The transition to electric mobility is reshaping the fuel retail landscape, offering both opportunities and challenges. As electric vehicle (EV) adoption accelerates across Europe, fuel retailers must adapt to a new reality – one where energy management becomes as critical as fuel logistics once were. The shift introduces a dynamic, power-intensive process that requires strategic oversight to remain profitable and competitive.
The Growing Importance of Energy Management
With EVs set to revolutionise transportation, the International Energy Agency (IEA) projects a 20% rise in global vehicle mileage by 2035. Yet, despite this surge, transport energy consumption is only expected to grow by 10% [1], highlighting the energy efficiency of EVs. However, the source of energy will evolve over time. By 2035, it is anticipated that charging will represent 6% of electricity consumption in Canada and 14% in the United States, a significant increase from just 0.6% in both countries in 2023 [1, 2].
Fuel retailers face several key risks if energy management is not handled effectively:
- Inadequate Power Supply: Many forecourts lack the necessary grid capacity to support multiple high-speed chargers. Grid upgrades can be costly and time-consuming, with uncertainty surrounding approvals and completion timelines.
- Price Volatility: Electricity prices fluctuate based on demand, weather conditions, and reliance on fossil fuels during peak periods. Nordic countries, despite having the cheapest energy rates, experience significant price volatility due to high renewable integration.
- Demand Charges: Utility providers impose hefty fees for exceeding agreed-upon usage limits, potentially making EV charging cost-prohibitive.
- Operational Downtime: Power surges or grid instability can lead to service disruptions, negatively impacting the customer experience and revenue streams.
How Smart Energy Management Transforms Operations
Implementing a smart energy management ecosystem is essential to addressing these challenges. A well-structured system incorporates charge point management software, on-site battery storage, and predictive analytics to optimise power distribution and minimise costs.
Key components of a smart energy ecosystem include:
- Charge Point Management Systems (CPMS): These ensure efficient load balancing across multiple chargers, maximising power distribution while staying within site capacity limits.
- Smart Energy Management Systems (SEMS): These solutions dynamically adjust energy allocation, prioritising charging needs without disrupting essential site operations like Heating, ventilation, and air conditioning (HVAC) and refrigeration systems.
- Battery Energy Storage Systems (BESS): By storing excess energy during off-peak hours, BESS provides a buffer against price spikes and grid instability, enabling more predictable operational costs.
Unlocking ROI with Battery Storage
Battery Energy Storage Systems offer a strategic advantage for fuel retailers looking to enhance profitability. Benefits include:
- Load Shifting: Supplement the grid during peak demand periods.
- Dynamic Cost Optimization: Storing low-cost electricity for use when prices are high.
- Grid Services Participation: Selling surplus energy back to the grid, creating additional revenue streams.
- Carbon Reduction: Maximising the use of renewable energy and lowering emissions.
With investment costs in battery technology dropping by 84% over the past decade, now is the time for fuel retailers to invest in a comprehensive energy management strategy.
Implementing a Grid-Buffered Ecosystem
A grid-buffered EV charging ecosystem leverages battery storage to absorb peak power demands and distribute energy intelligently. This approach not only minimises energy costs but also future-proofs fuel retailers against growing demand and evolving energy market dynamics.
By investing in smart energy management, fuel retailers can position themselves as leaders in the EV charging space, ensuring profitability while supporting the transition to sustainable transportation.
Smart energy management is no longer an option but a necessity for fuel retailers embracing EV charging. By leveraging intelligent solutions, businesses can mitigate costs, optimise operations, and deliver a seamless charging experience to customers. Partnering with an experienced provider like Konect ensures a turnkey approach to EV charging success, helping retailers navigate the complexities of the energy transition.