Removing demand charge utility tariffs for EV charging will raise CO2 emissions

Demand charges based on the peak power capacity demand of a customer exist because public utilities need to recover their costs for building out and maintaining the system capacity of the grid for all customers. [...]the customers taking up a majority of that capacity need to carry some of the costs...

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Bibliographic Details
Published inUtility Dive
Main Author Spurr, Michael
Format Trade Publication Article
LanguageEnglish
Published Washington Industry Dive 21.02.2024
Subjects
Carbon dioxide emissions
Costs
Customers
Demand
Electric vehicle charging
Emissions
Energy
Industrial plant emissions
Infrastructure
Power plants
Public utilities
Utilities
United States > US
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Summary:Demand charges based on the peak power capacity demand of a customer exist because public utilities need to recover their costs for building out and maintaining the system capacity of the grid for all customers. [...]the customers taking up a majority of that capacity need to carry some of the costs associated with the power upgrade. [...]demand charges for the sharp power demand outweigh the energy charges at low utilization levels in the early stages of operation leading to higher average kWh costs for charging facility operators initially. [...]utilities are having to respond and build out additional peak capacity in the grid. Since the key feature of peaker plants is the ability to rapidly turn on and off to meet real-time demand, they are inefficient and costly.