Business Model for Financially Sustainable Electric Vehicle Charging Station Using EV Charging Financial Analysis Tool

Abstract

The development of EV technology is growing day by day throughout the world. For Nepal, this is the golden opportunity sector to decrease its oil consumption which in turn help to lower the trade deficit. Government of Nepal has also announced several regulatory measures and national strategies to respond to the country's rising trend of electric vehicle (EV) adoption. The availability of charging station plays a vital role for customer’s range anxiety problem. In this study, an EV charging financial analysis tool was used to analyzed various scenario of business cases. The three potential partners that can collaborate in this project are owner-operator partner, private sector partners and public sector partner. Discounted Cash Flow (DCF) method is used to calculate the financial parameters such as NPV, IRR and DPP for all partners. Three different scenarios were analyzed in this work. In the first scenario, NPV is obtained as -$63,590 and both IRR and DPP are not available. In second scenario, all three parameters were infeasible for owner operator and public sector. For private sector partner, NPV is -$34,756 IRR and Payback period is unavailable. Lastly, in third the NPV stand at +53,614, IRR is 17.7% and DPP is 6 year for owner operator. For private sector partner, NPV is positive, with 10% IRR and 7 year of payback period. For public sector partner, the project is in breakeven zone. I. Five more different cases were analyzed under scenario C by reducing CAPEX cost from 10% to 50%.