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3 phases of charging market development

There are three clear phases in the development of the EV charging industry. This development framework helps to understand where we're coming from, where we are now, and where we're headed.

In the first phase, with a relatively low penetration of EV’s, charging was done mostly at homes or other private areas, like office buildings. Charging was billed mainly based on minute or hourly rates, and a large number of charging points were free to use, as low volumes meant a relatively small price tag for the charging point owner. Typically the charging infrastructure was 'dumb', ie. it was not connected to a cloud-based operator service.

In the second phase, with high EV sales growth, Mode 3 enabled smart charging infrastructure is being deployed and there is an emphasis on public charging points. Most geographic areas in Europe and the US are in this second phase. Smart charging enables digital services with more complex payment schemes, balancing of charging loads, and flexible access management features. EV charging operators have emerged in this phase to provide these features, and they have taken a high control over the ecosystem.

In the third phase, the long-term stage, EV’s will play a key role in the energy system. To protect the energy system from the new electricity demand caused by the high penetration of EV's, charging operators should be responsible for reacting to the needs from TSO’s and DSO’s, and thus provide ancillary and balancing services. These new needs would create valuable opportunities for the operators, who can start aggregating EV's and charging points to provide these valuable V2G services.

Interested to hear more about how we perceive the new world where energy and transportation industries are converging? Leave us a message and let's chat!

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