Editor’s note: This article was first published in September 2011. The 30-minute average charging time, the high price of electric cars and the state of the market describe that moment. The forecast of more than 1 million electric vehicles in Spain by 2014 did not come true; the real figure was far lower.
The very idea of the petrol station could disappear if electric vehicles keep advancing. It’s true that, so far, this model hasn’t been a profitable business for hybrid vehicle manufacturers, and for consumers an electric car is a luxury because of the high price you have to pay for it.
These problems may soon be a thing of the past. The big oil companies, which until now held back the progress of “clean” vehicles, and the electricity companies are both studying how to make money from what could be the new business of the future. The Spanish power company Iberdrola is studying how to supply large numbers of vehicles without straining the grid at peak times.
To begin with, oil companies could set up mixed petrol stations, and in some cases close a station to open an EV charging station instead. The problem with a charging station is that, for now, the average time to charge a vehicle is 30 minutes. Making a site pay for itself on that basis, bearing in mind that charging is cheaper than filling up with petrol, is another matter to consider.
Of course, a charging station offering some kind of entertainment for the 30 minutes the customer spends recharging would be a way to diversify the business and increase revenue.
Finally, another problem arises: the fight in this business would be between two giants, the power companies and the oil companies. The first produce the energy and the second sell it to the end customer as mere intermediaries, so both want to make a profit, which could end up driving up the price for the consumer.
Meanwhile, some entrepreneurs have entered the scene with a similar model based on solar energy. They are looking for funding to develop their business, as they say solar power could charge a considerable number of vehicles.
The latest figures suggest that by 2014 there could be more than 1 million electric vehicles in Spain, which would generate around €300 million a year in revenue. That isn’t a huge figure, but it’s tempting enough for someone to want a slice of the pie.
Other business ideas emerging from this sector include eco-friendly vehicle rental. One of the pioneering places for this kind of business was Formentera, where users’ response has so far been excellent.
Further reading
Featured image: Chixoy, CC BY-SA 4.0, via Wikimedia Commons.
