Smart Charging With Hourly Pricing as Policy Intervention: Reducing Costs and Grid Congestion for Promoting Electric Vehicles in Developing Countries

ABSTRACT This study deploys smart charging with hourly pricing to address grid congestion concerns associated with the anticipated growth of electric vehicles (EVs) in developing countries. We propose an optimization technique to establish an hourly pricing model for distribution companies, promoting off‐peak charging behavior among EV owners. An agent‐based energy management system, integrating grid‐to‐vehicle and vehicle‐to‐grid functionalities for optimized energy flow, is introduced to facilitate coordination between EV aggregators and the grid. The model is evaluated using real distribution network data with seasonal load variations. The results reveal that with 10% EV penetration, hourly pricing can significantly reduce charging costs for EV owners by about 30%. More importantly, it offers substantial relief for the grid by considerably reducing peak transformer load compared with flat or two‐part tariffs. Using Pakistan as a case study of a developing country, this research demonstrates the potential of smart charging with dynamic pricing as a policy intervention for promoting EVs while mitigating utility grid congestion.