Utilization of public charging piles is less than 15%: operator profit model to be solved

China's new energy automotive industry is at a pivotal stage of growth, with the electric vehicle (EV) sector still on the verge of a major breakthrough. The key to widespread EV adoption lies in power battery technology and the convenience of charging infrastructure. At the 2nd 2017 China Electric Vehicle Charge and Replacement Services Innovation Summit Forum on December 10, Liu Baohua, Deputy Commissioner of the National Energy Administration, emphasized this point. Currently, the development of charging infrastructure in China has been significantly supported by government policies and market guidance, leading to rapid expansion. On the technological front, innovations such as wireless charging and high-power charging are continuously evolving, laying a strong foundation for the long-term development of the EV industry. The availability of convenient and Fast Charging or replacement services remains a crucial factor influencing consumer willingness to purchase electric vehicles. Despite progress, the industry still faces challenges in its layout and overall maturity. China has become the world's largest market for electric vehicles and has also built the most public charging stations globally. As of October this year, the number of public charging piles nationwide reached 195,000, up 82.2% compared to the same period last year, while private charging piles increased by 214% from the previous year. However, despite this impressive growth, there are still underlying issues such as weak infrastructure and limited development potential. During the conference, Guo Wei, deputy inspector of the National Energy Administration, outlined four main challenges in the charging pile sector: interoperability, low utilization rates, safety hazards, and user-specific piles. The lack of standardization in charging interfaces, especially DC connectors, remains a significant barrier. Additionally, the low utilization rate of public charging stations—often below 15%—and the relatively small number of new energy vehicles on the road have made profitability difficult for many operators. In some regions, the poor layout and maintenance of charging stations have led to frequent breakdowns and "zombie" stations. Moreover, security standards for charging interfaces and data protection remain underdeveloped, posing risks to users. The high cost of increasing power supply capacity within residential areas also creates institutional obstacles for private charging installations. Looking ahead, the National Energy Board suggests accelerating the development of advanced charging technologies, aiming for standardization, networking, and intelligence. It also calls for innovative business models that integrate charging and replacement services, and the establishment of a national-level charging service platform to support the sustainable development of charging infrastructure. Guo Wei also emphasized the need to promote flexible charging technologies, including wireless and smart charging, and to encourage data sharing among major platforms like State Grid, Putian New Energy, and Wanbang. He suggested that once charging stations are connected to the network, they can be shared more efficiently, reducing the need for excessive infrastructure and improving overall efficiency. To address the current low profitability of charging facilities, Guo proposed fostering sustainable business models through innovation, encouraging crowdfunding and social participation in infrastructure development, and promoting collaboration between charging companies and vehicle manufacturers. Franchise models could also attract professional operators to manage operations and maintenance. Additionally, leveraging financial incentives and learning from international best practices, the industry should accelerate the formation of national service platforms based on existing operating systems. Building a smart car networking ecosystem requires cross-border cooperation, platform interoperability, and resource sharing. Representatives from various charging companies discussed these topics, emphasizing the importance of innovation and efficient operation and maintenance of charging networks. Shao Danwei, chairman of Wanbang New Energy Investment Group, noted that while Chinese brands were once lagging behind global leaders in wireless charging, recent advancements have allowed domestic companies to break through. For example, IMC has signed agreements with multinational automakers to use robot-based charging, which is more cost-effective and flexible. Wu Zesheng of Sichuan Dongfang Electric Automatic Control Engineering highlighted the necessity of smart operation and maintenance systems for future charging stations. These systems must include modular software, intelligent fault diagnosis, and accurate power generation forecasting to ensure grid compatibility and efficient monitoring. Yu Dexiang of Qingdao Trid Electric pointed out that the design of modular charging products is essential, as the growing number of EVs will require millions of maintenance workers, making it challenging for operators to sustain high labor costs. He recommended developing a charging and replacement network rather than just individual charging piles, which would offer greater control, intelligence, and environmental benefits. Shen Fei of Weilai Automotive stressed the role of cloud computing and AI in providing more convenient charging experiences, enabling real-time navigation to charging stations. Zhang Yong of Beijing New Energy Automobile Co., Ltd. highlighted the challenges faced by self-owned brands, particularly in the taxi and ride-hailing sectors, where long charging times remain a major issue. To address this, his company has introduced a battery replacement system that takes only 2 minutes and 46 seconds, and has tested it in several cities. While this model shows promise, it still faces operational challenges.

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