WHERE THE RUBBER MEETS THE ROAD: SEPA REPORT SAYS MANAGED EV CHARGING IS EMERGING BIG PLAY FOR UTILITIES

In the not-so-distant future, charging of electric vehicles (EVs) could be remotely controlled -- by utilities or third-parties -- to manage load on distribution systems handling increasing amounts of renewable energy, while also providing benefits to customers, utilities and the grid.

WASHINGTON, D.C. -- In the not-so-distant future, charging of electric vehicles (EVs) could be remotely controlled -- by utilities or third-parties -- to manage load on distribution systems handling increasing amounts of renewable energy, while also providing benefits to customers, utilities and the grid.

The pieces of such a scenario are now coming together across the small but robust electric vehicle ecosystem, according to "Utilities and Electric Vehicles: The case for managed charging," a new report from the Smart Electric Power Alliance (SEPA), released today. The report fills the current gap between utilities' rising interest in EVs, and their questions about how to proactively position themselves as a core part of the ongoing electrification of America's transportation fleet.
"Electric utilities have never before had to serve EVs' mobile load or needed to understand the nuances and needs of their customers' driving patterns and habits," said Erika Myers, SEPA's Director of Research, who authored the report. "Similarly, the transportation sector has never had to think about utility rates -- including demand charges, direct costs for grid infrastructure upgrades, or optimal siting of charging infrastructure based on grid conditions. Data sharing, enhanced visibility and collaboration between these two sectors are going to be absolutely essential."
Key report takeaways include:
• With more than 580,000 plug-in EVs -- both hybrid and all electric -- on the road in the United States, EVs are fast becoming one of the largest flexible loads on the grid in certain parts of the country. They already represent one terawatt hour (TWh) of consumption, and Bloomberg New Energy Finance estimates EV electricity consumption could zoom to 551 TWh by 2040.
• Right now, approximately one-third of all manufacturers of electric vehicle supply equipment (EVSE) have a managed charger offering. Plus, half of all EV manufacturers have managed charging capabilities, or have already been involved, directly or indirectly, in managed charging pilots. Companies driving growth in the sector range from established industry names such as ABB, to startups such as eMotorWerks and its JuiceBox Pro charger.
• As with many other distributed energy resources, utilities will need to find creative ways to better manage this new load. For example, areas with high concentrations of EVs could see expensive upgrades to distribution feeders. In a study commissioned by the Sacramento Municipal Utility District, a worst-case scenario estimated 12,000 of the utility's transformers might need to be replaced due to EV-related overloads, at an average estimated cost of $7,400 per transformer.
"Looking at EVs simply in terms of load growth doesn't fully capture their potential value as distributed energy resources," Myers added. "With their deep knowledge of customers' interests and expectations -- and the grid -- utilities will be key to finding the most cost-effective strategies to optimize managed charging solutions for the benefit of the entire grid."
"Utilities and Electric Vehicles: The case for managed charging" is available for download here.

About SEPA
The Smart Electric Power Alliance (SEPA) is an educational nonprofit working to facilitate the electric power sector's transition to a clean energy future through education, research, standards and collaboration. SEPA offers a range of research initiatives and resources, as well as conferences, educational events and professional networking opportunities. SEPA is founder and co-sponsor of Solar Power International and winner of the Keystone Policy Center's 2016 Leadership in Energy Award.
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