Sustainability Atlas
Mobility & Built Environment·14 min read··...

Case study: EVs & charging ecosystems — a startup-to-enterprise scale story

A concrete implementation with numbers, lessons learned, and what to copy/avoid. Focus on utilization, reliability, demand charges, and network interoperability.

North America's public EV charging network has grown sixfold over the past decade, reaching approximately 196,000 public charging ports and 64,187 stations by the end of 2024. Yet despite this explosive growth, the industry faces a paradox: national DC fast charger utilization averages just 16.2%, while 14% of all charging attempts still fail. This case study examines how charging operators are navigating the complex journey from startup to enterprise scale, revealing the operational realities behind utilization optimization, reliability engineering, demand charge mitigation, and the critical push toward network interoperability that will determine which players survive the coming consolidation.

Why It Matters

The electrification of transportation represents one of the most significant decarbonization opportunities in North America, with the transportation sector accounting for approximately 29% of U.S. greenhouse gas emissions. In 2024, North American EV sales exceeded 1.9 million passenger vehicles, representing an 11% market penetration rate in the United States and 15% in Canada. Mexico's EV penetration doubled from 1% to 2%, signaling accelerating adoption across the continent.

The charging infrastructure ecosystem underpinning this transition has reached an inflection point. The U.S. EV charging market was valued at $5.09 billion in 2024, with projections indicating a 30.3% compound annual growth rate through 2030. Federal support through the National Electric Vehicle Infrastructure (NEVI) Formula Program has allocated $5 billion for charging infrastructure buildout, with $623 million in grants announced in 2024 alone—$311 million for community projects and $312 million for corridor development.

However, the path from startup deployment to profitable enterprise operation remains treacherous. The economics of charging infrastructure are challenging: demand charges can represent 30-70% of a commercial electricity bill, and profitability typically requires >15% utilization rates. Meanwhile, the industry is experiencing significant consolidation, with the number of charge point operators expected to grow from 50 in 2024 to 63 in 2025, even as major acquisitions like Shell's purchase of Volta reshape the competitive landscape.

The stakes extend beyond individual company survival. Inadequate charging infrastructure remains the primary barrier to EV adoption for many potential buyers. As of Q1 2025, the Paren Reliability Index stood at 82.6, up from 81.2 in Q4 2024—progress, but still indicating that nearly one in five charging sessions encounters some form of friction. The successful scaling of charging ecosystems will determine whether North America meets its climate commitments and whether the economic benefits of the EV transition flow to domestic operators or foreign competitors.

Key Concepts

Electric Vehicles (EVs) encompass battery electric vehicles (BEVs) that operate solely on electricity and plug-in hybrid electric vehicles (PHEVs) that combine electric drivetrains with internal combustion engines. The North American market increasingly favors BEVs, which require more extensive public charging infrastructure than PHEVs. Understanding vehicle-to-grid (V2G) capabilities and bidirectional charging is becoming essential as EVs transition from pure transportation assets to distributed energy resources.

Network Interoperability refers to the ability of EV charging systems to communicate across different networks, protocols, and hardware platforms. The NEVI program mandates compliance with Open Charge Point Protocol (OCPP) 2.0.1 for charger-to-network communication, Open Charge Point Interface (OCPI) 2.2.1 for network roaming, and ISO 15118 for vehicle-to-charger communication enabling Plug and Charge functionality. These standards ensure that drivers can charge at any station regardless of network membership.

Demand Charges are utility fees based on peak power consumption (measured in kW) during a billing cycle, regardless of total energy consumed. For DC fast charging installations, demand charges of $7-10+ per kW can translate to $6,000-9,000 monthly for a six-port 150kW station operating simultaneously. Managing demand charges through smart charge management, battery buffering, and enrollment in utility-specific EV rate programs is critical to achieving profitability.

Micromobility Integration addresses the interface between EV charging infrastructure and smaller electric transportation modes including e-bikes, e-scooters, and electric mopeds. Forward-thinking charging hubs increasingly incorporate micromobility charging and parking to create multimodal transportation nodes that increase overall site utilization and community value.

Building Codes and EV-Ready Requirements are municipal and state regulations mandating electrical capacity or installed charging infrastructure in new construction. California's CALGreen code requires EV-ready infrastructure in new residential and commercial buildings, while similar requirements are spreading across North America. These codes create significant long-term demand for charging equipment while reducing retrofit costs.

What's Working and What Isn't

What's Working

Mega-hub deployments with premium amenities are demonstrating that charging station economics improve dramatically at scale. The GM-Pilot-EVgo partnership, deploying 2,000 charging stalls across 500+ Pilot and Flying J travel centers, has proven this model with over 130 locations operational across 25+ states as of early 2025. These sites feature 350 kW ultra-fast chargers with pull-through capability for towing, 24/7 staffing, lounges, and food service. By embedding charging within existing high-traffic retail destinations, operators achieve utilization rates of 25-40% in major markets—well above the 15% profitability threshold.

Utility partnership models for demand charge mitigation are unlocking previously uneconomic deployments. Pacific Gas & Electric's Business EV Subscription Rates replace traditional demand charges with predictable monthly tiers based on connected load—similar to cellular phone plans. Southern California Edison's five-year demand charge waiver programs (which have been extended for new installations) and National Grid's EV Phase-In Rate with 50% demand charge rebates for fleets demonstrate that creative rate design can make commercial charging viable in markets that would otherwise be untenable.

Interoperability roaming agreements are reducing driver friction and expanding effective network coverage. EVgo's interoperability agreements with ChargePoint and EV Connect allow drivers to access multiple networks through a single app. The mandatory OCPI 2.2.1 compliance under NEVI regulations is accelerating this trend, with 63 charge point operators expected to be actively deploying in 2025. Tesla's opening of its Supercharger network to non-Tesla vehicles—now encompassing two-thirds of its 35,682 DC fast charging ports—has fundamentally altered the competitive landscape.

What Isn't Working

Rural and low-income community deployments continue to struggle with the fundamental economics of low utilization. While high-demand urban markets like Las Vegas (34.1% utilization) and Los Angeles (31.4%) are approaching profitability, rural charging stations often operate at <5% utilization. The Justice40 initiative's goal of directing 40% of climate investment benefits to disadvantaged communities creates tension with commercial viability requirements. Operators are exploring creative solutions including mobile charging, community solar co-location, and extended amortization periods, but the economic model remains challenging.

Reliability at aging stations is degrading faster than anticipated. According to ChargerHelp's 2025 Annual Reliability Report, first-time charge success rates drop from 85% at new stations to 69.9% at stations three years old—a 15-point degradation. Hardware malfunctions and operational issues account for 60% of failures, with the remaining problems stemming from payment, software, and connectivity issues. The 97% uptime requirement under NEVI is proving difficult to maintain, as 97% uptime still translates to 11 days of downtime per year, and traditional uptime metrics fail to capture the full driver experience.

Fractured connector standards have created persistent consumer confusion, though resolution is emerging. The market's transition from Combined Charging System (CCS) to the North American Charging Standard (NACS)—Tesla's connector adopted as the industry standard—means operators must support both connector types during the multi-year transition. ChargePoint's Omni Port, which auto-releases the correct connector for any vehicle, represents one hardware solution, but the installed base of CCS-only equipment creates stranded asset risk.

Key Players

Established Leaders

Tesla Supercharger Network maintains market leadership with 35,682 DC fast charging ports (52.5% market share as of January 2026), though this represents a decline from 57% a year earlier. Tesla's average of 13 ports per station and V4 Supercharger deployment (500 kW output, 1.2 MW for Semi trucks) set the industry benchmark for user experience.

Electrify America operates approximately 5,350 DC fast charging ports at nearly 1,100 locations, funded through Volkswagen's diesel emissions settlement. Their 2025 target of 1,800 stations and 10,000 ports, combined with strategic placement at Walmart locations, positions them as the leading non-Tesla network.

ChargePoint is the largest overall charging network with 50,000+ publicly accessible ports, though their hardware/software platform model means most chargers are owned by third parties. Their FY2024 subscription revenue reached $120 million (41% year-over-year growth), demonstrating the recurring revenue potential of their network approach.

EVgo operates approximately 4,900 DC fast charging ports with a target of 15,000 stalls by 2029. Their December 2024 announcement of a $1.25 billion DOE loan commitment and 1 million registered customer accounts milestone underscore their growth trajectory.

BP Pulse is rapidly expanding its North American presence, leveraging parent company BP's retail network and strategic acquisitions to build charging infrastructure at scale.

Emerging Startups

SparkCharge has raised $30.5 million to deploy mobile and portable charging solutions that address the "charging desert" problem by bringing charging to vehicles rather than requiring vehicles to come to fixed infrastructure.

SWTCH Energy has raised $13 million to address the multifamily residential charging gap, deploying networked charging solutions in apartment complexes across the U.S. and Canada.

ChargerHelp has raised $20.2 million to provide Reliability-as-a-Service (RaaS), using software-enabled technician networks to dramatically improve charging station uptime and first-time charge success rates.

AMPECO raised $26 million in Series B funding for its charging management software platform, enabling charge point operators to manage hardware, billing, and customer experience across diverse equipment portfolios.

WeaveGrid secured $15 million in Series A funding for grid integration software that optimizes charging loads to reduce demand charges while supporting utility demand response programs.

Key Investors & Funders

Breakthrough Energy Ventures, Bill Gates' climate-focused fund, has invested in WeaveGrid and ev.energy, focusing on grid integration and smart charging technologies that address demand charge challenges.

BP Ventures has deployed capital across IoTecha, BluSmart, and Service4Charger, building a portfolio of charging ecosystem companies that complement BP's owned-and-operated infrastructure.

Shell Ventures led XCharge's $75 million+ Series B+, demonstrating major oil companies' strategic commitment to the charging infrastructure transition.

The U.S. Department of Energy through the NEVI program and supplementary grants represents the largest single funder of public charging infrastructure, with $5 billion allocated 2022-2026 and 80% cost coverage for eligible projects.

General Motors through both direct investment and partnership structures (including the IONNA joint venture with other automakers) is deploying significant capital to ensure adequate charging infrastructure for its EV portfolio.

Examples

  1. Metro Detroit Charging Desert Elimination (2024-2025): ChargePoint partnered with Dabaja Brothers Development Group to deploy 40+ DC fast charging ports across Canton, Dearborn, and Livonia, Michigan—areas previously classified as "charging deserts" with minimal public fast charging access. The first site in Canton opened in late November 2024, with ChargePoint Express Plus stations delivering up to 500 kW per port. The deployment increased Metro Detroit's fast-charging availability by more than 10%, demonstrating the "infill" model where private developers partner with established networks to rapidly expand coverage in underserved areas.

  2. Los Angeles Metro EVgo-LADWP Partnership (2024): EVgo received the 1st Place Leadership Award for Level 3 DC Fast Charging from the Los Angeles Department of Water & Power in recognition of their sustained infrastructure deployment and utility collaboration throughout 2023-2024. The partnership exemplifies the utility co-investment model, where municipal utilities provide favorable rates, make-ready infrastructure, and promotional support in exchange for expanded charging access for their customers. Los Angeles now achieves 31.4% average utilization across its fast-charging network—more than double the national average.

  3. Volvo-Starbucks-ChargePoint Corridor Project (2023-2024): The Denver-to-Seattle corridor deployment placed DC fast chargers at 15 Starbucks locations, demonstrating the retail co-location model where charging infrastructure benefits from existing foot traffic while providing amenity value to host businesses. Charging sessions at retail-located stations show 40% higher average dwell time than standalone stations, increasing both retail sales and energy throughput per session.

Action Checklist

  • Conduct a site utilization audit using benchmarks of 16.2% national average and 25-40% for high-performing urban markets
  • Evaluate utility rate options including subscription models, demand charge waivers, and time-of-use optimization opportunities
  • Ensure NEVI compliance with OCPP 2.0.1, OCPI 2.2.1, and ISO 15118 Plug and Charge capability for new installations
  • Develop a connector transition strategy addressing CCS-to-NACS migration with dual-connector or universal solutions
  • Implement real-time reliability monitoring with first-time charge success rate (FTCSR) as the primary metric rather than uptime alone
  • Establish service level agreements with maintenance providers targeting same-day response for station failures
  • Explore host partnerships with retail, hospitality, and travel center operators to improve utilization through existing foot traffic
  • Register for NEVI funding opportunities through state DOT and energy office solicitations with up to 80% cost coverage
  • Develop a power scaling roadmap moving from 150 kW minimum to 350-500 kW as the new competitive baseline
  • Create a Justice40 deployment strategy for disadvantaged community installations with appropriate financial structures

FAQ

Q: What utilization rate is required for DC fast charging profitability, and how does this vary by market? A: The industry consensus threshold for DC fast charging profitability is approximately 15% utilization, though this varies significantly based on electricity costs, demand charge structures, and capital expenditure. High-performing urban markets including Las Vegas (34.1%), Los Angeles (31.4%), New York (27.6%), and Miami (27.2%) are achieving well above this threshold. However, rural and suburban stations often operate at 5-10% utilization, requiring extended amortization periods, grant funding, or alternative revenue streams to achieve viability. The key insight is that utilization is not static—it typically builds over 18-36 months as local EV populations grow and driver awareness increases.

Q: How do NEVI interoperability requirements affect existing charging equipment and new deployments? A: The NEVI Final Rule effective February 2024 mandates OCPP 2.0.1 for charger-to-network communication, OCPI 2.2.1 for network roaming, and ISO 15118 hardware capability with Plug and Charge software support. New NEVI-funded installations must meet these requirements immediately. Existing equipment may require firmware updates for OCPP compliance and hardware modifications for ISO 15118 support. Critically, NEVI also requires that charging hardware allow operators to switch network providers without hardware replacement, preventing vendor lock-in. Non-NEVI stations are not bound by these requirements but face competitive pressure to match interoperability standards.

Q: What strategies effectively mitigate demand charges for commercial charging operations? A: The most effective approaches include enrolling in utility-specific EV commercial rates such as PG&E's subscription model or National Grid's EV Phase-In Rate with 50% demand charge rebates. Technical solutions include installing dedicated EV metering to qualify for commercial EV rates, deploying battery energy storage systems to buffer peak loads, implementing smart charging software that distributes load across time windows, and using power-sharing across multiple ports. Some operators are co-locating with solar generation to reduce grid draw. The fundamental challenge is that DC fast chargers create "spiky" load profiles with high instantaneous demand but low total energy consumption—the worst possible profile for traditional commercial rate structures.

Q: How is the CCS-to-NACS connector transition affecting network investment decisions? A: The industry's adoption of Tesla's connector as the North American Charging Standard (NACS) creates a multi-year transition period during which operators must support both connector types. Major automakers including Ford, GM, and Honda have committed to NACS for 2025+ model years, but millions of CCS-equipped vehicles will remain on roads for 10+ years. Hardware solutions include dual-connector stations, universal ports like ChargePoint's Omni Port, and NACS-to-CCS adapters. Operators are increasingly specifying NACS-primary installations with CCS as a secondary connector. The transition creates both stranded asset risk for CCS-only equipment and opportunity for operators who can efficiently serve both vehicle populations.

Q: What reliability metrics should operators prioritize beyond traditional uptime measurements? A: First-Time Charge Success Rate (FTCSR) has emerged as the gold standard metric because it captures the actual driver experience rather than just hardware availability. A charger can be "up" (connected to the network and powered) but still fail due to payment processing issues, software bugs, or communication errors. ChargerHelp's 2025 data shows new stations achieve 85% FTCSR, declining to 69.9% after three years of operation. Operators should track FTCSR by station age, hardware vendor, and failure mode (hardware vs. software vs. payment vs. connectivity) to identify systemic issues. The Paren Reliability Index provides network-level benchmarking, reaching 85.5 in Q2 2025.

Sources

Topics

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