Volkswagen’s Electrify America purchases Tesla devices for EV charging stations

Tesla Supercharger Program

Volkswagen AG unit Electrify America stated on Monday it will set up Tesla battery storage packs at over 100 charging stations throughout the United States to keep expenses down for drivers charging electric vehicles.

Electricity users can incur high-demand charges from numerous U.S. utilities when they draw enough energy from the grid in a short period, which can happen charging an electric vehicle or a number of them at once at one 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 each vehicle, Electrify America’s chief operating officer Brendan Jones informed Reuters. “If you did that, obviously nobody would purchase 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 prevent or reduce demand charges. Electrify America will set up most of its battery packs in areas of the United States where there is a greater concentration of electric vehicle owners, generally on the West Coast and the Northeast.

During a conference call with experts this week, Tesla CEO Elon Musk stated “stationary storage” is a growth opportunity for the automaker.

“I expect that to grow, I mean, probably twice as fast as automotive for… a long time,” Musk stated.

VW has agreed to invest $2 billion nationwide on clean car infrastructure as part of an agreement with federal regulators following a diesel emissions scandal.

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