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Why aren’t some demand response programs successful?
According to Maria, customer enrollment and engagement are the biggest barriers to a successful demand response program.
Studies show that although regulators expect 80% of eligible customers to enroll in a managed EV charging program, only 20 to 30% actually do. Comfort plays a big role here. EV drivers are not comfortable participating in a program that isn’t transparent about data collection and management and the overall impact managed charging would have on their vehicles or day-to-day habits.
“Some traditional methods have complex enrollment [processes] — like needing WiFi for electric vehicle supply equipment (EVSE) where you can suddenly lose connection to the device,” Maria says, touting the benefits of EV telematics in overcoming hardware-related pitfalls.
“The thing I would note about Smartcar that really should be the guidance for how we implement [managed charging] programs is it’s a matter of a few clicks to connect the device, it’s fully transparent to the customer, but doesn’t require the customer to jump from application to application to confirm enrollment,” she adds.
A report by SEPA concludes that customers are unlikely to drop out of a managed charging program once they find a program that gives them that optimum level of value and comfort. With an easier enrollment process and EV telematics providing more robust data than EVSEs, Bidgely has seen higher enrollment rates, fewer drop-offs, and, most importantly, high continuation rates for existing participants.
Why are utilities looking toward EV telematics in utility programs?
EV telematics enables energy providers to collect EV charging data, monitor real-time charging patterns, and power advanced algorithms used to balance energy supply and demand. data collection, real-time monitoring, and advanced analytics. By connecting EVs to cloud-based systems, utilities can receive a seamless flow of information at scale about charging habits and energy usage from all vehicles within a service territory. This software-based approach allows partners like Bidgely to work with utilities on automating demand response at the right time instead of relying on customer action.
Other key benefits of EV telematics include:
- Real-time decision-making: Utilities can use real-time data on energy consumption and carbon emissions to make the right decisions on power distribution, renewable energy usage, and cost calculations.
- Comprehensive integrations with other household devices: EV telematics helps utilities integrate EVs with other smart energy-saving devices within a single customer-facing application or portal.
- Attractive incentives for drivers: Utilities and technology partners (like DERMS software or virtual power plants) can use EV telematics to help drivers reduce charging costs, generate income from demand response programs, and gain visibility into battery health with detailed insights.
How EV telematics data is collected
Data for EV telematics can be gathered in two ways:
- EVSE: Data collected via charging stations and related infrastructure provides insights into charging patterns, energy usage, and station-specific performance.
- Direct integrations with EVs: Data collected from EVs allow for more granular insights into a driver’s charging behavior, such as the battery state of charge and location.
Utilities are becoming more inclined to use EV telematics in their demand response programs because:
- EV chargers cannot give utilities a vehicle’s state of charge, which is essential data to power demand response programs.
- EV chargers that support direct communication between EVs and electric grids require higher upfront installation costs and electrical work, which not all EV households have the interest or capacity to do.
Interoperability is the new clean energy standard
Proactive managed charging is largely a ‘set it and forget it’ play. But this approach requires utilities to understand their customers better. For example, a driver’s familiarity with EVs, charging habits, average travel mileage, and household energy consumption will influence the value they want to receive from their vehicle and their demand response program.
But with EVSE charging hardware, utilities can’t see if customers are charging their cars elsewhere or what their battery level is — which makes it hard to optimize programs for these value drivers.
Utilities need access to EV telematics data across as many EV brands as possible to get that level of visibility and impact. But it’s unrealistic for energy providers to reach carbonization goals while engaging in the slow and resource-intensive process of managing over 30 individual partnerships with automakers.
Overcoming this challenge calls for automakers to open up their data to third-party developers who can accelerate the clean energy transition with user-centric programs and solutions.
It's in the best interest of the broader [energy] space as a whole to go in that direction and to support the policies that [enable] ownership or customer availability of [EV] data.
— Maria Kretzing, GM of Electric Vehicles and Analytics at Bidgely
Bidgely believes that automakers, utilities, and clean energy vendors must encourage interoperability between different devices and brands to solve the huge problem of grid modernization, resilience, and decarbonization.
Access to standardized EV data helps customers visualize their electric vehicle as both a transportation and energy asset. Automakers can build excitement for electric vehicles by enabling drivers to apply for suitable energy preferences that reduce energy costs and transmissions.
On the other hand, utilities can increase participation in managed charging programs, shift load demand from peak hours, and save billions of dollars in infrastructure upgrades.
The challenges posed by EV telematics
If interoperability is the new standard, how can utilities ensure that they have the right mechanisms in place to keep customer data safe and secure?
With all forms of data collection, robust data security measures are essential to prevent unauthorized access or misuse. This topic was a key focus point in our discussion with Bidgely. EV telematics programs collect data on charging patterns, including the amount, timing, and location of charging sessions, to power more accurate consumer forecasts and incentives. To keep consumer trust in check, the implementation of EV telematics goes hand-in-hand with strict protocols for encryption, consent management, and compliance with regulatory frameworks at a local level.
As we've mentioned, one of the biggest roadblocks in scaling telematics solutions is the lack of standardized communication protocols among different EV manufacturers. Each automaker often employs proprietary systems, creating silos that hinder seamless data exchange and integration. Better interoperability would reduce barriers for utilities and automakers to collaborate effectively with technology partners, enabling all parties in the energy ecosystem to deploy complete solutions that meet all security standards.
The good news is that the energy industry is making strides to address this issue through initiatives like ISO 15118, which aims to establish standardized communication protocols for EVs and charging stations. The introduction of API solutions like Smartcar into the ecosystem adds another layer of security to EV integrations, unlocking deep expertise in API tokens management, OAuth 2.0 compliance, and consent management across a majority of EVs in the market.
EV telematics security best practices for utilities
Maria recommends utility IT teams get a walkthrough of how vendors like Bidgely collect data from customers to power managed EV charging programs, including how they work with vendors like Smartcar to access accurate live data.
Utilities can also access SOC 2 certifications, penetration testing reports, and GDPR compliance documentation ahead of time.
API interoperability and security is an emerging concept in the automotive world despite it being well adapted and executed by financial institutions, social media platforms, and more. A lack of clarity surrounding vehicle API safety is apparent, and often leads to misconceptions.
“What [Smartcar] offering is not just a firehose where you can pick any car and get anyone's charging status or control their charging, but rather that it's user consent opt in explicitly through OAuth2.0 that the vehicle owner has to choose what application or utility they're connecting their car to and see what specific permissions they'll be sharing,” says Sahas.
Bidgely has seen more success when it gives customers the ability to opt in to managed charging programs by assessing its data sharing requirements and giving utilities permission to retrieve those particular data points.
We've been able to achieve a lot in terms of giving customers full control and full choice so that they can decide how when they participate in demand response events.
— Maria Kretzing, GM of Electric Vehicles and Analytics at Bidgely
Get an EV telematics vendor assessment checklist
Smartcar works with partners like Bidgely to help utilities evaluate EV telematics security and compatibility for managed charging programs. We help utilities answer questions like…
“Will this connected car platform equip your EV program with enterprise-grade security compliance that meets industry standards?”
“How does your connected car API platform monitor integration performance and communicate with you about technical inconsistencies?”
“What qualifications does your connected car API platform have for issuing and managing commands with electric and connected vehicles?”
If you’re a utility evaluating Smartcar as a vendor for your DERMS and VPP partners, download this guide see how Smartcar stacks up.
