Peak shaving for EV charging

What is peak shaving for EV charging networks?

Peak shaving is a strategy used to reduce the consumption of electricity from the grid during peak demand periods. It is used by EV charging network operators to alleviate strain on the electrical infrastructure at EV charging sites during peak hours when charging stations are in high demand. Peak shaving can also help accommodate unmanaged loads, which cannot be controlled by an EV charging platform, and reduce EV charging energy costs.

How does peak shaving for EV charging networks work?

A smart EV charging and energy management platform gives network operators granular control over the energy flow at EV charging sites, creating multiple opportunities to implement peak shaving. 

• Reducing peak demand
  A charging site’s demand can peak if multiple DC fast chargers are occupied concurrently, or due to an unmanaged load, such as a car wash or C-store. A smart EV charging and energy management platform can throttle energy delivered to the EV chargers from the grid connection. While this may slow down EV charging, in many cases, it will have no noticeable effect on the driver’s EV charging experience.
  

• Renewable load shifting
  When available, renewable sources, such as solar panels or wind turbines, can supplement the grid to provide energy for EV charging. When demand peaks, the EV charging and energy management platform can replace grid energy with energy drawn from renewable sources, thus shaving the peak demand on the grid.
• Battery energy storage systems (BESS)
  Similar to renewable load shifting, the EV charging and energy management platform can replace grid energy by discharging a local on-site BESS to provide energy for EV charging, thus “shaving” the peak. Once demand recedes, the platform can use that time to recharge the BESS from the grid and store that energy until demand peaks again.
  

What are the benefits of peak shaving for EV charging networks?

Peak shaving offers benefits to EV charging network operators, especially as the demand for EV charging continues to grow.

1. Prevent overloads to ensure business continuity and a positive customer experience
   High demand for charging, especially during peak hours, can strain the grid at an EV charging site and overload the electrical infrastructure. Peak shaving ensures a site never exceeds its capacity, preventing damage and resulting outages, and enabling reliable continuity of service. This prevents long wait times and enhances customer experience.
2. Reduce energy costs
   Many utilities charge higher rates during peak demand periods. By shifting loads to renewables or local battery storage during these periods, network operators can reduce their energy costs for EV charging. Moreover, utility demand charges are based on a site’s peak usage. Using peak shaving, operators can significantly reduce these charges, lowering overall operating costs.
3. Meet sustainability goals
   Peak shaving often makes use of local energy storage in a BESS, and renewable energy sources. The BESS can store excess renewable energy during low-demand periods and discharge it during peak periods to supplement or replace energy from the grid. This supports greener charging infrastructure, which helps operators meet sustainability goals. Moreover, many regions are moving towards stricter environmental regulations and carbon reduction targets.
4. Generate revenue from demand response
   Many utilities run demand response programs that offer significant incentives to businesses willing to reduce demand upon request to help manage strain on the grid. By supplementing or replacing grid energy with renewables and BESS, network operators can use peak shaving to participate in these demand response programs to generate new revenue streams.

What are the benefits of peak shaving for EV drivers?

Several of the benefits that peak shaving affords EV charging network operators carry over to EV drivers.

• More reliable charging infrastructure
  Peak shaving improves the reliability of EV charging stations, so EV drivers are less likely to experience disruptions due to grid overloads or blackouts. By using peak shaving to manage energy more efficiently, network operators can ensure consistent charging speeds even during high-demand periods, promoting a good charging experience.
• Lower charging costs
  Since peak shaving helps network operators both reduce their energy costs and generate revenue, these savings can be passed on to EV drivers, resulting in lower charging fees. Moreover, incentives that network operators get to reduce peak demand can be passed on to drivers in the form of lower rates that encourage charging during off-peak hours.

Conclusion

Peak shaving is only one aspect of smart energy management that network operators use to optimize energy use for EV charging. Through peak shaving, operators increase the energy resiliency of their EV charging sites while reducing their energy costs. Driivz’s EV Charging and Energy Management platform supports peak shaving through smart energy management capabilities, including dynamic load balancing, smart charging, and integration with onsite renewable energy and battery storage systems.