Type 2 charging will be more expensive than CCS charging and will therefore die out in the mid term

If we think back over 10 years, we are faced with a Renault Zoe that can charge a Type 2 with 43 kW. So there is no need for complex charging stations and you can quickly charge practically any AC 400 plug. That was the idea behind it and also the reason that made it the most sold EV in Europe at its peak.

Slowly, however, it became clear that it was expensive and complicated if everyone had to have their fast charger in their car and bring it with them. Accordingly, a few years later Renault was forced to redevelop the charger and limit it to 22 kW.

Now there are more and more electric cars and so it is increasingly worthwhile for operators to invest in CCS fast charging infrastructure. Their advantage is that the expensive electronics used to charge the car are moved out of the car and into the charging station and are therefore utilised way more efficient. Apart from some communication between the vehicle and the charging station, nothing else is needed in the car. Accordingly, customers no longer have to have the charger in their car, the cars become cheaper and the customer is no longer responsible for maintaining the fast charger.

Due to the fact that electric cars can now only be charged at Type 2 with 11 kW to 22 kW, the quantities purchased at Type 2 charging stations are relatively low. Although Type 2 infrastructure is cheaper than CCS infrastructure, it is not as much cheaper as they can sell less electricity due to the lower output.

On the used market, for example, a Type 2 charging station with 2x 22 kW costs around €5,000 and is therefore hardly cheaper than a CCS 50 kW charging station. Ones with the same age go for at €6,000.

However, the 50 kW station can sell 3-5x more electricity because the cars do not limit it to 11-22 kW.

If you then look at a 175 kW station, it becomes even clearer. At €22,000, this only costs 4x more, but can sell 8-16x as much electricity in the same time.

Today, 11 kW CCS wallboxes for the home are still relatively expensive. Ultimately, however, car manufacturers and third-party providers will be able to offer CCS boxes at a good price and although they will remain more expensive than Type 2 boxes, it will also be worth it for the end customer.

Instead of having to buy a new charger for every new car, the customer has to buy the CCS box once and can then use it with every future car. They also saves money on integrated Type 2 charger in the car with every subsequent car purchase.

This change also goes hand in hand with the fact that CCS boxes are increasingly being used for bidirectional charging.

At first glance, the thought of no longer having a Type 2 charger in the car is scary. At second glance, however, it becomes more and more realistic, as everyone saves money by using the CCS infrastructure as efficiently as possible instead of driving around dozens of dedicated chargers and only using them every few days. Whether I have to buy the 11 kW charger again with every car or whether I have to buy it once and then screw it to the wall in the garage is not such a difficult decision.

In the case of fully electric trucks, it is already the exception that they still have a Type 2 charger. WThere is already happening, what will also happen to cars: a Type 2 charger in the vehicle costs an extra. By the way, Nio in China is already doing this today.

Addendum from November 18, 2023:

Victor van Dijk, CFO at Fastned, fully agrees with this theory. As he writes with a comment to me on LinkedIn.

This post was originally written for my personal Twitter and Linkedin accounts. I then published it here so it won't get lost in the depths of social media. I would also like to be able to see how my statements have aged in 10 years time.

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