The ownership cost model of electric vehicle charging station to power environmentally friendly tourism

Abstract

There is a growing demand for electric vehicle (EV) charging stations due to the growing number of people buying electric vehicles. This means that demand for electric vehicle charging stations is also increasing. With the participation of the business and government sectors, the Thai Government, under the Thai government energy conservation plan for 2015-2036, is encouraging investment in the production and importation of electric vehicles. This includes the development of more efficient electric vehicles that can travel long distances without the need to recharge the battery. The number of electric vehicles rose in the period from 2017 to December 2021 as follows; battery powered EVs (BEV) 11,382 units, (PHEV) 31,145 units and HEV 196,582 units: a total of 239,109 units. According to the Electric Vehicle Association of Thailand, in September 2021 there were 693 electric charging stations operational in Thailand with 2,285 charging plugs available.

This research is a simulated study of a business model for the development and expansion of electric vehicle charging stations that analyzes the reduction of the cost of constructing charging stations and evaluates the cost of electric vehicle charging station ownership. This business model analyzes the reduction in investment and operational costs and the suitability of the location of EV charging stations. The growth in demand for EV charging stations to accommodate the growing number of electric vehicles, requires efficient and safe charging technologies that satisfy the needs of EV owners in different situations.

This research looked at three scenarios based on the modeling of possible market shares. Scenario 1 includes normal EV charging stations only which would normally be installed in shopping malls, restaurants, and residential condominiums, Scenario 2 includes quick EV charging station design only which would usually be found in gas stations, vehicle logistics centers and department stores, and Scenario 3 includes both normal and quick EV charging stations. Scenario 2 and 3 by implication are available to the public whereas Scenario 1 is for private use. The breakeven point (BEP), net present value (NPV), internal rate of return (IRR) and payback period (PB) were determined for each scenario and the differences were analyzed. The results were as follows. Scenario 1 has the lowest cost but the longest cost recovery time and low net profit. Scenario 2 has the highest charging cost, highest investment cost, but shortest payback period, of the three scenarios.

This study can help analyze costs and provide guidelines for investment decision-making on the installation of EV charging stations. These EV charging station scenarios can help in predicting and comparing the net profit margins of the business models.

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