Alternative Energy Sources' Pricing Disparity: An Explanation of gasoline's persisting lower cost compared to electricity.
In Germany, the cost of public electric charging is often higher than that of diesel fuel for certain journeys, a phenomenon attributed to several factors.
According to the ADAC, the calculation of charging costs takes into account all relevant costs, including purchase price, maintenance, depreciation, and electricity costs. This analysis reveals a "systematically prevented competition" in the charging sector, leading to inflated prices. In many cities, individual providers almost completely control the market. For instance, ESWE provides 94% of public charging stations in Wiesbaden, 93% in Hannover, and 72% in Cologne.
Comparing costs, charging an electric vehicle like the Opel Astra Electric at public stations in Germany can cost around €9.32 per 100 km, while diesel fuel costs approximately €7.81 per 100 km. The cost of electricity at public charging points is higher than the cost of diesel fuel, with normal charging points averaging 52 cents per kWh, equivalent to 10.45 euros per 100 kilometers, and fast-charging stations averaging 60 cents per kWh, equivalent to 12.06 euros per 100 kilometers.
The high cost of public charging is not solely due to electricity costs but also the infrastructure and efficiency. The cost of maintaining and expanding public charging infrastructure, as well as the efficiency of electric vehicles, contributes to the overall expense. Electric vehicles generally have better efficiency compared to diesel vehicles, but the cost per kWh is what significantly influences the overall expense.
The market dynamics and competition also play a crucial role. Although the electric vehicle market in Germany is evolving, with increasing competition from major players like China, the market structure remains a significant factor contributing to high charging prices. The Federal Cartel Office has criticized municipalities for preferentially awarding areas to their own municipal utilities or individual providers, further exacerbating the lack of competition.
However, there are incentives to boost EV adoption in Germany, which may indirectly affect pricing by encouraging more investment in infrastructure and technology. Additionally, charging at home in Europe results in an average of 40% savings compared to diesel, according to an analysis by Bloomberg.
In conclusion, the high cost of public electric charging in Germany is primarily a matter of market structure. For electric vehicles to dominate the overall balance, electricity prices would need to decrease, and electric vehicles would need to become cheaper. The problem, according to energy provider Lichtblick, is not electricity generation but the market structure.
- The market structure in Germany's electric vehicle charging industry, with individual providers having near-monopolies in certain cities, could lead to inflated prices, similar to the automotive sector.
- The cost of electricity at public charging stations in the transportation sector, particularly fast-charging stations, is higher than the average cost of diesel fuel per kilometer, contributing to the higher overall cost of electric vehicles in the industry and finance.
- The high cost of public electric charging is not just about electricity prices but also includes infrastructure and efficiency costs, making the energy sector a significant contributor to the overall expense in the electric vehicle industry and finance.
