Electric vehicle (EV) uptake is set to surge, and to enable this we must either reinforce the network or will need customers to be flexible around when they charge their cars. Indicatively, without flexible arrangements, we expect to see peak demand growing approximately up to 10% at secondary substations by the end of RIIO-ED1 and up to 30% by the end of the 2030s. This is based on the load impact analysis done at Recharge the Future project at primary substation level, which was then translated into secondary substation level. The majority of this growth will be driven by the uptake of EVs connecting to the LV network. This is an unprecedented pace of growth that will require a step-change in the way we manage the LV network. In the absence of smart solutions, this growth in demand will trigger the need for reinforcement on the network which will be paid by network customers.
UK Power Networks is strategically looking at procuring flexibility as alternative to traditional reinforcement and is adopting a ‘flexibility first’ approach to delivering additional network capacity, which will lead to lower costs and increased renewable energy on the network through more competition. In this context, UK Power Networks has a key role in stimulating the market for flexible services and helping to reduce customers’ bills.
Specifically, smart charging of EVs has the potential to unlock flexibility at LV level, therefore deferring a proportion of the required reinforcement associated with the uptake of EVs. UK Power Networks’ project Smart Charging Architecture Roadmap (SmartCAR) has developed feasible designs for market-led smart charging. However, this has not yet been demonstrated in practice, therefore it is now the time to engage with the market and mobilise trials to explore how these designs will work in reality, and to deploy the smart solutions required on network level to enable smart charging.
Objectives
This project aims to:
1. Stimulate the development of market-led smart charging solutions, working with market participants to develop, enable and trial attractive customer propositions
2. Develop and test processes, systems components and commercial arrangements to enable these propositions
3. Understand customer response to the designed propositions and network impacts in a controlled environment
4. Develop a scalable solution that can be expanded to a larger volume of customers and drive benefit ahead of regulatory reforms, and
5. Inform Ofgem’s longer-term access and network charging reform.
Learnings
Outcomes
Building on the outcomes captured in the previous NIA progress reports, Shift has:
- Achieved a world-first for DNO procurement of flexibility services on the LV network and first DNO in the UK to procure flexibility from an EV service provider, through adopting LV flexibility product designed for Shift into our business as usual flexibility tenders (April 2020).
- Stimulated the smart charging market, as demonstrated through procuring 248MW of flexibility in March 2021 tender, and continue to grow this market through ongoing tenders via Piclo Flex.
- Demonstrated the viability of market-led smart charging propositions to shift demand away from peak times. EV demand during the evening peak reduced by an average of 79% due to smart charging.
- Highlighted that both the commercial incentive and the design of the customer proposition impact customer behaviour, and that the end customer may not be exposed to the price signal set by the network, which will need to be considered in future reforms.
- Completed a Cost Benefit Analysis for DSO services using V2G and smart charging
- Gathered customer insights, both before the trial via independent customer research which engaged more than 800 motorists, and during the trial with trial customers. This provided insight into customer’s attitude towards smart charging, fundamental requirements for customer acceptance and drove understanding of customer behaviour.
Lessons Learnt
To share the learnings from Project Shift, we published the Shift Interim Report, Shift Summary Report and Shift Technical Report. The following key learnings have been identified from the trial:
Customer acceptance
· Customers were open to smart charging, so long as their mobility requirements were met
· Just 20% of the time spent plugged in at home is needed to meet customers charging needs
Reliability of response
· Ongoing financial incentives increased the reliability of response compared to one off incentives, which can be used to minimize boosting levels observed in the trial
· The median daily reduction in EV demand between 6-9 pm was 82% with ongoing incentives, compared to 65% without
Shift in demand
· Due to smart charging, EV demand during the evening peak reduced by an average of 79%, and household demand (using PC1) was reduced during the evening peak by an average of 44%
· Customers chose to smart charge for 85% of all charging sessions. An option to override the smart charging (boosting) was present in some trial designs, important for customer acceptance. The majority of customers rarely or never use the boost function, and findings suggest that further inducements in the customer propositions could reduce the boosting levels observed in the trial.
Network capacity
· By achieving a significant reduction in the evening peak, a peak in demand forms overnight. Secondary peaks should not be used as a reason not to smart charge as new products, increased network visibility and development of market mechanisms could be deployed over time to prevent these in the majority of locations
· The underlying profile of the customer (Profile Class 1 (PC1) or Profile Class 2 (PC2)) has a large impact of the demand profile and therefore requires different EV charging signals to smooth out demand
Customer propositions
· Automated smart charging propositions can leverage optimisation to respond to changes in market mechanisms, reducing the need to incentivise changes in customer behaviour as network conditions and price signals evolve
· Product development paired with collaborative innovation will continue to deliver more flexibility
· Both the commercial incentive and the design of the customer proposition impact customer behaviour
Market mechanisms
· Flexibility procurement can create opportunities for domestic consumers to avoid location specific constraints while wider reforms take place
Greater visibility of the low voltage network is required to enable more sophisticated mechanisms in future that more efficiently address local network constraints
