Electric Cars Need A Smarter Grid February 15, 2011

Auto manufacturers are currently producing plug-in electric vehicles that are safe, affordable and fun to drive.

State and federal governments are encouraging consumer adoption of EVs through generous tax rebates. Consumers will be enticed by federal tax credits of up to $7,500 for each electric vehicle purchased, and California is among one of the few states dangling additional credits for drivers.

For example, the Clean Vehicle Rebate Project offers all California residents, business owners and government entities up to $5,000 for switching to light-duty zero-emission and plug-in hybrid vehicles, and up to $20,000 to businesses that opt for zero-emission commercial vehicles that have been approved or certified by the California Air Resources Board. The rebates are available on a first-come, first-served basis.

A second program, the EV Project, offers free electric vehicle supply equipment such as home-charging stations to individuals in the Los Angeles and San Diego metropolitan areas. It will also cover most, if not all, of the costs of the charger’s installation.

Additionally, the Obama administration has earmarked $400 million in grants to electrify the transportation sector. One goal is to get 20,000 charging stations up and running by the end of 2013.

However, the development and consumer adoption of a smarter electrical grid remains a significant roadblock. Without the addition of advanced communication, automation and information technologies, our current electrical infrastructure can’t optimally support the burden that EVs will bring from a power demand, billing or even cost perspective. EVs and their charging stations will stop short of truly realizing the benefits of personal and public investments.

Charging infrastructure is in early development. The novelty of a few electric cars can be absorbed by the current power system. But as more EVs appear, they could overburden the current power grid if they don’t charge at off-peak times. During peak periods – the time when most people are either getting ready for work or coming home and turning on their biggest appliances – utilities are forced to activate additional, more expensive “peaker plants” to meet demand spikes and deliver the power levels we’ve come to expect. Add in EV charging to peak periods, and it’s possible the existing grid won’t be able to handle the overwhelming demand.

With a smart grid and “time of use” pricing in place, plug-in owners will have incentive to charge car batteries during off-peak hours, when there is more power available and when power is cheaper. It’s more economical for EV drivers to recharge when the power is “on sale” during off-peak periods – as defined by “time-of-use” pricing models, which are enabled by regulation and powered by smart meters.

Smart grid-enabled electric vehicles/charging makes transportation a cleaner, smarter, more efficient part of the future energy equation. The Electrification Coalition, a nonpartisan, not-for-profit group of business leaders focused on deploying electric vehicles on a mass scale, contends that they will help curb the country’s oil intake and reduce greenhouse gas emissions.

If 10,000 gas-powered passenger vehicles were switched to electric vehicles, more than 33,000 metric tons of CO2 emissions could be avoided annually, according to GE research.

“Environmental benefits, coupled with potential cost savings in fuel and tuneups, will lead to increased interest for electric vehicles and potential floor traffic at dealerships,” Chris Ely, the Consumer Electronics Association’s manager of industry analysis, told the popular car website Edmunds.com. “But concerns regarding battery life, charging stations and limited mileage may keep some consumers away until a comprehensive infrastructure is in place.” Partnerships that foster collaboration are needed in standards-based technology development, battery financing, joint fleet electrification programs and consumer awareness.

To alleviate limitations associated with how far drivers can go between charges, EV chargers, like GE’s WattStation, are being launched to support EV use with safety features, credit card readers, smart grid connections and faster refueling times.

Electric cars can provide a jolt as America explores a new energy strategy – but not if consumers feel like they’re riding on empty. Infrastructure investment is critical and Americans need to support the development of a smarter grid and understand its environmental and economic benefits. Only then will we get the most out of an electrified transportation network.

Gilligan is the vice-president for GE’s Digital Energy business, part of GE Energy.

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