Utilities that encourage electric vehicle drivers to charge their EVs during off-peak hours can save both them and the utility money—but those that provide charging systems that automatically optimize grid loads can avoid even more costs.

Cost savings could even double with managed bidirectional charging, according to the report, “Turning EV Grid Risk into a $30 Billion Opportunity,” by EV.energy, a managed charging provider based in Palo Alto, Calif.

“Managed charging is the technology that ensures vehicles charge at the best possible time for the grid and the lowest-cost period for the customer,” the report’s authors write. “Crucially, this optimization happens automatically in the background, without requiring the driver to change their behavior or sacrifice their mobility needs.”

The cost savings, particularly on reduced capital investments to the grid, rise substantially depending on how utilities implement managed charging programs, according to the report.

Encouraging EV drivers to manually charge during off-peak hours can save utilities anywhere from $90–$340 per year per vehicle, while implementing active managed charging via automated systems can save $145–$575 a year. Such systems use software to optimize EV charging times, dynamically responding to grid, price and carbon signals.

Bidirectional-enabled managed charging can save utilities $330–$1,320 a year. On top of that, EV drivers not only save money themselves, they can also earn money by providing electricity back to the grid. When enough EV drivers participate, all utility customers could potentially save money on reduced energy bills.

“The full opportunity is only unlocked through a holistic view, combining behavioral, active and bidirectional managed charging,” the report’s authors wrote. “Our analysis shows this represents a $30 billion annual cost-avoidance opportunity by 2035—the equivalent of a 10% reduction in energy costs or a $200 annual bill savings for every household in the country.”

To realize this opportunity within the next 10 years, utilities should proactively build the business case now, according to the report. At the same time, regulators need to create “agile pathways” for program approval and adopt performance-based incentives “that reward outcomes, not just spending.”

If utilities continue to wait to adopt managed charging systems, they face “a cascade of real and growing risks,” including connection delays that could anger EV drivers and constrain adoption, affordability issues for all customers and reliability issues due to steeper peaks and higher transformer failure rates on local circuits.

“Every electric vehicle is a dormant energy asset,” according to the report. “Every day without managed charging is a day of avoidable costs incurred, unnecessary grid stress, and growing inequity.”

Ev.energy’s report is supported by research provided by The Brattle Group based in Boston.