Energy storage and EV charging are becoming a natural pairing

The 2022 electric vehicle supply equipment (EVSE) and energy storage report from IHS Markit provides a comprehensive overview of the emerging synergies between energy storage and electric vehicle (EV) charging infrastructure and how these differ by region and charger type. Key findings from the report:

• The use of energy storage at EV chargers remains a nascent market with notable growth potential.
• Energy storage will play a growing role for EV chargers where demand charges are high, limited interconnection locations exist, and where EV charging can be a revenue source for batteries primarily participating in other market services.
• Opportunities for storage exist where the infrastructure is deployed out of step with EV uptake. Revenues earned by energy storage through grid services can support the system until EV demand increases. Conversely, if demand charges are increased or if increased infrastructure needs exceed installed power capacity, batteries can be retrofitted to accommodate those needs.
• Business models being developed include demand charge mitigation and energy arbitrage, leasing grid connections to third-party charge point operators, and participating in virtual power plants.
• High grid costs will be the strongest driver for storage at EV chargers, but energy storage can bring many benefits, leading to a high diversity of drivers for each location and charger type.
• System integration and operation will be a key challenge in maximizing revenue from this opportunity as unified product offerings gain market share. Maximizing the revenue from grid services will require smart technology to optimize the function of the energy storage system while ensuring charger availability.

Figure 1: Energy storage and EV charging market drivers and challenges

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Posted 20 July 2022 by Sam Wilkinson, Director, Clean Technology and Renewables, S&P Global Commodity Insights

This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.