Electric Vehicles are off the Drawing Board But the Industry Needs the Smart Grid in Place to go Next Mile
Electric vehicles are here to stay, despite their relatively slow adoption in the United States. The importance of that fact transcends technology issues. Transportation is responsible for almost 72 percent of global oil demand and is the largest source of carbon dioxide. In the United States, vehicles account for one-third of all emissions. Though there are ongoing discussions about ending oil dependence, there must be a replacement and an electric vehicle is one option. However, there are two significant drawbacks to greater use of electric vehicles: lack of consumer interest and lack of recharging stations. Building the electric infrastructure for the smart grid is a critical step in weaning the public off conventional vehicles and onto electric models.
The environmental benefits of electric vehicles (EVs) are without question, so why is adoption so slow? There are a myriad of reasons, but at the top of the list is concern about integrating charging stations into the existing electric grid. Utility companies are already dealing with blackouts associated with aging equipment, overload due to population growth and greater use of electronic devices. Adding yet another drain on the electric grid with the addition of electric vehicle service equipment (EVSEs) stations could have disastrous results.
To accommodate the transition to electric vehicles, utility companies will need to ensure the infrastructure is in place, have the ability to manage EV peak loads (expected to be when most people recharge vehicles after work), and ensure transformers are able to handle the extra load of EVSEs. There are other issues, but these get to the heart of the infrastructure problem. Right now, even slow adoption of EV vehicles threatens to degrade the existing grid system further. It is estimated that in many neighborhoods, the addition of just one or two EVs charging at home would lead to transformer overload.
Taking Charge of the Charging
Having a smart grid will give utilities the ability to control when and how EV charging takes place because it incorporates technology-based two-way communication between the EVSE and the grid. Infrastructure upgrades include the EVSEs in homes and free standing stations, transformer monitors, and neighboring meters. At the utility company, demand side management infrastructure (DSM) will be installed. The DSM gives the utility the ability to balance EV charging demands against the other electric demands, enabling better management of electric procurement and distribution. In addition, advanced metering infrastructure (AMI) provides the ability to break out EV charging from other electricity usage amounts. Finally, distribution automation will help the utility company ensure reliable delivery of electricity based on EV demand.
The smart grid is called “smart” because it offers distributed intelligence, and that requires communication equipment. For example, transformers can be fitted with a system able to communicate directly with the EV chargers added to the transformer. The transformer is “smart” because it has the capability of controlling EV charging to avoid electrical overload.
Reaching for the Big Goal
Ultimately, the smart grid should help utilities integrate renewable energy sources into the electric grid to economically manage electric production based on demand. The mass adoption of electric vehicles will require massive changes to add capacity and flexibility in the generation, distribution, transmission, and monitoring systems. If even one-quarter of vehicles driven right now were electric, the current infrastructure would be unable to support their electric needs. The most expensive proposition is the need to expand capacity because it goes beyond adding intelligence and communication abilities.
The opportunities for innovative solution providers and equipment and materials manufacturers and suppliers exist at every stage of the EV and smart grid infrastructure. The technology still has a long way to go. Visionaries foresee the day that EVs will be used as distributed storage devices, feeding stored battery energy back into the grid. The global management consulting firm McKinsey & Company categorizes smart grid opportunities under three business segments: customer applications, AMI metering infrastructures, and smart grid applications. There is a need for enhancements and improvements in hardware and software, information technology systems, telecommunications, semiconductor manufacturing, systems integration, plug-in electric vehicle EV technology, EV battery technology, enablement of renewable energy generation, and grid applications.
DTE Energy, the Michigan gas and electric utility services company, was featured in a previous edition. The company is committed to supplier diversity and has a strong program designed to bring minority businesses into the energy industry. Since the article was printed, the company has launched SmartCurrents, described as an integrated utility smart grid solution. The project will upgrade meters, electrical circuitry and smart home technology. DTE is one of the first U.S. companies to undertake such a huge upgrade. This technology will put DTE Energy on the path to being able to integrate well with EVSE power demands. There will be more projects like these, not just in the U.S., but on a global basis.
The complexity of building the electric vehicle infrastructure for the smart grid may seem a bit daunting. However, it should be interpreted as a call for talented solution providers and suppliers. Electric vehicles and the smart grid are probably two of the most opportunity-filled projects on the horizon. One of the biggest advantages of entering either industry is that suppliers potentially gain access to two markets, effectively doubling opportunities, because the markets are so integrated. For EVs to grow in numbers, the smart grid must grow also.