How Will Germany Pay For Electric Vehicle Charging Stations?

The Federal Republic of Germany (Germany) currently has a population of approximately 82.29 million people. In 2018, Germany has 46.47 million registered automobiles, the most of any country in Europe. Germany has 53,861 electric vehicles (EVs), the most of any country in Europe.

Germany’s move from combustion engine vehicles (CEVs) to EVs has been significantly slower than the government or the automobile industry has previously forecast. The slower than anticipated EV growth is primarily due to the lack of EV charging stations across the country. European energy analysts anticipate the Germany will ultimately require 4 million EV charging stations to meet consumers demands.

How will Germany meet the EV charging station demand? The construction of 4 million EV charging stations is estimated to cost between US $8 to $10 billion over the next twenty years. If the government takes on the role of building the EV charging stations, Germany tax payers would almost certainly be faced with an increase in the taxes. Germany tax payers currently pay an average of 49.85% in income taxes, which is significantly higher than the United States.

Companies in the utility, technology and oil sector have shown varying degrees of interest in developing EV charging stations in Germany. Germany currently has approximately 3,500 gasoline stations, which could easily install EV charging stations. However, the private sector has been waiting on the demand for EV charging station to increase before making any significant investment. Owners of CEVs have been waiting on more EV charging stations before making the move to a new EV.

In my opinion, the solution will require collaboration between the private and public sector. The German government could provide tax credits to companies that invest in EV charging stations, which will mitigate the financial risk to the private sector. In my opinion, the same solution could be applied in the United States and other countries in Europe.

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