IEEE Electrification Magazine - September 2015 - 57

Electric vehicles offer a similar
distributed energy storage opportunity; however, it is one that is just
emerging and will take time to fully
scale. With more than 250 million
light-duty vehicles registered in the
United States, electrifying even a
modest portion of this fleet will
have implications on the amount of
grid-connected energy storage.
In the spring of 2015, 317,000
plug-in electric vehicles (PEVs) have
been registered in the United States
and represent about 0.7% of all new
vehicles sales (for comparison,
hybrid vehicles represent 2.2% of all
new sales). The opportunity to use
this growing resource is emerging
through industry demonstration
projects and collaboration between
automotive manufacturers, utilities,
grid operators, universities, and government agencies.
When PEV sales reach a level similar to today's hybrid
sales, the United States will be adding 2,300 MW of storage
capacity every year, assuming 16 million new vehicle sales
per year and an average PEV charger size of 6.6 kW. At that
level of sales, it would take one decade to double the existing U.S. pumped storage hydro fleet (21,602 MW). While
this level of scale is years away, exploration into the control technology, policy, market rules, and business models
that will enable PEVs as a grid resource should be a priority today. The Electric Power Research Institute has taken a
lead role to coalesce the automotive and electric utility
sectors around a standard communication protocol for
using PEVs as a demand-response resource, allowing utility companies to manage vehicle charging across PEV
brands with a single protocol rather than using a manufacturer-specific channel.

Energy storage
devices may provide
the best resource
for services needed
to maintain grid
reliability in a
scenario where a
large percentage
of generation
will come from
variable resources.

PJM is working closely with NRG
Energy, the University of Delaware, and
the Department of Defense on vehicleto-grid technology, which uses vehicles
as both controllable load and active
power sources for the grid (see Figure 7).
Vehicle-to-grid technology has the
unique advantage of not just being
able to provide grid services to the utility or grid operator, but also the potential to provide backup power to the
home, business, or operating base.

Growing the Market

Nonpumped hydro storage is growing-and fast. The amount of storage
has doubled in the past five years, to
350 MW, and grew 40% last year, adding 62 MW. It is forecasted that an
additional 220 MW will come online
during 2015 and that this industry will
reach a total installed base of 40 GW globally by 2022 [3], [4].
To reach those numbers, costs certainly will need to
decrease, but there are indications that the industry is already
on this trajectory. One example is Tesla Motors' recent public
announcement of the commercial-scale PowerPack, a
100 kWh storage device for US$25,000, which represents a
per kilowatt-hour price below the current market average.
Perhaps equally as important as the decline in cost
numbers will be the transparency with which grid services
are defined and procured. Where market operators, utilities,
and regulators clearly define the services and costs associated with operating the electric system at all voltage levels
and recognize new services needed to operate electric grids
with a high penetration of renewables, energy storage will
be able to compete with traditional resources and, where
cost-effective, bring reliability and value to customers.

For Further Reading
FERC, Office of Energy Projects, Energy Infrastructure
Update, Dec. 2014. Solar Energy Industry Association and
Cleantechnica for "other solar."
"PJM Renewable Integration Study," Executive Summary Rep., Mar. 2014. The 30 percent scenario in which a larger portion of renewables comes from solar PV resulted in
the highest need for additional regulation.
Greentech Media and the Energy Storage Association.
IHS Cera global forecast.

Biographies
Figure 7. BMW Mini-E vehicles charging and discharging in response
to the PJM regulation signal while plugged in. NRG Energy has shown
gross revenue of grid services to be US$150 per vehicle per month.
(Photo courtesy of PMJ.)

Terry Boston (boston@pjm.com) is the president and CEO of
PJM Interconnection.
Scott Baker (scott.Baker@pjm.com) is a senior business
solution analyst and emerging technologies lead at PJM
Interconnection.

IEEE Electrific ation Magazine / S EP T EM BE R 2 0 1 5

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