Spatial Competition in Fast-Charging Networks

Despite the steady growth of fast-charging networks under government subsidies, the impact of spatial and ownership structures of charging points on pricing strategies of charging point operators (CPOs) and consumer welfare is poorly understood. Given EVs’ limited range, the competition in a fast-charging network is inherently regional. It is unclear whether and under what circumstances CPOs’ competition can lead to regional monopoly, which may hinder the transition to electric mobility. In this paper, we develop a novel framework to examine the competitive dynamics in fast-charging networks that serve regional demand, incorporating delay costs arising from congestion and locational attractiveness of charging stations. At the core of our framework is a spatial competition model, which characterizes the strategic interactions between CPOs and consumers. To overcome tractability issues associated with large networks that arise from real-world settings, we propose a computationally efficient method to optimize CPOs’ pricing decisions. We instantiate the framework in Germany’s Deutschlandnetz, whose awarded regional network comprises 900 charging stations. Using demand projections for 2030, we conduct a series of counterfactual simulations. Our analysis generates four sets of findings. First, price exhibits a strong negative correlation with the local competitiveness level (measured by the density of charging stations), but shows no clear dependence on absolute demand levels. Second, CPOs’ profits are shaped by both local competitiveness and absolute demand. Third, a uniform, stringent price cap may create inefficiencies in network utilization and discourage infrastructure investment, particularly in less lucrative regions. Finally, spatial and ownership constraints in tender rules may fail to ensure competitive outcomes in large-scale charging networks, allowing CPOs to strategically select locations that strengthen their market power ex post. Taken together, these findings suggest that policymakers should enable regionally equitable access to fast charging while ensuring efficient network utilization.