meet-ev-demand-959fd135?mod=hp_lista_pos2