As the electric vehicle market blossoms, utilities are keeping a close eye on when and where those EVs charge. Utilities want to effectively manage the increased load from EVs in a way that helps the grid rather than stresses it. This means encouraging EV drivers and fleet managers to charge vehicles during periods of time that coincide with low system demand and excess supply from renewable sources. The broad category of strategies and programs to encourage or control those activities is referred to as managed charging.
The electrical grid isn’t the only thing positioned to benefit from managed charging. Automakers recognize the opportunity to help their EV customers tap into cost savings and financial incentives while reducing carbon emissions. These and other motivations were highlighted in a September 2023 announcement from Ford, BMW and Honda about the joint development of ChargeScape to enable managed charging and other grid services for EV drivers.
Utilities And Automakers Are Eager To Roll Up Their Sleeves
Vehicle manufacturers are public about their investments and innovation focused on EVs, from manufacturing facilities to battery technology and joint ventures focused on charging infrastructure. That enthusiasm is extending to managed charging. While many utility initiatives are still in the pilot stage, with some shifting into full-scale programs, it is an ideal time for car companies, utilities and service providers to collaborate, learn and build out successful managed charging solutions and programs.
The partnerships among automakers, utilities and grid service providers were on display during PLMA’s inaugural EV Symposium on Managed Charging. PLMA is the Peak Load Management Alliance, a nonprofit organization that convenes utilities and other companies with the goal of sharing information and best practices to manage loads on our electrical system. The August 2023 symposium highlighted the current state of managed charging programs and gazed into the crystal ball. What emerged was a candid dialogue among a range of stakeholders, automakers included, and key considerations for utility programs that meet the needs of both customers and the utility itself.
From the perspective of PLMA board chair Rich Barone, “Bringing the auto OEMs into these discussions is essential, because while they have not historically been part of this energy load management ecosystem, they are now. OEMs need to be part of the conversation—and part of the solution.” With EV adoption growing across the country, there is motivation to address the issue of load management before it becomes a problem at the local or system level.
One Size Doesn’t Fit All
A scan of managed charging programs launched to date would reveal similarities, but not a single key to success, since every utility and customer base is different. Some may take the “passive” approach that leans heavily on messaging and customer education. Others may go the “active” route and take control of the customer’s EV charger. And many are trying out multiple options to see how customers respond.
For example, the BGE Smart Charge Management program, a four-year EV managed charging pilot in conjunction with the U.S. Department of Energy, categorizes EV charging into three EV customer groups (residential, commercial fleets and public) and explores how to effectively manage electric loads from the three using various approaches to load curtailment. Residential participants are incentivized through monthly bill credits and can opt out of specific periods of load shifting if they need to charge immediately. Since launching in late 2022, BGE has seen an opt-out rate of less than 1% and low unenrollments, in addition to increasing off-peak charging among customers on the utility’s time-of-use rate.
Ultimately, the customer must be at the core of managed charging program design. Enrollment must be simple and the value proposition should be clear to participants, likely involving financial incentives of some kind. Because we’re still in the early adopter phase with EVs, utilities must stay nimble with their managed charging program designs.
More Education Is Needed
Smart management of EV charging makes sense for many reasons, including the opportunity for customer savings through lower off-peak energy costs. But individuals and businesses won’t bite if they don’t understand the benefits. In addition, customers will need to trust their utility (in partnership with OEMs and service providers) to have some level of control over their energy and (indirectly) transportation decisions. A great deal of education is needed to cover the basics of EVs and charging as well as the more technical and nuanced world of load management.
A candid and collaborative environment is important to celebrate successes and also flag potential side effects. For example, utilities have become keenly aware of rebound or timer peaks, where some participants begin a charging session as soon as they are “allowed” to do so and create an unintended peak in load. In another anecdote, one managed charging participant drove down the street to use a DC fast charger while their home charger was temporarily unavailable due to load shifting. Continued information sharing and proactive education can help mitigate these situations.
As EV adoption grows, it will become more important to monitor and leverage additional charging load on the grid. As Barone put it, “If we don’t figure out how to develop an effective market model in the near term, we may face a tough road ahead relating to energy distribution impacts.” Managed charging can yield a suite of benefits touching every part of the electricity marketplace. As a flexible source of load that is also capable of storing energy, EVs are part of the larger discussion around the inevitable evolution of the grid.
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