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 stress on the electrical infrastructure at EV charging sites during peak hours when charging stations are in high demand, to accommodate unmanaged loads which cannot be controlled by an EV charging platform, and to reduce energy costs for EV charging.
How does peak shaving for EV charging networks work?
The granular control that a smart EV charging and energy management platform has over the flow of energy at EV charging sites offers network operators a lot of flexibility in energy management and presents different ways to implement peak shaving.
Reducing peak demand
At an EV charging site, demand can peak, for example, if several, or all DC fast chargers are occupied concurrently. Similarly, an unmanaged load, such as a car wash or C-store can cause a demand peak. In both cases, the 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 onsite 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 several benefits to EV charging network operators, especially as the demand for EV charging continues to grow:
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 ensuing outages to enable reliable continuity of service. It also follows that with a reliable service in which all chargers are fully operational, a network operator prevents long wait times, promoting an enhanced customer experience.
Increase EV charging capacity
Using peak shaving to manage energy at an EV charging site more efficiently, network operators can add more charging stations without overloading the local grid. By combining dynamic load balancing with peak shaving, operators can distribute the energy available for EV charging to ensure that all EVs get a share of the available energy without any noticeable downgrade in charging speed. The operator increases ROI on their charging infrastructure, while preventing wait times and ensuring a positive customer experience.
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. Through peak shaving, operators can significantly reduce these charges lowering overall operating costs.
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 use it during peaks 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. Through the use of renewables and local battery storage, network operators reduce the carbon footprint of their EV charging operations to ensure compliance with local policies on energy and the environment.
Generate revenue from demand response
Many utilities run demand response programs in which they offer significant incentives to businesses who are 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.
Relieve charge anxiety with more reliable charging infrastructure
Since peak shaving improves the reliability of EV charging stations, EV drivers are less likely to experience disruptions due to grid overloads or blackouts, especially during peak demand periods. This serves to improve their confidence in being able to charge up successfully, and therefore, reduces charge anxiety. Moreover, 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 which further serves to relieve charge anxiety.
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 the use of energy for EV charging. Through peak shaving, operators increase the energy resiliency of their EV charging sites while reducing their energy costs. These benefits can get passed on to EV drivers who can enjoy a more reliable EV charging experience at lower cost.
