Volkswagen AG unit Electrify America said on Monday it will install Tesla battery storage packs at more than 100 charging stations across the United States.
Electricity users can incur high-demand charges from many U.S. utilities when they draw a lot of energy from the grid in a short time, which can happen charging an electric vehicle or a number of them at once at a single station.
“If you pass the demand charge onto the customer in a high-demand charge market” it can cost anywhere from $70 to $110 to charge a vehicle, Electrify America’s chief operating officer Brendan Jones said. “If you did that, obviously nobody would buy an electric vehicle.”
Tesla Powerpack battery systems draw power from the grid during off-peak hours and store it for use during peak hours to avoid or reduce demand charges. Electrify America will install most of its battery packs in areas of the United States where there is a higher concentration of electric vehicle owners, particularly on the West Coast and the Northeast.
A lack of EV recharging infrastructure is seen as a major barrier to mass adoption as consumers remain concerned over their limited range.
By this June Electrify America will have 484 charging stations built across America.