As electric vehicles (EVs) continue to gain momentum across North America, the fuel retail sector is experiencing a dramatic shift. The once-familiar world of petrol and diesel is being replaced by the burgeoning demand for EV charging infrastructure. While this shift presents an incredible opportunity for fuel retailers, it also introduces new challenges – chiefly, the need for effective energy management. As the transportation sector evolves, energy management is rapidly becoming as critical as fuel logistics once were.
The Need for Strategic Energy Management
The transition from fossil fuel vehicles to electric mobility brings with it an increase in energy demand. The International Energy Agency (IEA) predicts a 20% rise in global vehicle mileage by 2035 [1]. However, due to the efficiency of electric vehicles, transport energy consumption is expected to rise by only 10% [1]. While this shows a positive shift towards energy-efficient mobility, it also highlights the urgency of adapting to the increasing demand for electricity, particularly for EV charging.
Energy consumption related to EV charging is expected to skyrocket, with charging projected to represent 14% of electricity usage in the United States by 2035, up from 0.6% in 2023 [1, 2]. This rise in demand will place significant strain on existing energy infrastructure and presents multiple challenges for fuel retailers. These challenges include grid limitations, price volatility, demand charges, and operational downtime. Without a strategic energy management plan in place, fuel retailers could face profitability risks and operational disruptions.
Mitigating Risks Through Smart Energy Management
A comprehensive energy management strategy can help fuel retailers mitigate these risks and enhance operational efficiency. Key components of a smart energy management ecosystem include Charge Point Management Systems (CPMS), Smart Energy Management Systems (SEMS), and Battery Energy Storage Systems (BESS).
- Charge Point Management Systems (CPMS): CPMS optimize power distribution across multiple chargers, ensuring energy usage remains within the site’s capacity. These systems prevent overloads while allowing for seamless charging services for customers.
- Smart Energy Management Systems (SEMS): SEMS dynamically allocate energy to prioritize essential operations, such as HVAC systems and refrigeration, without compromising the charging process. This ensures a smooth and uninterrupted service for customers while preventing energy inefficiencies.
- Battery Energy Storage Systems (BESS): These systems store excess energy during off-peak hours when energy prices are low and release it during peak hours when prices are high. BESS can also serve as a backup during power surges or grid instability, ensuring that charging services remain operational even during electricity disruptions.
Unlocking the Potential of Battery Energy Storage Systems
One of the most promising technologies in the realm of smart energy management is Battery Energy Storage Systems (BESS). As energy prices fluctuate, fuel retailers can use BESS to reduce operational costs, particularly during peak electricity demand. By storing excess energy generated during off-peak periods, fuel retailers can use stored power when energy prices rise, optimizing cost efficiency. Additionally, BESS can offer additional revenue streams by selling surplus energy back to the grid.
Battery storage also provides a strategic advantage in meeting sustainability goals. By relying on renewable energy sources and reducing dependence on fossil fuels, retailers can contribute to a greener environment, which aligns with growing consumer and regulatory expectations.
Building a Grid-Buffered Ecosystem for the Future
A grid-buffered ecosystem integrates these smart technologies to create a sustainable and reliable energy infrastructure. Fuel retailers can use on-site storage to absorb excess demand and intelligently distribute power, ensuring that customers have access to fast, reliable charging services. This ecosystem not only mitigates costs but also prepares fuel retailers for the increasing demand for EV charging.
Investing in a smart energy management system will enable fuel retailers to stay competitive in an evolving market. As energy prices continue to rise and the demand for electric vehicles grows, fuel retailers can future-proof their operations by adopting these intelligent solutions. With strategic investments in energy management technologies like CPMS, SEMS, and BESS, businesses can unlock new revenue streams, reduce operational costs, and offer a seamless charging experience to customers.
The Road Ahead for Fuel Retailers
The future of fuel retail lies in embracing smart energy management solutions. As electric vehicles become a standard mode of transport, fuel retailers must adapt their operations to accommodate this transition. By investing in a robust energy management system, retailers can ensure that they stay ahead of the curve, reduce costs, and contribute to a more sustainable future.
Partnering with experts in smart energy management is a critical step in achieving long-term profitability and operational success in the evolving EV charging landscape.
REFERENCES:
[1] https://www.iea.org/reports/global-ev-outlook-2024/outlook-for-battery-and-energy-demand
[2] https://www.cer-rec.gc.ca/en/data-analysis/canada-energy-future/2021/access-explore/figures.xlsx