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

China's new energy automotive industry is at a crucial stage of growth, with the electric vehicle (EV) sector still on the verge of a major breakthrough. According to Liu Baohua, Deputy Commissioner of the National Energy Administration, delivered at the 2nd 2017 China Electric Vehicle Charge and Replacement Services Innovation Summit Forum on December 10, the key to widespread EV adoption lies in power battery technology and the convenience of charging infrastructure. 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 solid foundation for the future of China’s EV industry. A major factor influencing consumer willingness to buy electric vehicles is whether the charging infrastructure can provide quick, convenient, and reliable charging or battery replacement services. Despite being the country with the largest number of electric vehicles and public charging stations globally, China still faces challenges in the charging infrastructure sector. 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 the large-scale deployment, the foundation remains weak, and there is still insufficient potential for sustainable development. Guo Wei, deputy inspector of the National Energy Administration, pointed out that current issues in the charging pile field include problems like lack of interconnectivity, low utilization rates, safety risks, and user-specific piles. Firstly, due to the large number of manufacturers, inconsistencies in charging interfaces—especially DC interfaces—still exist, and the level of interoperability between operator platforms is relatively low. Secondly, with the limited number of new energy vehicles, most users rely on private charging piles, resulting in an average public charging pile utilization rate below 15%, which affects the profitability of the industry. Additionally, some areas suffer from poor layout, maintenance issues, and many broken or "zombie" charging stations. Charging interface security standards are also not yet fully established, and network security risks remain in terms of data and payment processes. Moreover, the high cost of increasing power supply capacity within residential communities continues to pose institutional barriers for installing private charging piles. To address these issues, the National Energy Administration recommends accelerating the development of advanced charging technologies, aiming for standardization, networking, and intelligence. It also encourages innovation in business models, including charging and battery swapping, and calls for the construction of a national-level charging service platform to promote the healthy and sustainable development of charging facilities. Guo Wei emphasized the need to speed up the application of flexible charging technology, accelerate research on wireless and smart charging, and achieve breakthroughs quickly. He also called for greater data sharing among enterprises such as State Grid, Putian New Energy, Special Calls, and Wanbang, and for improved connectivity between public and private charging stations. In response to the low profitability of current charging facility operators, Guo proposed exploring sustainable business models through innovation, supporting crowdfunding and joint construction of charging piles, and encouraging commercial cooperation between charging companies and car manufacturers to foster coordinated development. Additionally, leveraging financial incentives and learning from international experiences, the administration aims to promote the role of charging infrastructure through industry alliances and the development of national service platforms. Looking ahead, building a smart car networking ecosystem requires cross-border collaboration, platform interoperability, and resource sharing. Representatives from various charging companies discussed topics such as smart car networking, charging and replacement network construction, and operation and maintenance services. Shao Danwei, Chairman of Wanbang New Energy Investment Group, noted that while Chinese brands were once behind international competitors in wireless charging, this barrier has now been overcome. Through partnerships with multinational automakers, Chinese companies are exploring robot-based charging solutions, which are more cost-effective and efficient. Wu Zesheng, Deputy General Manager of Sichuan Dongfang Electric Automatic Control Engineering Co., Ltd., stressed the importance of intelligent operation and maintenance systems for future charging stations, emphasizing modular software design, fault diagnosis, and grid integration capabilities. Yu Dexiang, Chairman of Qingdao Trid Electric Co., Ltd., highlighted the need for modular charging product designs to reduce long-term maintenance costs as the number of EVs and charging piles grows. He suggested developing a charging and replacement network rather than just individual charging piles, which would support smarter and more efficient energy management. Shen Fei, Vice President of Weilai Automotive, emphasized the use of cloud computing and AI to enhance charging and battery swapping convenience, allowing real-time navigation and optimized station placement. Zhang Yong, Deputy General Manager of Beijing New Energy Automobile Co., Ltd., pointed out that the slow charging process remains a major challenge for EV drivers, prompting the exploration of battery swapping as a faster alternative. Although this model shows promise, it still faces operational challenges.

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