What's the Role of CPOs, EMSPs, and Charge Point Owners in EV Charging?

Electric vehicle (EV) sales in India are growing steadily, with over one million vehicles sold in 2023. The EV charging industry is expanding to keep up with this growth. Projections indicate an annual growth rate of 46.5% between 2022 and 2030. To better understand the growth of the EV charging industry, it's important to know the three key stakeholders driving this growth: charge point operators (CPOs), electric mobility service providers (EMSPs), and charge point owners. Read on to understand their unique roles in the EV charging industry and how they will shape India’s future of mobility. 

What Does the Indian EV Ecosystem Look Like?

India’s EV market, worth USD $4.5 billion in 2022, is on track to grow to USD $637 bn by 2032.

This market is composed of different stakeholders, including automakers, battery companies, component suppliers, software app providers, charging point operators, and investors. A diverse mix of entities is essential to expand and meet the growing demands of India’s EV market. Some leading players are: 

• EV manufacturers: Tata Motors, MG Motor India, and Mahindra Electric Mobility
• Electric vehicle supply equipment (EVSE) manufacturers: Delta Electronics India, Quench Chargers, Mass-Tech, and ABB India
• Charge point operators: Tata Power, Fortum Charge & Drive, Ather Energy, and Ola Electric, 

Effective collaboration between CPOs, EMSPs, and charge point owners is essential to facilitate the development, management, and accessibility of EV charging infrastructure.

Why Recognizing Their Distinct Roles Matters

Distinguishing between CPOs, EMSPs, and charge point owners helps address charging infrastructure challenges. India’s EV charging infrastructure is facing many challenges, such as limited stations, power fluctuations, grid instability, long queues, and range anxiety, deterring potential EV adopters. A European study found that range anxiety is driven by two factors – the availability of chargers and the driving experience.

Understanding the roles of CPOs, EMSPs, and charge point owners in the EV charging ecosystem empowers policymakers to drive the growth of public charging infrastructure. 

Who are Charge Point Operators (CPOs)

CPOs are the backbone of EV charging, encompassing the entire lifecycle of charging infrastructure, from initial installation to day-to-day operation and maintenance. CPOs are responsible for ensuring EV users access reliable and quality charging services.

CPOs’ responsibilities include charging equipment procurement, charging station installation, and ongoing management and maintenance. Most CPOs have a software platform through which they gather and analyze data to improve the charging experience. Moreover, they ensure network connectivity, grid stability, fair pricing, address faults, conduct repairs, and implement necessary upgrades to keep the charging infrastructure in top working order.

Given the rapidly evolving nature of EV technology, CPOs must future-proof their operations, staying at the forefront of the latest developments in charging infrastructure, tracking emerging technologies, optimizing their services, and expanding their network to meet the ever-increasing needs of the EV community. 

Who are Electric Mobility Service Providers (EMSPs)

EMSPs, directly interfacing with customers, connect EV users to charging stations and significantly enhance the customer experience. They offer a range of extended services, including user-friendly mobile apps that provide real-time information on station availability and charging status, making the process more convenient. EMSPs also introduce loyalty programs that offer incentives for frequent users in the form of discounts or rewards.

EMSPs enable cross-border roaming services for EV users, simplifying access to domestic and international charging stations. This allows users to access charging points with a single account or payment method, making long-distance EV travel more accessible and hassle-free.

EMSPs must continuously enhance their mobile apps and platforms, embrace emerging technologies, and expand their network to future-proof their work. 

Who are Charge Point Owners

Charge point owners fuel the financial aspect of charging infrastructure projects. They identify optimal charging locations, fund project development, and oversee the site to ensure they have the necessary permissions and rights to establish charging infrastructure. Collaborating closely with CPOs and EMSPs, they establish and manage charging sites. CPOs handle the technical and operational aspects, and EMSPs enhance the user experience. While charge point owners are not involved in the daily operations, some double as the station’s CPO. 

To future-proof their work, charge point owners must stay on top of emerging technologies, market trends, and the evolving landscape of e-mobility. 

Navigating the CPO, EMSP, and Charge Point Owner Intersection

The interaction between CPOs, EMSPs, and charge point owners is critical for the EV charging ecosystem. While each entity has its distinct role, their responsibilities can occasionally overlap, reflecting the adaptive nature of the industry. Large corporations like Shell and Bharat Petroleum have the capacity and resources to blur the lines between these roles.

Such overlap can lead to potential mergers or collaborations as companies seek to streamline operations, pool resources, and enhance the user experience. For instance, an EMSP could double as a CPO, overseeing network access and the physical infrastructure. 

Setting up EV fast-charging infrastructure is often overwhelming and expensive. Therefore, diversifying roles can help tackle these challenges. 

Comparison of CPOs, EMSPs, and Charge Point Owners

CPO

Main Function: Manage and operate charging infrastructure

Responsibilities: Installation and maintenance

Ownership: Might own, primarily responsible for setting up and maintaining stations

EMSP

Main Function: Connect EV users to charging stations

Responsibilities: Create user-friendly apps and loyalty programs

Ownership: Typically, they don’t own the station

Charge Point Owner

Main Function: Finance and oversee charging infrastructure projects

Responsibilities: Financing and site control

Ownership: Owns the charging infrastructure

The Future of CPOs and EMSPs

Emerging payment models such as Plug & Charge and Pay at Pump are redefining the roles of CPOs and EMSPs. Plug & Charge offers a secure charging method where EV users can connect to the charge point through a cable without mobile apps or RFID tags. EV users have to insert debit or credit cards at Pay at Pump, allowing for instant billing. In a competitive market, differentiation through loyalty programs and value-added services is crucial. Adaptation and innovation will be key to ensuring a user-friendly and sustainable EV charging future as the industry evolves.

What Lies Ahead

In the dynamic and growing world of EV charging, collaboration is paramount. CPOs, EMSPs, and charge point owners must work together to create a smooth and efficient experience for EV users. With the EV charging industry on the brink of exponential growth, understanding these entities is crucial to resolve challenges and foster partnerships, mitigating issues like range anxiety.

For a deeper dive, we invite you to explore additional resources on this dynamic and promising EV ecosystem.