Smart Vehicle to GridSMART V2G ApplicationsWe will be end-users partner in managing their grid connectionINTRODUCTIONThe vehicle-to-grid (V2G) concept has been in existence for nearly two decades.The premise is that plug-in electric vehicles (PEVs) and their batteries represent a mobilepower resource that can be easily upgraded to share power to the benefit of the grid.However, the underlying technologies for V2G have yet to emerge from the pilot projectphase.One potential misuse of the term V2G is as a market or a service.It is not; it is a set of technologies implemented in PEVs to provide services to buildings,utilities, and grid operators, and from there, we will be end-users partner in managing theirgrid connection.The primary purpose for adding V2G technologies is to derive revenue from ancillary serviceswhen the vehicle is not being used for transport. Secondarily, vehicle to building (V2B), focuseson lowering the energy cost of a building or providing emergency backup power.PEVs with V2G technology will play a role in the ancillary services market, which addressesregional power grids’ continual need for stabilization to match supply demand.An increasing demand for power means customers will strain resources, and the higherpenetration of intermittent wind and solar power necessitates greater balancing resources.Consequently, the ancillary services market is expected to grow.V2G vehicles have an advantage over competing centralized generation assets because theycan stabilize the grid at the endpoints closer to demand.Vehicles will compete with traditional generation sources as well as with emergingtechnologies, such as stationary battery storage, for revenue from ancillary services such asfrequency regulation and demand response.
MARKET EVOLUTIONV2G is currently limited to pilot projects scattered around the world.Many of these are part of larger endeavors studying the role of PEVs and wind and solar inplaces where renewable power plays a significant role in the generation mix.These projects are mainly leaded by Independent System Operators (ISO), and the datacollected from these projects could influence plans for commercialization.Investments in V2G by interested parties such as automakers, utilities, and energy aggregatorswill be strongly influenced by the global and regional penetration of PEVs.Dozens of PEVs must be aggregated in a given area to produce sufficient power capacity tointerest grid operators and industry participants are waiting for these vehicles to be in place inample numbers before developing programs.The number of vehicles that could participate in V2G will grow from just over 100,000 lightduty vehicles in 2011 to more than five million in 2017.If PEV sales do not grow as rapidly as expected, V2G investment could be delayed.Source: Pike Research Cumulative Light-Duty PEV Sales by Region, World Markets: 2011-2017The batteries used in plug-in electric vehicles (PEVs) will increasingly be utilized by propertyowners and grid operators to provide a wide variety of energy services.
The power potential of the batteries can be used to reduce the utility costs of a building, orwhen aggregated with other vehicles or stationary energy storage sources, to provide ancillaryservices such as frequency regulation.The expected penetration of PEVs will provide sufficient numbers to compete with stationaryenergy storage and traditional peaking power plants. The additional cost for upgrading PEVs toV2G is considered favorable to the creation of new power generation assets.V2G is currently being tested in pilot projects around the world and will initially be pursued byfleets and large consumers of energy where vehicles have established schedules for beingplugged in.The highest demand for V2G will be in energy markets that are more open to new technologiesand with higher concentrations of intermittent renewable power.Bulk energy storage applications such as storing excess wind energy production at night andreturning the power to the grid during times of higher demand have not been aggressivelypursued due to the potential negative impact of frequent full discharging on the cycle life ofthe batteries.We want to squeeze the market opportunity for V2G technologies to be utilized for demandresponse, vehicle to private and public building and spaces, such as hospitals, airports, trainstations, industrial areas, etc.The strategies of key market participants are profiled, and forecasts are provided for V2G-enabled vehicles and service revenues through 2017.
Nearly 100,000 Vehicles are Enabled with Vehicle to Grid Technologies by 2011By 2011, according to various reports, approximately 90,000 light-duty vehicles and anadditional 1,500 medium/heavy duty trucks are enabled with V2G technologies, creating astrong foundation for V2G-based demand response, vehicle to building, frequency regulation,and other ancillary service applications. “V2G technologies are currently in the early pilot phase, with much work left to do before they will be ready for full commercialization”.“The earliest adopters will be fleet operators and large consumers of energy where vehicleshave established schedules for being plugged in. As the sector develops, V2G will be utilized for an increasing array of grid support services.”The highest demand for V2G, especially in the early years, will be in energy markets that aremore open to new technologies and with higher concentrations of intermittent renewablepower.Investment in V2G by automakers, utilities, and energy aggregators will be strongly influencedby the global and regional penetration of PEVs.Dozens of PEVs must be aggregated in a given area to produce sufficient power capacity tointerest grid operators and industry participants are waiting for these vehicles to be in place inample numbers before developing programs.The number of vehicles that could participate in V2G will grow from just over 100,000 lightduty vehicles in 2011 to more than 5 million in 2017, but substantial investment ininfrastructure and vehicle-based technology will be necessary to enable V2G services on alarge scale. More than 5 million PEV are going to be Enabled with V2G Technologies by 2017However, this whole concept is included and it is part of the city’s overall Low Carbon LivingAgenda, which also encompasses buildings, waste management, smart grids and energyproduction.We’re also seeking to link the provision of on-street and home EV charging points with newways to deliver low carbon mobility, including flexible hire schemes and also working with localemployers to introduce electric cars and vans into their company fleets.
Even as deployments of smart grid infrastructure have accelerated in recent years, the oncehyped home energy management (HEM) market has struggled to gain traction. Numeroustrials have led to only a few cases of industry deployments and to anemic rates of consumeradoption. Today that is starting to change, and over the remainder of the decade momentumwill build in this nascent market. According to a new report from Pike Research, global annualshipments of standalone HEM systems will grow from a quarter million in 2011 to nearly 4.7million in 2020, with a compound annual growth rate (CAGR) of 38.3%. Combined revenue forall HEM segments will grow from a base of $93 million in 2011 to more than $2 billion in 2020,the cleantech market intelligence firm forecasts.“The home energy management market will make steady progress over the coming eightyears,” says senior analyst Neil Strother. “It will be driven by government mandates, utilityprograms, and a growing number of consumers looking to manage their energy bills. Also, acombination of consumer desire to be more ‘green,’ home construction and retrofits withenergy management objectives, and new technologies surrounding plug-in electric vehicleswill help stimulate the market.”HEM products can be viewed in five groups, or segments, along a continuum that moves frompaper bills (a mailed statement from the utility showing a customer’s energy usage as itcompares to households nearby), through standalone HEM systems, which include somedevice-level tracking and automated device control capabilities, up to networked HEM,comprising auto-pricing response capabilities, demand response (DR) load control, and homeautomation controls. Of these, networked-HEM revenue will see the strongest growth (76.8%CAGR), as utilities attempt to drive volume sales of networked HEM systems in order to makeDR and time-of-use pricing schemes feasible.