Electric Vehicle Council study weighs different strategies for electric vehicle charge mitigation

A new study from the Transportation Energy Institute’s Electric Vehicle Council (EVC) evaluated the possible effects of different strategies on the utilities, charger site hosts, and drivers of electric vehicles, and determined that no single strategy will help each stakeholder equally.

According to the report, the only strategy that would fully mitigate demand charges for the EV charging site host would be to eliminate demand charges from rate tariffs. Unfortunately, this would likely cause consequences for utilities and other ratepayers. 

Other strategies were largely organized into four categories: 

• Reduce or eliminate demand charges for Direct Current Fast Chargers (DCFC)
• Cap the total per-kWh monthly energy cost for low-use stations
• Install co-located batteries to help manage peak demand
• Manage EV charging during peak periods

These strategies were reached through reliance on experts during a review of market conditions, existing rates, current and potential mitigation strategies, and data from existing charging stations. Most experts concluded that creating a fleshed-out, reliable public charging infrastructure to support the growing number of electric vehicles in the U.S. would require viable business models to encourage investment by private organizations. 

Electric utility demand charges were deemed to have significant impacts on the business model chosen, and high operating costs could make it difficult for charging station site hosts to recover costs or make a profit.