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

Daniel Bernal, Adeeba A. Raheem (), Sundeep Inti and Hongjie Wang
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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

Sustainability, 2024, vol. 16, issue 15, 1-21

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.

Keywords: electric vehicles; DC fast charging; construction cost; net present value; charging infrastructure; business model; economic analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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