Economical analysis of charging station upgrade timing

Electric vehicles (EVs) have witnessed widespread adoption in contemporary times. As charging technology continues to evolve, the power capacity of charging stations (CSs) has progressively increased. However, a pivotal challenge faced by CS operators pertains to the decision of when and whether to upgrade their charging infrastructure. Specifically, this involves replacing existing slow-charging piles with more efficient fast-charging piles. For charging station operators, the question of when upgrades are most economically beneficial is one to consider. Early upgrades can capture more market share by lever-aging the fast-charging advantage, while late upgrades can save upgrade costs, which will decrease as the technology matures. In this paper, we investigate the optimal upgrade strategy for CSs in both monopoly and duopoly markets in a 2D linear market, providing valuable insights for strategic decision-making for the charging infrastructure operators.