Venture capital firms and investor-owned utilities (IOUs) invest in EV charging infrastructure. Some stations include covered solar panel charging stations. Cities across the United States are implementing electric vehicle (EV) charging stations in downtown areas and suburbs, building support for electric cars.
This boost of green energy is highly visible. Will this market ever be complete with gas stations? Lawmakers in Washington approved a bill to allow electric power utility companies and IOUs to invest in the electric vehicle charging sector. These investments receive the usual rate of return approved by the PUC.
Regulators in many states did not prohibit investor-owned utilities from selling electricity at retail charging stations. Can anyone imagine arriving at a Shell or BP station to find electric vehicle charging stations located near the air compressors? When will the changes in the automobile industry be reflected in the gas station industry? Electric cars travel from 75 to 179 miles on a charge. This issue currently prohibits traveling across the country in electric vehicles.
There are more than 23,000 charging stations in the US. This infrastructure investment is over $130 million. These infrastructure costs decrease as technology improves and public support increases. Large areas in Texas, New Mexico, Arizona and California are excellent states for this new investment.
Utility companies operate large power and transmission networks and invest in major infrastructure projects. They are ideal investors and sponsors to build networks of charging stations. Investors could include car companies with large electric vehicle divisions.
This type of investment is permitted in deregulated subsidiaries of Electric Investor Owned Utilities such as ConEd Solutions, NRG and DTE Energy Investments. The returns can be higher, and better or more efficient technology can often be found in this area of venture capital. The return on investment in small and medium-sized cities could be 8% to 12%. Many cities will want to own and control these investments. The data generated by these stations will help city managers place more as demand increases.
Green energy markets are expanding in commercial and industrial businesses. Imagine large corporations installing many EV charging stations as part of their employees’ annual goodwill spending. This will happen soon.
Will money from pension funds enter this sector? Hedge funds and other energy investing investors will enter this field as the EV market matures. Ford, Toyota, and Tesla are selling a lot of electric vehicles. This makes sense in a country full of environmentalists and a nation determined to do the right thing to move our auto industry forward.