Even before electric vehicles hit the road, grid planners, automakers, technology companies, and policymakers were asking, “How can we minimize the grid impacts  and provide value to customers?”

Since then, managed charging has been piloted across different jurisdictions, exploring different behavioral and control approaches and utilizing various technologies. Meanwhile, long-range electric vehicles now cost the same as the average new car. Studies on the impact of unmanaged electric vehicle charging show it could lead to billions in infrastructure investments. But until recently, most efforts were either demonstration projects or pilots seeking to understand technology and its impacts.

SEPA’s State of Managed Charging in 2024

Managed charging is taking shape and poised to scale. In Smart Electric Power Alliance’s (SEPA) most recent edition of State of Managed Charging in 2024, Brittany Blair and Garrett Fitzgerald have taken stock of where things are now and where things are going. The report shows that utilities, automakers, charging companies, and software providers such as WeaveGrid are working together to manage the increasing number of electric vehicles added to the grid.

Five Key Takeaways

• Leading utilities are seeking scale. Successful and cost-effective pilots are capturing a wide range of benefits, making EV charging more affordable. Commissions are approving and utilities are implementing managed charging programs targeting tens of thousands of participants. For instance, the Colorado PUC approved Xcel Energy targeting 40,000 customers by the end of 2026, and the Maryland PSC approved BGE’s proposal to expand its SCM program, targeting 30,000 participants by 2027. These efforts build on ambitious pilots as the utilities are now launching programs at scale. 

• Moving from passive to active managed charging approaches. The approaches for utilities have been evolving as program designs have been shifting from behavioral approaches to more active, dynamic managed charging and multi-layered optimization. The focus now is on meeting individual drivers’ needs while shifting charging, in aggregate, to times with the lowest costs and the most operational value. 

• Increased focus on distribution benefits. Experts have continually pointed out that integrating EVs onto the distribution system is a bigger challenge than the bulk power system. Yet, many of the first pilots focused on avoiding charging during system peak times. The SEPA report points out that this shouldn’t be an “either/or” in program design but a “both/and,” and software players, like WeaveGrid, enable utilities to capture both distribution and bulk power avoided costs. 

• Telematics are not created equal. Utilities successfully deployed telematics, networked EVSE, and AMI as part of programs. In the context of utility programs, telematics needs more distinction between formal and informal integrations. Formal integrations with automakers provide reliable vehicle connections, high-quality data, and compliance with the highest cybersecurity requirements. With these integrations, it is more possible to enable EVs to become high-value grid assets. 

• New initiatives for driver growth, including OEM partner marketing. Utilities are continuing to refine their strategies to achieve high levels of participation in customer programs. For managed charging, we are seeing many utilities leveraging their channels effectively to support enrollments and leading utilities are leveraging partners, including automakers and charging companies. In a case study featuring Toyota, 20% of eligible customers chose to participate in their Clean Assist program which allows drivers to match their vehicles’ charging with renewable energy, through the Toyota and Lexus smartphone apps. This program, which does not include any direct financial incentive to customers, highlights how leveraging partner channels, simple enrollments, and a clear value proposition can drive higher levels of participation. 

So Why Does This Matter?

It’s an exciting time for EVs, with forecasts continuing to project growth that will lead to significant reductions in emissions from the transportation sector while increasing load on utility grids. Managed charging in 2024 is well-positioned to ensure this transition can be done reliably and affordably. 

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Blog post contributed by WeaveGrid's VP of Market Development, Mathias Bell. You can download the full report here.