Charge pricing model for electric vehicle charging infrastructure public-private partnership projects in China: A system dynamics analysis

The design of charge price is essential to the financial viability of electric vehicle charging infrastructure public-private partnerships (EVCI-PPPs). This study proposes a system dynamics (SD) technique to develop a charge pricing model based on pro forma financial statements developed during the feasibility study period. Pricing parameters are first identified. A charge pricing model using the SD approach is then developed based on charge pricing parameters. This charge price not only ensures charge operators gain the anticipated minimum attractive return of rate, but also not exceed the government-regulated price. Subsequently, an ongoing EVCI-PPP project in Anqing is selected to verify the applicability and effectiveness of the model proposed in this study. Sensitivity analysis results indicate that operating costs, electricity price, and charge volume are the main determinants of feasible charge price. Several suggestions to improve charge operators' profits and reduce charge price, including increasing charge volume, negotiating with power companies for preferential electricity price, broadening profit channels, and improving operational capabilities, are put forward. This research framework can also be used as reference to study other infrastructure's pricing models.