SMC Economy

Cost-effectiveness of Supplier-managed Charging programs.

Background

Grid integration of light-duty battery electric vehicles (BEVs) presents significant opportunities for peak load management through demand response and managed charging strategies. Previous research has extensively documented the technical potential of supplier-managed charging (SMC) capabilities, but has largely overlooked the practical barriers of enrollment costs and participation rates, creating potentially unrealistic expectations of grid benefits.

Motivation

1. Enrollment in managed charging programs involves significant costs (hardware installation, software integration, customer acquisition, program management) that impact overall cost-effectiveness.
2. Participation rates are unlikely to reach 100% due to customer awareness, willingness, vehicle compatibility, and technical limitations.
3. Peak shaving benefits must be accurately compared against program implementation costs for realistic assessment of grid support strategies.

Expected Outcomes

1. A comprehensive framework for evaluating the true cost-effectiveness of BEV grid support programs considering enrollment costs and participation rates.
2. Quantitative assessment of peak load reduction potential under various enrollment cost and participation rate scenarios.
3. Policy recommendations for designing more cost-effective and realistic BEV grid support programs that acknowledge implementation barriers.