Many industries are currently transitioning away from fossil fuels in favour of cleaner variants to support the UK in achieving its net zero targets. But with many new technologies requiring electrification, there is an increasing need to introduce innovative flexible measures to balance the grid.
Innovation in this space can be witnessed via a scheme many readers of Current± will be aware of – the demand flexibility service (DFS) which ran throughout the winter period of 2022/23. Its success has seen many calls for the scheme to become an integral part of the GB energy system.
However, other technologies and initiatives can also quietly shift peak demand away from energy intensive periods of the day. One of these which we will be exploring in this article, is the use of night tariffs – or more broadly – off-peak tariffs for electric vehicles (EVs).
Alex Thwaites, director of EVs and renewables at OVO Energy highlighted the potential of these tariffs and told Current± that not only can these tariffs shift demand away from peak periods but can also grant customers access to greener electricity.
“Having dedicated EV tariffs that incentivise consumers to use power outside of the core peak demand period (typically 4pm-7pm) supports the grid by lowering demand in those peak periods, and customers get rewarded for that with lower unit rates,” says Thwaites.
“OVO’s Charge Anytime uses Kaluza’s clever tech to ensure that EV’s avoid charging in these peak periods and find the greenest times to pull power from the grid. It’s a win-win.
“Enhancing flexibility in this way allows more green energy onto the grid, such as wind and solar generated electricity. This delivers significant benefits to both people and the planet.”
Thwaites went on to discuss several reasons how these tariffs can help reduce carbon emissions and provide multiple benefits for customers too. These include:
- Helping to decarbonise the grid, smart tariffs can take us closer to net zero carbon emissions in the UK by the government’s 2035 target.
- Consistent use of power outside of peak times enables customers to save significantly on their energy costs.
- Reducing strain on the grid decreases the chance of blackouts during winter when demand is highest.
- Flexible EV tariffs incentivise the switch to EVs – essential as we wean the UK off of fossil fuels.
Octopus Energy also agrees with Thwaites’ analysis of off-peak tariffs. The organisation currently has two EV specific tariffs on offer – Octopus Go and Intelligent Octopus, both of which require at-home chargers.
Current± reached out to Octopus Energy to gather its thoughts on the use of smart EV charging tariffs. A spokesperson responded saying: “We’re massive fans of smart tariffs and have been leading the market for several years. EV tariffs powered by renewable energy play a key role in the transition to cleaner, cheaper driving, as well as a better-balanced grid, so we will continue to do all we can to accelerate their rollout.”
Indeed, off-peak and smart EV tariffs can provide a host of benefits and its potential as a flexibility option has been well documented on Current±. But by also engaging customers with a means to access green, clean energy for use in vehicles and thus in turn reduce the cost of charging, the use of tariffs could have a major impact on the adoption rate of EVs.
This has seen a surge in popularity for tariffs in general. Speaking at Innovation Zero, a trade show dedicated to spearheading the net zero discussion in the UK, Shayne Rees, head of marketing at char.gy indicates that the approval ratings of off-peak tariffs are also high amongst customers.
When the organisation asked customers what they thought about day/night prices and tariffs in general, 57% liked it whereas 28% did not. This is a promising stat and indicates the positive engagement that has been secured with customers.
There is however an alternative flexible technology that can be used to support the energy system. This is a topic well covered on our site but is worth mentioning – vehicle-to-grid (V2G) technology. It was also a technology that OVO was keen to highlight.
“Since 2020, OVO has been working on flexibility trials which, when scaled, have the potential to revolutionise both the energy system and home energy consumption patterns – a huge step closer to making gas-free living a reality,” says Thwaites.
“OVO is currently trialling vehicle-to-everything (V2X) smart charging technology. This will allow customers to power their homes with their car and sell surplus energy back to the grid, decreasing reliance on fossil fuels and reducing energy costs.
“The announcement follows OVO’s hugely successful domestic vehicle-to-grid (V2G) trial, the largest of its kind in the world, which enabled drivers to earn around £420 a year by selling their EVs energy back to the grid, with some earning up to £800.
“OVO data shows that V2G technology helped avoid blackouts last winter. The possibility which this innovation holds is invaluable as we transition to the green energy system of the future, saving carbon and costs for everybody.”
