Shell’s recent announcement to close 1,000 gas stations and focus on building a massive 200,000-point EV charging network by 2030 reflects a global trend in the transportation sector.

We are growing our electric vehicle charging business to
support customers who choose to change from a petrol or
diesel vehicle to an electric one. We are focusing on offering
our customers choices where we see increasing demand, such
as in the fast-growing electric mobility markets of China and
Europe. We aim to increase the number of public charge points
we operate to around 200,000 by 2030, from around
54,000 today

Shell Energy Transition Strategy 2024

But this shift isn’t happening in a vacuum. Let’s delve deeper into the historical context, current state of global charging infrastructure, Shell’s strategy, and how it compares to other players, including a glimpse into Malaysia’s EV charging landscape.

From Humble Beginnings: A Look Back at Global Charging Infrastructure

The first public EV charging stations emerged in the late 1990s, primarily driven by government initiatives in California and Japan. Growth remained slow for the next decade, with limited car models and high battery costs hindering widespread EV adoption. However, the tipping point came in the mid-2010s with the rise of Tesla and other affordable electric vehicles. Since then, the global charging infrastructure has seen significant growth.

According to a 2023 report by IEA (International Energy Agency), the number of public charging points worldwide reached over 13.8 million in 2022, reflecting a staggering 49% year-on-year increase. This growth is expected to accelerate, with forecasts predicting over 300 million public charging points globally by 2030.

The Current Landscape: A Patchwork of Progress

Despite the impressive growth, the global charging infrastructure remains unevenly distributed. Developed nations like Europe and China lead the charge, with extensive networks and a focus on high-speed DC fast chargers. However, developing regions like Southeast Asia are lagging behind.

Malaysia’s Charging Infrastructure: A Work in Progress

Malaysia’s EV charging infrastructure is still in its nascent stages. As of 2023, the country boasts around 1,000 public charging points, concentrated primarily in major cities like Kuala Lumpur and Penang. While the government has implemented incentives to encourage EV adoption, including tax exemptions and rebates, the charging network needs significant expansion to support wider EV usage.

Shell’s Strategy: Leveraging Legacy for the Future

Shell’s decision to convert existing gas stations into EV charging hubs is a strategic move. Their vast network offers a readily available footprint for setting up charging points, potentially accelerating their deployment compared to starting from scratch. They also recognize the importance of convenience, aiming to provide a one-stop shop for charging and grabbing refreshments during travel.

The Competition: A Race for Dominance

Shell faces stiff competition in the EV charging space. Tesla, with its dominant Supercharger network, is a major player, especially since opening it up to other brands. Established companies like ChargePoint and EVgo are also expanding, while new entrants like Electrify America are vying for market share. Collaboration between these players and with governments will be crucial to create a robust and accessible global charging network.

Conclusion: A Charged Future Takes Shape

Shell’s move underscores the undeniable shift towards electric vehicles. While they join a competitive landscape, their existing infrastructure offers a potential advantage. The coming years will determine if collaboration or fierce competition defines the future of EV charging infrastructure. As for Malaysia, continued government support and investments from private companies are essential to bridge the gap and create a future-proof charging network that supports a thriving EV ecosystem.