The electric utility industry is unique because electrons are a commodity, they are used across mediums. Currently there is a lack of economically feasible storage which hinders penetration. For example, corn is easy and cheap to store in large quantities. Electricity requires expensive batteries that wear out over time and are expensive to produce. The grid (in it’s modern state) transports energy but has nowhere to store it, that is why energy is cheaper at off peak times – production (while not remaining constant) but the demand has deceased.
Enter the Electric car as a grid enhancement device. By using onboard energy storage in EV’s (batteries) we can increase energy penetration on the grid as well as utility to consumers and the environment. Through the use of a smart grid peaks and valleys in energy use could be smoothed out and strain reduced on energy production.
Over half of the US states have a renewable portfolio standard (RPS) which requires them to meet a certain level of renewable energy production by a set date. 75% of the renewable energy created last year in the US came from wind. Using the Tesla Roadster or Chevy Volt as a tangible example, the electricity cost for one year to run one of these EV’s on average would be $300-$400 verses gasoline (which fluctuates) costing from $1000-$2000 per year. This according to DTE Energy.
Going back to peaks and valleys in electricity use, the peak occurs around 6pm with a trough at 6am. In order to meet the electricity needs throughout the day in the US different types of energy are used ranging from natural gas, coal, then nuclear and finally hydro (in order of highest percentage used). These energy sources (which are primary today) may soon become backup sources along with grid aware cars storing electrons. This is very important because wind is variable throughout the day and may not be at it’s maximum output at peek demand times ie. 6pm. To illustrate this point, currently in Michigan plugin hybrid cars (PHEV modified Toyota Prius’s) are drawing 10% of the electricity output at peak hours when people get home from work. This could easily be offset to have cars charge later in the night when consumption hits a trough.
DTE is addressing these needs and opportunities by investing in utility uses for energy sources including bulk storage, spinning reserves, frequency regulation, and deferred distribution upgrades. The requirements go from high capacity need to longer availability need. DTE Energy is also doing a vehicle utility interface application and investing in small third-party startups.
