Investment opportunities in electric vehicle charging stations

Venture capital firms and investor-owned utilities (IOUs) invest in electric vehicle charging infrastructure. Some stations include covered solar panel charging stations. Cities across the United States are implementing electric vehicle (EV) charging stations in downtown and suburban areas that encourage support for electric cars.

This green energy boost is very visible. Will this market ever be filled with gas stations? Lawmakers in Washington passed a bill to allow electric power companies and promissory notes to invest in the electric vehicle charging sector. These investments receive the usual rate of return approved by the PUC.

Regulators in many states did not prohibit investor-owned utilities from selling electricity at retail charging stations. Can anyone imagine going into a Shell or BP station to find electric vehicle charging stations located near the air compressors? When will the changes in the automotive industry be reflected in the service station industry? Electric cars travel 75 to 179 miles on a charge. This issue currently prohibits cross-country travel by electric vehicles.

There are more than 23,000 charging stations in the US This infrastructure cost investment exceeds $ 130 million. These infrastructure costs decrease as technology improves and public support increases. Large areas in Texas, New Mexico, Arizona and California are excellent states for this new investment.

Utilities operate large power and transmission grids and invest in major infrastructure projects. They are ideal investors and sponsors for the construction of charging station networks. Investors could include auto companies with large EV divisions.

This type of investment is allowed in the deregulated subsidiaries of investor-owned power companies such as ConEd Solutions, NRG and DTE Energy Investments. Returns can be higher, and better or more efficient technology can often be found in this area of ​​venture capital. The return on investment in small and medium-sized 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 place more as demand increases.

Green energy markets are expanding into commercial and industrial businesses. Imagine that large corporations install many electric vehicle charging stations as part of their employees’ annual goodwill expenses. This will happen soon.

Will money from pension funds enter this sector? Hedge funds and other energy investment investors will enter this arena as the EV market matures. Ford, Toyota, and Tesla sell many electric vehicles. This makes sense in a country full of environmentalists and a nation determined to do the right thing to advance our auto industry.

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