EV Tariff Design Can Optimize Grid Resources and Save Drivers Money — Selected Examples and Lessons Learned from the U.S. and Europe
The environmental and economic benefits that electric vehicles provide to users, and ultimately to all electricity consumers, will depend on how the vehicles are charged and how charging infrastructure is deployed. Research has shown how managed electric vehicle charging can efficiently use grid capacity, optimally exploit electric vehicles as a flexible grid resource, bring down system costs and encourage use of renewable electricity. Yet without policy tools or incentives to encourage otherwise, drivers are likely to charge when it is most convenient for them, without regard to grid impacts. Electricity tariffs specifically designed to encourage electric vehicle users to charge at optimal times for the grid have proven to be effective. However, it is less well known how the effectiveness and optimal design of electric vehicle tariffs vary according to the ways that vehicles are charged.
This paper compiles experience from selected electric vehicle tariffs across different use cases of light-duty vehicle charging, covering residential, multi-unit, workplace and commercial settings as well as public fast charging. Together, these represent the vast majority of electric vehicle charging. The paper discusses lessons from consumer response where data are available. Comparing U.S. and European markets, the authors describe lessons that are valid across these regions, with implications for electricity grid planning, charging infrastructure deployment and customer-facing technology. The paper concludes that transparent, time-varying tariff designs and integrated infrastructure planning are key to successfully integrating electric vehicles with the grid.
The paper was prepared for the 33rd Electric Vehicle Symposium organized by the Electric Drive Transportation Association.
Hildermeier, J., & Shipley, J. (2020, June 14-17). EV tariff design can optimize grid resources and save drivers money — selected examples and lessons learned from the U.S. and Europe [Conference paper]. 33rd World Electric Vehicle Symposium and Exposition, Portland, OR, United States. https://www.raponline.org/knowledge-center/ev-tariff-design-optimize-grid-resources-save-drivers-money