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Flexible prices – a game changer for the charging infrastructure?

Writer's picture: Emre Can AnlarEmre Can Anlar

Updated: Jan 17

Emobility plays a central role in the energy transition. But how can flexible prices at charging stations help to facilitate the integration of renewable energies and at the same time make electromobility more attractive for users? In this edition of "Behind the Scenes" we talk to Dr. Kerim Ben Hamida, expert in dynamic energy market models, and Dr. Andreas Pfeiffer, experienced in the field of emobility strategy, about the challenges and opportunities of flexible pricing systems.

Flexible prices as the "hidden champion" of the energy transition - game changer for emobility?
Flexible prices as the "hidden champion" of the energy transition - game changer for emobility?

Dr. Ben Hamida, in your article you describe flexible prices as the “hidden champion” of the energy transition. What makes them so special?

Dr. Ben Hamida: Flexible prices are a crucial lever for using the volatile electricity production from renewable energies more efficiently. They provide a direct price signal to consumers: In times of high electricity availability, prices are low, which motivates drivers to charge their electric vehicles at specific times. These mechanisms not only help to adapt demand to availability, but also reduce grid loads and lower electricity costs for users. What is special is that these models offer both economic and ecological advantages.


Dr. Pfeiffer, what does this look like in practice for fast-charging network operators? What challenges are there?

Dr. Pfeiffer: Flexible prices are technically feasible and offer fast-charging network operators the opportunity to respond to the dynamics of the electricity market. The challenge lies in my perception, less in the technology and more in clear communication with users. It is crucial to prepare price signals in such a way that they are understandable and easily accessible. In practice, this means that systems must work in real time to integrate both the price data and the network load. Anyone who understands how such models are set up quickly realises that it is not just about the technical infrastructure, but also about how to actively involve users in this flexibility. The interplay of technology, market understanding, political support and communication is the key here.


Dr. Pfeiffer, how can fast-charging network operators optimize their energy procurement by integrating dynamic pricing models and using spot markets?

Dr. Pfeiffer: Energy procurement for fast-charging parks requires precise demand forecasting and the ability to respond flexibly to market conditions. By using dynamic pricing models, operators can reduce their procurement costs by purchasing energy at times of low prices. However, this requires close integration with the spot markets and data-based analysis of energy demand. A deep understanding of these mechanisms enables operators not only to save costs, but also to make pricing more attractive for end customers.


What role does customer communication play in the successful implementation of flexible pricing?

Dr. Ben Hamida: Dynamic pricing works in principle wherever consumers can react flexibly to price signals. Intelligent wall boxes, for example, can be programmed to only charge when electricity is particularly cheap. In the private sector, this could lead to households using renewable energy even more efficiently. However, this model has a stronger effect in the public charging network because the influence on network stability is greater there and the mass of users can react more flexibly.


Dr. Pfeiffer, how realistic is the implementation of such models in the roaming sector? What challenges do you see?

Dr. Pfeiffer: In roaming, things are of course more complex. There are several players, from CPOs to EMSPs to roaming platforms, who have to pass on the price signals. The biggest challenge is that the price dynamics remain visible and understandable along the entire chain.

In practice, this requires standardized interfaces and clear rules for price transmission. EMSPs also need a deep understanding of how to integrate price data into their systems and present it transparently to end users.

This shows that experience in dealing with market mechanisms and technical standards is a decisive factor.


What challenges arise when implementing flexible pricing in the context of CPOs and EMSPs?

Dr. Ben Hamida: The collaboration between CPOs and EMSPs is a key point here. While CPOs can control electricity prices directly at the charging station, EMSPs have to integrate these price dynamics into their systems and pass them on to end customers. The challenge is that many EMSPs are not directly involved in electricity procurement. They therefore have to transport price signals across multiple levels, which makes transparency difficult and involves technical effort.

Dr. Pfeiffer: Exactly. In practice, it often turns out that CPOs have the task of making their pricing models understandable, while EMSPs represent the customer interface. This requires that all parties communicate via standardized interfaces and that pricing data is transmitted in real time. Anyone who understands these processes knows that what matters most is the smooth integration between technical systems and the clear allocation of roles.

Flexible prices - game changer for charging infrastructure. Dr. Ben Hamida & Dr. Pfeiffer in conversation.
Flexible prices - game changer for charging infrastructure. Dr. Ben Hamida & Dr. Pfeiffer in conversation.

Dr. Ben Hamida, in your article you describe how negative electricity prices arise and could be used. What impact does this have on flexible pricing at public charging stations?

Dr. Ben Hamida: Negative electricity prices arise when electricity supply exceeds demand, for example due to a sudden increase in renewable energy generation on windy or sunny days - called the "Bright breeze". Since it is regulatory difficult in Germany to simply switch off generation plants, excess electricity is often sold on the spot market at negative prices. This means that consumers are paid to use electricity.

This offers enormous opportunities for public charging stations: Flexible prices can respond directly to these negative price signals and pass on electricity to users as cheaply as possible. This motivates drivers to charge their vehicles precisely when renewable energy is available in abundance. At the same time, the load on the grid is reduced and the need for additional grid capacity decreases.


What role does customer communication play in the successful implementation of flexible pricing?

Dr. Ben Hamida: Customer communication is key. Flexible prices only work if users know when and why they can benefit from cheap times. Pricing must be simple and clear. Tools such as apps or price displays at charging stations can help increase user acceptance. By making an early price forecast on the exchange, a potential customer at the charging station can plan their charging time into their daily routine.

Dr. Pfeiffer: I agree. When users understand how prices are created and how they can influence their costs, not only does acceptance increase, but so does the willingness to adapt their own charging habits. Anyone who knows what they're talking about knows that price communication is not a minor matter, but a central component of successful flexible pricing models.

 

Flexible prices are a promising approach to using renewable energy more efficiently, promoting electromobility and creating economic benefits at the same time. As the interview shows, however, successful implementation requires a deep understanding of technical, regulatory and communication aspects. With experts like Dr. Ben Hamida and practical experience, it becomes clear: the future of flexible prices is within reach if the right framework conditions are created.

Stay tuned for further insights into “Behind the Scenes” – where visions for electromobility become reality.

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