It's Electric

Electric cars and charging stations could take the country by storm next year

2012 could easily be the year of the electric car. Friend or foe, it appears electric vehicles and the charging stations that serve the needs of those motorists are here to stay.

President Obama called for one million electric vehicles to be on the road by 2015 during his January State of the Union address. Although some laughed at the directive, believing it was impossible, the U.S. Department of Energy predicts 1.2 million electric cars should roll down the highway by then.

According to estimates, that would mean one out of every 10 cars on the road would be electric-powered. The Department of Energy is comfortable with that 1.2 million figure, due to advanced efforts by manufacturers such as General Motors, Ford, Chrysler, Nissan and Toyota to bring more electric vehicles into the market. A new company is also on the horizon: Fisker plans to sell 195,000 of its Nina electric models by 2015, the Department of Energy said.

If you sell motor fuel, it's a trend you must be aware of. The immediate assumption is that the more electric vehicles, the less gas will be sold. While that sounds like a definite negative for convenience store retailers, some believe electric vehicle charging stations present a positive opportunity. However, the time it takes to charge an electric vehicle could become a significant detriment to convenience store retailers unless they provide a lounge-like setting or offer other activities for consumers to utilize while waiting.

Whether the electric vehicle is a positive or negative occurrence, one thing is for sure — electric vehicle charging stations are beginning to sprinkle the U.S. landscape and by the end of this year, you will see many more pop up, especially in major metropolitan areas.

Walgreens is jumping on the electric vehicle bandwagon. The drugstore chain already has about 60 electric vehicle charging stations operating in the Chicago, Houston and Dallas/Fort Worth areas.

The retail giant has huge plans for electric vehicle charging stations. It expects 800 to be operating by the end of this year in several other cities including Boston, Denver, Los Angeles, New York, San Francisco and Washington, D.C., as well as select locations in Florida, New Jersey, Oregon, Tennessee and Washington.

Tiffani Washington, Walgreens spokesperson, told Convenience Store News that the chain plans to become the largest retail host of electric vehicle charging stations. She said the company is always looking for ways to become better stewards for the environment and understands that its customers are trying to live more of a green lifestyle.

"Our locations are very accessible and convenient for customers," Washington continued. "All of our stores are in neighborhoods near major commuter corridors and highways. So it makes sense that if people typically pass a Walgreens on their commute to work [for example], we want to provide a place for them to charge their electric vehicle."

Washington added that consumers are becoming more confident operating electric vehicles, but are still concerned about "range anxiety," or the worry that they can't drive too far away from home due to a lack of charging stations. "Of course, people can charge their electric vehicles at home," she said. "But if they're out and running errands or making their commute, these charging stations we're opening will help give them confidence they can find a location to charge their vehicle."

In Texas, Walgreens' electric charging stations are being operated under power producer NRG Energy's eVgo program. eVgo is also installing electric charging stations at Texas Best Buy stores and supermarkets.

David Knox, NRG's communication director, told CSNews he sees a huge market for electric vehicles. "America spends about $1 billion a day bringing in oil from overseas. Most of that goes to transportation. Electric vehicles are powered by domestic energy," he said.

Also, the operations costs and maintenance costs are so much lower for an electric-powered vehicle [than a gas-powered vehicle], he noted. There's no transmission or exhaust system. It's a much simpler vehicle and cleaner than a gas engine. "Electric vehicles have less carbon, fewer volatile organic compounds and less nitrogen oxide, which is really important to cities trying to keep smog down," said Knox.

C-STORES CHARGED UP

Although c-store retailers may not be jumping in head first, many are looking to capitalize on the electric car movement. 7-Eleven Inc. opened its first electric vehicle charging station this July. Customers can now charge their cars while enjoying a Slurpee at the chain's store on 3993 North Sierra Way in San Bernardino, Calif.

BP is opening 45 ECOtality Blink electric charging stations at BP and ARCO locations in pilot markets including Phoenix, San Diego, Los Angeles, Portland, Ore., and Nashville. Despite the full-scale electric vehicle test, BP spokesperson Scott Dean reported that the company is participating in a large-scale electric vehicle charging program called the EV project, which is funded by the U.S. Department of Energy through a stimulus grant.

"BP has made no decisions on the merits of electric vehicles or electric vehicle charging at gas stations," he said. "Our objective in participating in this project is purely to learn and inform future decisions."

Cracker Barrel Old Country Store Inc. is another adopter of the EV project. The company installed 24 charging stations in April. "In the early days, Cracker Barrel provided food for our guests and fuel for their cars," Cracker Barrel Chairman and CEO Michael A. Woodhouse said. "While we expect use of electric chargers will be light during this pilot project, making this available to our guests is consistent with our brand reputation of hospitality, service and value."

Another believer in electric vehicles and charging stations is Ed Ingalls, who announced the founding of Connecticut Electric Car in August. "We really started paying attention to electric cars about two years ago," Ingalls told CSNews on the day of his announcement.

"I really think electric vehicles are the biggest thing since the light bulb. Electric cars are coming. People are really looking for a way to show their support for clean energy. You pull up in an electric car and it says it all. But you have to charge that car. To do so, it requires all electrical work, so we thought [our company] would be a good fit."

Ingalls said his company will be installing electric chargers throughout the state of Connecticut. One segment of the business will be installing car chargers for residents at their homes, but the bulk of the business will be installing chargers at various public locations, such as c-stores and quick-service restaurants. "We're getting a flood of phone calls right now from shopping malls, high-rise office buildings, restaurants and more," he said.

The strategy is not the same at every company, though. Kwik Trip, which installed electric charging stations at about 70 locations in Wisconsin, Iowa and Minnesota, said its charging stations were added to meet LEED requirements and are intended for use under emergency circumstances only.

"We don't feel electric vehicles will threaten our traditional gas gallons," said Steve Loehr, the c-store chain's vice president of operations support. "We don't view electric as a great growth area in the next number of years. Maybe it will gather some steam in some highly densely populated urban areas like New York City or Chicago. But in the areas we have stores, we don't expect electric to be a big thing."

Loehr added that recharging electric vehicles simply takes too long to be effective, and the hefty price tag of purchasing a new electric vehicle should short-circuit sales. However, he said Kwik Trip is looking at many alternative fuel options for its stores. "We plan to commit a lot of dollars in the next couple of years to liquid natural gas and compressed natural gas," he said.

Many of the industry players CSNews spoke to agreed recharging time is a major roadblock in the way of electric vehicle cars gaining more popularity. However, Knox said help is on the way. The current chargers being installed are referred to as Level 2, which can provide a consumer 25 miles of driving range per hour of charge. For example, a Nissan Leaf could be fully charged in four to five hours. "But what's really exciting is the newest charger we will be installing next to that Level 2 charger. It's called a DC charger. A DC charger works on 480-volt power. It puts DC power directly into a car's battery. With a DC charger, the charging efficiency goes way up from 25 miles of range to 160 miles of charging range per hour."

Sixty eVgo Freedom stations, featuring Level 2 and DC chargers, will be in place in Texas by the end of this year, said Knox. That number will double to 120 by the end of 2012. Freedom Charging stations will be placed in the middle of retailer's parking lot. A canopy will cover the Level 2 and DC chargers along with a customer service pole in the center. If a consumer has any questions or concerns, they can use the same key fob used to activate the charger to call a customer service representative. If any suspected criminal activity is occurring, the pole, when prompted, will sound an alarm and call the local police department.

DC chargers mean electric charging is getting closer to the time it takes to fill a gas tank. "But we're still not quite there yet," Knox acknowledged. "That's why it's so important to have these chargers at a Walgreens, Best Buy or a supermarket," as opposed to a location that has no shopping or food destination attached to it. That could present a challenge to c-stores.

Ingalls agreed and said many of the retailers calling Connecticut Electric Car are "destination" locations. "I don't think electric charging stations will be popular at places like gas stations due to the lack of activities while you wait," he said.

However, Ingalls added there will always be a prominent place for motor fuel station owners in the future. "I don't really see us a threat to gas stations," he said. "There are still plenty of all-gasoline and hybrid-powered vehicles on the roads."

Knox echoed Ingalls' assessment. "In 2011, 30,000 electric vehicles are expected to be sold," he said. "Even when the number reaches one million, 90 percent of the cars on the road will still be gas-powered."