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IBM Point of View

 Plug in Vehicles and
 Recharging Infrastructure Implications


 Allan Schurr
 VP Strategy and Development
 Global Energy and Utility Industry




© 2008 IBM Corporation
Big Green Innovations

Smarter Power rethinks the electrical grid and empowers
customers to make intelligent choices about energy use
       Monitoring power                 Real-time line of sight to        Reducing waste and
     everywhere on the grid              energy consumption            greenhouse gas emissions




       INSTRUMENTED                         INTERCONNECTED                      INTELLIGENT

Remote monitoring devices tell        Virtual market-places between    Power grids that use sensors,
when and where faults occur, alert    consumers and providers,         smart meters, pricing, digital
to impending overload condition,      allowing consumers to trade      controls and analytic tools to
and locate inefficiencies are         flexibility in usage for lower   automatically monitor and control
enabling smarter sourcing and         costs.                           two-way energy flow.
distribution of power.

       Confidential Confidential
                  IBM                                                          © Copyright IBM Corporation 2008   2
Big Green Innovations


Plug-in Electric Vehicle (PEV) Current State of Affairs
     Automaker activity ramping up,
      forecasting production levels by 2010
      – 2008: Tesla Roadster, Think!
      – 2009: Fisher Karma
      – 2010: GM Volt, Saturn Vue Green, Toyota,
        Nissan, Mercedes
      – Post 2010: Renault/Nissan, Ford, Volvo,
        Volkswagen,


     Utilities are forming partnerships,
      preparing for pilots
      – SCE/Ford
      – EDF/Toyota
      – Dong Energy/Renault/Better Place
      – Vattenfall/Saab/Volvo


     IBM working with utilities, governments
      and automakers on plug-in car enablement

3      Confidential Confidential
                  IBM                               © Copyright IBM Corporation 2008   3
Big Green Innovations


Behind the momentum…
                                                                                                             Fuel Prices
             Climate Concerns
                                                                                                                                                Consumer Support




                                                             Courtesy: World Resources Institute



                                                                                                                                Courtesy: EIA




    Courtesy: Carnegie Mellon Electricity Industry Center (CEIC)                                                                                                           Courtesy: EPRI




          Utility Grid Pressure                                                                                                                 Government Funding




                                                                                                                               Technology

                                               Courtesy: Rocky Mountain Institute




                                                                                                   Start-Ups Race to Produce 'Green' Cars       A smarter, greener grid



4              Confidential Confidential
                          IBM                                                                                                                        © Copyright IBM Corporation 2008       4
Big Green Innovations


Significant Policy Issues
 Tax Collection
  – What mechanisms will be used to replace lost road and excise tax revenue due to the reduced
    consumption of gasoline or diesel?

 Demand Management
  – Will automakers support systems that allow utilities to manage vehicle recharging (beyond price signals)
    to avoid local and system grid overload?
  – Will the potential buy-back of electricity from the vehicles by the utility be supported?

 Carbon Caps
  – Will utilities be granted a credit against their carbon cap if increased electric sales are displacing carbon
    emissions from gasoline and diesel?

 Interoperability and the Role of Standards
  – What standards are needed to ensure transactional convenience and economy between the cars, the
    grid, the recharge infrastructure, and other enabling technology?

 Incentives
  – What incentives will be available to consumer for the purchase of plug-in cars?
  – Will utilities offer special electric pricing for vehicle recharging, especially discounted off peak pricing?
    Will these be cost based, or subsidized?
  – Will charging infrastructure providers get tax or other incentives to build public infrastructure?


      Confidential Confidential
                 IBM                                                                       © Copyright IBM Corporation 2008   5
Big Green Innovations


Three Charging Infrastructure Scenarios


RESIDENTIAL CHARGING DOMINATES

Easy availability of home infrastructure for likely market results in
buyer self selection, and little demand for public charging


                 PRIVATE PARTY SEEKS ATTRACTIVE DRIVER

                 Not a personal ad, but business operators see driver profile
                 match appealing market demographic and make investments in
                 public charge points. Arms race for charging offers ensues


                                  PUBLIC INVESTMENT APPEALS TO AUTO MAKERS

                                  Lack of convenient home charging, and to achieve energy
                                  security and environmental goals, policy makers encourage
                                  public charging infrastructure, via incentives or direct investment

      Confidential Confidential
                 IBM                                                              © Copyright IBM Corporation 2008   6
Big Green Innovations


Four Key Impact Areas for Electricity Industry


                                         Energy
                         Portfolio       Supply       Wholesale
                         Strategy       Adequacy      Business


                       New Revenues                 Grid & Capacity
                       New Investment     PEV        Management




                          Retail        Customer       T&D
                          Business         Care        Business
                                        Alignment




   Confidential Confidential
              IBM                                                     © Copyright IBM Corporation 2008   7
Big Green Innovations

Key Questions for Energy Retailers, Network Operators, and Integrated Utilities
    Business Model, New Revenue Streams
      Charging facilities construction & management
      Vehicle/battery financing
      Non-discriminatory access and transaction enablement
      CO2 offset measurement and reporting

    System Adequacy and Network Management?
      Generation supply
      Local distribution capacity
      Renewables integration

    Business Process Adaptation?
      Time based pricing and incentives
      Electricity resale program for public charging
      Vehicle sales process and electrical survey at homes

    Systems Readiness?
      Separate metering and TOU billing
      Point of sale and payment systems support
      Roaming
      Confidential Confidential
                 IBM                                          © Copyright IBM Corporation 2008   8
Big Green Innovations


From EPRI, a vision of Plug-in Cars and Smart Grid




   Confidential Confidential
              IBM                         © Copyright IBM Corporation 2008   9
Big Green Innovations


IBM Capabilities and Industry Relationships
                         Retail
                   Point of Sale &                     Telco
                                                                                Financial Svcs
                    Self Service                 Service Provider
                                                                                ATM Solution
                      Solutions                Delivery Environment
                                                                               ATM Environment
                  Real time, efficient               Roaming
                                                                                    Mgmt
                     POS, fixed                     Enablement
                      or mobile
                                                                                             Financial Svcs
                                      Intelligent
                                                                                              Exchanges
  Managed Business                 Transportation                Intelligent
                                                                                            Transformation
   Process Services                     Systems                    Utility
                                                                                             & Optimization
                                    Road charging                 Network
   Billing and Payment                                                                     Trade transactions,
                                 Real time traffic mgmt          Smart Grid
                                                                                              Settlement &
                                   Vehicle comms
                                                                                                Clearing




                                         PHEV Solutions

    Utilities         Automotive          Government         Petroleum          Venture Capital        Transportation


    Confidential Confidential
               IBM                                                                         © Copyright IBM Corporation 2008   10
Thank You



 Aschurr@us.ibm.com
 www.ibm.com/energy




© 2008 IBM Corporation

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Allan Schur Ibm

  • 1. IBM Point of View Plug in Vehicles and Recharging Infrastructure Implications Allan Schurr VP Strategy and Development Global Energy and Utility Industry © 2008 IBM Corporation
  • 2. Big Green Innovations Smarter Power rethinks the electrical grid and empowers customers to make intelligent choices about energy use Monitoring power Real-time line of sight to Reducing waste and everywhere on the grid energy consumption greenhouse gas emissions INSTRUMENTED INTERCONNECTED INTELLIGENT Remote monitoring devices tell Virtual market-places between Power grids that use sensors, when and where faults occur, alert consumers and providers, smart meters, pricing, digital to impending overload condition, allowing consumers to trade controls and analytic tools to and locate inefficiencies are flexibility in usage for lower automatically monitor and control enabling smarter sourcing and costs. two-way energy flow. distribution of power. Confidential Confidential IBM © Copyright IBM Corporation 2008 2
  • 3. Big Green Innovations Plug-in Electric Vehicle (PEV) Current State of Affairs  Automaker activity ramping up, forecasting production levels by 2010 – 2008: Tesla Roadster, Think! – 2009: Fisher Karma – 2010: GM Volt, Saturn Vue Green, Toyota, Nissan, Mercedes – Post 2010: Renault/Nissan, Ford, Volvo, Volkswagen,  Utilities are forming partnerships, preparing for pilots – SCE/Ford – EDF/Toyota – Dong Energy/Renault/Better Place – Vattenfall/Saab/Volvo  IBM working with utilities, governments and automakers on plug-in car enablement 3 Confidential Confidential IBM © Copyright IBM Corporation 2008 3
  • 4. Big Green Innovations Behind the momentum… Fuel Prices Climate Concerns Consumer Support Courtesy: World Resources Institute Courtesy: EIA Courtesy: Carnegie Mellon Electricity Industry Center (CEIC) Courtesy: EPRI Utility Grid Pressure Government Funding Technology Courtesy: Rocky Mountain Institute Start-Ups Race to Produce 'Green' Cars A smarter, greener grid 4 Confidential Confidential IBM © Copyright IBM Corporation 2008 4
  • 5. Big Green Innovations Significant Policy Issues  Tax Collection – What mechanisms will be used to replace lost road and excise tax revenue due to the reduced consumption of gasoline or diesel?  Demand Management – Will automakers support systems that allow utilities to manage vehicle recharging (beyond price signals) to avoid local and system grid overload? – Will the potential buy-back of electricity from the vehicles by the utility be supported?  Carbon Caps – Will utilities be granted a credit against their carbon cap if increased electric sales are displacing carbon emissions from gasoline and diesel?  Interoperability and the Role of Standards – What standards are needed to ensure transactional convenience and economy between the cars, the grid, the recharge infrastructure, and other enabling technology?  Incentives – What incentives will be available to consumer for the purchase of plug-in cars? – Will utilities offer special electric pricing for vehicle recharging, especially discounted off peak pricing? Will these be cost based, or subsidized? – Will charging infrastructure providers get tax or other incentives to build public infrastructure? Confidential Confidential IBM © Copyright IBM Corporation 2008 5
  • 6. Big Green Innovations Three Charging Infrastructure Scenarios RESIDENTIAL CHARGING DOMINATES Easy availability of home infrastructure for likely market results in buyer self selection, and little demand for public charging PRIVATE PARTY SEEKS ATTRACTIVE DRIVER Not a personal ad, but business operators see driver profile match appealing market demographic and make investments in public charge points. Arms race for charging offers ensues PUBLIC INVESTMENT APPEALS TO AUTO MAKERS Lack of convenient home charging, and to achieve energy security and environmental goals, policy makers encourage public charging infrastructure, via incentives or direct investment Confidential Confidential IBM © Copyright IBM Corporation 2008 6
  • 7. Big Green Innovations Four Key Impact Areas for Electricity Industry Energy Portfolio Supply Wholesale Strategy Adequacy Business New Revenues Grid & Capacity New Investment PEV Management Retail Customer T&D Business Care Business Alignment Confidential Confidential IBM © Copyright IBM Corporation 2008 7
  • 8. Big Green Innovations Key Questions for Energy Retailers, Network Operators, and Integrated Utilities  Business Model, New Revenue Streams  Charging facilities construction & management  Vehicle/battery financing  Non-discriminatory access and transaction enablement  CO2 offset measurement and reporting  System Adequacy and Network Management?  Generation supply  Local distribution capacity  Renewables integration  Business Process Adaptation?  Time based pricing and incentives  Electricity resale program for public charging  Vehicle sales process and electrical survey at homes  Systems Readiness?  Separate metering and TOU billing  Point of sale and payment systems support  Roaming Confidential Confidential IBM © Copyright IBM Corporation 2008 8
  • 9. Big Green Innovations From EPRI, a vision of Plug-in Cars and Smart Grid Confidential Confidential IBM © Copyright IBM Corporation 2008 9
  • 10. Big Green Innovations IBM Capabilities and Industry Relationships Retail Point of Sale & Telco Financial Svcs Self Service Service Provider ATM Solution Solutions Delivery Environment ATM Environment Real time, efficient Roaming Mgmt POS, fixed Enablement or mobile Financial Svcs Intelligent Exchanges Managed Business Transportation Intelligent Transformation Process Services Systems Utility & Optimization Road charging Network Billing and Payment Trade transactions, Real time traffic mgmt Smart Grid Settlement & Vehicle comms Clearing PHEV Solutions Utilities Automotive Government Petroleum Venture Capital Transportation Confidential Confidential IBM © Copyright IBM Corporation 2008 10
  • 11. Thank You Aschurr@us.ibm.com www.ibm.com/energy © 2008 IBM Corporation