As EV adoption takes off, energy utilisation has come under the spotlight.
According to McKinsey, the 2020s is expected to be the decade where electric vehicles take the global market by storm. More specifically, the new-vehicle sales rate is estimated to go from 5% to 50% in just 10 years.
We are almost halfway in the 20s’ and for the EV adoption wave to continue, the investment in smart energy management systems is considered necessary.
What is a Smart Energy Management System?
A smart energy management system is a technological framework designed to optimise energy consumption, reduce greenhouse gas emissions and in general help the grid function more efficiently.
Smart energy management systems are part of many different industries and leverage connectivity technologies (also known as Internet of Things) in order to track, measure and improve the utilisation of the produced energy.
In other words, they are able to manage energy consumption in a way that it doesn’t put the stability of the grid in danger.
The EV industry has to gain a lot from smart energy management systems, as they pave the way for a greener and cheaper approach to energy utilisation.
Learn more: What is grid balancing?
What is EV Energy Management System?
An EV energy management system can be simply described as a load balancing tool for EV charge points.
It is able to optimise the EV charging process by regulating how much energy should be directed to each charging vehicle, when the charging session should take place and at what price.
EV energy management systems rely on cloud solutions to seamlessly balance power supply and demand.
It is a dynamic process which takes into account a number of factors, such as:
- power availability
- available renewable energy resources
- energy efficiency
- energy prices on- and off peak hours
- the plugged EVs and their power demands
- local EV charging policies
Like that, charge point operators can satisfy the energy needs of their customers while staying in control of both energy usage and energy costs.
But it’s not only charge point operators who can benefit from smart energy management systems. Electricity suppliers have also a lot to gain, as they can control the demand on the grid by providing EV owners with incentives to charge their vehicles off peak demand hours.
For instance, this can be achieved by reducing the charging cost certain hours during the day or by slowing down the charging rate during peak hours.
What are the benefits of an EV Energy Management System?
An EV smart energy management system provides charge point operators, grid operators and EV drivers with a number of benefits:
Insightful data analytics
As mentioned above, EV energy management systems are cloud-based and rely on the data they collect in order to protect the grid and find a balance between supply and demand.
But that’s not all! Thanks to the stored data, they can continuously improve the entire charging circle.
For instance, they can get a better understanding of the user behaviour and predict the periods within the day where power demand will be at its peak.
Lower cost
Cost-effectiveness is one of the main benefits an EV smart energy management system has to offer.
An EV owner can easily check when it is cheaper to charge their electric car and plan their day accordingly.
At the same time, by getting EV owners educated with regards to when is the best time to charge their vehicle, it becomes easier to optimize energy consumption and reduce waste.
Greener way to charge your EV
EV smart energy management systems don’t only make EV charging cheaper but also greener.
They pave the way for a more efficient management of renewable sources of energy and are considered a great ally to the reduction of greenhouse gas emissions and the EV industry’s carbon footprint.
Improved user experience
Better user experience is another area where EV energy management systems can make a big difference.
Just by using the app connected to the energy management system, EV owners can in real time find the right charge point for them on the basis of criteria such as demand, price and geographical location.
Furthermore, the drivers get a personalised overview of their charging patters, gaining full control over the entire charging process.
All in all, EV energy management systems can provide users with a more reliable and stable charging experience.
Better battery life expectancy
Battery performance and utilisation is also something EV smart energy management systems can help with.
Based on the data collected from each charging session, EV drivers can continuously monitor the state of health of their batteries and get valuable insights into the condition of their vehicle’s battery.
This consistent monitoring of the battery’s health can play a decisive role in extending the life expectancy of the battery reducing the negative impact of your electric vehicle on the planet.
What are the biggest challenges to EV adoption?
To understand better the importance of EV smart energy management systems for the EV industry, it is necessary to take a closer look at the biggest challenges that EV adoption is currently battling against:
Lack of charging infrastructure
Possibly the biggest challenge the EV industry has to face at the moment is the lack of enough charge points to accommodate the needs of EV owners.
This problem might not be so big in developed cities, but it is a real issue for smaller towns or rural areas.
Moreover, the absence of charging infrastructure makes it more challenging to use your electric vehicle for longer trips.
EV drivers aren’t sure if they will be able to find any charge points to recharge their vehicle, while they travel to their destination (a.k.a. range anxiety).
Power grid overload
Grid overload is the second big challenge against EV adoption.
The continuous increase of electric cars adds great pressure on the power grid, especially during peak demand hours.
This steadily increasing pressure on the grid may eventually lead to power outages and harm the power system reliability.
Shortage of vital minerals
Minerals such as lithium, cobalt, nickel and manganese are critical for the production of EV batteries.
However, as more and more electric vehicles are being produced, a shortage of these vital minerals could become a possibilty.
The repercussions of such a shortage would be significant for the entire supply chain of the EV industry.
More importantly, the production cost of electric vehicles would drastically increase making EVs less accessible to the wide population.
How smart energy management can accelerate EV adoption
An EV smart management energy system can be a valuable ally to EV adoption, as it can protect the energy grid from getting overloaded and in general make it more robust.
Simply put, smart management energy systems can bring balance between power supply and power demand ensuring the stability of the grid.
That is vital for energy providers. Like that, they will be able to both use their power infrastructure as efficiently as possible and protect their customers from upsetting power outages.
At the same time, workplaces who have invested in charge points for their employees and their fleets can reduce the cost peak-hour charging by always keeping their energy usage at a stable level.
As far as EV drivers are concerned, EV smart energy management systems make the whole process of owning an electric car much simpler, greener and, of course, cheaper.
Not only that but EV charging can cost even less for electric vehicle drivers and charge point owners if they take advantage of Vehicle-to-Grid technology and return some of their stored energy back to the power grid when they are not in use.
Read also: Help support grid stability and earn charging credits with Monta PowerBank
FAQs
What are the applications of smart energy?
Smart energy usage can take many different forms. Some great examples are home energy management, EV charging, business logistics and factory automation.
In all four use cases, the secret is the seamless connection between the different devices and the power grid.
This cloud-based link makes power demand monitoring as well as the transmission and distribution of the stored energy much faster, cheaper and environmentally friendly.
In a world where energy needs are in a constant rise such systems are valuable.
What are the main considerations when implementing an EV smart energy management system?
Before implementing an EV smart energy management system, there are a number of factors you need to take into account:
- The current state of the grid: You should have a good understanding of the current demand and supply needs as well as the main challenges the charging infrastructure is currently battling against.
- Interoperability and integration options: You can’t create a cloud-based charging ecosystem without using the right tools at the right places. That being said, you should invest in a system which can easily connect to the grid and integrate with all charging technologies around it.
- Compatibility between software and hardware: Both software and hardware are equally important for the successful implementation of an EV smart energy management system. You want to make sure that you choose hardware which is compatible with the technical requirements of your software.
- Scalability options: Given the continuous development of the EV industry, it is important that you invest in a system which is scalable and allows you to consistently follow the growing needs of the EV market.
- Cybersecurity: Cyber risk management is a crucial aspect of the implementation process. You need a robust security system which can protect the data of your customers, ensure the stability of the charging process and notify you quickly in case of a security breach.
How can renewable energy sources assist EV smart energy management systems?
When it comes to renewable energy usage, the EV industry relies mainly on energy generated by solar panels and windmills.
Smart energy management systems can help charge point operators and owners to make use of the stored renewable energy during peak demand hours in a green and cost-effective manner.