Report Outlines Strategies to Mitigate Electric Utility Demand Charges for EVs

The Transportation Energy Institute Electric Vehicle Council released a new report titled Demand Charge Mitigation Strategies for Electric Vehicles documenting a study that discusses strategies to mitigate electric utility demand charges for EV Charging and the effects on various stakeholders. If you are considering installing and operating an EV charging network this report provides helpful resources.

The study provides an overview of the various types, structures, and functions of utilities and the similarities and differences of each utility type. It reviews existing rates including tariffs and demand charges, market conditions, and data from existing charging stations. Using a model that combined real-world public data, proprietary algorithms, and industry expert survey feedback the financial performance of these strategies was evaluated and the potential implications of these strategies on electric utilities, station operators, and EV drivers were analyzed. The mitigation strategies evaluated were: (a) remove demand charges, (b) maximum cap energy costs, (c) co-located energy storage, and (d) manage EV charging during peak periods.

The study concludes that any mitigation strategy that benefits one stakeholder group is likely to come at a cost to one or more of the other groups. Further, the only mitigation strategy found to be 100% effective at mitigating demand charges from an EV charging station operators’ perspective is the elimination of demand charges from the rate tariff. The report also provides an overview of sitting and operating fast charging stations and additional non-financial concerns that should be considered when evaluating the installation and operation of an EV charging network.