Today, a significant event shook the EV charging industry. Enel X, a prominent EV charging hardware and software manufacturer based in Italy, announced the shutdown of its North American operations, effective October 11, 2024. As a result, more than 170,000 EV charge ports sold in the U.S. and Canada will be orphaned—left without the necessary software support to operate effectively.
Enel X’s swift exit from the North American market underscores a major issue in our industry: the inherent risk of closed-source hardware and software systems. Their business model, which tied their hardware to proprietary software, has left thousands of customers stranded. With the shutdown of their servers, customers with Enel X chargers are unable to connect their equipment to alternative networks, effectively rendering those chargers useless.
For owners of Enel X commercial hardware, this means your stations will become completely inoperable at the end of next week. For homeowners with Enel X’s residential chargers, you may still be able to use your charger for basic plug-and-charge functionality without any user authentication. However, if the station was derated in Enel’s software, this poses an even greater risk—your station will automatically revert to 40A, potentially tripping your breaker.
The Bigger Picture: A Risky Business Model
The story of Enel X is, unfortunately, not unique. We have seen a similar pattern of volatility across the EV charging industry. Earlier this year, Tritium filed for bankruptcy, and other closed-source companies like ChargePoint and EVgo have also faced financial challenges, with ChargePoint's stock hitting all-time lows. However, what makes the Enel X shutdown particularly concerning is the lack of a path forward for affected customers to migrate their charging equipment to another software provider due to their closed-source system. This raises an important question: why would anyone invest in charging infrastructure that is so rigidly tied to a single platform?
It’s critical to call out this flaw in the industry—especially since two other major North American EV charging companies, ChargePoint and Flo, use a similar business approach of binding hardware and software. This closed-source model, while potentially beneficial to the manufacturer in the short term, has proven to be incredibly detrimental to the end-user, leaving them with hardware that can no longer function without the proprietary software.
A Personal Analogy: Locked-In Tech and iPhones
To put this issue into perspective, consider the analogy of a smartphone purchase. Recently, our company was eligible for phone upgrades, and the cost of the latest iPhone 16 Pro was roughly $1,600 CAD—the same price as our entry-level commercial Level 2 EV charger, the Watti Pro Lite. If you were buying phones for a company, no one would consider purchasing hundreds or thousands of iPhones without the ability to migrate them to another carrier. This issue was resolved in the cell phone industry years ago, when carriers were required to unlock their phones and give the phone owner the freedom to take their device to any carrier they wish. Yet, in the EV charging industry, this is precisely what customers are being asked to do—commit to hardware that is locked to a single software platform, without the flexibility to switch providers as needed or wanted.
A Call for Open-Source EV Charging
This situation highlights the critical need for global adoption of open-source standards and mandates in EV charging infrastructure. The Open Charge Point Protocol (OCPP), the industry-standard protocol for EV charging stations and central management systems, allows hardware and software to communicate seamlessly, regardless of the manufacturer. Our company, Electric Avenue, uses this open-source approach precisely to avoid the type of situation that Enel X customers are now facing.
At Electric Avenue, we are committed to offering EV charging solutions that empower our customers with choice and flexibility. We will continue to sell only open-source hardware and software to ensure that our customers are never left in such a precarious position. By choosing open-source, we can guarantee that our customers retain the freedom to connect their charging hardware to the network of their choice, keeping their investment secure and adaptable no matter how the market evolves.
The EV charging industry, much like the tech and telecom bubbles of the past, is showing signs of overvaluation and volatility, and it's only a matter of time before this bubble bursts. We've seen this pattern before—in the early 2000s, the dot-com boom was fueled by high expectations and unsustainable business models, leading to the collapse of many tech giants that seemed unstoppable. When the bubble inevitably bursts in the EV charging space, we don't know which companies will survive, but we believe it will be those who have focused on delivering the best customer experience, valuing long-term relationships over short-term gains. The companies that prioritize open-source hardware and software, offering flexibility and protection for their customers, will be the ones left standing. By embracing open standards, we ensure that no matter how the market shifts, our customers’ investments remain resilient and adaptable.
Environmental and Economic Implications
Beyond the customer inconvenience, there is a significant environmental impact when charging hardware becomes orphaned. Each stranded charger represents a carbon footprint tied to its production, transportation, and installation—all of which is now effectively wasted. For operators of large networks, the only recourse to regain functionality is to purchase entirely new chargers. This not only imposes a financial burden but also runs counter to the broader goals of environmental, social, and economic sustainability.
Looking Forward: A More Sustainable EV Future
The Enel X closure serves as a wake-up call for all stakeholders in the EV charging space. As the industry matures, it is critical that we move away from closed, proprietary systems that lock customers into a single ecosystem, and instead, adopt open standards that provide long-term viability and interoperability.
So, I pose this question to any business or individual looking to invest in EV charging infrastructure: Would you purchase equipment that locks you into a single software network, with no contingency if that network fails? With the industry's rapid evolution and market uncertainties, choosing open-source, OCPP-compliant charging infrastructure is the best way to future-proof your investment and support a sustainable transition to electric mobility.
At Electric Avenue, we are steadfast in our commitment to open-source, customer-centric EV charging solutions, ensuring that our customers will never face the risks associated with closed systems. We believe in a more flexible, sustainable, and open EV future—and we think its time for the industry to do the same.
Mark MacDonald
President, Electric Avenue Manufacturing Inc.
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