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EV Infrastructure

7 Ways Utilities Can Meet Emerging EV Charging Challenges

September 26, 2024

Utilities face a unique set of challenges as EV adoption grows across North America. On one hand, the increased energy usage will skyrocket their profits. But what keeps utilities’ leadership up at night is the question, “How can our company meet the energy demands of EV charging?”

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From finding infrastructure to handle the EV charging industry’s growing energy needs to developing new technologies that can make the most of available energy resources, utilities must overcome these emerging EV charging challenges. Below are some of the ways utilities can rise to the challenge.

1. Take Advantage of Distributed Energy Resources (DERs)

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Adding solar panels, batteries, wind energy, and even EVs to a utility’s available pool of energy resources can help provide the extra energy utilities need to support increased EV charging. Dubbed distributed energy resources (DERs), these renewable energy sources can carry utilities across the finish line in the race toward a more robust grid.

But as a Siemens survey points out, many utilities lack the capacity to “measure and manage an energy distribution grid impacted by the rapid adoption of…DERs.” Incorporating DERs into the mix uprooted years of easily measurable energy flow from the grid to individual customers.

Now that their customers’ devices and EVs have entered the mix, utilities face a challenge. They needed a dependable way to gauge how much energy a utility must generate to meet demand — and how to measure the electricity that customers’ devices feed back into the grid.

So the challenge isn’t that increased EV usage will strain the grid; it’s finding a way to locate and utilize their customers’ energy-generating devices to strengthen the grid.

It’s well worth the effort to solve that challenge. The prospect of more energy available to feed the growing numbers of EVs on America’s roads should spur the kind of innovation that can provide a solution.

As the Siemens survey shows, AI could be an economical solution for managing the impact of customers’ devices on the grid. With its predictive capabilities, AI could handle the complexity of balancing customer devices’ energy production with a utility’s own energy production without breaking the bank.

However, as the survey found, many utility executives see AI as “outside our normal comfort zone.” If they can bring some AI experts on board to familiarize them with AI’s potential for managing DERs and their own energy production, they could tap the enormous potential of DERs for their EV charging station customers.

2. Pay Customers Who Opt into Energy Sharing Programs

Part of strengthening the grid with DERs is encouraging utility customers to share their excess energy with the utility itself. Nothing speaks louder than cash — either through discounts on customers’ electric bills or automatic deposits into their bank accounts.

Certainly, EV owners will play a significant role in providing extra energy to fortify the grid through vehicle-to-grid (V2G) technology. However, customers don’t have to own EVs to get in on energy-sharing programs. If customers have installed solar panels on their roofs, backup batteries in their garages, or wind turbines in their pastures, they, too, can participate in the programs.

3. Partner with EV Charging Companies to Build More Stations

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The more charging stations there are along the nation’s highways, the more likely people will choose an EV for their next car. More EV owners mean utilities’ revenue from both at-home chargers and commercial stations will significantly increase.

So, as a QMerit article advises, utility companies should invest in the infrastructure necessary to build more charging stations along their communities’ major highways. DC fast charging stations are especially crucial since drivers don’t want to wait around for hours as their cars charge.

4. Upgrade Infrastructure to Handle Increased Loads

As a Yoder Electric post advises, utilities also need to invest in infrastructure upgrades, such as newer substations, transformers, advanced metering, and even poles and wires, especially in areas with a high EV adoption rate.

Keeping an eye on local EV adoption trends can help you determine when to move toward upgrades. Network with local auto dealers to get the latest information about EV sales.

5. Reward Customers Who Charge EVs During Off-Peak Hours

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One way utilities can reduce stress on the grid from increased EV charging is by rewarding customers who charge their cars during off-peak times. With today’s metering technology, utilities can track charging times and provide discounts on users’ monthly electric bills, as a PWC article recommends.

6. Promote EV Adoption Among Residential Customers

Many of the nation’s leading utility companies have helped their customers make the switch to EVs by offering them rebates on home charging systems. Some companies, like Duke Power, provide their customers with content that helps them learn all the ins and outs of EV ownership before they purchase. From EV charging station maps to articles on the basics of EV charging, customers can experience the ease of electrification virtually, making them more comfortable choosing to buy an EV.

7. Encourage Local Companies to Electrify Their Commercial Fleets

Residential customers aren’t the only ones who can play a role in developing a robust infrastructure for EV charging. Commercial fleets are beginning to go electric, and their track record so far is stellar.

Partner with local businesses to assist them in transitioning their commercial fleets to an all-electric one. Deep South utility Entergy has led the way for other utilities to follow with its commercial EV initiative.

Entergy provides prospective commercial EV adopters with free consultations with electrification experts, fact sheets, charging station maps, process guides, and savings calculators so that companies can see the benefits of electrifying their fleets before making an investment. That’s not all. The company also helps local school districts apply for federal funding to transition their bus fleets to all-electric vehicles.

Meet with Other Utility Leaders at the EV Charging Summit

To discover even more ways your utility company can rise to the challenges of the growing EV charging industry, come learn from the electrification experts at the next EV Charging Summit event. With a whole track devoted to utilities, you’ll not only hear from the world’s best, but you’ll also be able to network with your industry peers.

Discover what the latest EV charging and utility management technologies offer, swap ideas with other utility executives, and ask our presenters all the questions you can bring to the table. Don’t wait to register. Reserve your seat at the table today!

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