Virta EV Energy Insights vol.1

Data analysis 2017-2024: CPO business implications of growing energy consumption at DC charging stations 

In this quarter's edition of Virta EV Energy Insights, we analyse the business implications arising from increasing energy consumption at DC fast-charging stations. Our analysis draws on data collected from Virta's extensive network across Finland, France, Germany, Sweden, and the UK between 2017 and 2024. Throughout this period, we've seen a 326-fold increase in annual events; more interestingly, the charged energy per event witnessed a remarkable 121% increase from 13.6 kWh/event to 30.1 kWh/event. 

This surge is driven by several factors:  

• The rising adoption of full Battery Electric Vehicles (BEVs)  
• Growing battery capacities and charging speeds of BEVs  
• Emerging electrification of heavy-duty vehicles  
• The deployment of faster charging technologies  
• And lately, the arrival of cheaper BEVs with smaller batteries that are charged more often on public chargers. 

This intensification of energy use at DC charging stations presents both opportunities and challenges for Charging Point Operators (CPOs). Higher energy delivery translates directly to increased transaction revenues and potential new revenue streams from participation in energy and carbon offsetting markets. This strengthens the business case for DC fast charging. However, it also highlights the critical need for effective energy management strategies to minimise energy-related capital expenditures (CAPEX) and operating expenses (OPEX).  

Furthermore, we examine the evolving landscape of payment methods and roaming, recognising their crucial role in driving traffic and utilisation rates, especially at DC stations serving a diverse customer base.

CAPEX and OPEX savings enabled by energy management  

Site-level load management based on grid restrictions enables customers to significantly cut costs on CAPEX and OPEX. Virta services maximize the potential of existing grid infrastructure on-site, possibly even eliminating the need for grid connection upgrades. In addition to making use of existing grid capacity more efficient, Virta solutions can be used for cost savings in peak-power tariffs through peak shaving. Furthermore, Virta also provides services to optimise charging based on, for example, electricity spot prices, enabling customers with dynamically priced electricity contracts to significantly cut costs on electricity procurement. 

For example, the Finnish airport operator Finavia provided 58 MWh of electricity to electric vehicles via chargers at their airport in one month. By slightly regulating the charging power for 51 hours (5% of the time), they were able to save 10% on the monthly electricity purchase cost. The adjustment of charging power based on Nordpool spot electricity prices was unnoticeable to the EV drivers, whose cars were left charging over several days at the airport parking.

Energy market revenue potential: A growing opportunity 

The EU's EPBD, RED3, and AFIR are paving the way for an integrated energy system where electric vehicles play a crucial role as part of the energy markets. Companies with proven technologies and a track record of generating revenue from energy markets with EVs have a distinct advantage in this emerging landscape. 

The EU power system's flexibility needs are projected to approximately double by 2030 compared to current levels. At the same time, storage capacity needs to grow almost by a factor of four by 2030. As EVs are large battery storages on wheels, their integration into the markets presents a cost-effective, scalable, and profitable way to meet the required storage capacity. 

This surge is driven by the rapid growth of variable renewable energy sources like wind and solar, which are expected to provide almost 70% of EU electricity by 2030. EVs are poised to contribute significantly to grid flexibility by 2030 as part of broader demand-side solutions that could unlock tens of billions of euros in annual value.  

Virta’s success in energy markets 

Virta started providing aggregated demand response capacity to Finland's national FCR-D up frequency containment market in 2023. The revenue growth from 2023 to 2024 has been a staggering 500%. In the second half of 2024, Virta expanded its market participation to France and is prepared to enter other European countries as soon as local regulations align with the spirit of EU directives.  

Carbon offsetting: Generating additional revenue 

Energy-intensive DC chargers present a significant revenue opportunity for charging point owners through voluntary carbon offsetting markets. Data from Virta's CO2 Cashback service, already operational in Finland, Germany, France, and Sweden, shows that earnings per charger can reach as high as €2,000 annually. 

Transaction revenue maximisation: The power of payment flexibility

Offering the widest possible range of payment methods is crucial not only for meeting the EU's AFIR requirements but also for maximising traffic and utilisation rates at DC charging stations.  

The share of different payment methods varies between countries and CPOs depending on their size and business model. Generally, we see approximately 50% of charging events involve CPO's own registered EV drivers, followed by roaming-in, which role is growing, contributing 30% to 60% of charging events. For Virta platform customer CPOs, between 5% and 50% of charging events originate from other Virta platform EMP drivers who can charge at "Connected to Virta Network" stations without additional roaming surcharges. 

One-time payments are expected to grow popularity as the impact of AFIR regulations fully takes effect. This year, we're already seeing physical card payments starting to replace web and app-based one-time payments. Virta's dynamic  "behind-the-glass" QR code, introduced in Q4 this year, is also anticipated to grow in popularity but will be limited to AC chargers. The dynamic QR code offers significantly enhanced security compared to static QR code stickers. 

Autocharge: Streamlining the charging experience 

While already supporting selected customers with Autocharging in Europe and Southeast Asia, Virta is introducing Autocharge authentication to all its markets in H1 2025. This technology will automate the authentication and payment process for EV drivers. The rollout follows a successful public pilot project by The Automobile and Touring Club of Finland (ATCF) and Virta. 

"The pilot received extremely positive feedback," says Jussi Ahtikari, Chief Technology Officer at Virta. "The study also showed that out of all the charging options, Autocharge is perceived as the most preferable due to its ease of use."

Virta also already supports Plug-and-Charge, but the standard’s adoption outside Germany remains limited.