Balancing the grid’s stability while meeting the increasing demand for electric vehicle (EV) charging is an ongoing challenge. One solution? Managed charging. This approach centers around strategically timing those charges to optimize energy use and maintain grid reliability.
“During peak periods, managed charging defers charging to off-peak hours when energy is more abundant and less expensive,” said Piper Wilder, CEO at 60Hertz Energy.
“By 2050, the increase in EV adoption in the U.S. is expected to fuel a significant increase in electricity demand, a challenge that will test the limits of our current grid infrastructure. Fortunately, we have approaches like managed charging to help with this transition.”
In this blog post, we’ll go into the nuances of managed charging and how it works, the top 3 reasons why utility managers should invest in it, what they can do to future-proof their grid to meet the increased demand for energy, and how a CMMS can help.
What Does Managed Charging Entail?
Managed charging is all about smartly optimizing when and how EVs get powered up, aiming to save money and ease the strain on the grid. There are two main approaches: passive and active.
- Passive managed charging: Often called behavioral load control, the passive approach hinges on customer choices. A typical approach is through EV time-of-use (TOU) rates, where electricity prices fluctuate based on the time of day, encouraging EV owners to charge during off-peak hours when energy is cheaper.
- Active managed charging: Also known as direct load control, this active managed charging takes a more hands-on approach to optimizing EV charging. This method uses communication signals sent directly from a utility or aggregator to control when and how EVs charge. This method not only helps keep the grid stable but also helps charge vehicles for the lowest possible cost.
How Does Managed Charging Work?
Let’s take a look at how managed charging works.
Forecasting
Managed charging starts with smart forecasting, where data from multiple sources is integrated to predict and harmonize charging times. This includes drivers’ charging preferences, baseline energy demand, the cost of electricity, and grid constraints.
The utility’s distributed energy resource management system (DERMS) processes this information to plan the most efficient charging schedules.
Scheduling
Using the forecasted data, the DERMS creates a charging schedule that ensures EVs are charged within the specified timeframe, while also minimizing costs and avoiding grid overload. This way, drivers get their vehicles charged when needed without putting unnecessary strain on the power grid.
Real-Time Reconciliation
As conditions change, the system adjusts the charging schedule in real-time. Advanced algorithms systematically manage when EVs start and stop charging, ensuring the grid operates smoothly while keeping costs in check.
Reporting
Finally, the system reports on performance, giving utilities valuable insights into how well managed charging is working in terms of cost efficiency and grid stability.
Source: Department of Energy
The Top 3 Reasons Why Utility Managers Need to Invest in Managed Charging
Protecting the Stability of the Grid
As more people charge their EVs, particularly during peak hours, the demand on the grid can surge. This leads to strain, higher energy costs, and potential infrastructure overloads.
Managed charging offers a solution by optimizing when and how EVs are charged. Instead of everyone plugging in their vehicles as soon as they get home, managed charging spreads the demand over off-peak hours, maintaining a steady and balanced load on the grid.
Utility managers, by actively managing EV charging, either through incentives or direct control, can stabilize energy consumption, reduce reliance on expensive fossil fuel backup generation, and avoid the financial burden of expanding grid capacity. Moreover, this improves grid resilience, making the system more reliable during high-demand periods.
Cost Efficiency
As we’ve already discussed, managed charging can shift EV charging to off-peak hours, when electricity demand is lower and energy is cheaper to produce.
Managed charging also plays a critical role in mitigating the financial impact of EVs on utility ratepayers and shareholders. A study by Lawrence Berkeley National Laboratory, funded by the U.S. Department of Energy, highlights how managed charging can influence electricity rates over the long term.
The study explored various scenarios involving different levels of EV adoption and peak impacts per vehicle. When managed charging is implemented, it reduces the peak load impact of EVs, leading to more stable electricity demand.
Over 20 years, this can result in a modest increase of just 0.5% to a potential decrease of up to 1% in electricity rates for all customers, depending on the scenario. For utility managers, this means that managed charging can help avoid significant rate hikes even as EV adoption grows.
By stabilizing demand and minimizing peak loads, managed charging reduces the need for expensive grid upgrades and ensures that electricity remains affordable for all customers.
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Learn more about maintenance management and the role of a CMMS:
Better Customer Satisfaction
With the surge in customer satisfaction with public EV charging infrastructure reported in early 2024, utilities have a golden opportunity to further improve the EV charging experience and meet consumer demands.
By reducing grid strain during peak hours, utilities can maintain service quality, preventing the kind of outages or slowdowns that frustrate customers. This proactive approach also supports the development of a robust and accessible charging network, making it easier for consumers to charge their vehicles whenever and wherever they need.
As consumers experience fewer issues with charging availability and reliability, their confidence in EVs likewise improves. Incorporating managed charging into utility operations not only supports the transition to electric vehicles but also strengthens customer relationships.
Future-Proofing the Grid
As the transition to EVs accelerates, however, the demand for electricity will continue to grow. Currently, the U.S. generates 4.2 trillion kilowatt hours of electricity annually. To electrify the entire fleet of light-duty vehicles, an additional 950 billion kilowatt hours would be required each year—a 22% increase in electricity production.
Though this shift won’t happen overnight, by 2050, electricity demand could rise by 26% as EVs dominate the roads. To meet this growing demand, the grid must be future-proofed to handle increased loads, ensuring reliable and sustainable energy for decades to come.
Utility managers must plan for steady, manageable growth in electricity production, targeting about 1% annual increases. This proactive approach will secure the grid’s stability, support the widespread adoption of EVs, and ensure that the energy infrastructure remains resilient in the face of evolving demands.
Some options include:
- Embrace DER integration: Incorporate Distributed Energy Resources (DERs) into your grid management. Ensure your systems can handle the complexity of localized energy distribution for better efficiency and cost savings.
- Leverage SCADA: Use SCADA-driven data collection to manage the influx of new devices and DERs in the field. Prioritize predictive maintenance.
- Invest in Advanced Distribution Management Systems (ADMS): Transition to ADMS to optimize grid performance, automate outage restoration, and provide 24/7 monitoring.
Ready to Future-Proof Your Grid?
The interest in EVs and the need for managed charging are both growing. Optimize the performance of your in-place infrastructure, as well as prepare for the future with a CMMS trusted by 26 utility companies to improve their maintenance operations.
Don’t wait for demand to outgrow your grid’s capabilities. Take control with 60Hertz Energy’s CMMS.
Book a demo today. Start building a more sustainable and future-ready energy infrastructure.
