Ovo Energy unveils smart tariff for EVs to cut costs, help balance grid
Ovo Energy has announced a new flat fee (6p/kWh) energy tariff, exclusively available to EV users at any time of the day, powered by innovative technology from Kaluza which enables the vehicle to draw power at times when electricity is cheapest. Ovo says that the deal could cut charging costs by as much as 63 percent and also help to balance the electricity grid by reducing demand at peak times, while also cutting the need to invest in new power generation.
The OVO Drive Anytime tariff is billed by the company as the world’s only ‘type of use’ energy tariff differentiating between customers’ end use of electricity.
The unique pricing model offers EV drivers a flat fee of 6p per kWh for charging at any time of the day. Compared with the average cost of electricity on a standard tariff, consumers stand to save as much as 63% – or £200 – on fuelling their car throughout the year.
The new 'smart' concept differs from EV tariffs available today that require customers to plug in at certain times - mostly at night, in order to access cheaper, off-peak rates. Ovo says that such ‘time of use’ tariffs can often mean EV users are punished for using more expensive energy for their homes during the day, offsetting savings on their EV energy.
The new tariff is enabled by the use of innovative technology developed by Ovo Group’s intelligent energy arm, Kaluza. By using live data on energy pricing, the weather and local network constraints, Kaluza intelligently shifts EV charging away from peak times to dynamically capture the cheapest and greenest electricity on the market.
The platform’s ability to change EV charging patterns in real time will help network operators as they manage peaks on the grid – services that will become increasingly necessary and increasingly valuable as millions more EVs connect to the system.
The new tariff is an example of how energy and mobility markets are moving ever closer together and shows how the arrival of electric vehicles on a mass scale can help to support an electricity grid increasingly powered by renewables. Both Ovo Energy and its Kaluza partners were involved, along with over 350 organisations in the EV Energy Taskforce, convened by the LowCVP, which highlighted the importance of smart charging and new tariff models to the UK's energy industry and showing the opportunities provided by the arrival of EVs on a large scale.
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