WWS402 Moch

WWS402: Renewable Energy and the Electric Grid

Professor Harold Feiveson

Plug-in Vehicles and Vehicle To Grid Technology

Jonathan Moch

5/03/11

Student Honor Code Pledge:

I pledge my honor that this paper represents my own work in accordance with University regulations.

Signature: Jonathan Moch

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Executive Summary

The plug-in hybrid electric vehicle and the plug-in electric vehicle, collectively referred
to as electric vehicles, have enormous potential to reduce carbon emissions, improve urban air
quality, and reduce American reliance on foreign oil.

Electric vehicles, if adopted on a large scale, also portend a significant new load on the
American electrical infrastructure, and could cause new demand peaks and exacerbate existing
power management issues. However, with the use of smart charging policies and technologies
to manage electric vehicle charging times, stresses on the electric infrastructure can be greatly
reduced.

Currently significant resources are being invested in electric vehicle research and
development, with the goals of reducing the overall cost of these vehicles and significantly
increasing driving range by developing a new generation of advanced batteries. Still, at existing
costs and capabilities, electric vehicles remain reliant on extensive state and federal subsidies
to be economical for the average American driver.

Vehicle to Grid technology (V2G) has the potential to enhance the benefits from electric
vehicles and reduce infrastructure stresses from electric vehicle deployment, all the while
generating a profit for utility companies, auto companies, and the consumer. V2G enabled
vehicles would be equipped for bi-directional electric flow when connected to the grid, have on
board metering, and have two-way communication with grid operators.

V2G enabled vehicles would provide regulation demand services to the grid via small
adjustments in electrical flow to and from the battery. In addition to earning profits for vehicle
owners, V2G regulation services could also be of value to utilities.

V2G enabled vehicles can also be used to store and return electricity from intermittent
renewable energy sources such as wind and solar. Through regulation and storage of
intermittent energy, a V2G fleet equivalent to 11% to 41% of the current American light duty
vehicle fleet would have the ability to support wind energy equaling to 50% of current total US
power generation

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Background

Overview of Electric Vehicles

In his 2011 State of the Union Address, President Obama highlighted a goal of having

one-million electric vehicles (EVs) on the road by 2015.1 The American Recovery and

Reinvestment Act of 2009 (ARRA) therefore provided $2.4 billion dollars to accelerate the

manufacturing and deployment of the next generation of U.S. batteries and electric vehicles, 2

the plug-in hybrid electric vehicle (PHEVs) and the plug-in electric vehicle (PEV). The widespread

adoption of EVs offers a method of significant greenhouse gas emissions reductions that also

enjoys broad auto and power industry support.3

The major difference between EVs, which include PHEVs and PEVs, and existing hybrid

electric vehicles (HEVs) such as the Toyota Prius, is that plug-in vehicles contain larger advanced

batteries, and are better designed to connect to the electric power grid. EVs store electricity

from the grid in an onboard battery, which is then used to power and electric motor. In

contrast, energy stored in a HEV battery is originally derived from an internal combustion

engine. A PEV contains only an electric motor, and must be plugged into the grid to fully

recharge the battery. Some energy, however, can be recovered with regenerative breaking

technology, which involves slowing the vehicle by absorbing its energy and converting the

mechanical energy back into electricity which can be stored in the onboard battery. 4 Once a

PEV’s battery runs out of charge, the vehicle is no longer able to function, just as when

1
Obama, 2011
2
The White House Office of the Press Secretary. 2009
3
Clay, 2010.
4
U.S. DOE, 2003

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conventional cars run out of gas. PHEVs, on the other hand, also contain an internal

combustion engine. PHEVs are capable of running purely on the energy stored in the battery

for as long as the battery contains electricity, after which the car can continue to run by using a

conventional internal combustion engine. The PHEV battery can be recharged by plugging into

an outlet, by capturing energy from the internal combustion engine, , or by using regenerative

braking.5

A traditional hybrid electric vehicle, in contrast, produces its electricity via small

onboard generating plants that are driven by a conventional internal combustion engine.

Electricity from these onboard generating plants is then fed to an electric motor which can be

used to move the vehicle. Electricity generated by the car can also be stored in an onboard

battery, which is further charged by recovering energy lost when braking. Energy stored in a

HEV’s onboard battery can then be used to provide extra power to the electric motor when

accelerating or be used as a sole source of energy for the vehicle, depending on the HEV’s

design.6

The Current State of Electric Vehicles: The Nissan Leaf and The Chevy Volt

In the winter of 2010, Nissan introduced the Leaf, the first PEV from a major car

company. The Leaf is advertised to travel 100 miles per charge and is currently being sold in

California, Oregon, Washington, Arizona and Tennessee. 7 It has a suggested retail price of

$32,780; however, with federal tax credits of up to $7,500, the price to the purchaser can be

5
Pratt, et al. 2010
6
U.S. DOE, 2003
7
Vlasic, 2010 Leaf

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reduced to $25,280.8 In addition, many tax incentives exist at the state level, such a $2500 cash

rebate towards the Leaf in Tennessee and a $5,000 tax credit toward the purchasing of a Leaf in

California, further decreasing the price.9

Shortly after the release of the Leaf, General Motors introduced the Chevy Volt, a PHEV,

with a suggested retail price of $40,280. As with Nissan, G.M. is relying on the government’s

$7,500 tax credit to reduce the purchasing price to $32,780. The Volt is designed to go 35 miles

using the electricity stored in the battery, after which it switches to an internal combustion

engine that works with the electrical motors to give the car an additional 340 miles using one

tank of gas.10 To recharge, the Volt can connect to a standard 120-volt outlet and is projected

to cost owners between $1 and $1.50 per charge. The Volt is currently sold at only 600

designated Chevrolet dealers in 6 states, but GM plans to expand sales nationwide by 2012. 11

The $7,500 tax credit that applies to both the Volt and the Leaf is supplemented by

giveaways of free home charging units from the EV Project, a $230 million national program

financed by several government agencies, utilities and corporations. 12 The home charging units,

which have a retail cost of $3,000, are designed to charge the car’s battery in 4-6 hours using

220-volt power. 5,700 of the chargers were randomly given to Leaf buyers and 2,600 to Volt

purchasers. In addition to providing free home charging units, the EV Project will build 15,000

charging stations in 18 cities in the States where the Volt and Leaf are being sold. Using data

from these public and home charging stations, the Project will analyze EV use with the goal of

8
Nissan, 2011
9
Vlasic, 2010
10
General Motors, 2011
11
Bunkley, 2010. Volt
12
Vlasic, 2010

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evaluating the effectiveness of the current charge infrastructure and enabling streamlined

deployment of EVs in the future. 13

Although initial sales of the Leaf and Volt will be small and aimed at a specific

demographic, both Nissan and G.M. hope to greatly increase production in the near future. The

Nissan Leaf received 13,000 preorders in the US,14 and Nissan has set a target of selling 500,000

electric vehicles worldwide by 2013.15 GM plans to build 10,000 Chevy Volts by the end of 2011

and an additional 20,000 in 2012.

Current State of Electric Vehicle Research and Development

One of the biggest hurdles that EVs must overcome before being widely accepted in the

American auto-market is the high initial cost of the vehicles compared to conventional internal

combustion engine vehicles. To this end, the Obama administration has actively promoted

investment in advanced vehicle technologies. The ARRA included $2.4 billion budgeted for EV

battery and component manufacturing and infrastructure, and investments are already yielding

results.16 Due to the ARRA, American manufacturing capacity for advanced batteries is

projected to increase from 2% of the world’s advanced batteries today to 40% by 2015. 17

Partially as a result of the ARRA grants, battery costs are expected to drop by half between

2009 and 2013, and the US will be able to produce enough components and batteries to

support 500,000 EVs.18

13
The EV Project, 2011
14
Bunkley, 2010.
15
Vlasic, 2010
16
Office of the Vice President. 2011
17
Ibid.
18
Ibid.

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Building on ARRA grants, President Obama’s 2011 budget proposed a three-part

advanced technology vehicle plan that includes support for electric vehicle manufacturing and

adoption in the US through consumer rebates, investment in research and development, and a

competitive program to incentivize community investment in electric vehicle infrastructure. 19

The first part of plan involves changing the existing $7,500 tax credit for an EV to a rebate

modeled on the ‘Cash for Clunkers’ program. By changing the tax credit to a rebate, the

administration hopes to make EVs more financially feasible for American families by making

sure they do not have to wait until after paying taxes to receive the credit. 20 The R&D section

calls for expanding regular funding for EV technologies by 90%, to nearly $590 million, with

goals of further reducing battery cost and creating a battery able to power a vehicle for 300

miles on a single charge.21 The competitive grant program has already begun, with the

Department of Energy (DOE) issuing $10 million grants to communities that show concrete

reforms and an ability to use funds to enhance EV deployment. The DOE grants are targeted

toward infrastructure improvements, conversions of vehicle fleets and creation of EV incentives

such as special parking and HOV lane access.22

19
Ibid.
20
Ibid.
21
Ibid.
22
Ibid.

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Costs and Benefits of Electric Vehicles

Reductions in Carbon Dioxide Emissions

In 2009, the net carbon dioxide emissions from fossil fuel combustion were 5,212 Tg CO 2

equivalent.23 Of that, 1,723.3 Tg CO2 equivalent (33%) were from combustion in the

transportation sector.24 Therefore, to meet President Obama’s goal of reducing US CO 2

emissions to 83% below 2005 levels by 2050,25 the transportation sector must play a role.

Widespread use of EVs has the potential for significant reductions in carbon emissions simply

due to the higher energy efficiency of an electric motor when compared to an internal

combustion engine.26 An internal combustion engine has an energy efficiency of around 25%,

while the energy efficiency of an electric motor and battery system is around 65%. 27,28 Due to

the inherent efficiency gains with a switch to EVs, even in a scenario where EVs derive almost

all of their electricity from coal based power plants, an EV results in 28% to 34% lower

emissions when compared to conventional vehicles.29 For the current grid and today’s mix of

power plants, it is estimated that if every conventional vehicle from a fleet with an average fuel

economy of 20.7 mpg were replaced by EVs, it would result in a 27% carbon emissions

reduction for the entire nation, equivalent to an 81% reduction in transportation emissions.

23
U.S. EPA, 2011
24
Ibid.
25
Broder, 2009
26
Kinter- Meyer, et al. 2007.
27
Energy efficiency is the ratio between the amount of energy put into a system, here an engine, and the amount
of energy harnessed by the system for some particular purpose, generally termed work. Energy not harnessed to
do work is generally lost as heat. Energy efficiency is written as (useful output)/(total input), so a machine with a
high energy efficiency is able to do more work for a set unit of energy than a machine with a low energy efficiency.
28
Prat, et al. 2010
29
Ibid. p 117.

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As non-fossil fuel and natural gas energy sources are added to the grid, CO2 emissions

reductions compared to conventional vehicles will increase further, as a result of efficiency

gains combined with lower fossil fuel intensity. In 2010, 53% of the net electricity generation

was from natural gas, nuclear, hydroelectric or renewable sources, all of which have

significantly lower CO2 emissions per kilowatt hour (kWh) than coal-generated electricity. 30

Therefore, as a national average, a conversion to EVs right now would already have significantly

higher CO2 reductions than those due to the higher energy efficiency of the electric motor. EVs

will also take multiple mobile emissions sources and concentrate their emissions in a much

smaller number of stationary generators. These, in turn, could be the targets for future

emissions reductions, such as through carbon sequestration, which would not have been

possible or cost effective with the dispersed emissions from internal combustion engines. 31

Overall Improvements in Local Air Quality

Because EVs have no emissions while in electric drive mode, EVs have the potential to

significantly improve local air quality, especially in densely populated urban areas with high

vehicle traffic. Along with carbon dioxide, fossil fuel combustion also produces various other

gases that cause local air pollution issues, so by shifting to EVs, tailpipe emissions of pollutants

will be shifted to generators, which are generally outside of population centers. From there

pollutants will be transported over regional scales (10-100 kilometers), resulting in a much

lower exposure in population centers due to the dilution, deposition and chemical

transformation of the pollutants during transport.32 However, one side effect of moving

30
U.S. Energy Information Administration, 2011
31
Peterson, et al. 2011
32
Sioshansi, 2009

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pollution sources from tailpipes to generators is that air quality around power plants will be

slightly degraded. This could polarize relationships between urban and rural communities and

result in construction of new power plants meeting more local resistance. 33

When compared with tailpipe emissions, the average fossil fuel based generator emits

less nitrogen dioxide and nitric oxide (NO x), as well as less carbon monoxide (CO) and volatile

organic compounds (VOCs) due to the more complete combustion and the nature of the fuels

used. However, coal based generators also have much higher sulfur dioxide (SO 2) emissions

when compared with gasoline combustion. Because of the current emissions profile of

American power generation, a switch to EVs is projected to decrease total NO x emissions,

reduce total VOC emissions, and slightly increase SO2 emissions.34 This reduction in NOx and

VOCs, coupled with the fact that emissions will occur away from population centers, brings the

potential to significantly reduce urban ozone pollution and photochemical smog, which is

created due to chemical interactions of NOx, VOCs and sunlight.35 Although EVs will place

upward pressure on SO2 emissions, due to the cap on SO2 emissions from the Clean Air Act,

total SO2 emissions are unlikely to increase as a result of increased EV usage. 36

Reducing Dependence on Foreign Oil

33
Sovacool and Hirsh, 2009
34
Peterson, et al. 2011
35
Brasseur, Orlando and Tyndall. 1999.
36
Peterson, et al. 2011.

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In addition to reductions in CO2 emissions, a switch to EVs would also move the

transportation sector from oil based fuels to whatever is used to supply the grid. The US

electric power infrastructure is designed to accommodate peak energy demand, and therefore

for most of the year the system is underutilized and could support a large EV fleet. If charging

of EVs is managed so that is does not coincide with peak demand times, the existing electric

grid could supply enough energy to support 73% of US light duty vehicles (LDVs), which consist

of cars, pickup trucks, SUVs and vans.37 By converting 73% of the US LDV fleet to EVs, the US

could save around 6.5 million barrels of oil per day, which is equivalent to 52% of current oil

imports.38 Reduced reliance on foreign oil would significantly reduce wealth transfer to oil

producers, and could save the US as much as $13 trillion over a 25 year period. 39 Reduced oil

imports would also help shield the US economy from supply shocks, reduce the flow of money

to potentially hostile governments or organizations, and reduce the need to spend over $49

billion per year defending Persian Gulf oil.40 Due to the host of benefits from reducing

dependence on foreign oil an overwhelming majority of Americans, 82%, support making the

US independent of foreign oil, with 84% believing America should promote policies that make

the country more energy efficient.41

Consumer Costs and Benefits

One of the main draws of EVs for a consumer is that of lower gasoline costs. On

average, it costs an EV about $1 to travel as far as a conventional internal combustion engine

37
Kinter-Meyer, et al. 2007
38
Ibid.
39
Sovacool and Hirsh, 2009
40
Copulus, 2003.
41
Granholm, 2011.

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vehicle would on a gallon of gasoline, assuming the EV is compared to a conventional vehicle

that averages 30 mpg.42 Savings from reduced gasoline costs would add up to a savings of

approximately $600 per year for the average American driver, 43 an amount that could make EVs

economical for many drivers if subsidies are accounted for. In addition, EVs have fewer moving

parts than traditional vehicles and therefore should require less maintenance. 44

Although EVs could eventually save money, initial prices still are high enough that EVs

are more expensive than conventional vehicles for most Americans, and therefore EVs will

remain reliant on large federal and state subsidies.45 Even for the cases when EVs could be

economical, most American families do not analyze fuel costs in any systematic way when

purchasing a new vehicle. 46 After purchasing gas, most people rapidly forget how much money

was spent, and therefore when purchasing a vehicle most consumers are not able to calculate

how much they could save due to a reduction in gasoline use. Consumers instead make

significant errors estimating potential savings over time. 47

Furthermore, EVs suffer from a ‘range anxiety problem,’ where prospective buyers are

worried that the battery of the EV will be insufficient for their driving needs and will leave them

unable to make longer trips.48 This problem is exacerbated by the fact that currently, EVs can

only be charged at home, work or specific charging stations, and require at least 3 hours of

charging time49 depending on the type of battery and voltage at which the battery is charging.
42
Letendre, et al. 2006
43
Sana, 2005.
44
Sovocool and Hirsh. 2009.
45
Keller, 2010
46
Turrentine and Kurani, 2007.
47
Ibid.
48
Kitman, 2010.
49
Ipakachi and Albuyeh, 2009.

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In some cases obtaining a full charge can take up to 12 hours.50 The charging infrastructure for

EVs is also extremely limited, with charging stations just starting to be built around the country.

51
Even stopping at a 440 volt quick charging station would still require 30 minutes or more to

reach a complete charge, significantly longer than the average time spent at a gas station. 52

Taken together, the long charging times and sparse locations will make EVs limited to mostly

congested urban areas until charging times drop, battery capacity increases, and/or

infrastructure improves.53

Load Management Issues

Along with providing a significant new source of revenue for utilities, the electrification

of the transportation sector will also significantly increase the load on the existing power

infrastructure. This increase in load has the potential to overwhelm existing primary and

secondary distribution networks, as many of the circuits involved do not have spare capacity. 54

Currently, EVs on average require 0.2 to 0.3 kWh of energy for each mile of driving. 55 For a

vehicle such as the Chevy Volt with a 30-40 mile all electric range, 7 to 10 kWh will be required

to fully charge the battery.56 If charging occurs using a standard 120-volt outlet, fully charging

the battery for a Chevy Volt may take anywhere between 3 and 8 hours for 3.3 kW and 1.4 kW

charging respectively.57 More advanced batteries, such as those currently being designed with

ARRA funds, may require significantly longer charging times due to a larger capacity. Batteries
50
Pratt, et al. 2010
51
De Lorenzo, 2010.
52
Knittel, 2010
53
De Lorenzo, 2010.
54
Ipakachi and Albuyeh, 2009
55
Ibid.
56
Ibid.
57
Ibid.

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capable of enabling 220 miles of driving on a single charge may take 33 hours to completely

charge when plugged into a standard outlet.58

In order to reduce charging times, 240 volt charging may become the norm for EVs, and

240-volt outlets are currently required for new garages in California, which expects high EV use

in the future.59 However, 240-volt charging also doubles the peak load impact of unmanaged

charging, therefore reducing the number of EVs that the grid can support by half, to around 70

million vehicles.60 Most studies assume that 80% to 90% of EV charging will occur at night,

when commuters return from work.61 This period of nighttime charging will partially coincide

with peak electricity demand in many regions, and therefore may both set new system peaks or

increase current peak electricity demand depending on the region. 62 For example, for a typical

California house, EV charging doubles the household load when plugged into a standard

outlet.63 Charging at a higher voltage further increases the household load. 64

58
Ibid.
59
Pratt, et al. 2010
60
Ibid.
61
NERC, 2011
62
Pratt, et al. 2010
63
Ipakchi and Albuyeh, 2009.
64
Ibid.

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Figure 1: The impact of plug-in vehicle charging on the residential home load profile for a
typical Southern Californian home.65

Most of the electricity distribution systems currently used in the US were put into use

over a decade ago, and were based on the loading analysis of the grid at the time. 66 An increase

in the number of EVs could unbalance the flow of electricity through the grid, resulting in

multiple grid related problems, such as voltage issues, degradation of power quality, and a

distortion of increasing harmonics, which could lead to further degradation of power quality. 67

Large changes in load patterns, such as those projected with widespread 240-volt EV charging,

may also impact the voltages of long distance transmission lines.68 On a more local level, many

local distribution circuits are already operating with loads close to their operational limits, and

the extra load from EVs may push some regional circuits over their emergency operating limits,

causing a localized overload of the circuit and connected transformers. 69

65
Ipakachi and Albuyeh, 2009
66
Ibid.
67
Ibid.
68
Ibid.
69
Ibid.

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The Effect of Smart Charging on Electric Vehicles

Charging Management: Policy and Technology Options

Many of the benefits that arise from EVs can be further enhanced by controlling when

EV charging occurs. One of the easiest ways to promote smart charging of electric vehicles is

simply for the Federal, State or Local Governments to prohibit charging of EVs during peak

demand hours. However, such policies are likely to meet with significant political resistance. 70

Smart charging of EVs can also be achieved indirectly by changing the structure of customer

utilities rates to encourage off-peak charging of EVs. This can be accomplished by increasing

rates at peak demand times and decreasing rates during off peak times. 71

Charging times of EVs could also be managed by the integration of smart grid

technology into the existing power infrastructure. Broad deployment of “smart” technologies,

such as real-time automated interactive electricity pricing, would likely entail significant

investment on the part of utilities and the federal government. However, creation of a smart

grid would also allow for streamlined integration of intermittent energy sources such as solar

and wind into the existing power infrastructure.72 Full deployment of a smart grid would allow

for large scale demand management, redirecting power to areas where it is needed most and

limiting demand in peak areas.73

A third method for managing EV charging load would be to employ the use of smart

appliances and smart chargers that apply specifically to EVs. Such appliances would allow the
70
NERC, 2010
71
Ibid.
72
Pratt, et al. 2010
73
Ibid.

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system operator to monitor and control the charging of EVs, either through price signals or

directly, such as by turning off the charger.74 However, the widespread use of the

communication technologies required for sending and receiving such signals would require a

standardization of communications protocols across the nation, so that smart charging signals

can be received no matter where the vehicle is located.75 Additionally, although smart charging

technology exclusive to EVs would be less expensive overall than a full smart grid deployment,

the costs of adding smart charging technology to EVs would likely mean increasing the initial

cost of EVs, already one of the biggest obstacles to EV adoption. 76 Making smart charging

technology exclusively for EVs also means that there will be considerable reliance on consumer

acceptance of the technology to ensure it is fully utilized, rather than having the technology be

implemented by the utility companies.77

Effects on Load Management, Emissions, and Potential Electric Vehicle Deployment

Smart charging technologies and policies can significantly reduce and in many cases

eliminate the load management issues that arise from EV deployment. If the charging times of

EVs are managed so that they do not coincide with peak demand, the current electric

74
Fell, et al. 2010
75
Pratt, et al. 2010
76
Ibid.
77
Ibid.

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infrastructure in the US has the potential to provide electricity to 73% of the US LDV fleet,

around 186 million vehicles.78 The impact of a smart grid is even further amplified if EV

charging occurs at 240 volts. If all EVs charge at 240 volts, in an unmanaged charging scenario

EVs could replace 32% of the existing LDV fleet. However if smart charging is used in a 240 volt

charging scenario, the grid can still support a 73% replacement of the current LDV fleet. 79

The energy needed to power 73% of the US LDV fleet is equivalent to 910 billion kWh, 80

or 22% of the electricity generated in 2010.81 In such a scenario, the grid would be heavily

loaded for most of the day, and overall grid reliability may decrease as the current reserve

capacity is be used to power EV charging. 82 However, in this scenario the power sector also

gains $6.8 trillion per year in additional revenue from what was frequently underutilized

equipment, assuming an average electricity price of 7.5 cents per kWh, a conservative

estimate.83

In addition to allowing for the deployment of more EVs, smart charging of EVs also relies

on using the intermediate or base-load power plants that supply energy during off-peak times,

generally leading to greater emissions reductions even for the same deployment of EVs. 84

Overall, smart charging is estimated to lead to at least a 3% reduction in energy use just from

78
Kinter-meyer, et al. 2007
79
Ibid. Percentages were calculated by determining how much power idle electricity generation capacity exists
within the country during off peak periods. Average travel distance for a vehicle in one year was then estimated,
along with the corresponding energy required for different types sizes of EVs. It was then calculated how many
vehicles would be able to run using only the idle generation capacity, creating a ‘valley filling approach.’ System
load data was based on NERC data for 2002.
80
Kinter-meyer, et al. 2007
81
U.S. Energy Information Administration, 2011.
82
Kinter-Meyer, et al. 2007
83
Letendre, et al. 2006
84
Pratt, et al. 2010

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the expanded deployment of EVs.85 When the greater energy efficiencies of off-peak

generation are taken into account, emissions reductions could be much greater. 86 However,

the effect of smart charging in emissions reductions varies by region, as in some areas less

efficient generation occurs off peak.87 For example, for two different grid operators, NYSIO and

PJM, a significant difference is observed in the effect of smart charging on emissions. For

NYISO, smart charging of EVs leads to greater emissions reductions, as off-peak generation

relies 86% on natural gas instead of the 44% natural gas reliance during peak hours. On the

other hand, PJM relies 98% on coal for off-peak generation, leading to an increase instead of

decrease in CO2 emissions for the region when smart charging is used. 88

Vehicle to Grid Technolgy: A Solution for Electric Vehicle Woes?

Vehicle to Grid Technology and Services Overview

The basic concept behind vehicle-to-grid services (V2G) is that when plugged into the

grid EVs can feed electricity back into the grid which can be directed to where it is needed, as

well as be used to stabilize power flow. In order to be V2G enabled, a vehicle must be able to

plug into the grid for bidirectional electricity flow, have two-way communication with grid

operators via some control or connection mechanism, and contain on-board precision

metering.89 EVs, with their solid state chargers, can accurately and rapidly control electricity

consumption, although this is limited by the charge rates of the battery. 90 Additionally, due to

85
Ibid.
86
Ibid.
87
Peterson, et al. 2011.
88
Ibid.
89
Tomic and Kempton, 2007.
90
NERC, 2010

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the stop and go nature of driving, EV batteries are designed to provide for frequent large power

fluctuations over short periods of time.91 Taken together, these qualities make EVs ideal

candidates for assisting in regulation,92 which involves directing power flows to respond to

minute-by-minute changes in supply and demand,93 as well as for providing reserves to store

electricity and help with overall demand management.94 The average car in the US spends only

4% to 5% of the day on the road, which means that for the vast majority of the day an EV would

be parked and could be plugged into the grid to provide V2G services.95

The purpose of regulation is to adjust the grid to a target frequency and voltage that

matches demand, especially on local scales. Frequency and voltage regulation are under the

direct control of the grid operator, and the units providing regulation, usually specifically

designated generators, are able to respond to signals from the grid operator within less than a

minute and accordingly increase or decrease electrical output. 96 The battery of an EV is actually

better suited for regulation than conventional generators, as it is able to respond to a signal

within less than a second, rather than on a near minute timescale.97 Once a signal is received by

an EV, the battery would increase the amount of power being provided to the grid in the case of

a regulation up signal or, in the case of a regulation down signal, either reduce output or draw

in power from the grid as done with regular battery charging. 98

91
Tomic and Kempton, 2007.
92
Fell, et al. 2010
93
NERC, 2010
94
Fell, et al. 2010
95
Tomic and Kempton, 2007.
96
Tomic and Kempton, 2005. Vehicle-to-grid power fundamentals: Calculating capacity and net revenue
97
Tomic and Kempton, 2007
98
Ibid.

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The price of power for regulation services is determined by both a capacity price and an

energy price, which taken together make V2G power cost effective for regulation. The capacity

price is what is paid for the generator, or in this case a V2G battery, to be able to respond to

fluctuations in demand on a minute’s notice. The energy price is what is paid for the actual

energy output from the generator.99 For regulation, the energy output is generally very small,

so the cost per kWh is inconsequential for the overall price. Instead, the ability to quickly vary

output, the capital cost of the generation or storage and the ability to provide regulation

without frequent maintenance are all more important factors when determining the price per

kWh of regulation. EVs with their specially designed batteries are better than generators in all

three of these areas, so using V2G regulation will actually increase utility sector profits. 100

Traditionally, regulation is purchased by a power distribution company, which then makes

monthly contract payments for availability in terms of dollars per MWh, as well as an additional

payments for each kWh actually produced.101 Although the annual value of V2G regulation is

low102 when compared with the total $12 billion market,103 profits per vehicle could be

somewhere in the range of $100 to $1000 annually, depending on the market conditions, type

of regulation supplied, and specifications of the battery.104 Other studies show annual V2G

profits approaching $4,000 per vehicle.105

99
Ibid.
100
Ibid. For example, the cost of ancillary services in 2000 for CAISO was 15.4 US$/MWh. A fleet of 252 EVs and a
total capacity of 3.78 MW For an average of 83.2 GWh over the course of a year, the annual cost of regulation A
fleet of 252 EVs and a total capacity of 3.78 MW
101
Ibid.
102
Ibid.
103
Tomic and Kempton, 2005. Vehicle-to-grid power fundamentals: Calculating capacity and net revenue
104
Tomic and Kempton 2007.
105
Sovacool and Hirsh, 2009

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In addition to providing regulation services, V2G also has the potential to serve as

storage for intermittent renewable energy sources, thereby assisting with demand response.

Currently the US gets approximately 4% of electricity from renewable sources such as wind and

solar power.106 At these low levels the intermittent nature of renewable energy can be handled

by the existing power infrastructure. However, as renewables start to account for 10% to 30%

of US power generation, new resources will be needed to match the large intermittent energy

supply with already shifting load profiles.107 Although each individual battery cannot store large

amounts of electricity, taken together an EV fleet has a large potential for distributed energy

storage. For example, 5,000 EV sedans have a potential storage capacity around 80 MWh. 108

EVs can thus absorb the excess electricity when wind and solar power generation is high, and

feed it back to the grid when such sources are inadequate.

For Photovoltaic solar power (PV), peak electricity generation is between 12 and 2 p.m.

on the East Coast, which is followed by peak loading around mid to late afternoon. 109 PV can be

integrated into the grid by storing the extra energy from the PV generation peak and releasing

it back into the grid when there is peak demand. If solar power were to supply one fifth of

electricity generation, 26% of the LDV fleet could be used to store and rerelease the PV

electricity, assuming that only half of the vehicles under contract are available when needed on

a given day and a storage capacity of 7kW per vehicle.110 Wind power, on the other hand,

106
U.S. Energy Information Administration, 2011
107
Kempton and Tomic, 2005. Vehicle-to-grid power implementation: From stabilizing the grid to
supporting large-scale renewable energy
108
Ipakchi and Albuyeh, 2009. For a sedan with a 16 kWh battery, 5000 sedans would equal a capacity of 80000
kWh, equivalent to 80 MWh.
109
Kempton and Tomic, 2005. Vehicle-to-grid power implementation: From stabilizing the grid to
supporting large-scale renewable energy
110
Ibid.

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varies more irregularly and might require more or less storage capacity on any given day

depending on wind intensity. However, storage of energy would operate along the same lines

as with PV, storing energy during periods of excess supply and returning it to the grid during

peak demand. One study indicates that a modernized grid could support a high degree of

intermittent generation, especially wind generation, equivalent to 50% of the current total US

power generation, if a V2G fleet equivalent to 3% of the current LDV fleet was dedicated to

frequency and voltage regulation, along with a V2G fleet equivalent to between 8% and 38% of

the current LDV fleet providing storage.111

Obstacles to Vehicle to Grid Technology

Although V2G offers great opportunities for consumers, utilities and automobile

manufacturers, there are still many technical, economic and social obstacles to the V2G

concept. The major barrier to V2G implementation remains the high cost of batteries and EVs

when compared to conventional vehicles.112 However, the additional cost from adding V2G to a

vehicle, for expenses such as an onboard electric metering system, is around $550, and

therefore not a significant factor in the overall cost of an EV.113

Another problem with V2G is that the excessive cycling of the battery has the potential

to shorten the life of the battery.114 However, the type of “shallow cycling” involved with V2G

regulation, where small amounts of electricity flow in and out of the battery has a much smaller

effect on battery lifetime than does “deep cycle” charging, where a battery 100% discharges. 115
111
Ibid.
112
Romm, 2006.
113
Tomic and Kempton, 2007.
114
Ipakchi and Albuyeh, 2009.
115
Tomic and Kempton, 2007.

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For example, testing on a Saft lithium-ion battery shows a 3,000 cycle lifetime when the battery

is discharged 100%, but shallow cycling of the battery extends the battery lifetime to 1 million

cycle lifetime.116 One battery cycle is equivalent to a full discharge of the battery and

subsequent return to a full charge. Therefore, a 3,000 cycle lifetimes means that the battery is

able to sufficiency hold a charge for the equivalent of 3,000 full charges and discharges, while a

1 million cycle lifetime means that the battery is able to go through the energy equivalent of 1

million full charges and discharges.117 Nevertheless, there is considerable worry in the auto-

industry that V2G could reduce battery lifetime and therefore exacerbate limited range

problems inherent in EVs as well as expose automakers to extra risk due to vehicle warrantees.

Automakers are therefore likely to void warrantees of EVs used for V2G unless something is

done to reduce risk exposure.118

Another obstacle to the implementation of V2G is the possibility that consumers may

opt out of any V2G services. Utility operators will therefore need to assure that EV owners are

adequately compensated for V2G services, in order to assure EVs remain in the program and

the grid retains V2G capacity.119 Furthermore, as seen in the history of hybrid vehicles, and for

energy technologies in general, people are generally very resistant towards technologies they

view as different and untested.120 If EV sales mimic early hybrid sales, EVs demand will initially

be confined to the coasts, rather than the Midwest and Southeast. EVs could thus further be

116
Ibid.
117
Ibid.
118
Interview with Kathryn Clay, 2011
119
NERC, 2010
120
Sovocool and Hirsh, 2009.

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confined to a niche market and make widespread EV deployment and thus V2G more

difficult.121

Principal Findings

Electric vehicles, both PEVs and PHEVs, show enormous promise for reducing carbon

emissions, improving local air quality, and reducing dependence on foreign oil.

 With large public support for goals such as oil independence, along with both

automobile and power industry support, the United States should continue to make

investments in EV research and development, as well as continue to encourage EV

purchases through various incentives.

Vehicle to Grid technology has the potential to solve many of the load issues

surrounding the large-scale deployment of EVs.

 V2G technology would also allow for improvements in power quality and large scale

V2G fleets would be able to support significant expansion of renewable energy in the US

without the need to invest in expensive permanent storage devices. However, using

V2G for ancillary services may be more practical than using V2G for support of

renewables due to the fact that smaller fluctuations in power have a smaller impact on

EV battery life.

 V2G would be profitable for utilities for exploit for regulation and for energy storage,

and these profits could be passed on to the consumer, making EVs more economical for

many American families. Furthermore, with V2G consumers are actually being paid by
121
Fell, et al. 2010

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utilities to charge their cars, rather than simply saving money on gasoline costs. This

may have an oversized psychological effect and make EVs seem more economical to

most families, as people generally consider on hand assets rather than potential savings

when purchasing a vehicle, even though the majority of savings would come from

energy efficiency.

Along with continued investment in EVs, the federal government, automobile

industry, and power industry should increase investment in V2G research and development,

and continue to keep track of charging patterns such as is currently being done with the EV

Project.

 FERC can help promote V2G research by encouraging ISOs to examine the impacts of

V2G for their specific region.

FERC should work with utilities and automakers to establish guidelines and standards

for warrantee sharing between industries.

 If utilities pick up some of the liability for the vehicle warrantee, automakers may be

more willing to allow vehicles to be used for V2G without voiding the warrantee.

FERC should establish non-discrimination rules protecting third parties engaged in

ancillary services.

 Non-discrimination rules would help promote adoption of V2G technology by removing

the uncertainty surrounding utility industry acceptance of the new technology.

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The auto-industry and power industry should work more closely together to promote

V2G as a potential selling point of EVs.

 Along with the current $7,500 federal tax credits and numerous other state and federal

incentives, V2G contracts could be sold to an EV purchaser as part of an overall package

of incentives. Such a V2G contract could instantly shave $1000 off the initial EV

purchasing price for regulation contracts, possibly more if contracts for storage capacity

are included. Initial V2G contracts could also be extended for multiple years, reducing

the initial price of an EV by thousands of dollars. FERC could assist in fostering this type

of cooperation between the two industries by multiple means such as organizing

conferences revolving around V2G technology.

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