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A giant distributed battery for the country?

Toyota Prius plug-in
Photo Credit geognerd

Having just taken delivery today of my Toyota Prius and having just read the Rocky Mountain Institute’s (RMI) fabulous report on Vehicle to Grid possibilities, I decided it was time to address a post to this topic.

First off, what is vehicle to grid? Vehicle to Grid (or V2G) is the idea that plug-in hybrid vehicles (PHEVs) could be used to help stabilise electrical grids by consuming power when there is an excess of electricity, and selling electricity back to the grid when electricity is scarce.

The supply of electricity is variable. All the moreso as the concentration of renewable sources added to grid increases. When this variability of supply is combined with the constant variability of demand the result is an extremely unstable grid and the occasional resultant power outage. This instability increases with the addition of more renewable sources (wind and solar).

Early on summer mornings (2am to 6am) is the typical trough of demand for electricity. As more and more wind farms are added to the grid, if there is a steady wind blowing at this time, there is a very real possibility that the amount of energy being supplied by wind farms will exceed the demand! With an excess of demand over supply the price for electricity will go extremely low or even negative to stimulate demand. At this time, if there are a large number of PHEVs connected to the grid, they can pull down the excess power and store it. In other words, they start to act like a giant distributed battery bank for the country.

The following day, if there is little wind and the temperature is high (not unusual in summer) the supply of electricity will be low and the demand for power will be high as people turn on their air conditioning units. With low supply and high demand, electricity will now be quite expensive. At this time, it would make economic sense for PHEV owners to sell the electricity stored in their vehicles back to the grid.

Furthermore, as the RMI report put it:

Utilities sell a disproportional amount of their power on hot summer afternoons. At night, business plummets. For the utility, that means their expensive generation and transmission equipment stands idle. “Night-charging” vehicles, therefore, could be a lucrative twist on the business of selling electrons.

The National Renewable Energy Laboratory recently estimated that if half the nation’s light vehicles were ordinary plug-in hybrids they would represent a night-charging market of 230 gigawatts. That’s good news for the U.S. wind industry. In many areas, wind tends to blow harder at night, creating more energy when the vehicles would be charging.

All this requires the implementation of smart grids by utilities. These grids will be able to signal the cost of electricity (reflecting the supply and demand) in real-time and devices (vehicles, air-conditioning units, diesel generators, refrigeration plants) will respond to the price fluctuations accordingly so that when electricity is expensive, the demand will drop and supply will be stimulated to increase.

Smart grid trials are already taking place with Enel in Italy having rolled out a smart grid to 27.2m Italian residences! In the US, Austin Energy has been working on building its smart grid since 2003 while Xcel Energy announced its plans to build the first fully integrated “Smart Grid City” in the nation in Boulder, Colorado.

To get this vision to become a reality, consumers will have to be incentivised to buy PHEVs. This might be done by governments, or by utilities who contract with the vehicle owner to subsidise the price of the car, for the use of the battery when needed!

Governments could help push this forward by mandating that all government owned vehicles be PHEVs (though the police might want a derogation until there are high performance PHEVs!).

Car manufacturers also need to produce PHEVs! Toyota will bring the first plug-in Prius to market in 2009 and Renault Nissan have committed to producing electric vehicles for Israel and Denmark. With oil now at $140 per barrel and not looking likely to drop significantly in the coming years, the number of people looking to buy PHEVs will only trend upwards.

Then there are the environmental benefits of large fleets of cars not emitting CO2 for large portions of their journeys. And the resultant grid stability would enable greater penetration of wind power, producing (typically) more power overnight, just when PHEVs would normally be recharging.

What about you? If you could by a plug-in hybrid which would help stabilise the grid, increase the penetration of renewables, and allow you to sell power back to the grid, would you?

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IEA report paints challenging picture

Nuclear power
Photo Credit mobileart

I read the International Energy Agency’s latest Energy Technology Perspectives 2008 report and it is sobering stuff.

It starts off by outlining what will happen in a business as usual scenario:

Our current path is not sustainable
If governments around the world continue with policies in place to date – the underlying premise in the ETP Baseline scenario to 2050 – CO2 emissions will rise by 130% and oil demand will rise by 70%. This expansion in oil equals five times today’s production of Saudi Arabia.

What is worse, according to the report, despite recognition of the problem, CO2 emissions have grown considerably in recent years.

Higher oil and gas prices result in a rapid switch to coal. Moreover rapid growth in China and India, both coal-based economies, has also contributed to this deteriorating outlook.

Getting CO2 emissions even back to 2005 levels by 2050 will pose massive challenges –

No single form of energy or technology can provide the full solution. Improving energy efficiency is the first step and is very attractive as it results in immediate cost savings. Significantly reducing emissions from power generation is also a key component of emissions stabilisation. But even this is not enough.

However, getting us to 50% of the 2005 emissions by 2050 means that

Total additional investment needs in technology and deployment between now and 2050 would amount to USD 45 trillion, or 1.1% of average annual global GDP over the period”, Mr. Tanaka stressed.
We would need a virtual decarbonisation of the power sector. Given the growing demand for electricity, this would mean that on average per year 35 coal and 20 gas-fired power plants would have to be fitted with CO2 capture and storage (CCS) technology, between 2010 and 2050 at a cost of USD 1.5 billion each. Furthermore, we would have to build an additional 32 new nuclear plants each year and wind capacity would have to increase by approximately 17.500 turbines each year.

32 new nuclear plants every year between 2010 and 2050? Wow! I wonder if the authors have read the Rocky Mountain Institute report on nuclear energy which says

Construction costs worldwide have risen far faster for nuclear than non-nuclear plants, due not just to sharply higher steel, copper, nickel, and cement prices but also to an atrophied global infrastructure for making, building, managing, and operating reactors. The industry’s flagship Finnish project, led by France’s top builder, after 28 months’ construction had gone at least 24 months behind schedule and $2 billion over budget.

Unless something drastic happens in the next few years we will be lucky if our CO2 emissions in 2050 are not higher than they were in 2005. And that has dire implications for the health of the planet.