"World's First" Privately Funded Electric Car Charging Ecosystem Set for Houston

By Nick Chambers · November 29, 2010

eVgo Network by NRG Energy

As the debate usually goes, nobody will buy electric cars unless there is sufficient charging infrastructure to support them and nobody is willing to install charging infrastructure without seeing the electric cars that need it. Personally I think the "chicken or egg" question is overblown, and one that we don't need to answer right away because we don't need it for EVs to gain a foothold (see myth number four), but nonetheless it's getting a lot of attention these days.

To this point the only real push for massive amounts of EV charging equipment spread over large areas (known as an EV ecosystem) has been through the joint public-private EV Project partnership. Funded with $125 million in federal government grant money as well as $125 million in private investment, the EV Project seeks to install more than 15,000 charging stations in six states (WA, OR, CA, AZ, TX, and TN) over the next year. No so coincidentally, these states tend to be the same places that plug-in car companies (Nissan, Chevrolet, Mitsubishi, CODA, Think) will roll out their initial crop of EVs.

And while those of us that support electric cars see this as a good thing, major questions still remain about how (or even if) these charging ecosystems can be privatized. Will people pay for the electricity at these stations much like they do for fuel at a gas pump? Most states make reselling electricity illegal, and the cost per transaction will be pennies, so the current thinking is that if you buy something (service, hotel room, retail good, food, etc.) at an establishment that hosts a charging station you can use the charging station as part of that transaction. Still, the very fact that the EV Project seems to be falling behind schedule indicates that these arrangements are harder than people expected to hammer out.

But down in Houston, Texas, local utility NRG Energy is taking the idea of an EV Ecosystem into its own hands and with an investment of $10 million of its own money, as well as partnerships with infrastructure providers and commercial operations, plans to build what they're calling the "world's first" privately funded EV ecosystem. Called the eVgo Network, NRG has plans to expand the network across Texas over the course of 2011 and imagines it expanding nationwide in the future. You can watch an introductory video below.

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NRG Energy is building the eVgo network in Houston, TX, with plans to expand nationwide.

NRG plans to control the process from beginning to end by sending out consultants to prospective EV buyers and letting them know how much it will cost to install a charging station at home. NRG will then provide the installation using AeroVironment equipment. After installation the company has three options for monthly usage of the network based on fixed costs, meaning that the plans would only be money savers for those that drove quite a bit (see the above video for an overview).

We'll see if these fixed cost type plans actually take off, but for now that seems to be how private industry envisions charging infrastructure working. What's amazing to me is that an entire city the size of Houston can be decked out in an EV Ecosystem for $10 million. That's about two gas stations... and two gas stations is enough for what, a town of 3,000 people?

About the author

Nick is a tireless and passionate next generation car enthusiast. Since 2007 he has written hundreds of posts for outlets such as The New York Times, Motor Trend, Scientific American, Popular Mechanics, AutoTrader.com, The Daily Green, HybridCars.com, and Gas 2.0.

Follow Nick on Twitter @ecochambers

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Comments

· ex-EV1 driver · 1 year ago

. . . an entire city the size of Houston can be decked out in an EV Ecosystem for $10 million.
Nick,
You're right. Charging infrastructure is dirt cheap. It costs about as much to put in a Level 1 or 2 charger as an electric clothes dryer.

· JamesDavis · 1 year ago

Houston! We don't have a problem here. I'll take the $89.00 deal. I think it would be a good idea if evGo would convert that YouTube video to a nation wide commercial...that is if they can handle the business and the huge profit. When people know that they can charge their EV from home in 30 minutes, EV sales will skyrocket.

Good reporting job Chambers.

· micro (not verified) · 1 year ago

>>What's amazing to me is that an entire city the size of Houston can be decked out in an EV Ecosystem for $10 million. That's about two gas stations... and two gas stations is enough for what, a town of 3,000 people?<<

That's only initially ... for the first few hundred electric car owners. To get the process started. micro

· dgpcolorado · 1 year ago

I don't care for the subscription model of chargers for home use. I'd rather pay for my charger up-front than rent it forever at enormous cost. Or skip the fast charger entirely and just use the standard 120V "trickle charge"; if I'm charging overnight, what's the big hurry? It's not as if I am going to fully deplete the battery pack every time I drive the car. (Am I missing something about 120V charging versus 220/240V charging?)

A reasonably priced subscription option for public charging stations might be workable but it may be that stores and employers will offer them free. If not, I'd rather feed quarters into a meter if laws can be changed to allow that. I still think that most charging will be done at home and public charging will be an occasional need at most.

· Bruce N. · 1 year ago

Nick, would you or someone else in this column see if you could find out what features (if any) these chargers will have and for how EV owners will use them? I'm specifically interested in knowing:

- Will they have a way to notify someone looking for a charging station whether it's in use or available (via the car's nav unit)?

- If multiple drivers queue up at one station, will there be a feature to identify each driver and assign them in the order they applied/arrived? Or will who gets to charge next turn into a free-for-all?

- Again relative to multiple drivers queued up at one station, will a driver be able to set the minimum charge they MUST have to get where they need to go, and a maximum level? That would allow the next driver in the queue to disconnect and plug their own vehicle in when that minimum charge level has been met. Or if they're in no hurry, they could wait until the other vehicle hits that max.

Or probably more likely, there won't be any features, and drivers will need to come up with their own protocols and hope for good behavior where the 2nd guy pulling up won't simply unplug the car being charged and start charging their own vehicle.

· mzerega (not verified) · 18 weeks ago

Nick.. I know this an old post, but I'm searching for an economically feasible explanation of the EV charging service business model (without subsidies) and am finding nothing. Financial analysis shows that if it costs $10,000 (including permits, trenching, conduit, wire, disconnects, etc..) to install one L2 charging unit, and it actively charges a 3-mi/kWh car every day for 10 years, for 6 hours each day (active charge time; not parking time), at $0.50/kWh (equivalent to $4.00/gal gasoline at 24MPG), the operator will net negative $40/year at 0% ROI (assumes 40% tax rate and 7-yr MACRS). This analysis assumes there's no utility demand charge, or cost for handling charging transactions i.e., collecting and accounting for the revenue from drivers. I'm hoping to find a URL or other reference that describes (numerically) how companies like eVgo recover their investment plus a reasonable rate of return.

· ex-EV1 driver · 18 weeks ago

@mzerega,
I agree, I haven't done the analysis you've done but agree that the business case for charging can be dubious unless looked at more from a big picture position:
1) $10,000 per L2 charging station probably is ridiculous. I suspect that like everything, a little bit of economy of scale is necessary. It probably takes about $10,000 for 1 L2 station, around $5,000 for an adjacent, $2,500 for the next and so on to some sort of steady state cost of maybe $500 per station (assuming the cost of the stations comes down to ~$200).
2) Just like parking spaces in general, they will become necessary to draw people in to locations and I suspect that value will end up being greater than the value of the space. ie, today, I fly out of LAX (Los Angeles International Airport) more often than BUR (Burbank Airport), simply because I can charge my car at LAX and I can't at BUR. I fly around 50,000 miles each year so BUR is losing money on me. Likewise, the City of Burbank has EV charging stations in its garage. Therefore, when I need to shop, Burbank is more attractive to me than the nearby cities of Pasadena and Glendale that don't offer EV charging. If EV ownership increases (there are always dozens of EVs parked at LAX), this could become significant.
With something as breakthrough as Electric Vehicles, it isn't clear how the business cases will shake out. We saw that in the early days of Cellular Phones when it wasn't clear whether charging should be per minute, per second, included fees, pre-pay, caller pays, etc.

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