Massachusetts Clean Peak Standard: Revving Up Grid Services for EVs

Energy markets across the country are evolving to take advantage of the inherent flexibility of electric vehicles (EVs), introducing lucrative new grid services opportunities that better capitalize on the flexible capabilities of electric mobility technologies. 

States poised for rapid EV growth are particularly eager to leverage this influx to shore up grid stability. One such state is Massachusetts, which has recently moved up the ranks to fourth place nationally on the Transportation Electrification Scorecard, a research report from the American Council for an Energy-Efficient Economy (ACEEE). With Massachusetts’ new law outlawing the sale of new gas-powered cars by 2035, within the next few years we can anticipate seeing much larger networks of EV charging infrastructure installed across the state and ready to participate in demand response, vehicle-to-grid (V2G) and other grid services programs. 

This summer, Leap is enabling the first technology providers to enroll EVs in the Massachusetts Clean Peak Standard (CPS), a grid services offering designed to incentivize the reduction of peak energy demand through clean energy resources. EVs are particularly well-positioned flexible resources to earn revenue in this program.

EVs are a natural fit for the CPS program.

CPS incentivizes grid-connected energy technologies to reduce their usage or supply energy back to the grid during seasonal “clean peak” hours. For EVs, this means rewarding drivers for shifting their charging out of these hours.

Massachusetts also has time-of-use (TOU) rate periods, hours of high energy demand during which customers are charged more for electricity consumption. We can think of TOU and CPS as complementary “stick” and “carrot” strategies to reduce energy demand: TOU rates penalize customers for high usage during hours of high demand, while the CPS program offers financial incentives to encourage customers to shift charging outside of seasonal clean peak hours. This dynamic makes EVs a natural fit for the CPS program.

While TOU rates provide some incentive to shift charging outside of peak periods, combining TOU rates and the CPS offering creates a more compelling incentive to shift charging by allowing drivers to benefit both from bill savings and revenue generation. Therefore, to maximize value, participants should shift as much charging as possible out of both programs’ designated periods.

Here’s what that might look like during the CPS program’s fall period: 

By shifting at least 65% of charging outside of CPS’ seasonal clean peak hours, participants earn Clean Peak Energy Certificates (CPECs) for that shifted energy, which are then sold in the compliance market to generate revenue. Leap facilitates all CPEC sales and administration for its partners participating in the program, enabling simple, seamless access to CPS revenue. 

The key benefits of CPS for technology providers

A reliable revenue stream

CPS compensates energy resources for lowering usage during predetermined windows throughout the year. It’s a predictable, reliable revenue stream that fleet operators, technology providers and drivers alike can integrate into their schedules and planning each year.

Stackable with other programs

Resources enrolled in CPS are able to participate in other grid services programs at the same time, such as ConnectedSolutions and offerings with ISO-New England (ISO-NE), unlocking new opportunities for participants to stack value. 

Streamlined customer sign-up

Leap’s CPS offering enables partners to activate eligible vehicles using device-level data, meaning that customers don’t have to complete a utility data-sharing authorization process to get their EVs enrolled. This lowers the customer activation burden, simplifying and speeding up participation. 

Maximizing the flexible potential of electric mobility

As the electric vehicle (EV) market continues to rapidly grow - the International Energy Agency projects another 35% increase in global sales this year - markets to harness the flexibility of all those new EVs will continue to expand and innovate as well. At Leap, we’re always exploring new opportunities to monetize our technology partners’ networks of residential EV chargers, commercial chargers, school bus fleets and other charging infrastructure. 

Download our CPS program overview or get in touch to learn more about CPS and other demand response and vehicle-to-grid (V2G) opportunities for EVs with Leap.