Special Feature Article
EVs infrastructure network to be advanced through publicprivate partnership~Current Status and Challenges for the Full-Scale
Dissemination of EVs~
An essential element for the widespread use of EVs is a well-developed
recharging infrastructure network. The government is planning to announce a
new charging network strategy at the end of August 2023, and to move forward
rapidly with the development in Japan. Private companies are increasingly
entering the infrastructure business, and the commercial area is expanding.
Overseas, automakers such as Tesla and Volkswagen (VW) are taking the leadin infrastructure development, and the key to establishing a stable infrastructurebase in Japan will be the extent to which the public and private sectors cancooperate.
About 30,000 public chargers
Challenges abound in the recharging business
In Japan, there are approximately 30,000 public-use rechargers installed, of
which approximately 9,000 are quick rechargers. These are installed at car
dealers, convenience stores, and expressways, while the installation of regularchargers is expanding, at lodging facilities and shopping malls where people
spend extended periods of time.
With the limited number of EVs in use, "the more chargers you install, the more
you lose money" (EV infrastructure operator), it is difficult to make it a viablebusiness. The government is therefore working to expand the recharging
network by establishing a subsidy program to cover the cost of infrastructure
installation and reduce the initial investment burden. Since last year, the numberof private companies entering the recharger business has increased, and there
have been cases of these subsidies being depleted quickly, indicating theelevated level of interest in this field.
Toyota Motor Corporation and Nissan Motor Co.,Ltd.
have already installed approximately 4,100 and 1,900 chargers, respectively,
at their dealers and other locations. Honda Motor Co., LTD. has indicated that it
plans to launch a company that will work with General Motors Company andother companies to develop a quick-charging network.

Number of chargers far fewer than overseas
Increasing output is also an essential issue
Overseas, Tesla has more than 18,000 "Superchargers" in the U.S. alone, withVW, BMW Group, Audi, Porsche, and others following suit. According to theMinistry of Economy, Trade, and Industry, as of 2022, 1.28 million chargers had
been installed in the United States, 201,000 in South Korea, 84,000 in France,and 77,000 in Germany. Although there are differences in the size of the country
and other factors, Japan is still behind other countries in terms of the simple
number of chargers.
To promote the spread of EVs, the development of an infrastructure network isessential. In Japan, 90% of the average daily mileage of automobiles is lessthan 50 km, and in many cases it is sufficient to recharge the battery at home.
Light vehicles account for approximately 50% of domestic EV sales in FY2022,
and many of them have relatively small battery capacity and charging speed. Inaddition, since the percentage of detached owner-occupied houses isapproximately 53%, which is higher than in European countries, it is importantto first create an environment where basic recharging is available while also
providing the necessary number of public rechargers.
Therefore, the government formulated a new strategy for charging
infrastructure suited to the Japanese market and released it in August 2022 as aguideline for the year 2030. The new strategy shifts the policy from simply
increasing the number of chargers to prioritizing the installation of high-power
and multi-outlet chargers. The existing maintenance target of 150,000 units was
doubled to 300,000 units as the base for recharging

outputs, and a new targetof total output of rechargers was also set, aiming for 4 million kw, approximately
10 times the current level.
The majority of the current 9,000 fast-charging units are less than 50 kw, withan average output of about 40 kw. Many regular rechargers are currently 3kw,and total output needs to be increased, introduction of 6kw and 10kw in future.
To build an optimal and convenient recharging infrastructure society while
reducing the social burden, we will promote the development of regular
rechargers at housing complexes and quick rechargers on highways.
The output of quick chargers to be installed on highways should be at least 90
kw per unit, which is more than double the current average; if more than fourunits are to be installed, at least one unit should be 150 kw. The purpose is toprevent "charging congestion" at service areas where traffic is concentrated.

“Roadside stations” and automobile dealers have also set their own installation
targets.
Measures related to electricity supply and demand constraints are also
important
While pursuing "convenience" for EV users, the new strategy is alsocharacterized by its commitment to "making the recharging businessindependent" and "reducing the burden on society”.
First, to make the recharging business independent, a pay-as-you-go system
based on the amount of recharging will be promoted. Currently, the time-basedcharging system is the mainstream, but the amount of recharging depends on
factors such as outside and battery temperature, vehicle characteristics, and thestandard "80% in 30 minutes" has become a mere formality. Toward 2030, payas-you-go system will increase user acceptance. Manufacturers and relatedorganizations will begin to create a fee system so as not to confuse users byhaving a disorderly fee structure.
In addition, the international standard protocol (communication procedure)"OCPP" will be added to the chargers as a supplementary requirement. The
usability of the recharging network will be enhanced by providing information on
space availability, function updates, and remote response to malfunctions.
Japan is in the process of shifting its power source mix to emphasize renewableenergy.

Therefore, it also aims to avoid unforeseen power outages by limiting

the use of EVs recharging when the supply and demand of electricity is tight.
The new strategy is an important policy shift for infrastructure providers, butmany of them seem to be in a welcoming mood. As background, competition for
grant applications has been too fierce.
The government had set aside approximately 30 billion yen in the initial budget
for FY2023 and the supplementary budget for FY2022 as "subsidies to promote
the introduction of charging and refueling infrastructure to promote the spread ofclean energy vehicles (CEVs). However, even if the application documents wereincomplete, the earlier the application was submitted, the sooner the subsidy
could be secured, and applications flooded in immediately after the program
began. One business owner recalls, "The subsiders for the first half of the 2023
was a race to see how quickly we could secure the manpower and process thelarge volume of documents. Many businesses were forced to use humantactics, which increased their burden.

The subsidy program using reserve funds, which are financial resources thatare not limited to specific uses, began in early September 2023. In addition tothat the number of outlets and parking capacity are limited for each type of
regular charger, and the subsidy amount has also been changed to bedetermined upon review. Toru Tokushige, chairman of Terra Motors Corporation,
which is involved in the recharging service business, also praised the newsystem, saying, "The subsidy system has become clearer since September
2023, and it is now easier to grasp the amount of money and other details by
passing the screening process.
The Japanese government has set a goal of "100% new electric vehicles sales
by 2035," and infrastructure development is inextricably linked to the spread ofEVs. Currently, however, electric vehicles include not only EVs but also hybrid
vehicles (HVs) and fuel cell vehicles (FCVs), and the government has indicatedthat it intends to promote electrification through a "variety of options.
METI official said, "We need to maintain the existing gas station network whilebuilding a new EVs charging network. If this balance is lost, it could lead to astagnation of Japan's automotive strategy.
The infrastructure subsidies currently provided by the government will not lastforever. To make infrastructure projects self-sustaining, a sustainable andconvenient recharging network must be built as soon as possible.