Developing Virtual Power Plant Applications for Managed EV Charging Platforms

EV market share is rapidly growing, in personal and in commercial and industrial fleets. Coupled with renewables in other sectors, increasing EV deployment has put a strain on electricity grids, which will likely continue as the market grows. In response, utilities and grid operators are working with EV and charging OEMs to use EVs in virtual power plants (VPPs), as a grid resource instead of a grid strain. VPPs can help EV owners save money, and in some cases, profit from their distributed energy resource (DER). In a period of market evolution, companies are forming partnerships and pilots throughout the VPP and EV industry to develop this new business model.

EVs will be an important aspect of the DER available—wholesale, retail, and behind the meter. They must be effectively integrated with other clean power alternatives to prove an effective resource, which a VPP can do. VPP software, at a basic level, can provide data for utility knowledge about households that have an EV and their charging patterns. Utilities can use this knowledge to bill at different rates and provide incentives based on time of use. They can also provide managed charging services.

This Guidehouse Insights study provides background on what has happened in the VPP market thus far, how these events affect industry players, and what actions they can take to prepare for the transition.