Load Shifting in EV Charging

One strategy energy providers use to encourage customers to use more electricity during less popular times is implementing time-of-use (TOU) rates. Energy prices change by time of day, day of the week, and season based on fluctuating electricity demand. During peak hours (when demand is highest) electricity prices are increased, while during off-peak hours (when demand is lower) prices are reduced.

EV fueling stations, fleets and other charge point operators can benefit when they strategically use grid energy considering TOU rates to reduce and manage electricity expenses. Installing an on-site battery energy storage system (BESS) allows the most flexibility in shifting loads while reducing operational costs and ensuring your EV chargers remain up and running.

What is load shifting in EV charging?

Load shifting is a strategy that EV charge point operators can use to reduce their operating costs. By changing the time when you charge your EVs, you can take advantage of periods when electricity demand and prices are lower for a more cost-effective charging schedule.

Again, employing an onsite BESS enables operators to make the most out of TOU pricing with the best site flexibility. Load shifting allows you to take advantage of charging your battery during off-peak hours and discharging energy storage during peak hours to support EV fueling stations or even exporting energy to the grid for revenue-generating opportunities.
This approach also helps reduce strain on the grid by alleviating demand during peak hours, as well as contributing to sustainability by avoiding the use of high-emissions peaker plants for extra generation and supporting more integration of renewable energy sources.

How does load shifting differ from peak shaving?

While peak shaving and load shifting are both techniques for managing electricity demand, they have distinct applications. Peak shaving is about reducing peak demand to level out overall electricity consumption in the short term. Load shift not only temporarily reduces grid consumption but also moves it to times when grid demand and power prices are lower.

• Load shifting involves moving the demand for electricity from peak periods to off-peak times without necessarily reducing the total amount of energy consumed. Electric vehicle charging sites might consider incentivizing customers to charge their vehicles overnight or during other low-demand periods TOU pricing or other means. Smart charging infrastructure can also help shift loads by scheduling charging sessions for times when overall demand on the grid is lower. While peak shaving focuses on reducing peak demand, load shifting aims to optimize the timing of energy usage. This helps balance the load more evenly throughout the day to potentially take advantage of lower electricity rates during off-peak times.
• Peak shaving in EV charging seeks to reduce the maximum power demand during peak periods, which helps lower demand charges and alleviate stress on the grid. At an EV charging site, this could involve using batteries to store electricity during off-peak hours and then discharging the energy during peak times to power the EV chargers. It could also involve taking demand response measures where certain EV chargers are temporarily suppressed or shut off during peak periods. This ensures that the site’s total demand does not exceed a certain threshold to minimize the impact on the grid and reduce peak-related energy costs.

Peak shaving and load shifting work together to help optimize electricity usage and enhance the efficiency of EV charging sites while reducing strain on the electrical grid to prevent overloads and minimize the need for additional power generation capacity. It’s a win-win for customers and grid operators alike.

How can load shifting benefit EV charging site operators?

Load shifting can significantly benefit EV charging site operators in a variety of ways:

• Cost savings: Again, one of the biggest benefits of shifting EV charging to off-peak hours when electricity rates are lower is reducing operational costs. This is especially important for sites with high electricity demand because load shifting can help manage expenses more effectively.
• Increased revenue: If you’re a consumer-facing business, offering lower charging prices and other incentives during off-peak times can attract more customers and increase usage during these periods. This can lead to higher overall revenue while balancing demand throughout the day. Educate your customers about the benefits of charging during off-peak hours, such as lower costs and contributing to sustainability.
• Grid incentives: Depending on your local energy provider, participating in load-shifting programs may come with additional incentives designed to reward reduced demand during peak periods, further enhancing profitability.
• A stable, sustainable grid: By aligning charging with periods of lower demand or higher availability of renewable energy, you contribute to grid stability and sustainability. This not only supports environmental goals but can also enhance your site’s reputation as an eco-friendly business.
• Infrastructure integrity: Reducing peak demand can lessen the strain on electrical infrastructure, potentially extending the lifespan of your equipment and reducing the need for expensive upgrades or maintenance.

Overall, load shifting offers a strategic approach to managing costs, optimizing revenue, and contributing to broader energy efficiency and sustainability goals.

Tips for load shifting in EV charging

Load shifting can offer many advantages if done effectively. When thinking about your load-shifting strategy, it’s important to keep a few considerations in mind.

Understand local utility rules and programs

First, make sure you understand your local electricity tariffs, what programs and incentives are available and how to comply. Familiarize yourself with the TOU rates and electricity tariffs in your area. Knowing when electricity is cheapest will help you design an optimal charging schedule that maximizes cost savings. Also, be sure to stay informed about local regulations, incentives, and utility programs that support load shifting. Participating in these programs can provide financial benefits or even technical assistance to implement load-shifting practices.

Check your site infrastructure

Next, take a look at your site to ensure you’re equipped to handle load shifting. This might involve upgrading grid connections, enhancing energy storage capabilities, or collaborating with utilities to ensure the infrastructure can support varying loads without interruptions. It’s also important to consider the future and plan for scalability. As electric vehicle adoption increases, your load-shifting strategies should be flexible enough to adapt to growing demand while staying efficient and cost-effective.

Think about integrating renewables

Also, consider if you’ll be adding renewable energy like an onsite solar installation. Renewable energy is the cheapest form of power. Producing your own such as solar or wind, can significantly reduce your electricity costs. Solar production is more abundant during off-peak hours so you can rely on it during these times to further reduce reliance on the grid and lower costs. Adding solar to your site can increase your profit margin per session by reducing the cost per kilowatt hour from that of wholesale energy. Powering EVs with renewables also demonstrates your commitment to environmental responsibility, which resonates with environmentally conscious EV users.

Add a BESS to maximize value

Batteries coupled with renewables can provide even more benefits. Storing grid or renewable energy in a BESS greatly increases site flexibility. For example, charging your battery with solar power offers a cost-effective alternative when the price of grid electricity peaks. Batteries and renewables can also help increase the resiliency of your site by islanding (disconnecting from the grid) through grid outages. Periods of ample renewable energy production may allow you to operate your charging stations independently, enhancing your network’s reliability.

Analyze your load profile

Finally, a good load-shifting strategy involves understanding your site’s load profile. It’s critical to monitor and analyze your site’s usage patterns through data analytics to determine when your charging stations are most used. Identifying these patterns can help you optimize load-shifting strategies and better manage electricity consumption. To track site traffic effectively, it’s best to leverage smart technology like an energy management system (EMS) that can automatically adjust charging times based on electricity rates, demand, and user preferences. These systems can be programmed to start charging during off-peak hours, minimizing costs and maximizing efficiency.

How do smart energy management systems simplify load shifting?

Today’s advanced technology can allow automatic, intelligent load shifts, as well as overall EV charging site optimization. An EMS can integrate various components—such as EV chargers, onsite batteries, renewable energy sources, and grid connections—into a cohesive network that optimizes energy flow in real-time. An EMS can adjust your battery use based on varying utility rates, renewable production, changing loads and available capacity. A good EMS is key to getting the most value from your storage system by enabling a number of benefits and opportunities.

• Real-time monitoring: An EMS continuously monitors EV charging site energy usage, collecting data on variables like the number of vehicles charging, the state of charge of batteries, onsite renewable energy production, and grid conditions. By analyzing this data in real-time, the system can predict energy demand patterns and make informed decisions on how to best allocate resources.
• Communication with all site devices: The EMS communicates directly with onsite batteries and renewable energy systems to optimize energy flow. For instance, during periods of high solar generation, the EMS can prioritize charging electric vehicles using solar energy or storing excess energy in batteries for later use. When energy demand peaks, the EMS can discharge the stored energy from batteries to reduce reliance on the grid, effectively shifting the load away from peak times.
• Demand response: The EMS can automatically adjust the power levels delivered to EV chargers based on current site and grid conditions. For example, if the grid is under stress or electricity prices are high, the EMS can reduce the charging speed of some vehicles or schedule charging for later when conditions are more favorable.
• Customized business goals: An EMS can align energy management decisions with the site’s business goals, such as minimizing energy costs, maximizing the use of renewable energy, or ensuring that fleet vehicles are charged and ready when needed. By analyzing historical data and current conditions, the EMS can optimize the charging schedule to meet these goals, ensuring efficient, cost-effective operation.
• Grid interaction: Implementing an EMS allows participation in grid demand response programs, automatically adjusting the site’s energy usage according to signals from the utility. This not only helps stabilize the grid but can also provide financial incentives to site operators. Shifting loads intelligently means that the site can contribute to grid stability while maintaining reliable operation.

Benefits of load shifting in EV charging with Sparkion include:

• Lowered operational costs
• Optimized charging and discharging
• Automatic load management
• Improved BESS economics
• Cost-effective, reliable operation