Distributed energy management service provider EnergyHub struck a deal with electric vehicle charging company Wallbox last month to add Level 2 chargers to EnergyHub’s list of compatible devices.
Big picture: This deal reveals a larger trend—energy companies are getting creative in their efforts to keep up with growing residential energy demand. See also: Ford, BMW, and Honda’s joint development of an EV grid services company, or EnergyHub’s earlier deals with EV charging companies including EV Connect, Blink, and ChargePoint.
What’s behind the spike in residential demand? Much of it has to do with growing EV adoption.
- Over 80% of EV charging happens at home, according to the U.S. Department of Energy. That puts strain on residential systems.
- An additional 15–27 TWh of annual new power generation will be needed between now and 2050 to meet growing electric transportation demand, per the Zero Emission Transportation Association.
But tie-ins like that between EnergyHub and Wallbox illustrate an interesting reality: EVs might be both the problem and solution when it comes to grid reliability. Studies show that EV charging’s flexibility can actually strengthen grid reliability if used during low-demand periods of time with excess supply from renewable sources.
Going deeper: The lithium-ion batteries in EV charging stations serve as “mobile battery storage systems,” according to the National Renewable Energy Laboratory. “There is potential to store renewable energy within the global EV fleet to improve the resilience of our power grid,” NREL battery degradation scientist Paul Gasper said.
Here’s how utilities are changing customers’ charging habits to make the most of EVs as a reliability solution:
Utilities are adopting pilot programs, encouraging EV drivers and fleet managers to control activity using three approaches, also called “managed charging,” according to Forbes:
- A “passive” approach that relies on messaging and customer education
- An “active” route, taking control of the customer’s EV charger
- A combination of the two (followed by seeing how customers respond)
For example: California’s utility, Pacific Gas and Electric Company, is deploying managed charging, time-of-use rate incentives, and vehicle-to-grid bidirectional charging programs to customers. PG&E developed a forecasting tool for its distribution planning that predicted 2 million of the 3 million EVs on its system will be integrated with the grid by 2030.
See also: Baltimore Gas Electric created a four-year managed charging pilot program in conjunction with the U.S. Department of Energy in which residential participants are given monthly bill credits and can opt out of load shifting periods if they need to charge immediately. BGE has seen an increase in off-peak charging with opt-out rates of less than 1% and low unenrollments since the program rolled out in late 2022.
Looking ahead: “If we don’t figure out how to develop an effective market model in the near term, we may face a tough road ahead relating to energy distribution impacts,” Peak Load Management Alliance board chair Rich Barone said to EV and renewable companies during a conference.