Global annual renewable capacity additions increased by almost 50% to nearly 510 GW in 2023, the fastest growth rate in the past two decades. More clean energy capacity (particularly solar and energy storage) was installed in the U.S. in 2023 than in any previous year, accounting for most of the new power capacity added. Europe also doubled down its renewable energy capacity in light of reduced gas supplies from Russia. Belgium, Germany, Portugal and the UK all hit new clean energy records last year.
Cumulative renewable electricity capacity in the main and accelerated cases and Net Zero Scenario
Want to learn more about how Sparkion helps charge point operators participate in and benefit from grid balancing?
What is grid balancing?
The electric grid operates on a real-time basis, meaning the amount of electricity generated must always match the amount consumed. Imbalances can lead to frequency deviations, which can cause equipment damage, power outages, and even large-scale blackouts.
Balancing the power grid involves managing the variability and unpredictability of both supply (such as fluctuations in renewable energy sources) and demand (which can change due to weather, time of day, and other factors). Utilities implement sophisticated grid management strategies, including advanced forecasting, demand side management, and energy storage solutions, to maintain balance.
Advanced forecasting
Utilities leverage sophisticated algorithms and machine learning models to predict both electricity demand and renewable energy generation with greater accuracy. These forecasts take into account an array of data, including historical usage patterns, weather conditions, and real-time sensor data from the grid. By accurately predicting demand, utilities can better plan and optimize the dispatch of electricity from various sources, ensuring that there is always enough supply to meet consumption without overproducing. Advanced forecasting also helps in anticipating and mitigating potential disruptions or imbalances, allowing for proactive measures such as adjusting generation levels, activating demand response programs, or deploying energy storage solutions.
Demand side management
Utilities use various tactics to encourage customers to focus on adjusting energy consumption to reduce peak demand by employing load shifting to move their usage to off-peak hours, thereby enhancing the overall efficiency and reliability of the grid. DSM can encompass a wide range of activities including EV load management practices, such as time-of-use pricing and peak load shifting. DSM helps utilities reduce the need for expensive infrastructure investments in electricity generation, transmission, and distribution by optimizing existing systems to reduce the likelihood of congestion and potential outages. DSM also lowers greenhouse gas emissions by avoiding the need to turn on fossil-fueled peaker plants and making better use of renewable energy.
Energy storage solutions
Energy storage systems, such as batteries, can store excess electricity generated during periods of low demand or high renewable energy output and release it during peak demand times or when renewable generation drops. This capability helps smooth out the variability and intermittency of renewable energy sources, ensuring a stable supply. Additionally, energy storage can provide ancillary services such as frequency regulation and voltage support, which are critical for maintaining grid stability. By strategically deploying energy storage systems, utilities can reduce reliance on fossil fuel-based peaker plants, lower greenhouse gas emissions, and improve the overall efficiency and resilience of the grid.
Effective grid balancing ensures the continuous, efficient, and safe operation of the power system, maintaining the quality and reliability of the electricity supply.
How does grid balancing impact EV charging sites?
Grid balancing is also important to EV CPOs who need to maintain reliable, cost-effective operations. The growth in EV adoption will require more power to charge them, putting more burden on the grid. Without depending grid power, EV operators face major challenges.
Knowing that upgrading grid infrastructure will take time and great expense from utilities, EV charging operators are invested in helping electricity providers to balance the grid so they can run successful businesses.
How can charge point operators and fleet owners help with grid balancing?
Electric vehicle charge point operators can contribute to a balanced grid in multiple ways:- Vehicle to Grid technology When electric vehicles are parked, they can be used as distributed energy resources, providing power from their EV battery to the grid during times of peak demand and then scheduling vehicles to recharge when demand is lower. Such V2G technology can especially make sense for fleets with vehicles that may spend more than a few hours at a time parked. Fleet operators can both make money from V2G programs while saving costs by reducing operational expenses from drawing grid power at off-peak times.
- Ancillary services
EV operators can also provide services to the grid, particularly if they have an EV battery energy storage system (BESS). Utilities or grid operators offer demand response programs to incentivize customers to be flexible with their energy consumption during peak hours or when certain grid conditions occur.
- U.S. customers in some territories can participate in demand response programs in which they are compensated for curtailing their electricity use during periods of high power prices or compromised grid reliability.
- European customers can participate in the fast frequency response (FFR) and frequency containment reserve (FCR) markets where balancing service providers (BSPs) prevent grid instability and power outages.
- Smart energy management A smart energy management system can allow communication and control among devices optimizing energy deployment and energy consumption on EV charging sites, thereby reducing the amount and pattern of grid electricity use. In this way, EV smart energy management software and systems can both help CPOs overcome site issues and achieve business goals to ensure reliable, cost-effective, sustainable EV charging while also helping to manage energy distribution to and from the grid to aid in balancing.
- Integrating renewable energy EV charging sites that can produce their own onsite renewable energy can store it in batteries for later use, further reducing their demand from the grid. For example, charging your battery with solar power offers a cost-effective alternative when the price of grid electricity peaks. Using your own clean power not only reduces operational expenses but also helps balance the grid by avoiding drawing from it during peak demand times.
How does Sparkion enable EV grid balancing?
Helping with grid balancing requires the right software and hardware to be able to control the flow of energy among devices on an EV charging site as well as between the site and the grid. An energy management system can provide real-time insight into energy traffic patterns and facilitate communication between onsite assets and the grid.
