Introduction Electric utility demand charges can significantly impact the business model of electric vehicle (EV) charging stations, especially those employing direct-current fast charger (DCFC) technology. Demand charges are fees based on the highest level of electricity demand during a specified billing period and are designed to recover costs related to peak power demand.
Key Challenges Public-access DCFC stations often have high peak demands relative to their total energy consumption, leading to high operating costs and making it difficult for charging station hosts to operate profitably.
Mitigation Strategies Utilities, solution providers, and charging station hosts are exploring various strategies to mitigate these costs. These include:
Stakeholder Impacts The study evaluates the potential effects of different mitigation strategies on various stakeholders:
Table ES-1: Qualitative Summary of Net Cost or Benefit of Each Mitigation Strategy by Stakeholder Group
Mitigation Strategy | Electric Utilities | Station Operators | EV Drivers |
---|---|---|---|
Eliminate Demand Charges | - | + | + |
Cap Energy Costs | - | + | o |
Co-locate BESS | o | + | o |
Manage Charging | o | o | - |
Conclusion Different strategies impact stakeholders differently. While no single strategy is universally preferred, the study aims to provide insights into the potential benefits and costs to various stakeholders as the EV market evolves.