Venture capital firms and investor-owned utilities (IOUs) invest in electric vehicle charging infrastructure. Some stations include charging stations covered with solar panels. Cities across America are setting up electric vehicle (EV) charging stations in inner cities and suburbs, promoting support for electric cars.
This green energy dynamic is very visible. Will this market ever be supplemented by gas stations? Washington lawmakers passed a bill allowing electric utilities and IOUs to invest in the electric vehicle charging industry. These investments benefit from the usual rate of return approved by the PUC.
Regulators in many states were not prohibiting investor-owned utilities from selling electricity at retail charging stations. Can anyone consider parking at a Shell or BP station to find EV charging stations located near the air compressors? When will the changes in the automotive industry be reflected in the gas station industry? Electric cars travel 75 to 179 miles on a charge. This issue currently prohibits travel across the country in electric vehicles.
There are over 23,000 charging stations in the United States. This investment in infrastructure costs exceeds $ 130 million. These infrastructure costs decrease as technology improves and public support increases. Large areas of Texas, New Mexico, Arizona and California are excellent states for this new investment.
Utilities operate large transportation and electricity networks and invest in large infrastructure projects. They are ideal investors and backers for the construction of charging station networks. Investors could include automakers with large divisions of electric vehicles.
This type of investment is allowed in deregulated utility subsidiaries owned by power investors like ConEd Solutions, NRG and DTE Energy Investments. Returns can be higher and often better or more efficient technology can be found in this area of venture capital. The return on investment in small and medium cities could be 8% to 12%. Many cities will want to own and control these investments. The data generated from these stations will help city managers invest more as demand increases.
Green energy markets are developing in commercial and industrial business. Imagine large companies installing lots of EV charging stations as part of their annual employee goodwill spending. It will happen soon.
Will the money from the pension funds come into this sector? Hedge funds and other energy investors will enter this arena as the market for electric vehicles matures. Ford, Toyota and Tesla sell many electric vehicles. It makes sense in a country filled with environmentalists and in a country determined to do what it takes to move our auto industry forward.