Discover how Galp's pilot validated smart EV charging with a dynamic tariff, offering tangible savings and enhanced convenience for customers driving electric.
Galp, a stalwart of the Portuguese energy sector for over 150 years, has firmly established itself as a frontrunner in the nation's electric mobility transition. As Portugal's premier charge point operator, managing over 5,000 charging stations and facilitating approximately 1.4 million EV charging sessions annually, Galp recognizes the transformative power of vehicle electrification.
With projections indicating that over 90% of new cars will have Internet connectivity by 2030, Galp partnered with ev.energy to explore the potential of smart charging. This case study delves into the objectives, methodology, and impactful results of their pilot program, demonstrating the substantial value EV load shifting can bring to energy retailers across Europe.
The EV Driver Opportunity for Energy Retailers
The burgeoning adoption of electric vehicles presents a wealth of opportunities for forward-thinking energy retailers. As highlighted in the Building a Retail Business Case for Smart Charging in Europe webinar, four key EV value streams stand out:
- Energy Trading: Expanding the lifeblood of energy retail, seamlessly integrating EV load into energy markets.
- Grid Services: Providing essential support for system and network balancing, unlocking new revenue streams.
- Customer Base: Enhancing customer acquisition, satisfaction, and loyalty.
- Solar and HEMs: Capitalizing on the synergy between EV and solar PV adoption, plus interoperability with home energy management technologies.
Galp's pilot directly addresses these value streams, showcasing how smart charging can optimize energy consumption and elevate customer offerings.
Project Purpose: Validating Smart EV Charging Value
Galp embarked on this pilot project with the clear objective of validating the smart charging proposition within the Portuguese market. The project aimed to:
- Experiment: Rigorously test vehicle telematics technology against diverse signals.
- Analyse: Gain a deep understanding of EV customer requirements and preferences for smart charging solutions.
- Prove Value: Confirm the value of smart charging for both Galp and its customers.
Pedro Teixeira, Innovation Project Manager at Galp, emphasizes the need to deliver smart charging in a user-friendly and cost-effective manner, leveraging connected car technology.
“In 2022-2023, we started to think: How can we bring value to customers and Galp? It’s expected that by 2030, more than 90% of cars will be connected vehicles. This is already happening today.” — Pedro Teixeira, Innovation Project Manager at Galp
Pilot Study: Proving Technology and Customer Engagement
The pilot study featured a controlled smart charging test via vehicle telematics with 20 users, including Galp employees and customers subscribed to test new technologies. Participants maintained their regular charging routines while the smart charging system operated seamlessly in the background. The pilot focused on three key use cases:
- TOU Tariff (Time of Use): Validating technology and user acceptance, resulting in enthusiastic adoption from initial skeptics.
- Day-Ahead Market: Exploring the synergy between smart charging technology and dynamic tariffs, optimizing for wholesale electricity price variability.
- Carbon Intensity: Minimizing the carbon footprint of charging sessions, a natural outcome of optimizing for TOU and Day-Ahead markets.
The abundance of renewable energy sources, particularly solar power, has significantly impacted the OMIE day-ahead market in Spain and Portugal. This has resulted in a midday period of lower prices, which often drop near €0 on many days throughout the year.
Results: Tangible Savings and Customer Acceptance
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The pilot yielded significant results, demonstrating the undeniable value of smart charging. A key finding was the ability for smart charging to unlock substantial new value for Portuguese customers and Galp. The 2024 pilot showed that by optimizing smart charging sessions for dynamic tariffs, drivers in a real-world setting could save an average of 21% on charging costs compared to unmanaged charging.
“In the beginning, we had two groups: the enthusiasts who embraced the technology and had suggestions to improve the product, and the skepticals who were afraid this would disrupt their lives. By the end, the skeptics became enthusiasts. This is one of the biggest results that we had.” — Pedro Teixeira, Innovation Project Manager at Galp
While savings vary by user, depending on individual charging behavior and vehicle, the pilot successfully validated the synergy between smart charging technology and dynamic tariffs. Pedro also highlighted that the desire for savings must be matched with convenience to enable significant uptake and worthwhile investment. Smart charging greatly increases the convenience of having a dynamic tariff, as seen during the pilot.
Galp’s Long-Term Vision: Enhancing the Smart Energy Customer Experience
Galp views this pilot as a crucial step towards a broader energy management ecosystem. This reflects a commitment to leveraging connected technologies for comprehensive energy optimization and customer satisfaction.
“We are looking into smart charging, we are looking into dynamic tariffs. This opens a whole new world of possibilities. We can think of this concept applied to other appliances like heat pumps. That is the beauty of this energy transition.” — Pedro Teixeira, Innovation Project Manager at Galp
Driving the Future of Energy Retail in Europe
Galp's smart charging pilot, powered by ev.energy, serves as a compelling case study for energy retailers seeking to capitalize on the burgeoning EV market. The 21% cost savings achieved through dynamic tariff optimization highlights the tangible benefits for customers.
Smart charging solutions offer European energy retailers multiple avenues to unlock substantial value. These include energy trading and grid services, as well as enhanced customer retention and the acquisition of high-value EV customers. Moreover, these solutions can pave the way for future residential solar and home energy management offerings.
Galp's positive user feedback and promising results from this pilot signal a bright future for smart charging and dynamic tariffs across the European energy landscape. With ev.energy's ready-to-deploy solutions, Galp avoided the complexities and high costs of in-house development and achieved their objective faster.
Ready to unlock cost savings for a new wave of EV-driving customers? Watch the Building a Retail Business Case for Smart Charging webinar on-demand, or get in touch to learn more.
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