### “Navigating the Charging Maze: How EV Charging Firms Are Adapting to Meet Diverse Fleet Needs” By [Your Name] LAS VEGAS — The ACT Expo 2024 showcased the latest in EV charging technologies, from megawatt chargers to bidirectional systems, highlighting the pressures and innovations

Electric vehicle (EV) charging companies need to offer diverse technological solutions to meet the demands of commercial fleets. These companies are facing increasing pressure to deliver advanced and costly charging technologies to cater to a wide range of customer requirements. An example of such innovation is the ChargePoint megawatt charger showcased at the ACT Expo 2024.

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LAS VEGAS — At the recent ACT Expo, a clean transportation conference, the stands showcasing EV charging equipment presented an extensive array of options, reminiscent of the lengthy menus found at Greek diners.

Options featured chargers suitable for both small and large fleets, those with various connector types, modular and standalone charging solutions, megawatt-level charging, dynamic power distribution, bidirectional charging capabilities, and additional features.

"People are still working out the best solutions for their various needs, which is why we have to handle everything," explained Stephen Israel, vice president of operations at ChargeTronix. For a fleet, "the goal is to optimize infrastructure, power consumption, and space usage, but the solutions can differ."

Charging firms face significant pressure to deliver cutting-edge and costly charging solutions to satisfy a wide range of customer demands.

The demand for a diverse range of flexible charging solutions presents an additional hurdle for an industry already grappling with high capital expenses and slim profit margins. Following the supply chain disruptions caused by the pandemic, some charging companies hurried to acquire necessary parts. Subsequently, power utilities faced difficulties in expanding their services, and customers delayed their purchases or leases of chargers, holding out for new features. Currently, these companies are being urged to invest even more money into creating technologies deemed essential by manufacturers and fleet operators for the electrification of heavy-duty vehicles.

Tomi Ristimäki, the CEO of Kempower, explained that there is a strong demand from customers for megawatt charging. He stated that customers are insisting that for battery electric vehicles to succeed, they cannot afford to spend too much time charging.

High-powered charging technology can rejuvenate depleted batteries within minutes instead of taking hours. This advancement is being considered by commercial fleet operators to minimize downtime for trucks and drivers during the recharging process.

A significant innovation, bidirectional charging, enables electric vehicles to return stored power to the grid. This technology allows fleets to charge their vehicles overnight when electricity prices are cheaper and then sell excess energy back to grid operators during peak times. This practice can reduce overall operational expenses.

Fleets are also asking for distributed chargers, which combine multiple power cabinets into one unit.

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Charging firms possess multiple revenue streams, according to Jim Hurless, who leads global real estate for the electric vehicle sector at CBRE, a real estate services company. This firm collaborates with both fleet operators and charging service providers.

Certain charging service companies offer their equipment to both fleet operators and manufacturers, providing different degrees of maintenance and support.

Hurless mentioned that only a small number of fleet operators are interested in buying, owning, installing, and managing the hardware themselves.

In different situations, charging service providers may rent out equipment or form various agreements to generate income from the use of the chargers, rather than directly selling them.

For charging providers, selling equipment generates revenue more quickly, while leasing and similar arrangements are more appealing to fleet operators.

Charging networks will also need to establish certain stations that might see infrequent use to ensure they can link longer routes between cities for their clients.

Israel described this as nearly a prerequisite for marketing and operations, or simply a necessary expense for running the business.

In addition to the usual risks, companies that produce charging equipment are making enhancements that, paradoxically, can sometimes slow down sales.

In its interim report for the period ending March 31, Kempower, the company that unveiled a megawatt charger at the ACT Expo, reported a 23 percent decline in revenue, bringing the total down to $42.9 million.

The company explained that the decline was due to "customers having large inventory levels, delays in grid connection at customers' installation locations, and the introduction of Kempower's next-generation charging platform, prompting some customers to postpone their buying choices."

According to Ristimäki, electric vehicle sales continue to increase even though revenue has dropped.

He remarked that he was unsure of what actions to take if there were no companies supplying the charging infrastructure.

At the event, ChargePoint revealed a new megawatt charger and reported a reduction in its cash burn during the fourth quarter of 2023. In a performance call, CEO Rick Wilmer mentioned that the company is now shifting its emphasis towards "software solutions." He explained that this change is due to the fact that "software margins are significantly higher than those for hardware, and the revenue from software is recurring."

Even though hardware profits are slim, charging companies remain optimistic that increasing production will lower expenses and the industry will eventually focus on the most essential products.

Neha Palmer, who leads TeraWatt Infrastructure, mentioned that the firm will not only save on initial hardware expenses but also expects to generate higher revenue from advanced technologies like megawatt charging as the usage of kilowatt hours through their chargers increases.

"Recognizing those compromises is crucial," she mentioned. "Although it is more expensive, it offers greater functionality."

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