Most experts realized establishing a robust and reliable public charging infrastructure to support the growing number of electric vehicles (EVs) on the roads will require a viable business model to encourage investment by private enterprise. Interested stakeholders, including many utilities throughout the nation, recognize that electric utility demand charges can have significant impacts on the business model of EV charging stations. High operating costs can make it difficult for charging station site hosts to recover costs or operate profitably.
The Transportation Energy Institute’s Electric Vehicle Council (EVC) released this study to evaluate the potential effects of different strategies on various stakeholders, including utilities, EV charger site hosts and EV drivers. The new study found that no single strategy will affect each stakeholder equally and presents insights to help decision makers understand the positive and negative implications of their options to determine the best solution for their situation.
By reviewing 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 models and 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.
Please fill out the form below to download the full report.
