The Transportation Energy Institute’s Electric Vehicle Council (EVC), released a new study, Demand Charge Mitigation Strategies for EV Chargers, evaluating the potential effects of different strategies on various stakeholders, including utilities, EV charger site hosts, and EV drivers.
Stakeholders, including many utilities, recognize that electric utility demand charges can have significant impacts on the business model of EV charging stations. The new study presents insights to help decision-makers understand the positive and negative implications of their options to determine the best solution for their situation.
“Demand charges represent a significant impediment to the deployment of EV chargers in the U.S.,” said John Eichberger, executive director of the Transportation Energy Institute. “The Electric Vehicle Council commissioned this study to provide objective insight into the effects of these various strategies on all stakeholders so that effective and equitable solutions can be implemented to benefit the market.”
The study reviewed market conditions, existing rates, current and potential mitigation strategies and data from existing charging stations.
The most viable options were organized into four categories:
- Reduce or eliminate demand charges for direct-current fast chargers (DCFC)
- Cap the total per-kWh monthly energy cost for low-use stations
- Install co-located batteries to help manage peak demand
- Manage EV charging during peak periods
The report determined the only strategy to be 100% effective at mitigating demand charges for the EV charging site host is to eliminate demand charges from the rate tariff.
But this strategy is not without consequences for other stakeholders, most notably the utility and potentially other rate payers. Several simulations were explored to examine the relative costs and benefits of each strategy and provided recommendations for stakeholders to navigate the options available to them, detailing considerations for utilities, station hosts, and EV drivers.
“Demand Charge Mitigation Strategies for Public EV Chargers” is a valuable resource for anyone seeking to support the deployment of a reliable EV charging network in North America. Download the report here.
Filed Under: Charging, Technology News