PHEVs Are on a Roll by Chris Trayhorn, Publisher of mThink Blue Book, January 1, 2009 The electric vehicle first made its appearance about a century ago, but it is only in recent years – months, to be more precise – that it has achieved breakthrough status as, quite possibly, the single-most important technological development having a positive impact on society today. Climate change, over-dependence on fossil fuels, and the current economic crisis have combined to impact the automobile sector to a degree unforeseen, forcing technological innovation to direct its urgent attention toward the development of electric vehicles as an alternative means of transport, and a substitute for internal combustion engines. Many countries are supporting the approach in their political, energy and industrial planning directed toward the introduction of this type of vehicle. For example, the U.S. has a target of 1 million Plug-in Hybrid Electric Vehicles (PHEV) in operation by 2015. Spain expects to achieve the same number by 2014. It is certainly true that there exist pressures capable of driving the introduction of the PHEV forward, but technological advances are the factors that underpin and give coherence to its development. There are several progressive improvements being made in technology, materials, and power generation and supply, which will support the deployment and use of electric vehicles in the coming years. They include: advances in battery manufacture and electronics (particularly in terms of power); the development of new communication protocols; ever more efficient and flexible information technologies; the growth of renewable energy sources in the electrical energy generation mix; and the concept of smart grids focused on more efficient electricity distribution. All of these improvements are underscored by a much greater degree of passion and personal involvement by the end-user. Stakeholders and Utilities With technology as the underlying catalyst, the scenario for electric vehicle use will include the impact and involvement of various stakeholders. This consists of: society itself, government and municipal entities, regulators, universities and research institutions, vehicle manufacturers, the ancillary automobile industry and its technological partners, battery manufacturers, the manufacturers of components, electrical and electronics systems, infrastructure suppliers, companies dedicated to mediation, billing and payment methods, ICT (Information and Communication Technology) companies, and of course, utilities. If the electric vehicle is to become a genuinely alternative means of transportation, then this will depend on the involvement of, and interrelationship between, the above groups. One example of this is the formalizing of various agreements between certain stakeholders at both the national and international level (for example, Saab, Volvo, Wattenfall and ETC Battery in Sweden; Renault, PSA Peugeot Citroën, Toyota and EDF in France; and Iberdrola and General Motors at a global level) and the establishment of consortiums such as EDISON (Electric Vehicles in a Distributed and Integrated Market using Sustainable Energy and Open Networks) in Denmark. If there is one dimension, however, which will be impacted most throughout the whole of the value chain, it is the electrical one. From power generation to retail, the introduction of this vehicle will require changes in current business models, and foreseeably, in utilities operational models. The short-term aim is to provide electrical energy for use in these vehicles in a more reliable and efficient way. Battery Charging Impact Given that charging could be the action having the greatest impact on the electrical sector, there are various alternatives for affecting this. These include: Substitution. This involves a rapid exchange of vehicles and/or batteries, and the subsequent charging of both in an offline mode. It would require sharing of cars (vehicle usage and substitution) and battery charging stations for quick and automated battery exchange. Direct Charging. This includes regular charging points situated in car parks, shopping centers and residences, and providing battery recharge while the vehicle is parked. There also need to be fast-charging points that could quickly charge a battery in 10 to 15 minutes. To examine the advantages and disadvantages of the above methods, it helps to note the various pilot projects and research programs underway at both the conceptual and demonstration stages. These indicate the possibility of a coexistence scenario. Offline charging could be the least invasive method given the current system of fuel distribution. A network of “electricity stations” (as opposed to petrol stations) could provide a dedicated system of energy generation in a given location. As for direct charging, given the itinerant nature of user demand and his or her expected freedom to choose a particular charging method or location, this introduces an element of greater uncertainty, and impact on the electricity grid, requiring a system that better adapts to the lifestyle of the user. Direct Charging and Its Impact on the Electricity Grid Direct charging depends on various factors – notably battery characteristics (directly related to vehicle performance) and the range of time spans chosen to carry out the recharge. Associated with these are other variables: charging voltage, mode (DC, single-phase AC, and three-phase AC) and the characteristics of the charging systems employed: technology, components and their location, connectors, insulation, and the power and control electronics. All of these variables will influence the charging times, and will vary according to the power input (more power, less time) as shown in Figure 1. Therefore, depending on the kind of recharging, there will be an impact not only on the characteristics of the individual charging points but also on the supporting system. Using extended range electrical vehicles (EREV) such as the Chevrolet Volt or Opel/Vauxhall Ampera as an example, it is estimated that annual home energy consumption from vehicle charging could be around 20 percent of the total, although some studies suggest this amount may be twice as much, based on the customer profile. Based on the charging power input – and this is, of course, related to the methodology employed – it would be possible to fully recharge an EREV battery in about three hours. A fully charged battery would enable operation solely on electrical power for approximately 40 miles, a distance representing about 80 percent of daily car journeys based on the current averages. For a scenario like this it would be possible to use a charging method of about 4 kilowatt/220 volts. If we analyze the impact in terms of energy supply and power capacity, there appears to be no medium-term problems in supporting these chargings, according to the data above. This is, however, a matter which depends on each individual country and also on the power transmission interconnections between them. In terms of the instantaneous power available, the charging method will have a greater or lesser impact, particularly on the distribution assets, depending on how it is carried out. Figure 2 shows how the power varies according to the charging method and the time of day when it is in use, taking into account the daily energy demand curve. We can, therefore, identify different scenarios from the most favourable (slow charging at off-peak times) to the most unfavourable (fast charging at peak times). With the latter we may find ourselves with distribution assets (e.g., transformers) incapable of supporting the heavy load of instant energy consumption. It is necessary to link electric vehicle charging to the daily energy demand curve and instantaneous power availability in such a way that charging impacts the system as little as possible and maximizes the available energy resources. Ideally, there would be a move toward slow charging during off-peak periods. Furthermore, this kind of charging would not impact users as 90 percent of vehicles are not used between 11 a.m. and 6 p.m. Operating under such conditions would also permit the use of excess wind-generated power during off-peak times, enabling a clean locomotion device such as the PHEV to also use renewable (clean) energy as its primary source. This all sounds reasonable, but the itinerant nature of roaming vehicle demand, together with relatively limited battery life, means that other variables such as home charging versus remote charging with the ability to measure consumption and set tariffs must be taken into account. What will be the charging price? How will charging be carried out when the vehicle is not parked at home, nor at its usual charging centre? What method will be used for making payments? Who will be involved in developing all this infrastructure and how will it all interrelate? Smart Charging One system providing answers to these questions is smart charging. Based on the concept, purpose and architecture of the smart grid, such technology can optimise charging in the most favorable way by considering several parameters. These may include: the current state of the electrical system; the battery charging level; tariff modes and associated demand-response models which may be applied (such as time of use, or TOU, tariffs); and the ability to use energy distributed and stored locally through an energy management system. Smart charging would be capable of deciding when to charge in relation to different variables (for example, price and energy availability), and which energy sources to use (in-home energy storage, local and decoupled energy supply, plug-in to the distribution grid, etc.) Supporting the vehicle-to-grid (V2G) paradigm would enable managing and deciding not only when and how to best charge the vehicle, but also when to store energy in the vehicle battery that can later be returned to the grid for use in a local mode as a distributed energy source. For all of this to be effective, a power and control electronics system (in both local and global mode), supported by information systems to manage those issues, is required. This will enable the optimal charging process (avoiding peak times, and doing fast charging only when necessary) and an intelligent measuring and tariff system. The latter may be either managed by utilities through advanced meter management (AMM), or virtually through energy tariffs and physical economic transactions. Such systems should allow for the interaction of various agents: end users, utilities, energy service companies (ESCO), infrastructure providers, banks and other method-of-payment companies. Conclusion Although there are still many unresolved issues around the introduction of electric vehicles (for example, incentives, carbon caps, tax collection, readiness of systems and business processes), the challenge associated with this means of locomotion and its effect on current business systems and models is a fascinating one. From an electrical viewpoint, there would not appear to be any significant impact on energy management in the medium term, but perhaps more so in terms of power requirements. As an example, some regions have adjusted to the massive introduction of air conditioning systems over recent years. While we are reassured as to the viability of electric vehicles, we are also alert to the possible significant impact of widespread vehicle charging, above all when considering a fast charging scenario. The special characteristics of battery charging and its itinerant nature, the predicted volumes of power outlet and energy, the current state of tariff systems, the available technology, and the vision and state of deployment of smart grids and AMM, all add up to suggest a smart charging type of system would be the best option – though certainly complex to implement. Given the prominent role that information and communication technologies will play in such a system, it will be necessary to achieve consensus among various stakeholders over methodologies to be used, standards development, and in establishing a regulatory framework capable of supporting all the mechanisms and systems to be introduced. We have already made good progress, and the electric vehicle could become an example that drives change in other business and technology models. It may well stimulate more rapid development of smart grids, encourage the creation of more efficient energy services and technologies, and lead to greater development and use of renewable energy sources, including a generation and distribution scenario based on the V2G paradigm. It also may open the door to new businesses and stakeholders as well (such as the ESCOs) to introduce more dynamic, interactive demand response programs and broaden the function of battery storage as a provider of spinning reserves and ancillary services. These are all aspects for which it is now necessary to establish a basis for implementation and a short-term viability plan that will allow for the use of this technology with the aim of reaping its recognized benefits. Are we ready to step up to the challenge? Filed under: White Papers Tagged under: Climate Change, Distribution, Enrique Diaz-Plaza, Hybrid and Electric Vehicles, Pricing, Smart Grid, Transmission, Utilities, White Papers About the Author Chris Trayhorn, Publisher of mThink Blue Book Chris Trayhorn is the Chairman of the Performance Marketing Industry Blue Ribbon Panel and the CEO of mThink.com, a leading online and content marketing agency. He has founded four successful marketing companies in London and San Francisco in the last 15 years, and is currently the founder and publisher of Revenue+Performance magazine, the magazine of the performance marketing industry since 2002.