28.01.2025

Dynamic charging tariffs – impact of the energy transition on charging hubs and logistics depots

Unlike a traditional electricity supply contract, where the price per kilowatt-hour (kWh) consumed remains constant, the price in dynamic electricity tariffs is flexible – it changes over time. This flexibility allows end consumers with electric vehicles or heat pumps, for instance, to benefit from dynamic electricity tariffs by using electricity during periods of low prices.

Starting 1 January 2025, all electricity providers must offer dynamic electricity tariffs in Germany. However, over 80% of German households still feel poorly informed about dynamic electricity tariffs [1]. Many electricity providers are also still determining how to design their dynamic tariffs effectively in the future.

For these reasons, our articles provide information on dynamic electricity tariffs for different consumer groups. We explain who can benefit most from specific tariff designs and how these tariffs can be structured.

Do you need support with dynamic electricity tariffs’ methodological and procedural development? Feel free to contact the experts at FfE listed below!

The individual chapters of our series of articles on dynamic electricity tariffs:

Background

The upcoming electrification of the logistics sector should make a significant contribution to achieving the climate targets but will also require a profound change in the established processes of the logistics industry.

In fact, the integration of new electricity consumers from the logistics sector into the energy system poses a challenge. Mechanisms are needed to ensure that charging processes in the logistics sector support the integration of renewable energies and contribute to the stability of the energy system instead of harming it.

As already described in our article Types of tariffs, advantages and disadvantages, technical requirements, dynamic tariffs are a suitable solution for encouraging grid- or system-friendly user behavior.  Figure 1 shows an example of a dynamic charging tariff designed to incentivize consumption during periods of high local PV generation.

Figure 1: Exemplary variable charging tariff (ct/kWh). The structure of this tariff is intended to incentivize charging during hours with high PV generation

As numerous players with partly differing interests and priorities come together in the logistics context, the targeted implementation of dynamic charging tariffs as well as the general transformation of the industry during the energy transition is a complex problem. This article aims to present an excerpt of the most important issues and framework conditions for the flexibilization of consumption in the logistics sector.

Players and goals

In the context of electricity management in the logistics sector, the following roles can be distinguished:

  • Fleet manager: Operates the vehicles, is bound to schedules and other conditions when planning routes and pursues the goal of charging the vehicles in a cost-optimized manner.
  • Charging Hub Operator: A charging hub can be operated at a depot or possibly isolated and offers vehicles in the logistics sector a charging option. The charging hub operator must conclude a contract with an energy supplier and must guarantee that charging at the charging stations is possible at any time. They may also operate their own on-site generation plant. The aim is to minimize its overall electricity procurement costs (for the location and charging infrastructure).
  • Depot Operator with own fleet: Both roles can be performed by the same player. In this case, the depot operator must optimize its total costs for the location and to cover mobility needs.

The goals and framework conditions of the individual players, as well as the strategies they need to develop on this basis, are shown in Table 2.

Table 2: Overview of the players in the logistics sector and their goals, framework conditions and strategies in the context of electrification of transportation

Complexity due to individual framework conditions

Mobility needs

Every fleet has individual framework conditions around route planning. The loading strategy must be adapted depending on the operational area, the length of the routes or the delivery schedule.

Generation and consumption profiles, flexible consumers on site

From the depot operator’s perspective, it must be determined based on local generation and local consumption when vehicle charging should be incentivized so that charging tariffs can be derived accordingly. Conversely, however, the energy management of the location can also be adapted if high revenues at the charging points are predictable. In particular, the individual circumstances of the location (flexible consumers, storage…) are crucial here.

Our Services

As part of the research projects Bid-E-V | Bidirectional Electric Vans, Commercial Vehicle Electrification for Transport Sector Optimized Grid Connection (NEFTON) and SPIRIT-E – Shared Private Charging Infrastructure and Reservation for Bidirectionally Integrated Truck Electrification, FfE is working intensively on the specific issues of the logistics industry and is available to advise you on your transformation. As part of numerous projects, FfE has developed simulations that enable overall optimization of revenues for depot operators and fleet managers.

We offer you individualized consultancy. We work with you to develop optimum charging strategies and dynamic charging tariffs based on your location and mobility needs. We identify measures to increase the profitability of your depot or fleet. Possible measures include:

  • Investments in battery storage
  • Strategic diversification of the customer portfolio
  • Participation in grid and system services
  • Cost optimization using bidirectional vehicles

Additionally, we support you with the technical and procedural implementation of charging tariffs in your depot.

We look forward to exchanging ideas with you and developing the right solution for you!