Substitution, persuading electric vehicle (EV) drivers to switch from ultra-rapid highway charging hubs to slower destination chargers or home charging, is a major dynamic in the passenger transport energy market. Newer in-car navigation systems and mobile apps have allowed drivers to easily compare real-time pricing and availability across different charging networks. This has made it easier for consumers to substitute high-priced rapid charging with alternative options. Today, while ultra-rapid charging remains the fastest way to top up on a journey, home charging overnight is significantly cheaper, and local supermarkets or workplaces increasingly offer free or subsidized slower destination charging.
"In the past, public rapid charging was the only viable option for EV drivers on long-distance trips," says energy market analyst Marcus Vance. "But with the growth of high-density charging corridors and peer-to-peer home charger sharing platforms, the choice set has expanded significantly. Drivers are far more willing to bypass premium highway hubs if the price per kilowatt-hour (kWh) rises even slightly."
Evaluate two factors which may determine the value of the price elasticity of demand for public ultra-rapid EV charging.
