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Grid-Edge EV Charging Optimization Could Cut Transformer Upgrade Costs by Up to 60%

As electricity demand continues to rise, ensuring the reliability of our energy grids has never been more critical. Rhythmos.io, in partnership with the leading consulting firm Energy and Environmental Economics (E3), has taken a significant step toward addressing this challenge. Together, they’ve assessed how optimized managed electric vehicle (EV) charging can ease the burden on existing grid infrastructure. The findings, detailed in E3’s comprehensive white paper, underscore a major opportunity to improve grid reliability and reduce costs for utilities and ratepayers alike.

The study compared various EV charging strategies—unmanaged, passively managed, and optimized charging—across utility service territories in two different regions. The results were compelling: optimized EV charging could reduce distribution transformer upgrade costs by approximately 60% compared to unmanaged charging. In fact, when compared to other charging strategies, Rhythmos.io’s optimized managed charging consistently delivered the lowest grid-edge capacity costs for the municipal utility studied, across all seasonal peaks.

“We are tackling one of the most pressing challenges in the energy transition—helping utilities unlock the full potential of decentralized energy resources while maintaining grid stability,” said Ken Munson, CEO of Rhythmos.io. “Our optimized managed charging solution helps utilities reduce costs and defer infrastructure upgrades, which has the potential to save billions of dollars nationwide and minimize consumer rate impacts while supporting electrification goals.”

With EV adoption rapidly accelerating, utilities face the significant challenge of upgrading grid infrastructure to meet growing demand. Rhythmos.io’s study highlights a crucial finding: optimized managed charging could save utilities nationwide between $7-9 billion in avoided and deferred transformer upgrade costs. The study projects that utilities will need to spend between $14-19 billion on grid-edge service transformer upgrades by 2030 to accommodate the surge in EVs. By adopting Rhythmos.io’s Cadency EdgeAI℠ platform, utilities can mitigate much of this financial strain while ensuring reliable service for their customers.

“Without proactive management, rising EV adoption could strain local grids, forcing expensive infrastructure investments and higher rates for consumers,” said Eric Cutter, Partner at E3. “Our research highlights how solutions like Rhythmos.io’s Cadency EdgeAI can optimize charging at critical grid points to reduce distribution upgrade costs and maintain reliability and affordability.”

(Image: Rhythmos.io)

Rhythmos.io’s internal analysis paints an even brighter picture. Optimized managed charging, powered by the Cadency EdgeAI platform, can help utilities accommodate twice as many EVs as would be feasible with unmanaged charging—without incurring incremental costs to the utility system. This isn’t just about efficiency; it’s about enabling significant growth in EV adoption while keeping costs manageable and grid performance stable.

At the distribution level, further analysis reveals that 20% of service transformer upgrades could be avoided, with another 20% deferred, leading to an average savings of more than $7 million per utility system. This proves that optimized managed charging isn’t just a theoretical solution—it’s a practical, scalable way to balance the demands of EV growth and grid reliability.

The Power of Rhythmos.io’s Cadency EdgeAI℠ Platform

The real magic behind this solution lies in Rhythmos.io’s Cadency EdgeAI℠ platform. This powerful tool helps utilities gain dynamic insights into localized grid conditions, enabling them to adjust EV charging schedules in real-time. Unlike traditional time-of-use (TOU) rates or demand response programs, which shift EV loads across the entire system, Cadency EdgeAI optimizes charging at the service transformer level—where it has the most impact. This targeted approach helps utilities prevent failures before they happen by ensuring charging occurs only when there is sufficient grid capacity.

While the benefits of grid-edge optimization are clear, utilities face some significant hurdles to adoption, including data integration challenges and operational complexity. Rhythmos.io tackles these obstacles head-on with a scalable, end-to-end platform that seamlessly integrates with existing utility operations. This ensures that grid-edge optimization doesn’t just provide cost savings, but also enhances service reliability without requiring an overhaul of existing systems.

As the transportation sector continues to electrify, it’s crucial that our grid infrastructure evolves alongside it. Rhythmos.io’s collaboration with E3 has proven that optimized managed EV charging can play a pivotal role in achieving this evolution. By adopting solutions like Cadency EdgeAI, utilities can reduce costs, enhance grid reliability, and accelerate the adoption of electric vehicles without compromising the stability of the grid. The future of EV charging is here—and it’s optimized for success.

Don’t Miss the EV Charging Summit and Expo, March 25-27, Las Vegas

When discussing important EV charging advancements such as Rhythmos.io’s collaboration with E3, one must remember that the industry’s most crucial event is coming up soon. The EV Charging Summit and Expo is a premier event that unites industry leaders, innovators, and experts from the electric vehicle (EV) charging ecosystem. This conference and exhibition showcase the latest advancements, technologies, and trends in EV charging infrastructure, with the goal of accelerating the adoption of electric vehicles on a global scale. Attendees have the unique opportunity to explore cutting-edge charging solutions, gain insights from expert-led presentations, and connect with key stakeholders in the industry. 

The event also acts as a crucial platform for discussions on challenges, regulatory developments, and the future of EV charging, all while propelling the shift toward sustainable transportation. Through a combination of educational sessions, interactive exhibits, and valuable networking opportunities, the summit and expo play a pivotal role in shaping the future of EV infrastructure.