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New York to add thousands of EV chargers, markets eye load shape impact - S&P Global

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Highlights

Incremental charging capacity increases focus on peak load

Utilities have 120 days to file managed charging proposals

New York — New York's recently announced "EV Make Ready" initiative to expand electric vehicle use by supporting over 50,000 level 2 charging plugs and 1,500 public direct current fast charger stations in the state could impact the shape of power demand peaks, sources said on July 17.

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The New York Public Service Commission on July 16 approved a "Make Ready" order to advance New York's commitment to accelerate its transition to cleaner mobility, according to a statement from Governor Andrew Cuomo's office.

Cuomo highlighted a package of major clean transportation initiatives to support transportation sector decarbonization plans and cut overall statewide carbon emissions by 85% by 2050.

New York's EV initiative complements a collaboration unveiled earlier in the week through which New York, along with 14 other states and the District of Columbia agreed to ramp up the electrification of diesel buses and trucks by 2050.

"New York is leading the nation in efforts to combat climate change and reimagine our power systems with innovative clean energy policies and now we are taking major steps to decarbonize vehicles, including light and heavy-duty trucks and buses," Cuomo said in the statement.

Investor-owned utilities in New York will fund the EV Make-Ready Program which utilizes cost-sharing to incentivize utilities and charging station developers to site EV charging infrastructure in places that will most benefit consumers, according to the statement.

The PSC order caps the total budget at $701 million and will run through 2025, with $206 million allocated.

The Long Island Power Authority and its service provider, PSEG Long Island, set a goal of supporting 180,000 new EVs on Long Island with 4,650 new EV charging ports by 2025, beginning with a proposed 2021 investment of $4.4 million in make-ready infrastructure, according to the statement.

Additionally, the New York State Department of Environmental Conservation is allocating $48.8 million from the Volkswagen diesel emissions scandal settlement to transit bus and school bus operators and EV charging station owners.

Power demand impacts

The total increase in power demand associated with this incremental EV charging infrastructure appears limited, but could impact load profiles depending on how EV charging rates are structured.

The PSC order discussed the benefits of managed charging, either active or passive. Active managed charging relies on dispatch signals from a utility or aggregator sent to a vehicle or charging equipment to adjust the time or rate charge.

Passive managed charging relies on customer behavior, like influencing charging times through time-of-use rates, which the state currently has. But thus far adoption has been minimal and "it is clear that more needs to be done to incent off-peak charging," according to the order.

The PSC directed the utilities to file proposals for active or managed charging programs for mass market customers within 120 days of the order's issuance.

The Department of Public Service staff who wrote the order used a conservative estimate of the potential load impact, a spokesman said.

"A level 2 charger can deliver enough power to provide an EV with 12-25 miles of range per hour of charging, while a DC Fast Charger can add range well in excess of 400 miles per hour of charging," Zane McDonald, senior transportation technology analyst with S&P Global Platts Analytics, said.

"As outlined in our April report 'EV uptake: Challenges and Opportunities for the US Power Grid,' increased access to these extremely high power chargers without proper price signals can result in a peakier load profile from the transportation sector, increasing the burden EVs place on local grids," McDonald said.

"Con Edison supports electric vehicles, which are essential to meeting the New York State and New York City climate goals and will bring great economic benefits," spokesman Philip O'Brien said in a July 17 email.

"With our strategic investments in our electric delivery system and our SmartCharge NY program, which encourages drivers to charge off-peak , we are ensuring that our grid remains reliable as the number of EVs on the road grows," O'Brien said.

Matthew Cordaro, a former Midcontinent Independent System Operator CEO who now resides in New York, said "the number of EVs that would ultimately use the chargers depends on whether or not reliable and economical vehicles can be manufactured and the price of traditional gasoline."

"Most importantly, we will not be able to judge the environmental advantages of EVs until we have more absolute assurance of what future electric generating sources will dominate. A few more nuclear units would be very helpful in this regard," Cordaro said.

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