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Assessment of Economic Viability of Direct Current Fast Charging Infrastructure Investments for Electric Vehicles in the United States

Author

Listed:
  • Daniel Bernal

    (Accelerated Deployment and Decision Support Center, National Renewable Energy Laboratory, U.S. Department of Energy, Golden, CO 80401, USA)

  • Adeeba A. Raheem

    (Civil Engineering Department, The University of Texas at El Paso, El Paso, TX 79968, USA)

  • Sundeep Inti

    (Department of Technology, Illinois State University, Normal, IL 61790, USA)

  • Hongjie Wang

    (Electrical and Computer Engineering Department, Utah State University, Logan, UT 84322, USA)

Abstract

As the global transportation sector increasingly adopts electric vehicles, the demand for advanced and accessible charging infrastructure is rising. In addition to at-home electric vehicle (EV) charging, there is a growing need for the swift development of commercial direct current fast charging (DCFC) stations to meet on-the-go EV charging demands. While government funds are available to support the expansion of the EV charging network in the United States, the establishment of a robust nationwide EV charging infrastructure requires significant private sector investment. This study was conducted to assess the economic feasibility of various business models for fast charging stations in the U.S. using two case studies and exploring different operational strategies including sole ownership and collaborative ventures with public and private entities. The results indicate that based on the current adoption and utilization rates in the U.S., the business model involving an owner-operator collaborating with a public partner ensures profitability and protects the investment in DCFC stations from financial losses. The study also highlights that demand charges and electricity retail prices are the factors that affect the profitability of a DCFC station.

Suggested Citation

  • Daniel Bernal & Adeeba A. Raheem & Sundeep Inti & Hongjie Wang, 2024. "Assessment of Economic Viability of Direct Current Fast Charging Infrastructure Investments for Electric Vehicles in the United States," Sustainability, MDPI, vol. 16(15), pages 1-21, August.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:15:p:6701-:d:1450347
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    References listed on IDEAS

    as
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    4. Kumar, Rajeev Ranjan & Chakraborty, Abhishek & Mandal, Prasenjit, 2021. "Promoting electric vehicle adoption: Who should invest in charging infrastructure?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
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