How the rising EV adoption is transforming forecourts and can benefit them?

The framework we work within.

The world is moving towards a multi-energy approach on mobility, and the adoption of electric vehicles by consumers and fleets plays an important role in supporting the reduction of CO₂ emissions. Service stations are on the forefront of the energy transition, with several opportunities to evolve to comprehensive mobility hubs. 

In the first eight months of 2023, one million fully electric vehicles (EVs) were sold in the European Union (EU). At the beginning of November that year, Europe also reached the milestone of 600,000 charging points, just a few months after reaching 500,000 EV charging points. The figures show that 2023 will be another relevant year for the European EV market. 

The transport sector is moving in the direction of greener, multi-energy mobility. This is consequently changing driving habits with the gradual introduction of electric vehicles, which are 4.4 times more efficient in using energy than internal combustion engine vehicles (ICEs) to move the same payload. EVs are also becoming cheaper for consumers, thanks to support mechanisms on the way to cost parity. 

One of these mechanisms is the Fit for 55 plan, a regulatory incentive from the European Union to support the shift to a future with diverse energy options. The Fit for 55 is accelerating the technological development and making manufacturers prioritise carbon-neutral vehicle options, thereby promoting more sustainable mobility. 

The Fit for 55 programme also addresses the need for development with the Alternative Fuels Infrastructure Regulation (AFIR). It stipulates that all major motorways in the EU must have fast-charging stations every 60 km with a minimum capacity of 150 kW for cars and 350 kW for trucks. It sets out further requirements, such as a simpler and more transparent process for paying for the energy used to charge vehicles. 

The gap we face.

With car production becoming more competitive, EV prices tend to get more accessible. However, popularisation is intensifying the main challenge facing these vehicles: infrastructure. EV sales are soaring, and are forecast to continue to do so. Nonetheless, drivers need to be able to finish their journeys with enough battery in the car, even on long journeys – overcoming the so-called ‘range anxiety’ barrier. 

The impact of EVs on traditional service stations. 

With more EVs on the road, refuelling activities are changing. Between 50% and 80% of consumers’ charging takes place at home, while 15%-25% occurs at the workplace. Public locations account for 10%-15% of all charging events, depending on the European region. This share also includes a wide range of businesses, such as ‘destination charging’ locations – supermarkets, public car parks in cities, partially dedicated charging hubs from new Charging Point Operators (CPOs) and traditional forecourts. All of them evolving their business models to meet new demands and latest driver expectations. 

Some service stations are already moving towards becoming mobility hubs, incorporating new services. ‘Service stations can leverage the demand for EV charging outside private spaces and include valuable adjacent services for their customers, leading the change in the sector and maintaining their relevance in a competitive market,’ Parniere adds. ‘They have the advantage of strategic locations, which are convenient spots for heavy traffic. By becoming multi-service, they can be potential destinations for EV drivers and increase their retail revenues, as EV drivers stay at a forecourt about 3 to 4 times longer than ICE drivers,’ he adds. 

The key TSG provides.

Forecourts that are becoming multi-energy incorporate electric power and other cleaner options, such as biogas and even hydrogen. As such, several cross-selling opportunities arise from the time customers need to charge these new energies. Coffee and lunch, as well as car wash and air compressor options, are traditional services for filling stations; but large and comfortable rest areas and facilities, parcel pick-up points, gyms or spa areas, and sit-down restaurants are possible additional solutions. Even more upgraded services – lunch lounges, coworking spaces and hairdressers – are options that bring convenience to drivers and more revenue streams to forecourts. 

 Major players are renovating forecourts with more retail services and a better customer experience to capitalise on the business opportunities of longer stays. All in all, the disruption caused by EVs is an opportunity to rebalance the station and include more retail options, ultimately creating more business.  

Many major forecourt operators are installing EV charging infrastructure on their sites across Europe. The initiative started a few years ago in Norway and is now common in Germany, France, the Benelux, and the United Kingdom. Forecourts in Spain, Italy and Central Eastern Europe are also getting equipped with EV charging infrastructure. 

Sites developing new services for EVs have specific needs when it comes to including chargers in their offer. They tend to rely on one of the following three setups: 

• Side EV charger configuration: Forecourts can add a charger to the existing Distribution Network Operator (DNO) connection, allowing drivers to stop and take advantage of adjacent retail and food offerings while charging.
• Integrated EV charger configuration at the forecourt: Some retailers are opting to renovate their forecourts and convert them to partially electrified forecourts, where EV chargers and dispensers are close by and EV drivers have direct access to the convenience store.
• Separate (and dedicated) EV fast-charging hubs: Dedicated EV charging hubs with rows of fast chargers are a solution for the busiest locations where the need for charging may be highest.

EV drivers are demanding and look for more than the traditional forecourt offer. With the increased time at the forecourt they can stop for a complete meal. This results in a 3 to 4 times higher purchase basket and a preference for better equipped places with access to extra facilities. 

This is relevant for operators who want to offer a more balanced fuel-retail offer, which makes sense from a revenue perspective as margins are usually driven by the retail part of the business. Investing in non-fuel business opportunities supports an enhanced customer experience and generates additional profit for the station. 

TSG is the right partner to enable the energy transition of forecourts to multi-energy mobility hubs. We are the leading provider of technical services in Europe and Africa to support the responsible transition of mobility, allowing public spaces to evolve and accommodate new energies. We design, plan, install and maintain turnkey solutions tailored to each company’s needs and requirements.