Private locations in shopping centres, restaurants, hotels, supermarkets, among others, are currently becoming the most hotly contested by Charging Point Operators (CPOs).
This is evidenced by the significant investments being made to win these bids.
What makes them so attractive? Primarily, the high flow of vehicles and people that visit them, granting great visibility to the brand.
To ensure the designation of a location, the operator may offer a percentage of the revenue or a fixed monthly payment per space, per month, or per year, throughout the duration of the contract.
There has always been negotiation with different offers for contracts.
However, for approximately two years now, there has been a trend where large CPOs, such as multinational companies, make offers well above their competitors.
What difference is being talked about?
A specific case is the recent achievement of Acciona Recarga S.L.
The company has been awarded the concession for the private use of the plot located at C/ Pirotecnia 47 (Madrid) for its use as an electric vehicle battery charging station.
This establishes that the firm may exploit the plot to locate the components associated with the supply installation and the charging equipment necessary to enable the simultaneous charging of 42 cars.
Acciona Recarga S.L. will be responsible for installing 32 points of 50 kW, ten of 100 kilowatts, and five of 210 kilowatts.
Upon commissioning, the company will assume payment of a fee to the City Council of 12,000 euros annually until January 1, 2029, and 180,000 euros per year from 2029, with a variable amount of 0.13 euros/kilowatt per hour.
In this way, as the utilization of the installation increases with the increase in electric vehicles in circulation, the fee received by the municipal administration will also increase.
How much did their competitors offer?
Repsol Comercial de Productos Petrolíferos S.A. proposed 24,001 euros annually starting in 2029 with a variable amount of 0.05 euros/kWh, while Iberdrola Clientes S.A. offered 169,764 euros per year with a variable amount of 0.0351 euros/kWh.
“Iberdrola and Repsol are offering three times less than Acciona, which represents a disruption in the market,” indicates a source in the sector to Mobility Portal Spain.
And this is not an isolated case.
EDP Clientes S.A.U. has obtained a tender for the private use of the local public domain, through the installation and provision of charging point services.
The company will be responsible for the commissioning, management, and maintenance of 18 chargers in different locations in Ciudad Real.
In this regard, they offered 25% of their revenue for a period of 10 years, which is the duration of the concession.
Thef Charging S.R.L. came in second place, offering 16.10 percent, followed by EFIMOB Efficient Solutions S.L. with 12.50 percent.
“It is possible that in this case they may never recover the investment“, the expert asserts.
So, what are the benefits?
“One of them could be the competition among charging point operators to quickly secure strategic locations, as well as for marketing actions,” he points out.
This phenomenon is beginning to affect smaller and independent operators, who sometimes choose not to participate in tenders to install chargers in “important” locations, considering it “an absolute waste of time.”
This situation undoubtedly drives the formation of monopolies in certain areas controlled by specific operators, as companies with more resources compete to win “the best” contracts.
According to a study carried out by the Competition Authority of Catalonia, the main monopolies are found in the fast-charging network.
Out of the 686 points analyzed, 34 percent (235 points) have a market share in their respective areas of influence of 100 percent.
In this regard, the report indicates that the emerging market for fast public access charging, outside highways, is dominated by a few operators.
Endesa leads with 76 points in a monopoly situation, representing 51 percent of the total.
It is followed by Etecnic with 66 (43 percent of the total) and Iberdrola with 24 (30 percent).
This is linked to another trend that is beginning to be observed in the world of electromobility.
“Charging point operators are looking to increase the power of their chargers to be able to offer higher rates for energy supply,” details the expert.
Currently, the price per kilowatt-hour at a fast charger is approximately 0.60 euros, while in alternating current, it ranges between 0.20 and 0.40 euros.
“We are seeing that many CPOs are evolving towards fast and ultra-fast charging with the aim of generating higher revenue,” confirms to Mobility Portal Spain.
