The electric vehicle charging infrastructure industry is a core national power infrastructure that is closely aligned with carbon neutrality, the government's electric vehicle supply goals, and the autonomous driving artificial intelligence (AI) industry.
Yoo Dae-won, representative of the electric vehicle charging platform corporation Water, noted, "From January to July this year, domestic electric vehicle sales reached 117,810 units, a 47.5% increase compared to the same period last year. The government must utilize the electric vehicle chasm as an opportunity to expand charging infrastructure."
Water is the electric vehicle charging business brand of Bright Energy Partners, a solar power specialized corporation. Water currently operates 648 rapid chargers and 88 slow chargers at 157 charging stations. Among these, there are 50 charging stations at highway rest areas, where 274 rapid chargers are in operation.
This year, Water secured a total of 73 sites and 397 charging stations for rapid charging by winning a bid for a unit project at highway rest areas of the Korea Expressway Corporation. This is the first time in the domestic electric vehicle charging industry that the same field has been selected for two consecutive years in a bidding process. Once this project is completed, Water will become the number one provider of highway rapid charging infrastructure.
Yoo stated, "Highway rest areas are essential charging hubs for the distribution of electric vehicles, but some rest areas have waited 3 to 5 years for power connection due to insufficient capacity. Enhancing the power connection capacity requires building substations and expanding distribution line capacities, which are time-consuming tasks that need to start now."
President Lee Jae-myung pledged in his acceptance speech last June to achieve a 50% electric vehicle distribution rate by 2030. This aims to realize one of the top ten pledges of his presidential campaign: the decarbonization of the industrial structure. As of the end of June, only 2.9% of registered vehicles were electric.
Yoo remarked, "The electrification of large trucks and buses will also begin in earnest within three years, and if we don't solve the power connection issues, the government's policies for electric vehicle and charging station distribution could fail. We need to designate highway rest areas as priority areas for power supply and relevant agencies such as the Ministry of Environment, Ministry of Trade, Industry and Energy, Korea Electric Power Corporation, Ministry of Land, Infrastructure and Transport, and Korea Expressway Corporation must work together." The following is a Q&A with Yoo.
─What differentiates Water.
Yoo explained, "Water's strengths are speed, technology, and customer experience. Water seeks differentiation through a philosophy that minimizes service steps. Once a vehicle is registered, users can automatically authenticate and pay by simply plugging in the charging cable with the 'Auto Charge' feature. We have chargers compatible with both domestic standards and the North American Charge Standard (NACS) for Tesla vehicles, along with ultra-fast chargers that ensure quick and convenient charging at highway rest areas."
─Charging stations are still lacking.
Yoo pointed out, "In this year's bidding for the construction of electric vehicle charging stations at highway rest areas, 2 out of 3 total segments were canceled. A rebidding was conducted last month, but three units (Gwangju, Jeonnam, Daegu, Gyeongbuk, Busan, Gyeongnam) still saw cancellations, and a third announcement has been made. This indicates low participation from private corporations in the country's core power infrastructure projects.
To address these issues, it is necessary to realize charging fees. Public rapid charging infrastructure fees have been frozen at 347.2 won per kWh since 2022. Considering inflation, it is necessary to adjust the charging fees.
─What are ways to minimize charging fee increases.
Yoo suggested, "Extending the contract period could also be a way to minimize charging fee increases. Currently, most charging businesses operate on five-year contracts, making it difficult to reach the break-even point. The contracts for the Korea Expressway Corporation's charging stations are also around ten years.
In contrast, Europe conducts long-term contracts for highways ranging from 15 to 20 years, making cash flow predictable. This has created a virtuous cycle for financing projects, such as project financing. It's necessary to consider the contract duration to allow many private corporations to participate.
─What is the issue with the government transferring charging stations to the private sector.
Yoo said, "Initially, the Ministry of Environment announced a policy to transfer charging stations to the private sector starting in 2024. The ministry can recover investment costs while securing cash. This could help secure budgets, which could then be reinvested in expanding subsidies for electric vehicle purchases or in research and development of infrastructure technology. Operators could also contribute to normalizing operations and improving service quality."
─If you have policies to propose to the government.
Yoo suggested, "Directly entering into power purchase agreements (PPA) with renewable energy generators such as solar and wind can also be a method to secure electricity relatively cheaply. This could reduce charging costs.
In particular, solar power has the characteristic of generating power during the day, which is similar to the usage patterns of electric vehicle users who conduct rapid charging during the day. There is a need to establish a dedicated PPA system for electric vehicle charging stations.