WASHINGTON D.C.--(BUSINESS WIRE)--Simply “plugging in” one million electric cars could add $750 million in annual wholesale energy costs unless "smart charging" is adopted, according to a joint study conducted by PJM and Better Place, released by Better Place today. Similarly, consumers who choose to leverage time-of-use pricing can see some price relief – less than 10% annually – however; the wholesale energy business would still feel the impact of ad hoc charging.
Conversely, “smart charging” one million electric cars via a central network operator can cut in half the increase in wholesale energy costs compared to simply plugging in or time-of-use pricing while reducing driving costs by one-fifth.
The joint study conducted by PJM and Better Place analyzed the impact of one million electric cars on the MidAtlantic States’ grid. The study modelled the market and pricing impact of one million electric cars and related charging infrastructure. The greater Washington – Baltimore area was selected for modelling because it already experiences transmission congestion issues and is a targeted area for electric vehicle adoption.
“Because of the ad hoc nature and unpredictability of when each electric car would be plugged in, the extra $750 million in annual costs would be borne unequally by market participants and consumers,” said Hugh McDermott, Vice President of Utility and Smart Grid Alliances for Better Place. “With smart charging, a central network operator is able to leverage dynamic wholesale energy prices to optimize the entire fleet’s charging at the lowest possible cost and impact to the grid and the consumer. Our customers and utility partners around the world stand to benefit from smart charging.”
“Smart charging is possible when there’s real-time coordination through a centrally dispatched grid, which will facilitate prioritization and varying charging rates," said Chantal Hendrzak, PJM’s General Manager Applied Solutions. "Flexible load benefits of EV charging are captured more easily by RTO, ISO and Utility operations through integration more directly into existing operations and practices.”
Sam Jaffe, Research Manager at IDC Energy Insights, commented: “Most electric vehicle drivers will want to be able to plug in according to their own needs, but unmanaged charging on a large scale will be costly for everyone—the driver, the utility and the grid operator. A centrally managed model can result in significant cost savings and improved grid stability, without impairing the fueling needs of the EV owners.”
"While many of the advantages of electrification of transport are well known, such as the diversity of domestically available fuels, price stability and spare capacity, the Better Place – PJM study reveals that managed charging can optimize the relationship between EVs and the grid, minimizing capital expenses and maximizing grid reliability," said Robbie Diamond, President and CEO of the Electrification Coalition (EC). "The US should work to maximize these benefits to make EVs a true asset to our economic and national security."
The goal of the study was to demonstrate the value of “EV Network Operator (Aggregator)” that manages EV charging and the impact on the wholesale energy market, production costs and ancillary services. The results of the study have been shared with the PJM TOA-AC (Transmission Owners Agreement Administrative Committee).
A complete copy of the white paper can be found: http://btrp.lc/fXd
About Better Place
Better Place is the electric car network that makes driving more affordable, convenient and sustainable through a revolutionary switchable battery model. Better Place is building the infrastructure and intelligent network to deliver a range of services to drivers, enable widespread adoption of electric vehicles, and optimize energy use. The Better Place network addresses historical limitations to adoption by providing unlimited driving range in a convenient and accessible manner. The company works with all parts of the transportation ecosystem, including automakers, battery suppliers, energy companies, and the public sector, to create a compelling solution. Based in California and privately held, Better Place has operating companies in Israel, Denmark, and Australia. More information is available at http://www.betterplace.com.