Electric Vehicle (V2G) Report 2010 - Smart Grid Insights - Zpryme & ZigBee Alliance

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Business & Consumer Insights Have Evolved. | www.zpryme.com | www.smartgridresearch.org

Smart Grid Insights: V2G

This V2G report by Zpryme:

Begins with a global perspective and progresses into high-growth markets such as US, China, Japan, Germany, UK, South Korea, and Denmark

Delves into drivers and trends such as Smart Grid and charging station deployments, renewable energy policy, rising energy costs, auto manufacturer financial viability pressures, universal standard adoption, telematics, and brand loyalty

Explores the role of the battery space, rising cost of fossil fuels, and the Deepwater Horizon Oil Spill

Discloses the actionable insights and opportunities to capitalize and prepare for the V2G market in both the short and long term

Concludes with commentary from the experts in V2G: University of Delaware, Austin Energy, Plug in America, Ford Motor Company, Grid2Home, Electrification Coalition, Coulomb Technologies, Smart Grid Library and ZigBee Alliance

This issue proudly sponsored by:

July 2010

Zpryme would like to extend the kindest regards to the following organizations that contributed to this issue of Smart Grid Insights:

Learn more @

ZigBee Alliance | zigbee.org

University of Delaware | udel.edu/V2G

Austin Energy | austinenergy.org

Ford Motor Company| ford.com

Coulomb Technologies| coulombtech.com

Electrification Coalition | electrificationcoalition.com.org

Grid2Home | grid2home.com

Plug in America | pluginamerica.org

Smart Grid Library | smartgridlibrary.com

Zpryme and ZigBee would like to extend the kindest regards to the following organizations that contributed to this issue of Smart Grid Insights:

― Dear Executives, While BP, government leaders, and Hollywood luminaries such as James Cameron and Kevin Costner have all played a role in finally putting a cap on all three valves in the Gulf of Mexico well Zpryme was sifting through the overwhelming feedback for this month‘s issue. Thank you for the candid outreach - more than half of the requests for this month‘s topic were related to automotive and the ongoing message to shift away from our dependency on fossil fuels; thus it was a natural choice for our firm to select V2G. Also, our current members might have noticed that we did not have an April, May, or June issue; this was for good reason as we bundled April, May, June, and July to make this one of the most comprehensive report on V2G that‘s available to the public. Why V2G? Swelling demand for electric vehicles bundled with environmental conservation and energy efficiency will mean a robust car industry for decades to come. Emerging [EV breeding grounds] like China and South Korea will have a major piece of V2G – as will [automotive nerve centers] such as the US, UK, Denmark, Germany, and Japan. That‘s why it‘s imperative that even at its infancy stage preparation should be made for the next generation of smart vehicles, V2G. Who will produce vehicles that connect to the Smart Grid that consumers will love? Is the development of charging stations growing at the same pace as V2G technology? What members of the Smart Grid ecosystem will get involved to make V2G a reality? What V2G standards will be in place? These questions will help form the auto industry of tomorrow and the energy leaders of today. For now, leadership from experts such as Dr. Willett Kempton and his team at University of Delaware, Coulomb Technologies and the ZigBee Alliance are rising to the challenge to take proactive steps to answer these questions. In brief, 2010 will be a landmark year for next-gen autos and the Smart Grid. Please feel free to email Zpryme your feedback, comments, and suggestions about this month or upcoming issues to [email protected]. Kind Regards,

… [EV breeding grounds] like China and South Korea will have a major piece of V2G – as will [automotive nerve centers] such as the US, UK, Denmark,

Germany, and Japan.

Jason S. Rodriguez CEO & Director of Research Zpryme Research & Consulting, LLC

Table of Contents Executive Summary ........................................................................................................ 1 Background & Scope .................................................................................................... 6

V2G Concept ............................................................................................................. 8 Methodology .................................................................................................................. 9 V2G: Marketplace ...................................................................................................... 12

V2G Factsheet ......................................................................................................... 13 Global Market ......................................................................................................... 14

Vehicle Unit Forecast .............................................................................. 15 Vehicle Market Forecast ........................................................................ 16 Infrastructure Forecast ............................................................................ 17 Technology Forecast .............................................................................. 18 Revenue Forecast ................................................................................... 19 Global V2G Summary ........................................................................... 20

US Market ................................................................................................................ 24 China Market ........................................................................................................... 27 Japan Market .......................................................................................................... 30 Germany Market .................................................................................................... 33 UK Market ................................................................................................................ 36 South Korea Market ............................................................................................... 39 Denmark Market ..................................................................................................... 42

V2G: A Closer Look .................................................................................................... 45

Drivers ....................................................................................................................... 46 Trends........................................................................................................................ 49 The Battery Space .................................................................................................. 51 Insights ....................................................................................................................... 51 Opportunities ........................................................................................................... 52

Experts Plug-in ............................................................................................................. 54 University of Delaware ......................................................................................... 55 Austin Energy ........................................................................................................... 57 Smartgridlibrary.com ............................................................................................. 58 Plug In America ....................................................................................................... 59 Electrification Coalition .......................................................................................... 60 Coulomb Technologies ........................................................................................... 62 Ford Motor Company & Grid2Home ................................................................. 63 ZigBee Alliance ....................................................................................................... 64

| Executive Summary

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Executive Summary The BP Gulf oil spill has confirmed that the global electric vehicle revolution is upon us. In a recent June article by the Baltimore Sun, (US) Brad Heavner State Director at Environment Maryland affirmed, "the catastrophe of the BP oil spill in the Gulf of Mexico is making it more clear than ever that we need to work harder to reduce our dependence on oil … the US Senate must pass a comprehensive global warming bill that caps emissions and invests in clean energy options, including electric vehicle technology." Similar sentiment was echoed by Loyola de Palacio, Vice-President of the European Commission and Commissioner responsible for energy and transport, ―during the next few decades, the dependency on imported energy sources into the EU will increase substantially and it is likely that the flow of this energy will increasingly depend on the political and economic stability of the oil and gas producing regions.‖ EVs are becoming increasingly more marketable, because they appeal to a wide spectrum of consumers. There will be more drivers in the market for electric cars in the next two years than the projected supply from production lines, according to results from a poll by Ernst & Young. More than 25% of the 4,000 drivers surveyed across the US, Europe, China and Japan said they would consider buying an electric vehicle. There are many types of consumers considering purchasing an EV: the environmentally conscience who value zero emissions and alternative fuel sources, the economically driven who are attracted to minimal vehicle depreciation and fuel savings, and movers-and-shakers who are drawn to the immersive in-car experience and stylish exterior. Collectively, these are the same consumers that will be owners and evangelists for the next generation of vehicles, V2G (Vehicle to the Grid).

What is V2G? A V2G vehicle is one that can connect, communicate, and sell demand response services to the grid. As a result, consumers will become independent of the gas pump while receiving financial compensation for their actions. To help lay this groundwork for V2G, Delaware (US) passed a law in 2009 requiring utilities to compensate electric car owners for power sent back to the grid at the same rate

they pay to charge the battery. The consumer-reward model will play a major role in the aggressive development of V2G. At the helm of V2G (and often referred to as the Father of the Vehicle-To-Grid) is Dr. Willett Kempton and his team of graduate students at The University of Delaware where they are focused on making this automotive technology a mainstream reality. V2G is still is in its infancy stage, however because of the strides made by Dr. Kempton and his team it is increasing its footprint in the US and even Europe. "Ten years ago, this was just a plan. Today, it's a real project and in ten years, we'll be producing tens of megawatts of power this way," said Dr. Kempton, back in February of this year at the annual meeting of the American Association for the Advancement of Science.1

So how can the automotive, power, and technology industries get closer to engaging the V2G model? V2G is in an early stage, which means companies such as auto, Smart Grid technology integrators and telematic manufacturers can prepare themselves for market entry by closely monitoring government legislation, standards, Smart Grid and charging station rollouts, and security.

The V2G marketplace is positioned for explosive growth as consumers refine their relationship with their vehicle and manufacturers become creative with application of Smart Grid technologies within vehicles. As more charging stations roll out automakers from Nissan to GM to Tesla will prepare for production of more EVs, inevitably setting the V2G stage.

V2G Marketplace (projections developed by Zpryme) V2G Units: From 2015 to 2020, global V2G vehicle unit sales are projected to grow from 103,900 to 1.06 million, respectively. The V2G vehicle unit sales compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 59.0 percent.

1 Discover News, New Electric Car Pays For Itself, Karin Zeitvogel, February 19, 2010

1.056 million (V2G Units)

V2G Marketplace Executive Summary Background & Scope Methodology V2G Marketplace V2G: A Closer Look Experts Plug-in



V2G Vehicle Market Value: From 2015 to 2020, the global V2G vehicle market value is projected to grow from $3.2 billion to $26.6 billion, respectively. The V2G vehicle market value CAGR from 2015 to 2020 is projected to be 53.1 percent. V2G Infrastructure Market Value: From 2015 to 2020, the global V2G infrastructure market is projected to grow from $659.9 million to $6.7 billion, respectively. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 58.9 percent. V2G Technology Market Value: From 2015 to 2020, the global V2G technology market is projected to grow from $1.5 billion to $10.5 billion, respectively. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 46.8 percent. V2G Total Revenue: From 2015 to 2020, global V2G grid revenues are projected to grow from $284.4 million to $2.9 billion, respectively. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 63.5 percent. Drivers and Trends V2G technology advancement and adoption will be driven by global

Smart Grid deployments, renewable energy policy, rising energy costs, consumer and business environmental awareness, green stimulus packages, a reduction in the price for V2G vehicles, strong HEV/PHEV demand, auto manufacturer financial viability pressures, and a move towards universal standard adoption. V2G trends will be motivated by telematics, brand loyalty, charging station deployments, and the ongoing rollout of the Smart Grid. Collectively, these factors will be the gel that will shape V2G consumer adoption and encourage new entrants to compete in this space. The Battery Space For the automotive industry, securing access to high-quality, cost-effective rechargeable batteries that inspire consumer confidence in ‗range anxiety‘ is crucial for future success in the V2G arena.2 Insights and Opportunities

For the next five years the market for residential charging stations will provide a greater opportunity than commercial charging stations

Japan's current leadership in the EV space will position the nation to pioneer the next generation of V2G for the mainstream consumer

The hardware/software industry is relatively untapped in the V2G space, but companies such as AC Propulsion and Azure Dynamics are two that have established footprints in this industry

Environmental catastrophes such as the BP oil spill are playing a significant role in how consumers will gradually minimize their fossil fuel dependency

Currently, there are only a small handful of players developing V2G hardware and software, leaving this space easily accessible for new entrants and partnerships

2 Wall Street Journal; Toshiba, Mitsubishi Motors Developing Electric Car Batteries; Juro Osawa and Yoshio Takahashi, July 2, 2010.

$26.6 billion (V2G Vehicle Market Value)

$10.5 billion (V2G Technology Market Value)

$6.7 billion (V2G Infrastructure Market Value)

$2.9 billion (V2G Total Revenue)

Executive Summary Background & Scope Methodology V2G Marketplace V2G: A Closer Look Experts Plug-in Executive Summary Background & Scope Methodology V2G Marketplace V2G: A Closer Look Experts Plug-in



― ― ― ―

― ― ―

―

Experts Plug-in: Quotes Worth Noting

University of Delaware

Business models for how to use this colossal energy storage resource practically and profitably will be coming up like mushrooms after the rain.

Austin Energy

Austin Energy predicts that they may have up to 30,000 PHEVs in 2015 and 190,000 in 2020.

Smart Grid Library

When an EV fulfills transport and mobile storage functions, its value as an owner asset appreciates enormously.

Plug In America

There are no natural incentives for automakers to initiate V2G… incentives must be created..

Electrification Coalition

The biggest challenge for V2G applications is getting cars on the road and making sure they meet consumers’ needs..

Coulomb Technologies

Our market is limited now to people who will buy stations in anticipation of the cars… that problem will be gone in a year and it will be all about how fast we can scale.

Ford Motor Company & Grid2Home

The biggest challenge for the industry will be to ensure interoperability between independently developed and supplied equipment. in t

ZigBee Alliance

The advent of grid-enabled vehicles extends the control consumers have over their energy usage, and provide one of the biggest bang-for-buck impacts on the environment.

Executive Summary Background & Scope Methodology V2G Marketplace V2G: A Closer Look Experts Plug-in



―


V2G Vehicle Share of Global Vehicle Market

V2G Vehicle Share of Global Vehicle Market

10

20

30

40 50 60

70

0

80

0

8 1 . 2

20

60

10

30 40

50

70

80

90

0

90

Although V2G vehicles are expected to see strong growth from 2015 to 2020, these next-gen autos will [only account for 1.2%] or [12 out of 1,000 vehicles] of the global vehicle market space by 2020.

V2G Share of Global Vehicle Annual Sales, 2015* Global Vehicle Unit Sales = 81.2 million

V2G Share of Global Vehicle Annual Sales, 2020* Global Vehicle Unit Sales = 89.4 million

Global Share of All Vehicle Types, 99.9%

V2G Vehicle Share of Global Vehicle Market, 0.1%

Global Share of All Vehicle Types, 98.8%

V2G Vehicle Share of Global Vehicle Market, 1.2%

Zpryme *Source: Global V2G forecast by Zpryme; global automotive forecast by A.T. Kearney

8 9 . 4 M

M



s

| Background & Scope



Background & Scope

Vehicle-to-Grid (V2G) Definition

The following definition of V2G has been taken from Mid-Atlantic Grid Interactive Cars Consortium (MAGICC), a research partnership between University of Delaware, Pepco Holding, Inc., PJM Interconnect, Comverge, Inc., and the Atlantic County Utilities, Authority (ACUA).

V2G technology utilizes the stored energy in electric vehicle batteries to contribute electricity back to the grid when the grid operators request it. Revenue from V2G will reduce the customer cost of electric vehicles; it will also increase the efficiency and reliability of the existing grid today by decreasing petroleum use and creating a much larger share of intermittent renewable energies such as wind and solar in the future. V2G allows electric-gasoline hybrids or fully-electric vehicles to provide power back to the grid. Electric-drive vehicles, whether powered by batteries, fuel cells, or gasoline hybrids, contain the energy source and power electronics capable of producing the 50 Hz or 60 Hz AC electricity to power our homes and offices. The key to realizing economic value from V2G is making the power available without compromising the driving requirements of a single vehicle owner, yet meeting the time- critical "dispatch" needed by the electric distribution system.

Using V2G technology, the cost of such storage can be shared between the electrical system and the transportation system, making it economically more efficient. Using IP or broadcast protocols, utilities grid operators can ―talk‖ to plugged-in cars, buy electricity from car owners when it is needed, and sell it back when demand is lower.

Expected results

Increased reliability and efficiency of existing electric grid. V2G cars can take reduce over-loaded distribution feeders when energy demands are high. They can supplement or replace spinning reserves and provide regulation as demand

fluctuates at a much faster ramp rates than any existing generation.

Provide electrical storage to allow increased use of intermittent renewable energies such as wind power and photovoltaics. Up to a certain percentage of generation, the fluctuations of wind and solar are handled by today‘s grid management. To displace large fractions of fossil generation, electrical storage will be needed. Fleets of V2G-capable vehicles constitute such a system, capable of holding MWs of electricity for later use.

Elements needed for V2G

A plug-in car - Either a plug-in hybrid or pure electric will work. The economic value of V2G is proportional to kW capacity of the power plug.

Control Signal from the electric grid - In most areas of the US, the Independent System Operator (ISO) provides an electronic signal to request frequency regulation, reserves, and other forms of fast-response, high value power. Additionally, a local utility may want to signal for other V2G services, such as peak load shedding or relief on targeted parts of the distribution system.

Computing to mediate driver and grid needs - There must be intelligent mediation between driver and grid operator needs.

Market Definitions

For each of the projections, the expected manufacturer selling prices have been used to calculate the market value. All figures are stated in US nominal dollars. Also, some percentages may not add up exactly to 100% due to rounding.

V2G vehicles: for the purpose of this report, a V2G vehicle is one that can connect, communicate, and sell demand response services to the grid. A vehicle with grid capacity can be a Battery Electric Vehicle (BEV) or a Plug-in hybrid electric vehicle (PHEV). Vehicle units sold are




expressed in annual units. Cumulative V2G vehicles on the road are not reported. V2G vehicles are produced and sold by automobile manufactures to dealers or directly to large commercial and public customers.

V2G vehicle market value: the V2G vehicle market value is the aggregate of expected annual revenues received by automobile manufactures for the sale of V2G vehicles (wholesale values).

V2G infrastructure: without the proper infrastructure in place, the V2G market will not get very far. The infrastructure in this report refers only to infrastructure that will support V2G vehicles. Infrastructure comprises of residential charging stations, commercial/public charging stations, distribution systems upgrades to the grid, software and systems, equipment, and data storage.

V2G technology: V2G technology is comprised of the key components an automobile manufacture must place into a vehicle to produce a V2G vehicle. Without these key components (V2G technology), a vehicle cannot communicate with the grid and/or sell demand response services. Software and system vendors and equipment manufacturers are expected to sell these components to automobile manufactures. However, system operators, utilities, and V2G vehicle owners will need to purchase and install some of these components as well. In this report, V2G technology is broken into 3 components or segments:

Drive systems (power electronics unit): the drive system is the most expensive component among the key V2G technology components. The drive system operates as a DC-AC inverter and enables bi-directional power to flow from the vehicle to the grid. Drive system innovation and evolution is critical to increasing adoption of V2G technology.

Software and communication systems: for example, ZigBee Smart Energy and HomePlug enable the two-way communication between the grid and the vehicle. Further, they allow monitoring, scheduling, and analysis of charge times and

demand response programs associated with the vehicle or vehicles.

Equipment: this equipment such as computers, networking equipment, cabling, processors, and circuits that allow for the execution, management, reporting, and processing of V2G tasks.

V2G grid revenues: V2G grid revenues are the aggregate total of the expected payments made to all V2G vehicle owners. Payments are made to V2G vehicle owners by grid operators or utilities for the sales of their ‗grid power‘ in the vehicle back to the grid.

The five categories symbols in this report are:

V2G vehicle unit

V2G vehicle market value

V2G grid revenue

V2G technology

V2G infrastructure

Forecast period: the forecast period for this report is 2015 – 2020. This period was arrived at after a thorough review of V2G literature, public PHEV and EV reports, and from industry expert interviews. Although views sometimes varied widely on when the market will be fully developed, the consensus view of our research showed that 2015 is a viable target date for formal market development. The period from 2010 to 2015 is seen as the testing and demonstration phase (market infancy). See the Methodology in this report for a list of the key reports, studies, and sources used in developing the forecast period.

Geographic coverage: This report showcases the projected Global market values from 2015 to 2020, and the projected market for the US, UK, China, Denmark, South Korea, Japan, Germany, and the Rest of the World (ROW) from 2015 to 2020.




V2G Concept

Power Grid

Battery

Hybrid

Fuel Cell

Petroleum

Fossil Biomass

Electrolysis Ect.

V2G Concept The V2G concept is that battery, hybrid, and fuel cell vehicles all can send power to the electric grid, power that all three already generate internally. For battery and plug-in hybrid vehicles, the power connection is already there. For fuel cell and fuel-only hybrids, an electrical connection must be added. Orange arrows indicate electric flow from vehicles to the grid (Source: University of Delaware V2G Research Group, learn more at www.udel.edu/V2G/concept).




Methodology

| Methodology



Methodology

The projections presented in the report were derived through rigorous analysis and evaluation of the BEV, PHEV, Hybrid, and Next Generation Vehicle markets. Further, heavy investigation into the Smart Grid industry was analyzed as the Smart Grid is considered a main driver of growth for V2G technology. Last, infrastructure development and projected deployments were assessed to identify the feasibility of a market to support the projected number of V2G vehicles. The seven points below provide an overview for the inputs for the projections in this report.

1. Historical data and market performance: Historical data on Hybrid and next generation vehicle sales in the countries covered in this report and around the globe were analyzed to identify growth modes and expected unit sales at the market entry phase and market development phase. Once forecasts were produced, the data were used to test the validity of the growth in units and the annual compound growth rate in specific markets.

2. Establishing market forecast period: The forecast period of 2015 to 2020 was arrived at after examining and studying the expected development of PHEV and EV market and the reduction in costs of V2G technology. The reports listed below were critical to developing the projections and forecast period.

Electric Vehicles in the United States – A New Model with Forecasts to 2030, Center for Entrepreneurship & Technology (CET) Technical Brief

Technology Roadmap – Electric and plug-in hybrid electric vehicles, International Energy Agency

Assessment of Plug-in Electric Vehicle Integration with ISO/RTO Systems, KEMA, Inc and the ISO/RTO Council

Plug-In Hybrid Electric Vehicle Value Proposition Study – Interim Report: Phase 1 Scenario Evaluation, Sentec, Inc. (funded by the US Department of Energy Vehicle

Technologies Program and the DOE Office of Electricity Delivery & Energy Reliability)

A Test of V2G for Energy Storage and Frequency Regulation in the PJM System, William Kempton et al.

Annual Energy Outlook 2010 – 2007 to 2035 Projections, US Energy Information Administration

3. Forecast model: Time series forecasting was used to derive the projections in this report. Using the historical sales data from hybrid and next-generation vehicles (alternative fuel vehicles), projections were forecasted for each country and the ROW starting with 2015 as the base period. Thus, our projections assume V2G market penetration will follow a growth trajectory path similar to hybrid and next-generation vehicles. The summation of the forecasts formed the global market in each respective forecast. The key forecast, which formed the basis for all other projections, was the V2G vehicle unit forecast. Econometric modeling was used to establish a price – demand relationship of the increase in sales with respect to the expected price of a V2G vehicle. This relationship further contributed to our expected decrease in the costs to produce V2G vehicles for automobile manufactures.

4. Costs, price, Smart Grid, and infrastructure considerations: Reductions in cost and the price of the V2G vehicles to consumers are expected to fall as the market expands. However, significant cost and price reductions are not expected until the market development phase begins. Unit purchase incentives and penetration of hybrids was also taken into consideration. Affordability by main stream consumers is not likely to occur until 2020. Additionally, stated Smart Grid deployments are expected to remain ‗on schedule‘ and thus be able to support the integration of V2G vehicles. Key basic infrastructure such as charging stations is expected to be built in conjunction with planned BEV and PHEV programs for utilities and governments. In other words, static V2G technology capabilities will exist instead of dynamic V2G technology. For example, dynamic V2G technology would mean a V2G vehicle could charge and sell back to the grid from anywhere a




charging station is available while static means this can only happen from a fixed station pre-determined by a utility or ISO.

5. Automobile manufacturer BEV and PHEV model announcements: In 2009 and 2010, major automobile manufacturers such as Ford, Toyota, and Nissan announced EV, Hybrid, and PHEV models or potential models and made EVs and PHEVs a key to their future growth. Although none have formally announced a V2G vehicle, it is safe to assume that they will soon offer such vehicles once a viable market opportunity is clearly present. Thus the BEVs and PHEVs in their portfolio offer a natural transition to V2G enabled BEVs and PHEVs.

6. Explicit government BEV and PHEV targets and programs: The seven governments in this report have set aggressive targets for BEVs and PHEVs in their respective countries. These targets provided key data regarding optimal penetration for BEVs and PHEVS. Further these announcements gave support for the expected cost and end-user prices due to economies of scale. Announced targets for each respective government are discussed in the market projections for each country in this report.

7. Other key assumptions: Global economic growth remains relatively steady and stays on trend, especially growth in Asian markets. Additionally, our analysis assumes no global imbalances, recessions, or geopolitical crises occur. Next, consumer demand in each respective country is driven by upper-income buyers while fleet demand driven by the commercial and public sector. Finally, rising costs of gasoline are expected to follow the trend predicted by the US Energy Information Administration.




V2G: Marketplace

Solomon Islands Mexico Luxembourg Eritrea Portugal Bahamas Greenland

Moldova Tonga Niue Sao Tome and Principe Somalia Netherlands Antilles

Saint Lucia Trinidad and Tobago Congo Democratic Republic of the (Zaire)

Malawi Anguilla [United States] Nauru New Caledonia (French) Slovakia

Tokelau French Guiana Christmas Island Lithuania Bouvet Island Maldives

Botswana Chad [Denmark] Liechtenstein Equatorial Guinea Guadeloupe

(French) Benin Cuba Svalbard and Jan Mayen Islands Hungary Armenia Bolivia

Canada Northern Mariana Islands Nigeria Russia Bosnia-Herzegovina Egypt

Algeria [China] Brazil Sri Lanka Palau Saint Pierre and Miquelon Niger

Zambia Dominican Republic Mozambique Malta Saint Helena Saudi Arabia El

Salvador Mauritania [United Kingdom] Suriname Israel Uruguay Cyprus

United Arab Emirates Slovenia Polynesia (French) Norway Grenada Belgium

Bhutan San Marino Andorra [Germany] Syria Greece Cameroon Argentina

Brunei Liberia [South Korea] Guinea Montenegro Thailand Sudan Saint

Kitts and Nevis Panama Morocco Albania Jamaica India Bahrain Jordan

Bermuda Singapore [Japan] Chile Turks and Caicos Islands Falkland Islands

Taiwan Turkey Cocos (Keeling) Islands Estonia Iraq Hong Kong Mauritius Macau

Costa Rica Colombia Lesotho Vanuatu Tuvalu Zimbabwe Comoros Kazakhstan

V2G: Marketplace



V2G Factsheet

Country Units Market Infrastructure Technology Revenue

Global

1,056 $26.6 $6.7 $10.5 $2.9

US

296 $8.1 $1.8 $2.8 $.654

China

294 $6.5 $1.8 $2.8 $.521

Japan

188 $4.4 $1.2 $1.8 $.735

Germany

62 $1.6 $.377 $.587 $.587

UK

45 $1.3 $.277 $.432 $.323

South Korea

30 $.72 $.175 $.283 $.053

Denmark

13 $.038 $.081 $.126 $.093

thousands US billions US billions US billions US billions

Global V2G Market Factsheet 2020


Source: Zpryme



Global Market

1.056 million (V2G Units)




$2.9 billion (V2G Total Revenue) Smart Grid Cloud

Spanish utility Iberdrola has selected Itron for the first phase of its smart metering program (The initial deployment will see the delivery of 100,000 meters to the Spanish city of Castellon). Aruba Networks, has agreed to acquire Azalea Networks for $40.5M in a cash and stock deal. Telvent to implement Smart Grid project for Maharashtra India (The cost of the program is approximately $10.3B). Coulomb Technologies, which started installing 4,600 charging stations under its $37M ChargePoint America program, will also be providing 1,800 home charging points to Chevrolet Volt customers. OG&E to spend up to $366.4M on Smart Grid deployment to the rest of its Oklahoma service area by the end of 2012 (other agreement puts OG&E in line to receive $130 in stimulus funds from the US government for the project). EPRI and the Tennessee Valley Authority (TVA) are collaborating for a prototype integrated solar-assisted electric vehicle charging station that will be erected at the institute‘s Knoxville, Tenn., research laboratory. EnergyAustralia, will lead a $100 million "Smart Grid, Smart City" project in the state of New South Wales that will begin later this year. The project will be a little bit of everything when it comes to Smart Grid, from substation automation and charging stations for electric vehicles to home area networks and time-of-use pricing. Sensus, claims more than 7M advanced meter endpoints at water, gas and electric utilities across the United States and Canada. Energate, an Ottawa clean technology startup has raised $7.2M in venture capital funding to drive sales of Smart Grid technology aimed a reducing energy consumption in the home. ENMAX and Cisco are co-developing a Smart Grid power system in Calgary, Canada (The agreement is part of the power provider's plan to move to a more high-tech service model - coined "Utility 2.0").

Global V2G Market 2020


Source: Zpryme



Vehicle Unit Forecast

2015 2016 2017 2018 2019 2020

Denmark 1,591 2,902 4,413 6,434 9,599 13,202

South Korea 2,998 5,562 8,893 13,754 19,856 29,622

UK 4,185 7,303 14,290 24,195 32,930 45,221

Germany 6,493 11,793 19,166 31,097 42,985 61,486

ROW 18,963 45,626 65,325 92,240 132,019 129,369

Japan 18,914 58,133 87,734 125,319 150,834 187,642

China 14,414 33,559 59,205 101,948 170,886 293,922

U.S. 36,082 64,331 104,216 147,986 207,181 296,268

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Global V2G Vehicle Unit Forecast 2015 - 2020 | Compound Annual Growth Rate = 59.1%

103,641

229,209

1,056,732

766,289

542,974

363,241

Closer Look: From 2015 to 2020, global V2G vehicle unit sales are projected to grow from 103,900 to 1.06

million, respectively. The V2G vehicle unit sales compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 59.0 percent.


Source: Zpryme



Vehicle Market Forecast

2015 2016 2017 2018 2019 2020

Denmark $0.1 $0.1 $0.1 $0.2 $0.3 $0.4

South Korea $0.1 $0.2 $0.2 $0.4 $0.5 $0.7

UK $0.1 $0.2 $0.4 $0.7 $0.9 $1.3

Germany $0.2 $0.4 $0.6 $0.9 $1.2 $1.6

ROW $0.6 $1.4 $2.0 $2.7 $3.8 $3.6

Japan $0.5 $1.6 $2.3 $3.2 $3.7 $4.4

China $0.4 $0.9 $1.5 $2.4 $3.9 $6.5

U.S. $1.1 $2.0 $3.1 $4.3 $5.8 $8.1

$0

$5

$10

$15

$20

$25

$30

Global V2G Vehicle Market Value Forecast2015 - 2020 | Compound Annual Growth Rate = 53.1% | (US millions)

$3.2

$6.7

$26.6

$20.1

$14.8

$10.3

Closer Look: From 2015 to 2020, the global V2G vehicle market value is projected to grow from $3.2 billion

to $26.6 billion, respectively. The V2G vehicle market value CAGR from 2015 to 2020 is projected to be 53.1 percent.


Source: Zpryme



Infrastructure Forecast

2015 2016 2017 2018 2019 2020

Denmark $10.0 $18.1 $27.4 $39.8 $59.1 $81.0

South Korea $18.8 $34.4 $54.4 $82.4 $117.5 $175.1

UK $26.2 $45.6 $88.8 $149.6 $202.8 $277.3

Germany $40.7 $73.6 $119.1 $192.3 $264.7 $377.1

ROW $129.0 $290.5 $373.1 $484.0 $641.6 $1,005.3

Japan $118.6 $362.8 $545.0 $775.1 $928.9 $1,150.7

China $90.4 $209.4 $367.8 $630.6 $1,052.4 $1,802.4

U.S. $226.2 $401.4 $647.4 $915.3 $1,275.9 $1,816.8

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

Global V2G Infrastructure Forecast2015 - 2020 | Compound Annual Growth Rate = 58.9% | (US millions)

$659.9

$1,435.8

$6,685.7

$4,543.0

$3,269.3

$2,223.1

Closer Look: From 2015 to 2020, the global V2G infrastructure market is projected to grow from $659.9

million to $6.7 billion, respectively. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 58.9 percent.


Source: Zpryme



Technology Forecast

2015 2016 2017 2018 2019 2020

Denmark $24.3 $40.2 $55.7 $73.9 $100.5 $126.1

South Korea $45.7 $77.1 $112.2 $158.0 $207.9 $283.0

UK $63.8 $101.3 $180.3 $278.0 $344.8 $432.0

Germany $99.0 $163.5 $241.8 $357.3 $450.1 $587.4

ROW $242.5 $540.6 $618.0 $732.5 $1,123.5 $1,589.9

Japan $288.4 $806.0 $1,106.8 $1,439.7 $1,579.5 $1,792.6

China $219.8 $465.3 $746.9 $1,171.2 $1,789.4 $2,808.0

U.S. $550.2 $891.9 $1,314.8 $1,700.2 $2,169.5 $2,830.4

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

Global V2G Technology Forecast2015 - 2020 | Compound Annual Growth Rate = 46.9% | (US millions)

$1,533.9

$3,086.0

$10,485.3

$7,765.3

$5,910.7

$4,376.4

Closer Look: From 2015 to 2020, the global V2G technology market is projected to grow from $1.5 billion to

$10.5 billion, respectively. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 46.8 percent.


Source: Zpryme



Revenue Forecast

2015 2016 2017 2018 2019 2020

South Korea $4.8 $9.0 $14.8 $23.5 $34.8 $53.2

Denmark $10.9 $20.0 $30.6 $44.9 $67.3 $93.0

ROW $27.4 $67.0 $97.6 $140.2 $204.1 $203.4

Germany $32.0 $58.8 $96.7 $158.5 $221.6 $320.4

UK $17.0 $33.2 $72.6 $137.8 $210.0 $323.0

China $20.8 $50.5 $92.9 $166.7 $291.1 $521.7

U.S. $72.2 $131.2 $216.9 $314.1 $448.5 $654.2

Japan $63.3 $200.9 $312.8 $461.2 $572.8 $735.4

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

Global V2G Revenue ForecastRevenues Generated from Selling Regulation &

Spinning Reserve*2015 - 2020 | Compound Annual Growth Rate = 63.5% | (US millions)

$284.4

$570.7

$2,904.2

$2,050.1

$1,446.8

$934.9

Closer Look: From 2015 to 2020, global V2G grid revenues are projected to grow from $284.4 million to

$2.9 billion, respectively. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 63.5 percent.


Source: Zpryme

*Benchmarks for expected payments from grid sales received by V2G vehicle owners are based on averages presented by studies conducted by the University of Delaware and PJM Interconnect, the FERC‘s ‗Cash Back Hybrid‘ presentation, and the United States Postal Service‘s Electrification of Delivery Vehicles Feasibility Study

Report.



Global V2G Summary

Global V2G Vehicle Units From 2015 to 2020, global V2G vehicle unit sales are projected to grow from 103,900 to 1.06 million, respectively. The V2G vehicle unit sales compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 59.0 percent.

In 2015, the US, Japan, and China are projected to dominate the V2G vehicle market, accounting for 34.8 percent, 18.2 percent, and 13.9 percent of the global V2G unit sales, respectively. In 2020, the V2G vehicle unit market share of the US, Japan, and China are projected to be 28.0 percent, 27.8 percent, and 17.8 percent, respectively.

In 2015, the collective V2G vehicle market share of Germany, the UK, South Korea, and Denmark are projected to account for 14.7 percent of global V2G unit sales. In 2020, the collective V2G vehicle unit market share of Germany, the UK, South Korea, and Denmark are projected to account for 14.2 percent of global V2G unit sales.

From the 2015 to 2020, V2G vehicle unit sales in China, the UK, Japan, and South Korea are projected to grow the fastest among the seven countries covered in this report.

Global V2G Vehicle Market Value Forecast From 2015 to 2020, the global V2G vehicle market value is projected to grow from $3.2 billion to $26.6 billion, respectively. The V2G vehicle market value CAGR from 2015 to 2020 is projected to be 53.1 percent (see Global V2G Vehicle Market Value Forecast on page 13).

In 2015, the V2G vehicle market value is projected to be the highest in the US ($1.1 billion) and Japan ($0.5 billion) However, in 2020 the US ($8.1 billion) and China ($6.5 billion) are projected to be the two largest markets.

U.S. 34.8%

China 13.9%

Japan 18.2%

ROW 18.3%

Germany 6.3%

UK 4.0%

South Korea 2.9%

Denmark 1.5%

Projected V2G Vehicle UnitsMarket Segementation by Country | 2015

U.S. 28.0%

China 27.8%

Japan 17.8%

ROW 12.2%

Germany 5.8%

UK 4.3%

South Korea 2.8%

Denmark 1.2%

Projected V2G Vehicle UnitsMarket Segementation by Country | 2020

Source: Zpryme


Source: Zpryme

Source: Zpryme



Global V2G Infrastructure From 2015 to 2020, the global V2G infrastructure market is projected to grow from $659.9 million to $6.7 billion, respectively. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 58.9 percent.

In 2015, the US is projected to lead the V2G infrastructure market, accounting for 34.3 percent ($226.2 million) of the global market. However, in 2020, the US share of the global market is projected to shrink to 27.2 percent ($1.82 billion). China is projected to be just behind the US with 27.0 percent ($1.80 billion) of the global market in 2020.

Public charging stations are projected to make up the largest share of V2G infrastructure, accounting for 57.1 percent ($376.9 million) of the global market in 2015 and 63.2 percent ($4.23 billion) of the market in 2020. During this time period, the compound annual growth rate for V2G public charging stations is projected to be 62.1 percent.

Residential charging stations are projected to account for 16.7 percent ($124.4 million) of the global market in 2015 and 14.5 percent ($1.21 billion) of the market in 2020. During this time period, the compound annual growth rate for V2G residential charging stations is projected to be 57.5 percent.

Global V2G related distribution system upgrades are projected to grow from $110.4 million to $966.3 million from 2015 to 2020. During this time period, the compound annual growth rate for distribution system upgrades is projected to be 54.3 percent.

Global V2G IT infrastructure expenditures, which includes software, equipment, storage, and other IT related products, are projected to grow from $48.2 million to $286.6 million from 2015 to 2020. During this time period, the compound annual growth rate for V2G IT infrastructure is projected to be 42.8 percent.

U.S. 34.3%

China 13.7%

Japan 18.0%

ROW 19.6%

Germany 6.2%

UK 4.0%

South Korea 2.8%

Denmark 1.5%

Projected V2G Infrastructure Market Segementation by Country | 2015

U.S. 27.2%

China 27.0%

Japan 17.2%

ROW 15.0%

Germany 5.6%

UK

4.1%

South Korea 2.6%

Denmark 1.2%

Projected V2G InfrastructureMarket Segementation by Country | 2020


Source: Zpryme

Source: Zpryme



Global V2G Technology From 2015 to 2020, the global V2G technology market is projected to grow from $1.5 billion to $10.5 billion, respectively. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 46.8 percent.

In 2015, the US is projected to lead the V2G technology market, accounting for 35.9 percent ($550.2 million) of the global market. However, in 2020, the US share of the global market is projected to shrink to 27.1 percent ($2.83 billion). China is projected to be just behind the US with 26.9 percent ($2.81 billion) of the global market in 2020.

V2G drive systems are projected to make up the largest share of the V2G technology market, accounting for 91.2 percent ($1.4 billion) of the global market in 2015 and 90.7 percent ($9.5 billion) of the market in 2020. During this time period, the compound annual growth rate for V2G drive systems is projected to be 46.6 percent.

The global market for V2G software and systems is projected to grow from $57.0 million to $354.6 million from 2015 to 2020. During this time period, the compound annual growth rate for V2G software and systems is projected to be 44.1 percent.

The global market for V2G equipment is projected to grow from $41.5 million to $331.4 million from 2015 to 2020. During this time period, the compound annual growth rate for V2G software and systems is projected to be 51.5 percent.

U.S. 35.9%

China 14.3%

Japan 18.8%

ROW 15.8%

Germany 6.5%

UK 4.2%

South Korea 3.0%

Denmark 1.6%

Projected V2G Technology Market Segementation by Country | 2015

U.S. 27.1%

China 26.9%

Japan 17.2%

ROW 15.2%

Germany 5.6%

UK 4.1%

South Korea 2.7%

Denmark 1.2%

Projected V2G Technology

Market Segementation by Country | 2020


Source: Zpryme

Source: Zpryme



Global V2G Grid Revenues From 2015 to 2020, global V2G grid revenues are projected to grow from $284.4 million to $2.9 billion, respectively. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 63.5 percent.

In 2015, V2G grid revenue is projected to be the highest in the US ($72.2 million) and Japan ($63.3 million). However, in 2020 Japan ($735.4 million) is projected to exceed the US ($654.2 million) in grid revenues. Japan‘s lead in 2020 can be most attributed to the cost of electricity in Japan relative to electricity costs in the US.

From the 2015 to 2020, V2G grid revenue in China and the UK are projected to grow the fastest among the seven countries covered in this report.

2015 2020

Other/Misc 2.4% 2.7%

Equipment 2.7% 3.2%

Software and Systems 3.7% 3.4%

Drive System 91.2% 90.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Perc

ent

of

Tota

l M

ark

et

Projected Global V2G Technology Segementation by Component2015 and 2020

2015 2020

Other 0.1% 0.1%

Storage 3.4% 2.2%

Equipment 1.2% 0.6%

Software and Systems 2.6% 1.4%

Distribution System Updgrades (Grid)

16.7% 14.5%

Commerical/Public Charging Stations

57.1% 63.2%

Residential Charging Stations 18.8% 18.0%

0%10%20%30%40%50%60%70%80%90%

100%

Perc

ent

of

Tota

l M

ark

et

Projected Global V2G Infrastructure Segementation by Component2015 and 2020

Japan 25.5%

U.S. 29.1%

China 8.4%

UK 6.8%

Germany 12.9%

ROW 11.0%

Denmark 4.4%

South Korea

1.9%

Projected V2G Revenue*Market Segementation by Country | 2015

Japan 25.3%

U.S. 22.5%China

18.0%

UK 11.1%

Germany 11.0%

ROW 7.0%

Denmark 3.2%

South Korea

1.8%

Projected V2G Revenue * Market Segementation by Country | 2020


Source: Zpryme

Source: Zpryme

*Benchmarks for expected payments from grid sales received by V2G vehicle owners are based on averages presented by studies conducted by the University of Delaware and PJM Interconnect, the FERC‘s ‗Cash Back Hybrid‘

presentation, and the United States Postal Service‘s Electrification of Delivery Vehicles Feasibility Study Report.

Source: Zpryme

Source: Zpryme



US Market

296 thousand (V2G Units)




$654 million (V2G Total Revenue)

US V2G Market 2020

Smart Grid Cloud The Federal Energy Regulatory Commission (FERC) released its National Action Plan on Demand Response report, which identifies strategies various stakeholders can use to promote demand response efforts. EPCE was awarded a $2.55M Smart Grid Workforce Training and Development Grant. Memphis Light, Gas and Water division is likely to expand the size of its Smart Grid demonstration project from 1,000 households up to 1,900. Atheros Communications has executed an agreement with the US DOE under to receive $4.5M in grant funding to develop powerline chips designed to provide two-way data communications over existing AC wiring. Toshiba and Kyocera have been chosen to work on Smart Grid demonstration projects in New Mexico (NEDO will be investing $30M over four years on micro-grid and smart house demonstration projects). The Utilities Telecom Council and Verizon plan to conduct a study of the communications and information technology requirements of the nation's utilities. San Diego Fabless Startup is receiving $6M to create Smart Grid chip. Tampa Electric Co. launched a pilot project that will evaluate the SunWave solar photovoltaic system from Petra Solar. Opelika’s Light and Power department has undertaken a $30M project to connect every home in the city with fiber-optic cable. FirstEnergy won $57.4 million in federal grants for Smart Grid technologies in Ohio, Pennsylvania and New Jersey. GE and a group of four venture capital firms are putting up $200M to push development of new technologies in smart grid electrical systems.


Source: Zpryme



US Market

In the US, EVs and PHEVs don't have substantial slices of the automotive market; however that is expected to change rapidly. Proactive EV pilot programs are underway in all corners of the US. Fueled by government stimulus funds for the Smart Grid, electric vehicles (EVs) and EV infrastructure, the US is projected to lead the V2G market in 2020. The Obama Administration has set a target of 40 million smart meters in US homes and one million plug-in hybrids (PHEVs) by 2015. Current EV and V2G pilot projects between the private sector, public sector, and academia will play a significant role in creating global V2G innovation, and thus market viability. Also, energy storage from V2G could one day play a critical role in the country‘s renewable energy growth as well as the success of the Smart Grid and promising electric vehicle markets.

From 2015 to 2020, US V2G vehicle sales are projected to grow from 36,100 units to 296,300 units. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 52.4 percent.

From 2015 to 2020, the US V2G vehicle market value is projected to grow from $1.1 billion to $8.1 billion. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 47.7 percent.

From 2015 to 2020, US V2G grid revenues are projected to grow from $72.2 million to $654.2 million. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 55.4 percent.

From 2015 to 2020, the US V2G technology market is projected to grow from $550.2 million to $2.8 billion. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 38.8 percent.

36,100

64,400

104,300

148,000

207,200

296,300

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2015 2016 2017 2018 2019 2020

US V2G Vehicle Unit Forecast 2015 - 2020 | CAGR = 52.4%

$1.1

$2.0

$3.1

$4.3

$5.8

$8.1

$0.0 $2.0 $4.0 $6.0 $8.0 $10.0

2015

2016

2017

2018

2019

2020

US V2G Vehicle Market Value Forecast (US billons)2015 - 2020 | CAGR = 47.7%


Source: Zpryme

Source: Zpryme



From 2015 to 2020, the US V2G infrastructure market is projected to grow from $226.2 million to $1.8 billion. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 51.7 percent.

$72.2 $131.2$216.9

$314.1$448.5

$654.2

$226.2$401.4

$647.4

$915.3

$1,275.9

$1,816.8

$550.2

$891.9

$1,314.8

$1,700.2

$2,169.5

$2,830.4

$0.0

$500.0

$1,000.0

$1,500.0

$2,000.0

$2,500.0

$3,000.0

2015 2016 2017 2018 2019 2020

US V2G Infrastructure, Revenue*, & Technology Forecasts (US millions)2015 - 2020

V2G Revenue Infrastructure Technology


Source: Zpryme

*Benchmarks for expected payments from grid sales received by V2G vehicle owners are based on averages presented by studies conducted by the University of Delaware and PJM

Interconnect, the FERC‘s ‗Cash Back Hybrid‘ presentation, and the United States Postal Service‘s Electrification of Delivery Vehicles Feasibility Study Report.



China Market






China V2G Market 2020

Smart Grid Cloud Clou Electronics (manufacturer of smart meters), has received $26M worth of orders from State Grid. Siemens struck a deal with holding company Wasion Group to conduct feasibility studies in an effort to launch new Smart Grid pilot projects in the Middle Kingdom. IBM continues to invest heavily in China's Smart Grid future, having just recently unveiled its Energy and Utilities Solutions Lab in Beijing. Chinese companies like Jiangsu Linyang Electronics, and Zhuzhou CSR Times Electric will benefit as smart gird integration moves forward. State Grid Corporation of China (SGCC), which controls electricity distribution in nearly all of China, has stated that it will begin major nationwide grid upgrades in early 2011. China Information Security Technology, Inc. a solutions provider of digital security, GIS and information systems in China, announced that the SGCC selected the Company's geographic information systems as one of its only two suppliers for the build-out of the nationwide Smart Grid in China. The SGCC selected Moxa's IEC 61850-3 Ethernet switches for use in substation automation and Smart Grid applications (they will create highly reliable communications networks in harsh electric utility substation environments).


Source: Zpryme



China Market

―China is going to set the standard for development and deployment of clean energy,‖ David Mohler, a senior vice president at Duke, said in an interview May 21 in Beijing. Strong economic growth, EV subsidies, and an ambitious Smart Grid and EV plan are projected to make China the second largest market for V2G vehicles in 2020. China‘s Smart Grid plan involves a three phase plan with an investment of $106.2 billion from 2009 to 2020 in Smart Grid technologies such as smart meters, EV infrastructure, intelligent information platforms, dispatching and substation automation systems, and acquisition management systems.3 Although electric bikes have driven gains in vehicle battery demand in China and are now the largest transportation-related application, in April of 2010, China announced that 15 percent of the auto market in the country will comprise of hybrid and electric vehicles by 2020. Additionally, the government has set an annual production goal of 500,000 PHEV‘s and EV‘s by the end of 2011.

From 2015 to 2020, China V2G vehicle sales are projected to grow from 14,500 units to 294,000 units. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 82.6 percent.

From 2015 to 2020, the China V2G vehicle market value is projected to grow from $0.4 billion to $6.5 billion. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 76.0 percent.

From 2015 to 2020, China V2G grid revenues are projected to grow from $20.8 million to $521.7 million. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 90.4 percent.

3 State Grid of China Corporation's "Strengthened Smart Grid" plan (released on May 21, 2009).

14,50033,600

59,300

102,000

170,900

294,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2015 2016 2017 2018 2019 2020

China V2G Vehicle Unit Forecast 2015 - 2020 | CAGR = 82.6%

$0.4

$0.9

$1.5

$2.4

$3.9

$6.5

$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0

2015

2016

2017

2018

2019

2020

China V2G Vehicle Market Value Forecast (US billons) 2015 - 2020 | CAGR = 76.0%


Source: Zpryme

Source: Zpryme



From 2015 to 2020, the China V2G technology market is projected to grow from $219.8 million to $2.8 billion. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 66.4 percent.

From 2015 to 2020, the China V2G infrastructure market is projected to grow from $90.4 million to $1.8 billion. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 82.0 percent.

$20.8 $50.5 $92.9$166.7

$291.1

$521.7

$90.4$209.4

$367.8

$630.6

$1,052.4

$1,802.4

$219.8

$465.3

$746.9

$1,171.2

$1,789.4

$2,808.0

$0.0

$500.0

$1,000.0

$1,500.0

$2,000.0

$2,500.0

$3,000.0

2015 2016 2017 2018 2019 2020

China V2G Infrastructure, Revenue*, & Technology Forecasts (US millions)2015 - 2020



Source: Zpryme





Japan Market






Japan V2G Market 2020

Smart Grid Cloud Japan and the United States governments will explore a joint experimental project of a next-generation Smart grid power transmission network in Okinawa and Hawaii as they have agreed to enhance cooperation over environmentally friendly technologies. Hitachi and Osaki Electric have forged a global Smart Grid-related business alliance (Hitachi in systems and communications technologies and Osaki Electric in meter technologies). Sanyo has agreed to participate in and finance a joint development program with the University of California, San Diego (Sanyo will contribute $320M over three years to the smart energy systems research project). Kawasaki will be involved in nickel metal hydride (NiMH) technology for grid-scale energy storage applications. Softbank Telecom selected Alcatel-Lucent’s 100 Gigabit-capable optical solutions for backbone upgrade. Mitsubishi Electric launched a Smart Grid pilot project that aims to boost the stability of electricity supplied from weather-dependent sources such as solar and wind power (Mitsubishi will invest $76M) by March 2012 in facilities in its domestic production centers to test how to maintain stable power from fluctuating renewable energies).


Source: Zpryme



Japan Market

Japanese companies lead in the number of constituent technologies, such as PHEVs, EVs, storage batteries and HEMS. That said, the future V2G market in Japan will be fueled by the government‘s Smart Grid technology plan and EV plan. In April of 2010, Japan launched a $1.1 billion Smart Grid trial which will be conducted over the next five years. Companies such as Toyota Motor Corp., Panasonic Corp., and Toshiba Corp. are participating in the project. Further, ministry of Japan estimates it will cost $71.7 billion to upgrade existing grid infrastructure to be able to meet the country‘s 2030 target of ten percent of energy from renewable resources. Next, Japan's Next-Generation Vehicle Strategy was also announced in 2010 with a projected target of 50 percent of new vehicles sales from hybrid and electric vehicles by 2020. The strategy calls for $32.1 million in battery technology development in 2010, tax breaks and subsidies for consumers purchasing electric vehicles, and the deployment of two million residential chargers and 5,000 quick charges by 2020. Japan is projected to be the third largest market for V2G vehicles in 2020 among the 7 countries covered in this report.

From 2015 to 2020, Japan V2G vehicle sales are projected to grow from 19,000 units to 187,700 units. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 58.1 percent.

From 2015 to 2020, the Japan V2G vehicle market value is projected to grow from $0.5 billion to $4.4 billion. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 52.8 percent.

From 2015 to 2020, Japan V2G grid revenues are projected to grow from $63.3 million to $735.4 million. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 63.3 percent.

19,000

58,200

87,800

125,400

150,900

187,700

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2015 2016 2017 2018 2019 2020

Japan V2G Vehicle Unit Forecast 2015 - 2020 | CAGR = 58.1%

$0.5

$1.6

$2.3

$3.2

$3.7

$4.4

$0.0 $1.0 $2.0 $3.0 $4.0 $5.0

2015

2016

2017

2018

2019

2020

Japan V2G Vehicle Market Value Forecast (US billons) 2015 - 2020 | CAGR = 52.8%


Source: Zpryme

Source: Zpryme



From 2015 to 2020, the Japan V2G technology market is projected to grow from $288.4 million to $1.8 billion. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 44.1 percent.

From 2015 to 2020, the Japan V2G infrastructure market is projected to grow from $118.6 million to $1.2 billion. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 57.2 percent.

$63.3

$200.9$312.8

$461.2$572.8

$735.4

$118.6

$362.8

$545.0

$775.1

$928.9

$1,150.7

$288.4

$806.0

$1,106.8

$1,439.7

$1,579.5

$1,792.6

$0.0

$200.0

$400.0

$600.0

$800.0

$1,000.0

$1,200.0

$1,400.0

$1,600.0

$1,800.0

$2,000.0

2015 2016 2017 2018 2019 2020

Japan V2G Infrastructure, Revenue*, & Technology Forecasts (US millions)2015 - 2020



Source: Zpryme





Germany Market



$587 million (V2G Technology Market Value)

$377 million (V2G Infrastructure Market Value)


Germany V2G Market 2020

Smart Grid Cloud Siemens has teamed up with Coulomb Technologies to provide Smart Grid systems for managing the recharging of EVs (Coulomb Technologies currently operates the largest installed EV charging station network worldwide with recent expansion in Australia, Germany and other parts of Europe). Siemens has also received an order from Ital Green Energy (a subsidiary of the Marseglia Group) - by late 2010 they will supply clean electricity to around 5,500 Italian households. ABB will design and install a test Smart Grid in the new Kalasatama district of Helsinki in cooperation with municipal utility Helsingin Energia and Nokia Siemens Networks. Cisco partnered with Yello Strom, in a Smart Grid project designed to create a system that will help businesses and residents measure and control the energy consumption of their appliances. ) First Solar leads solar investments in the sector with its $200-million expansion of its Frankfurt manufacturing plant.


Source: Zpryme



Germany Market

Germany‘s adoption of V2G technology is ingrained in the government‘s Electro-Mobility Development Plan. The plan has a target of 1.0 million EV‘s by 2020.4 The program is funded by $705 million from the German government‘s economic stimuli package, which was announced in 2009. Germany‘s plan for Smart Grid implementation is outlined in the country‘s E-Energy plan which was announced in October of 2009. The E-Energy plan states that ―E-Energy is the launch pad for electromobility in Germany.‖ According to German government, the E-Energy plan aims to build regional models that demonstrate ―how the immense potential for optimization presented by information and communication technologies (ICT) can best be harnessed to enhance the efficiency and environmental compatibility of the power supply and to ensure supply security.‖ Germany is projected to be the fourth largest market for V2G vehicles among the seven countries covered in this report. The Electromobility and E-Energy plan clearly display Germany‘s commitment to building a viable infrastructure for Smart Grid technology, EV‘s, and V2G.

From 2015 to 2020, Germany V2G vehicle sales are projected to grow from 6,500 units to 61,500 units. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 56.7 percent.

From 2015 to 2020, the Germany V2G vehicle market value is projected to grow from $0.2 billion to $1.6 billion. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 51.9 percent.

From 2015 to 2020, Germany V2G grid revenues are projected to grow from $32.0 million to $320.4 million. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 58.5 percent.

4 UK Department of Energy and Climate Change (2010) and UK Department of Transport.

6,500

11,800

19,200

31,100

43,000

61,500

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2015 2016 2017 2018 2019 2020

Germany V2G Vehicle Unit Forecast 2015 - 2020 | CAGR = 56.7%

$0.2

$0.4

$0.6

$0.9

$1.2

$1.6

$0.0 $0.5 $1.0 $1.5 $2.0

2015

2016

2017

2018

2019

2020

Germany V2G Vehicle Market Value Forecast (US billons) 2015 - 2020 | CAGR = 51.9%


Source: Zpryme

Source: Zpryme



From 2015 to 2020, the Germany V2G technology market is projected to grow from $99.0 million to $587.4 million. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 42.8 percent.

From 2015 to 2020, the Germany V2G infrastructure market is projected to grow from $40.7 million to $377.1 million. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 55.6 percent.

$32.0$58.8

$96.7

$158.5

$221.6

$320.4

$40.7$73.6

$119.1

$192.3

$264.7

$377.1

$99.0

$163.5

$241.8

$357.3

$450.1

$587.4

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

$700.0

2015 2016 2017 2018 2019 2020

Germany V2G Infrastructure, Revenue*, & Technology Forecasts (US millions)2015 - 2020



Source: Zpryme





UK Market






UK V2G Market 2020

Smart Grid Cloud Flexitricity partners with the National Grid to stabilize and support electricity networks, by levering the assets of commercial energy users and small generator owners (Flexitricity Scales-up ‗Smart Grid‘ Solution in Response to UK Energy and Carbon Footprint Needs). A report outlining what the UK would need to do to reach carbon neutrality over the next 20 years has been published by the Centre for Alternative Technology (CAT). According to the latest industry economic valuation report, the UK's offshore renewable energy industry could generate the same amount of electricity — per year — by 2050 as one billion barrels of oil. Intamac Systems Limited, market leader in internet accessed monitoring and control services, has received approximately $6M investment from a syndicate of leading London based investors including Carbon Trust Investments, Chandos Capital Ventures and Seraphim Capital. Npower is joining Arquiva’s Smart Grid ‗proof-of-concept‘ network (the communications infrastructure and media services company is trialling long-range radio frequencies to relay information to and from smart meters in the south of England - The network, which is expected to go live next month, will use the FlexNet solution provided by Arqiva‘s technology partner Sensus).


Source: Zpryme



UK Market

V2G market development in the UK will be stimulated by aggressive Smart Grid and EV roll-outs aimed to place a smart meter in every UK home and 1.7 million EV‘s on the road by 2020.5 Further, in March of 2010, the British government announced a 25 percent subsidy (up to $7,654) for consumers who purchase an electric vehicle. The program provides up to $350.7 million for consumers to purchase an electric vehicle and up to $45.7 million for the installation of charging stations. The program is set to being in January of 2011. The UK is projected to be the fifth largest market for V2G vehicles among the seven countries covered in this report. EVs will reduce emissions at point of use, but their green credentials rely on the grid and a new generation mix to charge their batteries, warns the UK's Royal Academy of Engineering. A future UK fleet could need an additional 160 GWh per day. The academy called on the UK government to develop a strategy for the expected switch to electric vehicles. One requirement for the technological mix is universal high-speed internet connection, which Smart Grid meters will need to use. Without that, a large number of electric car owners will not be coordinated with the larger grid. Furthermore, those drivers that cannot park on their own property must be accommodated by roadside or car park charging and local grid substations will need to be upgraded.6

From 2015 to 2020, UK V2G vehicle sales are projected to grow from 4,200 units to 45,300 units. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 60.9 percent.

From 2015 to 2020, the UK V2G vehicle market value is projected to grow from $0.1 billion to $1.3 billion. The

5 German Federal Government‘s National Electromobility Development Plan (August 2009). 6 Web. Royal Academy: Prepare for electric cars, www.world-nuclear-news.org, May 27, 2010

4,200

7,400

14,300

24,200

33,000

45,300

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2015 2016 2017 2018 2019 2020

UK V2G Vehicle Unit Forecast 2015 - 2020 | CAGR = 60.9%

$0.1

$0.2

$0.4

$0.7

$0.9

$1.3

$0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4

2015

2016

2017

2018

2019

2020

UK V2G Vehicle Market Value Forecast (US billons) 2015 - 2020 | CAGR = 56.0%


Source: Zpryme

Source: Zpryme



compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 56.0 percent.

From 2015 to 2020, UK V2G grid revenues are projected to grow from $17.0 million to $323.4 million. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 80.3 percent.

From 2015 to 2020, the UK V2G technology market is projected to grow from $63.8 million to $432.0 million. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 46.6 percent.

From 2015 to 2020, the UK V2G infrastructure market is projected to grow from $26.2 million to $277.3 million. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 60.3 percent.

$17.0$33.2

$72.6

$137.8

$210.0

$323.0

$26.2$45.6

$88.8

$149.6

$202.8

$277.3

$63.8

$101.3

$180.3

$278.0

$344.8

$432.0

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

$400.0

$450.0

$500.0

2015 2016 2017 2018 2019 2020

UK V2G Infrastructure, Revenue*, & Technology Forecasts (US millions)2015 - 2020



Source: Zpryme





South Korea Market


$720 million (V2G Vehicle Market Value)




South Korea V2G Market 2020

Smart Grid Cloud Samsung will invest $20B into innovative technologies such as photovoltaic cells and rechargeable cells for hybrid electric batteries. South Korea aims to build the world's first nationwide Smart Grid system to reduce its emissions by monitoring energy use more carefully (The grid, to be set up by 2030, is part of the country's $24B initiative to increase its generation of green energy). The US, China and South Korea were among the biggest green stimulus spenders, with South Korea allocating almost 80% of its funding to greening its economy. American Superconductor Corporation and Hyundai Heavy Industries Co., Ltd. announced that they have expanded their strategic alliance to include the joint development of a 5 megawatt (MW) full conversion wind turbines. The South Korean government announced plans to more than double its financing for green research and development projects to $2.9B by 2013


Source: Zpryme



South Korea Market

South Korea‘s government Smart Grid and electric vehicle (EV) programs will provide the key catalysts for V2G growth in South Korea. In March of 2010, South Korea‘s Ministry of Knowledge Economy announced that the country would invest $23.3 billion in Smart Grid technology. The program‘s goal is to have all of South Korea‘s electric customers using Smart Grid technology by 2030. In 2009, South Korea announced their plan to invest $342.6 million by 2014 on EV and battery technology research and development. Then, in March of 2010 the Ministry of Knowledge Economy also announced the country‘s goal of becoming the fourth largest EV market by 2015. The government has set a target of one million electric vehicles, and intends for ten percent of domestic sales of cars to be electric vehicles by 2020. However, the high price of V2G vehicles will slow adoption and growth of V2G in South Korea. South Korea is projected to be the 6th largest market for V2G vehicles among the seven countries covered in this report.

From 2015 to 2020, South Korea V2G vehicle sales are projected to grow from 3,000 units to 29,700 units. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 58.2 percent.

From 2015 to 2020, the South Korea V2G vehicle market value is projected to grow from $0.09 billion to $0.72 billion. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 52.9 percent.

From 2015 to 2020, South Korea V2G grid revenues are projected to grow from $4.8 million to $53.2 million. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 62.1 percent.

From 2015 to 2020, the South Korea V2G technology market is projected to grow from $45.7 million to $283.0 million. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 44.0 percent.

3,000

5,600

8,900

13,800

19,900

29,700

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2015 2016 2017 2018 2019 2020

South Korea V2G Vehicle Unit Forecast 2015 - 2020 | CAGR = 58.1%

$0.09

$0.16

$0.24

$0.36

$0.50

$0.72

$0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 $0.8

2015

2016

2017

2018

2019

2020

South Korea V2G Vehicle Market Value Forecast (US billons) 2015 - 2020 | CAGR = 52.8%


Source: Zpryme

Source: Zpryme



From 2015 to 2020, the South Korea V2G infrastructure market is projected to grow from $18.8 million to $175.1 million. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 56.3 percent.

$4.8 $9.0 $14.8$23.5

$34.8

$53.2

$18.8$34.4

$54.4

$82.4

$117.5

$175.1

$45.7

$77.1

$112.2

$158.0

$207.9

$283.0

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

2015 2016 2017 2018 2019 2020

South Korea V2G Infrastructure, Revenue*, & Technology Forecasts (US millions)2015 - 2020



Source: Zpryme





Denmark Market


$38 million (V2G Vehicle Market Value)




Denmark V2G Market 2020

Smart Grid Cloud Denmark’s government has announced plans to target specific sectors in Turkey to boost exports to the fast developing country with a consumer market of 72 million people, especially in energy-efficient building and wind technologies as well as in utilizing Smart Grid electricity distribution systems. Denmark has achieved a record 20% wind penetration into the electric power system since 2005 (the country is moving towards 50% wind penetration by year 2025). Echelon Corporation shipped its two millionth Networked Energy Services (NES) smart meter. The meter will become part of the Smart Grid installation currently being deployed by Eltel Networks A/S for the Danish utility SEAS-NVE (in Denmark‘s largest Smart Grid project with over 390,000 mart meters). The announcement was made today at the 2010 Smart Metering Scandinavia event in Copenhagen, Denmark.


Source: Zpryme



Denmark Market

V2G in Denmark will be spearheaded by a firm commitment to renewable energy, smart meter roll-outs, and EV innovation. In 2009, about 20 percent of Denmark‘s electricity was fueled by wind energy which places Denmark on track to meet the government‘s renewable energy target of 30 percent by 2025. Further, as of 2009, Denmark is expected to deploy an estimated 1.2 million smart meters without any formal Smart Grid implementation plan. 7 Next, DNS Denmark reports that the country will have 200,000 EV‘s by 2020.8 In 2009 Denmark kicked off its initial V2G pilot with the ‗Electric vehicles in a Distributed and Integrated market using Sustainable energy and Open Networks‘ (E.D.I.S.O.N) project. The project will use wind energy to power electric vehicles and enable the development and optimization of Smart Grid technology. The project will initially test 15 cars. Collaborative partners on the project include Dank Energi, DTU CET, Riso DTU, DONG Energy, IBM, Siemens, Ostkraft Produktion, and Eurisco. Denmark is projected to be the seventh largest market for V2G vehicles among the seven countries covered in this report. However, Denmark‘s renewable energy, Smart Grid, and EV progressiveness will likely make the country a market leader with respect to V2G innovation.

From 2015 to 2020, Denmark V2G vehicle sales are projected to grow from 1,600 units to 13,300 units. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 52.7 percent.

From 2015 to 2020, the Denmark V2G vehicle market value is projected to grow from $0.05 billion to $0.38 billion. The

7 Annual Report on the Progress of Smart Metering 2009, released in January of 2010 by the European Smart Meter Alliance. 8 Technology Roadmap, Electric and plug-in hybrid electric vehicles, International Energy Agency (2009).

1,600

3,000

4,500

6,500

9,600

13,300

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2015 2016 2017 2018 2019 2020

Denmark V2G Vehicle Unit Forecast 2015 - 2020 | CAGR = 52.7%

$0.05

$0.09

$0.14

$0.19

$0.28

$0.38

$0.0 $0.1 $0.1 $0.2 $0.2 $0.3 $0.3 $0.4 $0.4

2015

2016

2017

2018

2019

2020

Denmark V2G Vehicle Market Value Forecast (US billons) 2015 - 2020 | CAGR = 48.2%


Source: Zpryme

Source: Zpryme



compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 48.2 percent.

From 2015 to 2020, Denmark V2G grid revenues are projected to grow from $10.9 million to $93.0 million. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 53.4 percent.

From 2015 to 2020, the Denmark V2G technology market is projected to grow from $24.3 million to $126.1 million. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 39.0 percent.

From 2015 to 2020, the Denmark V2G infrastructure market is projected to grow from $10.0 million to $81.0 million. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 48.1 percent.

$10.9

$20.0

$30.6

$44.9

$67.3

$93.0

$10.0$18.1

$27.4

$39.8

$59.1

$81.0

$24.3

$40.2

$55.7

$73.9

$100.5

$126.1

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

2015 2016 2017 2018 2019 2020

Denmark V2G Infrastructure, Revenue*, & Technology Forecasts (US millions)2015 - 2020



Source: Zpryme





V2G: A Closer Look

V2G: A Closer Look



Drivers

V2G technology advancement and adoption will be driven by global Smart Grid deployments, renewable energy policy, rising energy costs, consumer and business environmental awareness, green stimulus packages, a reduction in the price for V2G vehicles, strong HEV/PHEV demand, auto manufacturer financial viability pressures, and a move towards universal standard adoption. Collectively, these drivers form the foundation for innovation, cost reductions, and rapid adoption of V2G technology.

Smart Grid Programs

Clearly, global deployments of Smart Grid technology among major and small economies has brought the benefits and capabilities of V2G technology to the immediate attention of government officials, investors, utilities, wall street, auto and battery manufacturers, and Smart Grid ecosystem integrators.

Hence, as long as the development of the Smart Grid takes center stage in economies across the globe, the world can expect to see rapid developments in V2G innovation, demonstrations, and V2G enabled EVs/PHEVs.

The two proposed bills currently under review in the US congress highlight initiatives that have been sparked by the expected benefits of the Smart Grid and V2G technology.

Advanced Vehicle Technology Act (H.R. 3246) | H.R. 3246 would authorize $2.85 billion from 2010 to 2014 to the Department of Energy for research and development of hybrid, batteries, electric vehicles, and other related technologies deemed worthy by the Department of Energy. The goal of the bill is to advance the commercial application of vehicle technologies. The bill has passed the US House of Representatives and is now subject to debate and a vote in the US Senate.

American Electric Vehicle Manufacturing Act (H.R. 4399) | Introduced in December of 2009, HR 4399 has a goal of advancing the development of electric drive vehicles and enhancing the national power grid through the integration of V2G technology and electric vehicles. The bill calls for $2.0 billion for the United States Postal Service to convert up to 20,000 USPS vehicles into electric or hybrid electric vehicles with V2G technology. The program would be administered by the US Department of Energy.

Renewable Energy Policy

Governments around the world have implemented aggressive renewable energy targets for the future. Thus, the Smart Grid and V2G technology‘s ability to bring renewable energy sources into the grid offer significant opportunities for governments to realize their stated renewable energy targets.

According to the US Energy Information Agency, from 2010 to 2030, world net electricity generation is projected to grow from 20,584 trillion kilowatt-hours to 31,782 trillion kilowatt-hours. Electric generation from renewable sources is projected to grow from 4,072 trillion kilowatt-hours to 6,724 trillion kilowatt-hours during this time period. In 2030, renewable electric generation is projected to account for 21.2 percent of world electric generation.

4,072 4,898 5,666 6,149 6,724

16,51318,331

20,36522,766

25,059

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2010 2015 2020 2025 2030

Projected World Net Electric Generation

2010 - 2030

Electric generation from all other sources (trillion kWh's)

Electric generation from renewable sources (trillion kWh's)




Rising Costs of Energy/Fossil Fuels

The rising costs of oil and gasoline places will continue to drive demand for renewable energy, hybrid vehicles, EVs, PHEVs, and V2G technology. Price and demand increases of fossil fuels reduce the real costs of consumers and businesses to adopt EVs andV2G technology.

Additionally, many major economies view the reduction of their reliance on fossil fuels as vital to their economic and national security policies.

According to the US Energy Information Agency, from 2010 to 2030, world liquid production is projected to grow from 86 million barrels per day to 107 million barrels per days. World oil prices are projected to grow from $80 per barrel to $130 per barrel during this time period.

Consumer and Business Pro-Environmental Interests

V2G technology will provide environmentally conscious consumers and businesses the perfect opportunity to make a positive impact on the environment as they will be able to reduce carbon emissions and the need to build more coal power plants. Thus, these benefits will play a key role in enhancing V2G adoption.

Green Stimulus Packages

World economies banned together in early 2009 in a collective effort to make the ‗Green Economy‘ a central component of their long-term economic viability. These ‗green‘ stimulus packages formed a broad foundation intended to spark innovation, private sector investments, R&D, pilot projects, infrastructure development, and research in the areas of renewable energy, electric vehicles, Smart Grid technology, and other energy efficiency initiatives.

According to data from New Energy Finance, Green stimulus packages announced in 2009 from the 11 major world economies totaled $173.6 billion.9 The green stimulus packages were announced as part of each respective country‘s economic stimulus package.

V2G EV Purchase Price

Driving down the end user purchase price of V2G EVs is another key component to ramping up the adoption and development of V2G.

Auto manufactures will not be able to receive economy of scale benefits until V2G EV costs see a significant decrease, irrespective of government rebates or subsidies to purchase such vehicles.

Currently, the price premium of such vehicles is out of reach for the vast majority of the median consumer in any given major world economy. At the high end, industry experts estimate the cost of a V2G vehicle as high as $70,000. The three points below summarize some of the key V2G and PHEV prices cited by recent studies.

A 2009 feasibility study by the US Postal Service estimated the cost of a V2G enabled PHEVs at $40,000 each for a fleet of

9 Global Trends in Sustainable Energy, UNEP and (2009). Countries include the US, UK, Spain, South Korea, Japan, Germany, Australia, Brazil, Canada, China, and France.

$0

$40

$80

$120

$160

0

20

40

60

80

100

120

2010 2015 2020 2025 2030

Projected World Liquid Production and World Oil Prices

2010 - 2030

Liquids production (million barrels per day)

Oil prices per barrel (in 2007 dollars)




3,000 vehicles.10 However, the study‘s projections assumed bulk purchase discounts would be applied to the purchase of each V2G PHEV.

According to the Plug-In Hybrid Electric Vehicle Value Proposition Study, the estimated purchase cost of a PHEV was $52,700 in 2008. The study predicted the purchase cost of a PHEV to drop to $26,700 by 2030.11

AC Propulsion‘s CEO, Tom Gage, reported that the company‘s V2G model, the eBox, which is sold as a conversion, cost $15,000 for the car (Scion XB) and $55,000 for the conversion, resulting in a total cost of $70,000.12

Hybrid Electric Vehicle and Plug-in Hybrid Electric Vehicle Adoption

Aggressive adoption and sales of HEV‘s such as the Toyota Prius provide an excellent platform for the development and advancement of V2G technology as great demand for HEVs and PHEVs is projected to remain strong over the next 20 years. Additionally, historical sales of HEVs provide a road map for profitability for auto makers who have particularly been hit hard by the recession. The projections below offer further insight into the expected growth of HEVs and PHEVs in the US. Further, a major step in the direction of EV adoption is that ECOtality was awarded a $99.8 million grant from the U.S. Department of Energy to launch ‗The EV Project‘ - The EV Project is the largest deployment of electric vehicles and charge infrastructure in history.13

According to data compiled by the US Energy Information Agency and Department of Energy, annual hybrid electric unit

10 Electrification of Delivery Vehicles, US Postal Service(August 2009). 11 Plug-In Hyrbid Electric Vehicle Value Proposition Study, Sentech, Inc. (January 2009). 12 The eBox: A New EV with Li Ion Battery and V2G, AC Propulsion, Inc., Tom Gage, CEO (2007) 13 www.theevproject.com; on June 16, 2010, ECOtality announced expansion of The EV Project to include the cities of Los Angeles, California and Washington, D.C. The project was granted an additional $15 million by the U.S. Department of Energy. With the partner match, the total value of the project is now approximately $230 million.

sales have grown from 9,350 in 2000 to 259,000 in 2009. This represents a compound annual growth rate of 44.6 percent during this time period. During this same time period, global annual HEV unit sales for Toyota grew from 19,000 to 513,000, respectively (CAGR = 44.2 percent).14

According to the US Energy Information Agency‘s Annual Energy Outlook 2010, US annual unit sales of hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) are projected to grow from 287,000 in 2010 to 2.2 million in 2035. This represents a compound annual growth rate of 14.7 percent during this time period. The Annual Energy Outlook 2010 projects that PHEV/EV unit sales will represent 2.8 percent of all light duty vehicle (LDV) sales in the US in 2010 and 11.6 percent of all LDV unit sales in 2035.

Major Auto Manufacturer’s Pressure to Grow Sales and Profits

Major automobile manufacture‘s such as Ford, GM, Toyota, and Nissan are under enormous shareholder and government pressure to create jobs, increase sales, turn a profit, and build financially viable operations. Thus, hybrids, EVs, PHEVs and V2G offer a clear path to sales growth and long-term sustainability as long as consumer demand

14 Toyota Motor Corporation sales results.

0%

3%

6%

9%

12%

15%

0

500

1,000

1,500

2,000

2,500

2010 2015 2020 2025 2030 2035

Projected US Annual Sales of Light Duty PHEV/HEV's

2010 - 2035

PHEV/HEV sales (in thousands)

PHEV/HEV % of total vehicle sales




is strong, incentives are place for manufactures and consumers, and pro-environmental policies remain a priority for major economies.

Universal Standards Adoption

Universal standards adoption will play a significant role in driving down R&D costs. Further, commoditization of core technologies will allow auto manufactures to lower their overall production costs, thus reducing the overall price of V2G EVs for consumers and business customers. Today, the ZigBee Alliance and the Home Plug Powerline Alliance standardized V2G two-way communication capabilities in the ZigBee Smart Energy version 2.0 specification. Approved Industry standards connecting vehicles to the grid will play a key role in reducing time to market for automobile manufacturers and utilities.

Deepwater Horizon Oil Spill

Consumers are eager learn more about EVs due to BP‘s oil-rig collapse in the Gulf of Mexico consumer insight researchers closest to the automotive sector are observing that the initial price and limits on battery performance [range anxiety] are influencing purchasing decisions less while the ‗big picture environmental impact‘ has increased in importance [when consumers are shopping for EVs]. Bottomline, the Deepwater Horizon Oil Spoil has resonated into the minds of American consumers and those outside US borders.

That said, the Gulf of Mexico oil calamity could become the most pivotal event in the history of the EV and ultimately V2G; it has prompted (in some cases forced) the automotive sector, power utility industry, governments, and consumers to revaluate its footprint in the energy space.

To add to the Gulf event, the real call for action came from United States President Barak Obama when he said publicly in a recent address, ―the tragedy [Deepwater Horizon Oil Spill] unfolding on our coast is the most painful and powerful reminder yet that the time to embrace a clean-energy future is now.‖

Trends

V2G trends will be motivated by telematics, brand loyalty, charging station deployments, and the ongoing rollout of the Smart Grid. All things considered, these trends will be the gel that shapes V2G consumer adoption andinspires companies to enter this space.

Telematics

Google and GM reportedly working to pair GM's OnStar system with Google's Android operating system (the GM-Google collaboration would allow Android-powered devices to control some car functions) there is no doubt that telematics will become an integral part of the V2G in-vehicle experience.

On an important note for consumers, telematics will become the panacea for "range anxiety" (The fear of being stranded by an electric car because of insufficient battery performance or charge15).

Penetration of consumer and commercial telematics systems in passenger cars and commercial vehicles respectively will evolve from less than 10 percent in 2010 to 23 percent in 2015, according to a study by ABI Research (Frost & Sullivan estimates that more than 80 percent of electric vehicles sold by 2015 will have some kind of telematics technology and that navigation systems will be standard on all electric vehicles).

Brand Loyalty Brands make a difference – take for example GM reverting to the Chevrolet over Chevy name as part of the company's push for global consistency. Though those inside the auto industry may not see this as a major change, GM is sure to receive some backlash and resentment from their loyalists. Most car owners will stay loyal to the brand they

15 Definition provided by AeroVironment




now drive when they shop for a new vehicle, according to a survey by Consumer Reports magazine. The survey found that 73 percent of buyers were somewhat or very likely to buy the same brand they currently drive, the magazine said in a statement.16

An important finding by Consumer Reports that could have the same effect for future consumer V2G purchase behavior is that Fuel economy, quality and price would be the prime factors that would influence a [consumer] decision if the buyers decided to switch brands. That said it‘s important that automobile manufacturers start creating a ‗marketing message‘ coupled with over-the-top customer service to maintain loyal customers and absorb new drivers for future V2G purchases. For example Nissan Division Vice President Al Castignetti was recently quoted in saying that ―owners of Toyota Motor Corp.'s fuel-efficient Prius hybrid will succumb to the charms of the Nissan Leaf electric sedan… more than half of the 130,000 hand-raisers who have expressed an interest in the Leaf so far have been Prius owners.‖17 However even with his well-justified words, the auto industry and experts can almost guarantee that Toyota, with its recent partnership with Tesla, will regain customer loyalty soon.

Lastly, a three-pronged approach of grass roots marketing, traditional web, and social media must be deployed in order to reach out to all consumers: the grass roots technique is the most important.

When V2G finally becomes a reality it will be the more personable/interactive approach by automobile manufactures that will win over consumers – not necessarily the most tech-savvy company when it comes to engaging the consumer.

16 Consumer Reports interviewed 1,700 adults nationwide in households that own at least one vehicle. The telephone survey took place from April 29 to May 3, 2010 17 www.cnet.com, Automotive News, June 2, 2010

Charging Station Deployments

A driver as much as a trend charging stations will part the V2G sea

almost immediately. Piggybacking this growth according to Pike

Research more than 4.7 Million Electric Vehicle Charge Points to be

installed by 2015.18 For example Coulomb Technologies announced

last month [June] that the U.S. Department of Energy has awarded a

$15 million grant to support deployment of 4,600 of their charging

stations in nine regions around the country. Working in partnership with

Ford, GM and Daimler, Coulomb is launching a program to provide

these charging stations for homes, businesses and public locations.

Similar sentiment was echoed by Michael Howard, EPRI senior vice

president of Research and Development, ―TVA (Tennessee Valley

Authority) is taking an aggressive approach in embracing electric

vehicle technology including the design, development and assessment of

this fully-integrated electric-vehicle charging facility… we will work

together on this facility which will test the technologies that will be used

in the marketplace as electric vehicles play an increasingly prominent

role in transportation.‖19

Some of the charging stations will be offering free electricity, but Richard Lowenthal, CEO of Coulomb Technologies (which makes the ChargePoint chargers in the program) said he‘s seeing ―some resistance to ‗free‘, especially from multiple dwelling units (MDUs). In apartments and condos, the other tenants don‘t want to pay $5 a day to help the guy with the $109,000 Tesla Roadster.‖20

Lastly, GE unveiled this month [July 2010] a new electric-vehicle charger and other new clean-technology products, and announced a $200 million contest for the best Smart Grid technology ideas from entrepreneurs and researchers.

18 Pike Research, Electric Vehicle Charging Equipment, June 2010 19 Web, EPRI and TVA to Build Integrated Solar-Assisted Electric Charging Station, www.pennenergy.com, June 18, 2010. 20 BNET, A Jolt for EV Adoption -- 4,600 Free Electric Chargers, Courtesy of the Feds, Jim Motavalli, June 3, 2010


V2G: A Closer Look Experts Plug-in




The Battery Space

According to a Department of Energy report, US spending [$2.4 billion in stimulus spending aimed at encouraging development of new battery and electric-vehicle technology] will raise the US's manufacturing capacity for advanced vehicle batteries from two percent of the world market to 40 percent by 2015.21

Further, even without technical breakthroughs, costs for batteries could

drop substantially by 2020. Consulting firm PRTM conducted a two-

year survey of battery and auto manufacturers and suppliers and it

estimates that by 2020 the cost of batteries will drop 50 percent, even

without technical breakthroughs in the batteries themselves (it‘s also

important to note that Deloitte expects the cost of producing batteries

for electric cars to fall by 40 percent over the next four years). Pike

Research identified that Asian manufacturers will lead the $8 billion

market for EV batteries.22, 23, 24

Also, nano technology has been summoned as a game-changer

in the battery space and related auto manufacturer markets

(nano-tech batteries for future V2G will be able to offer

increased range and energy density).

Batteries in the News

CODA EV maker and the EnerDel lithium-ion battery manufacturer announced new Chinese deals. CODA has also formed a joint venture, called Lio Energy Systems, with Chinese company Lishen Power Battery. CODA plans to manufacturer the chassis and batteries in China and deliver 14,000 cars by the end of 2011(most of the car components

21 Obama Defends Stimulus Grants to Electric-Car Battery Plants, washington Post, Nicholas Johnston, July 15, 2010 22 PRTM conducted a two-year survey of battery and auto manufacturers and suppliers, January 2010 23 Pike Research, Electric Vehicle Batteries, June 2010 24 Frost & Sulllivan, Growth Opportunities for Battery Test Equipment Vendors, Srihari Padmanabhan, May 28, 2010

would be assembled in China.25, 26 EnerDel announced a joint venture to produce battery packs, starting this year, with the electric vehicle division of Wanxiang, the biggest ―Tier One‖ auto parts producer in China. Effectively, this positions EnerDel‘s battery systems to be a player in China, initially in public transportation.27 Nissan has taken an important step towards its EV future by breaking ground on its lithium-ion battery manufacturing facility in Smyrna, Tennessee. The plant will produce the batteries for the Nissan LEAF from 2012 and onwards and is one of the largest vehicle battery manufacturing plants in North America at 1.3million sq ft. At full capacity it will be able to produce 200,000 advanced technology batteries every year.28 Ford will invest $135M in Michigan electric vehicle production. Plans are to assembly battery packs at Ford‘s Rawsonville plant in Ypsilanti, Michigan, with a $10M capital investment in the plant and the creation of 40 jobs.29 Powered by Sanyo lithium-ion batters, Electric Daihatsu Mira traveled 1000km on one charge.30 Lastly, Tesla is developing battery pack systems for Daimler (Telsa and Toyota will collaborate on battery-powered test versions of the Japanese carmaker's RAV4 and Lexus RX in the first phase of the EV partnership).

Insights

For the next five years the market for residential charging stations will provide a greater opportunity than commercial charging stations

25 BNET, China Deals Give Carmakers Leverage in the World's Biggest EV Market, Jim Motavalli, May 28, 2010 26 Daily Finance, Electric Car Projects Have the Most Buzz for Green Investors, Ucilia Wang, May 19, 2010 27 BNET, China Deals Give Carmakers Leverage in the World's Biggest EV Market, Jim Motavalli, May 28, 2010 28 www.thegreencarwebsite.co.uk, Nissan lithium-ion battery factory breaks ground, June 3, 2010 29 www.brighterenergy.org, Ford to invest $135m in Michigan electric vehicle production, May 24, 2010 30 www.caradvice.com, Electric Daihatsu Mira travels 1000km on one charge, Tim Beissmann, May 27, 2010





Based on Japan‘s current automotive technology and leadership in the EV space, look to this nation to pioneer the next generation of V2G for the mainstream

Vehicle fleets such as the USPS pilot will play a critical role in the deployment of V2G in the US

By 2015, the majority of charging infrastructure being installed globally is likely to have V2G plug-in-play capabilities

Consumer engagement and education a vital component to the success of V2G is practically non-existent

The hardware/software industry is relatively untapped in the V2G space, companies such as AC Propulsion and Azure Dynamics are one of the few that have a footprint in this industry

Demand for V2G vehicles will increase as Smart Grid rollout continues and consumers realize the cost of ownership for V2G vehicles is significantly lower than ICE vehicles and non-V2G PHEV and EVs

Early adopters are likely to be educated males and females with high annual average incomes

Environmental catastrophes such as the BP oil spill are playing a significant role in how consumers will gradually minimize their fossil fuel dependency

Though new players are entering this market frequently and technology is growing rapidly it‘s important to note that V2G is in a development and demonstration phase (market infancy)

Using their economies of scale look for major automotive manufacturers such as Ford, Toyota, and Nissan to capitalize on the V2G market in its earliest stage. Achieving economies of scale with V2G and charging infrastructure is key to developing financially viable markets for V2G and charging infrastructure

Driven by government stimulus, EV and Smart grid deployments in the US, China, and Japan will drive global V2G growth

V2G vehicle growth will lag behind the growth of the PHEV and EV market

Static V2G services will launch first before more advanced services (roaming for example) are available to consumers

The biggest challenge for the industry will be to ensure interoperability between independently developed and supplied equipment in the premise such as the Smart Meter and Electric Vehicle Supply Equipment (EVSE) and the PEV31

Standards like ZigBee Smart Energy provide seamless integration of V2G two-way communications to the Smart Grid into vehicles and hence offer interoperability across systems. They will also speed adoption of V2G and drive down the costs of implementation for such technology

Opportunities

Rather than compete with industry-blue-chips directly, ‗new-entrants‘ in the automotive space must focus on developing a competitive advantage by narrowing their sights on ‗value-added‘ features in V2G such as telematics, and the overall in-vehicle-experience

Hardware and software vendors unite. Currently, there are only a small handful of players developing V2G hardware and software leaving this space vulnerable for new entrants and partnerships

Develop in-house V2G capabilities – Pioneering new advancements in V2G technology could provide a competitive technology and first mover advantage to an automobile manufacture who invests in developing the next generation of V2G technology

For the niche players – development of in-the-vehicle technologies (enhancing the in-vehicle experience) will be highly sought after. In the vehicle systems and interfaces that give the owner control of how and when V2G is used will become increasing critical – companies must create an interface that is reminiscent of engaging video gaming systems. Look for

31 Electric Vehicle Communication to the Utility, Rich Scholer – Ford Motor Company and Mike Bourton – Grid2Home Inc.


V2G: A Closer Look Experts Plug-in




companies to reach out to brands such as Nintendo on interactive interfaces

Mobile technology will lead the way over one-function technologies (e.g. in home displays) for V2G. For example mobile technology such as Apple‘s iPhone will provide apps that can do everything from monitoring V2G energy expenditure to selling electricity back to the grid

Partnerships are paramount; establishing utility, infrastructure, technology vendor, integrator, auto manufacturing, research, R&D, and university partners can drive down the costs of developing new technology and play a crucial role in creating demand for new V2G technologies

It‘s imperative that companies get involved with V2G demonstrations now. Demonstrations offer opportunities to test technology and equipment, and showcase a company‘s respective products or services, not to mention the best form of PR, branding, and marketing. In a rapidly growing market with competition that is intensifying daily, it will be essential to prove one‘s product has the go-to-market potential

Electric bikes, which have become an $11 billion global industry, are a signal of potential growth for the V2G market

Though it still in its infancy stage, identifying business models early will provide the best opportunity for long term growth. Monitoring companies such as Nissan, BYD, CODA, Ford, Toyota, and even Norwegian electric vehicle builder Think will prove rewarding to new entrants and established corporations

Battery partnerships will become customary in the V2G space. Securing a strong battery manufacturing partner with companies such as EnerDe, Johnson Controls A123 Systems or LG Chem early will enable automobile manufactures to gain a competitive cost advantage

Back to mobile technology, it‘s all about the apps. Software vendors can capitalize on the emergence of mobile applications to develop a series of applications strictly for V2G. Look for companies to welcome more open source as competitors and consumer preferences emerge. The biggest challenge for V2G applications is getting cars on the road and making sure they meet consumers‘ needs

Aggregation services will become lucrative once mass needs have been assessed. Companies and government organizations can get into the load aggregation business for fleet vehicles or residential vehicles. For example "Use of electric vehicles for Postal Service deliveries is operationally feasible and could provide a valuable opportunity for the nation to test EV technology. Due to the Postal Service's current financial distress, government funds and vehicle-to-grid revenue would likely be needed to make this transition economically feasible"32

Develop the software and systems to integrate and manage fleet vehicles – As the number of V2G vehicles grow, an increasing need for software, programming, and management systems will be needed for the scheduling, monitoring, reporting, and DR services associated with the vehicles

Like the new Smart Grid revolution to engage and educate the consumer, companies must build a strong brand for V2G via aggressive consumer advocacy and interactive marketing. It‘s recommended that companies utilize a 3-pronged approach to marketing and branding: grass roots, social media, and traditional online

Incentives must be created for automakers to initiate V2G. Most automakers are hesitant to introduce V2G equipment because it would (slightly) increase the sticker price of plug-in cars. Government subsidies and welcoming EV adopters into the mix will motivate automakers to jump into the V2G the deep end of

the V2G pool

32 USPS, Office of Inspector General of the US Postal Service on the Feasibility of Electric Vehicles, August 28, 2009





Experts Plug-in

V2G: Experts Plug-in



University of Delaware Contributors: Nathaniel Pearre & Jacqueline Piero, University of Delaware Center for Carbon-free Power Integration

1. ZP: What are the current barriers in developing V2G technology? UD: There are effectively no plug-in vehicles on the roads. The idea of selling the services of your vehicle while it's parked is just not on most people's radar. Fear of loss of cycle life of batteries. All charging and discharging has some wear effect on the battery. For certain battery chemistries this can be significant, for others it is almost immeasurably small. Regulatory issues such as current non-inclusion of vehicles as eligible sources of net-metered electricity. If you have to pay for electricity going into the battery, but don't get paid for electricity coming out of it, the market fails and there is no value to the vehicle owner.

2. ZP: How aggressive is the automobile manufacturing industry in developing V2G technology?

UD: The outward appearance of things is that most OEMs are not being very aggressive at all. However, most are aware of the possibilities of V2G, and while fearful (and I think fearful is the right term) of getting into an area with which they have no experience, many are talking about future plans for V2G capability.

3. ZP: Do you see the development of charging stations growing at the same pace as V2G technology?

UD: I don't think charging stations outside residential chargers are important right now. It will require VAST market penetration and several generations of vehicles before EVs are a realistic (maybe 'popular' is a better word) option for extended trips. Until they are, it is only people's daily driving range that is important, and daily driving range in the US averages ~40 miles. On average, Americans exceed 100 miles daily driving only 17 days a year. Given this fact, combined with the fact that about 65% of American households have more than one car, it seems clear that for that one day every three weeks (=~17 days/year) that you exceed the range

of your 100 mile EV, you can just take your second car - the one that burns gas. I believe that home charging will be the vast majority of charging for a long time. Charging stations are much simpler devices than most people think. All charging up to SAE level 2 (i.e., up to 20kW, or ~70miles(range) per hour) will be AC, which means that the charger is nothing more than a GFCI, a cord, and in some cases a billing device or user interface, all of which are established technologies. To make them GIV compatible, they must also be able to integrate communications with power going to the car. Anything with billing must have a communications link already.33

4. ZP: Where do you see V2G five years from now? Ten years from now? UD: V2G will gain acceptance (and market share) as EVs gain acceptance and market share, lagging slightly behind EVs. It is generally agreed in both auto and utility industries (at least among the commenters in the California CPUC proceeding) that if EVs get deployed in large numbers, some communication and control will be necessary to "not crash the grid" (a standard fear, but not likely). The conceptual progression from "not crashing the grid by using a charging timer" to "not crashing the grid by using a price/demand signal" to "controlled load using demand signal" to "storage resource" is one that can happen as EVs become more common. In five years I see V2G being operational in several large vehicle fleets in multiple RTO/ISO territories, and in some private early adopters' vehicles. Several OEMs will be building GIVs with the communications systems to respond to external signals. In ten years, most OEM vehicles will be GIVs, and several will be selling vehicles with power electronics that can support bi-directional power flow. Business models for how to use this colossal energy storage resource practically and profitably will be coming up like mushrooms after the rain.

33 GIV: grid integrated vehicle; GFCI: ground fault circuit interrupter




5. ZP: How aggressive is the hardware and software industry in becoming an active player in V2G? UD: AC Propulsion is currently the only manufacturer of V2G-capable power electronics, but Azure Dynamics, Siemens, and even GM have given indications that they are thinking about the market, and I'm confident others who are keeping their cards close to their vests are as well. The software is pretty straightforward, and will likely be developed in-house by the companies building the electronics. Remote interface software, for instance for iPods and other smart phones, happens so fast you have to pay attention or you'll miss it. It's already there for ZipCar and for the Nissan Leaf.

6. ZP: How important are standards in the development of V2G technology? UD: For ―development‖ standards are of no great importance. The development was/is about the algorithms and figuring out what vehicle owners or those wishing to use the storage resource need, getting someone to work two-way capability into their power electronic unit design, getting an ISO to give us access to their Automated Generation Control signal, getting a utility to let us experiment within their distribution system, and getting mechanical, electrical, and computer science engineers to think through how to make it all work. For ―implementation‖, yes. Some are incredibly important because they define the parameters within which we have to work, if the new SAE J1772 connector had for some reason excluded communications (it doesn't do that, just an example) we would have had to develop separate communications pathways. Also, a different type of "standard" would be regulations regarding identification for billing and service provision purposes will impact.

7. ZP: Outside of the environmental benefits of V2G, what other benefits should consumers be educated about? UD: If vehicle owners are not making money, they will not participate, but there's plenty of money out there to be made. The marginal costs of building V2G capability into new vehicles (and your garage) is less than $1000 over the cost of 'just' buying a plug-in vehicle, probably much less. The potential revenue stream to the vehicle owner is

several times that each year. Your car spends on average 23 hours a day NOT providing you with transportation service. During those hours it could be earning revenue for the owner by providing grid services. Beyond the remuneration, the synergy between an electric grid with storage capability and clean energy are very compelling. If electricity storage were abundant and cheap, there would be no talk of the practical limitations of renewables before grid stability became a concern (there is talk of 20% renewables as about the limit, though I have yet to be awed by the analyses used to derive that numbers). Regarding the grid itself, vehicles would go into a resource category with flywheels and other battery applications for provision of ancillary services. Their response to requests from system operators is faster and more accurate than any traditional generator. This "quality" of response will increase the efficiency and reliability of these services, backing off slower (possibly dirtier) generators.

Learn more @ udel.edu/V2G




Austin Energy Contributor: Karl Popham, Austin Energy Interim CIO

In May of 2010, Zpryme had the pleasure to speak with Austin Energy‘s Interim Chief Information Officer, Karl Popham, to learn more about the utility‘s ideas and thoughts about the Smart Grid, PHEVs, and V2G. A leader in conservation, Smart Grid technology and implementation, renewable energy, and the use and management of distributed generation, Austin Energy is the 9th largest publicly owned utility in the US with annual revenues over $1.3 billion. The Texas-based utility serves about 43,000 businesses and 1.0 million consumers.

Austin Energy is a founding partner of The Pecan Street Project in Austin, Texas. The Pecan Street Project‘s other partners include the City of Austin, Environmental Defense Fund, the Greater Austin Chamber of Commerce, and the University of Texas‘ Austin Technology Incubator. The Pecan Street Project is funded by $25.0 million in funds; $10.4 million were awarded by the US Department of Energy and $14.5 million were provided by matching funds for the project. Overall, the Project will play key role in helping Austin Energy stay at the forefront of Smart Grid and clean technology as it will help the utility test, demonstrate, and implement the energy systems of the future. Please visit pecanstreetproject.org to learn more about The Pecan Street Project. Summary of Key Themes from Q&A:

Austin Energy has two immediate Smart Grid phases, ―1.0 and 2.0.‖ The time period of 1.0 is from 2006 – 2011 and 2.0 is expected to start in 2011 or 2012. Smart Grid 1.0 involves upgrading and integrating telecommunications systems, hardware, software, and equipment from the generation source (power plant) all the way to the customer meter. Smart Grid 2.0 involves the evolution of emerging technologies that will take place ―beyond the meter.‖

Austin Energy predicts that they may have up to ―30,000 PHEVs in 2015 and 190,000 in 2020.‖

Austin Energy expects full V2G integration to materialize in ―10 to 15 years.‖

In the near term, Vehicle-to-Premise (V2P) technology is more likely to be adopted than V2G technology; however, V2P will be a platform for the transition to pure V2G technology.

Fleet vehicles, such as school bus or industrial vehicle fleets are the best candidates to be early adopters of V2G technology as these types of vehicles have a highly predictable usage schedule, making it much easier for utilities to integrate their loads or charging times into the grid.

Universal standards development is critical to ramping up adoption of V2G and driving down technology implementation costs.

Learn more @ austinenergy.org




Smartgridlibrary.com Contributor: Christine Hertzog, Founder & CEO of Smart Grid Library

Electric Vehicles – Making a Connection with Consumers

Electric vehicles (EVs) are important pieces in the Smart Grid puzzle. EVs will play an increasingly important dual role as both transport and energy storage. This role change has consequences that impact consumer lifestyles, wallets, and decision-making processes. The challenges, which are significant, will impact our ability to harness the benefits that Smart Grid technologies can bring – increased energy security, reduced GHG emissions, and reduced individual energy expenditures.

One challenge is the need for an infrastructure to support EVs, Plug-in Hybrid EVs (PHEVs), or cars using hydrogen fuels. Part of the appeal of any solution is that it is easy to use, and many consumers still perceive EVs as requiring too much advance trip planning to be welcomed into their driveways. A second challenge is the lack of rules about EV charging. Is it ok to charge your car at work or at a friend‘s home? What rules of charge etiquette will organically inform and change consumer perceptions about the convenience and economics of EVs? However, the greatest challenge is consumer education. Consumers must learn how to manage an EV. Once upon a time, people had to learn how to manage an internal combustion engine (ICE) car instead of a horse. The car most Americans can‘t live without was once regarded with bemusement, skepticism, and even hostility. What changed these early perceptions? An understanding of the benefits, compelling ROIs, and a societal consensus that the benefits outweighed the negative aspects of cars. We are at a similar intersection of disruptive technology and the status quo. Concerted efforts to educate consumers about the benefits of EVs can help accelerate the adoption of EVs. For instance, EV owners avoid the inconvenience of filling gas tanks, and spend pennies instead of dollars to ―refuel‖. EV cars are far less complicated than internal combustion engine vehicles, resulting in less

time at auto repair facilities. These are positive impacts to lifestyles and wallets. Are these benefits communicated on a broad scale to consumers? Not yet. Today a majority of consumers suffer from ―range anxiety‖ – figuring an EV could never support the daily distances they travel. It is very likely that most of them have not seriously calculated their weekly drive patterns to assess if an EV could support their lifestyles with little or no adaptations. Are the tools for them to easily analyze drive patterns readily available to use? Not yet. In today‘s car culture, a new car loses value the minute you drive it off the dealer‘s lot. When an EV fulfills transport and mobile storage functions, its value as an owner asset appreciates enormously. Let‘s consider carbitrage. The Smart Grid Dictionary defines carbitrage as ―the capability for an EV or PHEV to communicate with the electrical grid to schedule charge/discharge activities based on conditions including pricing signals, tariff agreements, TOU (time-of-use), DR (demand response) programs, and manual overrides by car owners.‖ In the not too distant future EVs can earn money for their owners by automatically selling back electricity at peak times. This is a real game-changer, but not easy to explain in a sound bite to consumers. Consumer education requires coordinated communications campaigns to align consumer, government, and industry views of EV visions, realities, and most importantly, their benefits to consumers. Consumers, taxpayers, and ratepayers need to understand what values they gain from making a switch from ICE vehicles to EVs. If EV manufacturers really want to sell EVs, they need to build educational campaigns to instill familiarity and confidence in consumers. Stop spending marketing dollars promoting gas-guzzling SUVs. Feature real-life EV owners and how they use their vehicles. Every EV manufacturer should have a fun, interactive game on their website that engages consumers to enter info about their daily driving habits to learn just how often they would have to charge up an EV, and the cost comparison of their electricity charges versus avoided gasoline costs. That would open a lot of eyes in the USA. Learn more @

smartgridlibrary.com

smartgridlibrary.com




Plug In America Contributor: Sherry Boschert, Plug In America Co-founder

1. ZP: What are Plug in America‘s current V2G initiatives?

PIA: Through our presentations, events and publications like "Charged Up & Ready To Roll: The Definitive Guide To Plug-in Electric Vehicles," Plug In America educates consumers, government officials, utilities and others about the new generation of plug-in electric vehicles and the potential for V2G. We provide public testimony and act as consultants or advisors to automakers, charging-station companies, utilities, and regulators and legislators on the local, regional, state and national levels, focusing on consumer needs, consumer acceptance, and the role for V2G in plug-in electric vehicles.

2. ZP: What automobile manufacturers have been the most proactive to step into the V2G space? PIA: There are no natural incentives for automakers to initiate V2G. Incentives must be created. Automakers with plug-in cars on the market or coming soon (Tesla, Nissan, GM among them) have paid the most attention to V2G. But all automakers are hesitant to introduce V2G equipment because it would (slightly) increase the sticker price of plug-in cars. Some automakers are investigating the resale potential of leased car batteries at the end of their vehicle life for second-use energy storage. Others are looking at a vehicle-to-building (V2B) capability as an option to entice consumers, so car owners could power their homes in an emergency.

3. ZP: How critical is it for the government to collaborate with automobile manufacturers to make V2G a reality? PIA: Government collaboration is absolutely essential -- not just with automakers, but with utilities, electrical grid operators, and wind energy suppliers. Federal regulators have pushed the Independent System Operators (ISOs) and Transmission System Operators (TSOs) to set tariffs for V2G energy. One ISO study showed that owners of V2G cars with a certain minimum battery capacity would earn between $10,000 and $25,000 each over a 10-year period from V2G

contracts. Government collaboration can help find a way to front-load that financial benefit for consumers to lower the purchase price of plug-in vehicles and get more plug-in cars (and more V2G capability) on the road faster.

4. ZP: Aside from environmental benefits and selling electricity back to the grid for V2G owners, what other incentives exist for consumers? PIA: Plug-in electric vehicles are not only environmentally desirable because they produce far fewer emissions than gasoline vehicles, but their V2G capability is necessary to provide "regulation" energy for large-scale additions of wind energy to our grid. Wind energy providers could play a role in incentivizing V2G vehicles, moving us more rapidly toward renewable energy. V2G vehicles also could provide their owners with greater security, by using the V2G connection for vehicle-to-building (V2B) operation in an emergency, and by knowing that the environmental benefits of V2G decrease the risk of political and financial disruptions due to global warming

Learn more @ pluginamerica.org


https://salsa.democracyinaction.org/o/2711/shop/item.jsp?storefront_KEY=553&t=&store_item_KEY=2724

https://salsa.democracyinaction.org/o/2711/shop/item.jsp?storefront_KEY=553&t=&store_item_KEY=2724



Electrification Coalition Contributor: Ron Minsk, Electrification Coalition SVP of Policy

1. ZP: What are Electrification Coalition‘s current V2G initiatives?

EC: Right now, we are not focused on policies related to V2G specifically. We appreciate that technology and applications that allow bi-directional communication between cars and the power sector will ultimately enhance consumer utility. V2G will offer revenue-generating opportunities that help make the economics of electric cars even more compelling for consumers; and a network of millions of batteries connected to the grid represents an incredible opportunity for reliability and storage. Still, we understand that V2G applications are likely to thrive in the second or third generation of grid-enabled vehicles (GEVs). (GEVs include both pure electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs).) In the meantime, we at the Coalition are focused on enabling public policies that will get the first generation of GEVs on the road and set the nation on a path to getting these cars on the road at scale. There are a number of big challenges in the way that need to be dealt with right now: high battery costs and minimal access to charging infrastructure are among the most pressing. From our perspective, the single most important step the federal government can take to support electrification is the establishment of a program at the Department of Energy (DOE) to coordinate GEV deployment regions. Basically, the program would offer significant financial incentives for consumers, utilities and infrastructure providers in a handful of geographic regions—about five cities to start. To be selected as one of these regions, cities would need to file applications to DOE that would demonstrate aggressive steps they are taking to lay the groundwork for electrification—modified building codes requiring new construction to be wired for level two charging, for example. We think this kind of ‗race-to-the-top‘ approach will foster healthy competition between cities who should be anxious to reap the benefits—jobs, economic growth, and prestige—that will come with participation in the program.

If the program works as designed, it will get high concentrations of vehicles and infrastructure deployed in a handful of regions relatively quickly. This will help create economies of scale in infrastructure installation and should also drive high demand for vehicles and batteries, driving down costs. The program would help get consumers comfortable with a new technology, generate tremendous opportunities moving down the learning curve, and also give the market a chance to experiment with various business models. If it‘s successful in the first cities, we envision expanding the program to an additional 20 regions/cities through about 2018. At that point, our analysis suggests costs will be low enough that GEVs will be ready for national markets.

2. ZP: Aside from battery technology, cost, and infrastructure financing what are other challenges V2G is facing? EC: The biggest challenge for V2G applications is getting cars on the road and making sure they meet consumers‘ needs. V2G applications will be a critical part of our future, but we first need to get grid-enabled vehicles on the road and demonstrate convincingly that they can meet consumers‘ primary reasons for buying a vehicle: to have reliable, affordable, and safe transportation. Demonstrating that will take time, but once consumers see that GEVs can meet their needs, V2G applications will be among many applications that can enhance the utility and reduce the costs of the cars to all drivers while enhancing the reliability and the emissions profile of the grid.

3. ZP: What US policies in 2010 will shape the way consumers ultimately ‗opt-in‘ for the purchase of EVs for 2011? EC: For now, the most important policies are the existing tax credits of up to $7,500 for vehicles and additional tax credits for installation of charging equipment. Policies that are not yet in place will not likely have an effect this year. For the future, however, implementing the policies in the Electrification Roadmap, with a regional approach, is the best way to achieve high penetration levels needed to make sure that grid enabled vehicles go mainstream and are not stuck as niche vehicles.




4. ZP: What has been the most important collaborative EV effort by the US government and automobile manufacturing industry this year? EC: In August 2009, the Obama Administration announced $2.4 billion in funding for advanced battery manufacturing and electric drive programs. Of these funds, approximately $1.9 billion was allocated to battery manufacturing and $500 million was allocated to electric drive infrastructure and demonstration projects. As depicted in the chart below, this funding supported 53 individual projects in 25 states. The preponderance of battery funds—more than $1 billion—went to projects in Michigan. However, Indiana received more than $300 million for battery manufacturing; Florida approximately $100 million; and Oregon more than $20 million for high-performance electrodes. Projects for battery recycling in Ohio received more than $30 million; production of lithium carbonate from mines in Nevada received $28 million.

Number of Electrification Projects by US State34

Among other initiatives, the Administration awarded Nissan a $1.6 billion loan to help support the manufacture of the Leaf, under the Advanced Technology Vehicles Manufacturing Loan program, established in Sec. 136 of the Energy Independence and Security Act

34 Electrification Coalition, Economic Impact of the Electrification Roadmap, April 2010

of 2007. It also awarded about $100 million of stimulus funds to eTec, which will deploy electric vehicle charging infrastructure in five major US regions (Tennessee, Oregon, San Diego, Seattle and Phoenix/Tucson). Nissan will then deploy up to 1,000 electric Leafs in those communities. eTec‘s grant will be matched by $199 million in local funds. This approach, generally speaking, is similar to the approach that the EC is promoting. The EC, however, envisions a far more intense--and well-funded--regional effort intended to deploy a higher number of grid-enabled vehicles more quickly. In addition, it increased the level of financial incentives to consumers to purchase grid-enabled vehicles. These have been critical steps in the right direction, but do not go far enough. Funding for additional vehicle incentives and infrastructure in select communities are needed to establish grid-enabled deployment communities which will: 1) allow us to learn what infrastructure is needed, which regulatory environment and business models are needed to allow for an adequate charging network, and how GEV systems will operate; and 2) promote the purchase of this new technology beyond early adopters. Moreover, these localized concentrations of electrification can achieve these goals while taking advantage of the economies of scale, particularly with regard to charging infrastructure. They will also drive demand for electric vehicles at a much higher rate than would be otherwise possible.

Learn more @ electrificationcoalition.org


http://www.familycarguide.com/make/nissan,new



Coulomb Technologies Contributor: Richard Lowenthal, Co-founder & CEO

1. ZP: What are the greatest challenges right now for the charging

station industry?

CT: a) Our market is limited now to people who will buy stations in anticipation of the cars. That problem will be gone in a year and it will be all about how fast we can scale. The scale challenge is the more interesting one and one we feel we have the answers to.

b) We have regulatory uncertainty at the moment. Business mechanisms for the shared station at the workplace, in a retail setting, in an apartment or public lot are needed to pay for the cost of electricity, capital, and maintenance. The utilities and regulatory bodies are a bit behind in establishing the rules for the business environment. We have very flexible business software tools that can adapt to whatever are the predominant business models, but we‘d like more certainty from the regulators.

c) We have some ―competitors‖ out there who pitch slideware products and thereby corrupt pricing and grab deals that they‘ll never be able to deliver on. Coulomb has shipped hundreds of stations to more than 100 customers.

2. ZP: What new developments coming this year will/have increased the proliferation of charging stations? CT: Cars and grants.

3. ZP: How much collaboration exists between the automobile industry and

charging station industry?

CT: We are in constant contact with the automobile manufacturers as they understand the importance infrastructure will have on the acceptance of EVs.

4. ZP: What are Coulomb Technologies current V2G initiatives? CT: Let‘s be clear on this because recently the term V2G has been used in a new way. V2G (Vehicle to Grid) traditionally refers to the transfer of energy from the car to the grid in order to help smooth out the energy capacity of the grid. Our stations have the important features to enable V2G including communication capabilities to the utility and vehicle, bidirectional energy flow, and bidirectional metering. Currently no production vehicles are planning to implement V2G, but we watch the automakers very closely to see if that changes. When it does, all of our deployed stations will be ready.

Learn more @ coulombtech.org




Ford Motor Company & Grid2Home Contributors: Rich Scholer, Ford Motor Company Chair of SAE Hybrid J2836/J2847 Task Force & Mike Bourton, Grid2Home Inc. Co-founder & VP of Business Development

Communication between Electric Vehicle and Home Network The development of the standards for Plug-In Electric Vehicle (PEV) communications to the Utilities are being developed in SAE Hybrid J2836™/J2847 Task Force and the ISO/IEC - JWG V2G CI. In North America, this work is part of the ZigBee Smart Energy version 2.0 specifications being developed by the ZigBee Alliance, which is referenced by NIST in the Smart Grid Interoperability roadmap 1.0 as an approved Smart Grid Standard. All major residential loads, such as air conditioning that want to participate in utility programs, are being connected to the Grid to respond to demand response events. This is part of the Smart Grid Initiatives to manage peak demand and to provide consumers with information to make better decisions on their energy consumption. The PEV is considered to be a special case for several additional reasons. It is a large and random load and has the potential to overload the local neighborhood transformer, if more than one vehicle is charged It is mobile and may be plugged into different geographical locations, which is known as roaming. Special tariffs may be available from some utilities to encourage charging at times when energy is available, such as overnight To enable a PEV to roam and be metered independently requires a clear association with the sub-meter. As several sub-meters could be in range, then a wired network is used called Power Line Communication (PLC) over the power circuit. The current roadmap for the industry is focused on selecting a PLC standard and developing the PEV specific messages for AC and DC charging. The future roadmap includes roaming, which gives the EV ability to charge at a public location and billed to their home account

and Vehicle to Grid (V2G) energy flow, which enable a charged vehicle battery to support the Grid (or Home) at peak times. The biggest challenge for the industry will be to ensure interoperability between independently developed and supplied equipment in the premise such as the Smart Meter and Electric Vehicle Supply Equipment (EVSE) and the PEV.

Learn more @ ford.com grid2home.com




ZigBee Alliance Contributor: Bob Hile, ZigBee Alliance Chairman

ZigBee Smart Energy Speeding V2G The advent of grid-enabled vehicles (GEV) extends the growing control consumers have over their energy usage, and provides one of the biggest bang-for-the-buck impacts on the environment. Any GEV is considered a distributed generation and mobile storage device and will require a two-way communication standard to ‗speak‘ with the Smart Grid. Establishing this communication will require more than just connecting a power cord to a GEV. Both the GEV and its recharger must deliver both energy and complex information covering every aspect of electricity from generation to consumption. Developing a workable vehicle to grid (V2G) infrastructure not only depends upon the speed of smart grid implementations, but also the cost of technology needed to support this type of distributed generation and mobile storage program. Overcoming the challenge of connecting vehicles to the grid relies upon manufacturers and utilities agreeing to a common set of standards delivering the benefits of V2G. ZigBee Smart Energy is an open industry standard that has won the support of a large stakeholder community consisting of chip suppliers, original equipment manufacturers, metering companies, utilities, regulators, and government agencies. This thriving ecosystem is delivering a proven solution, with a thriving competitive marketplace and no single vendor lock-in, which is expediting the implementation of the smart grid – including support for V2G. By uniting around this standard, the smart grid industry has simplified the lives of consumers who will need an unified approach to control their home electronics, lighting and GEVs in ways they never dreamed possible. Since GEVs are inherently mobile, standards become mission critical to achieving anything useful and ubiquitous. GEVs are not just another consumer appliance; they are significantly more challenging, especially when considering their use characteristics. Most drivers normally arrive at their homes during a narrow window of time every workday evening. This time period is already associated with peak energy use and prone to causing black or brown outs during hot summer days.

Each GEV can represent as much as a 6 kW load, drawing significantly more energy than the average single-family home. If everyone parks their GEV and plugs it in during this peak period, a local feeder or transformer could realistically fail. What if you arrive home, low on energy, with somewhere else to drive soon? What if you want the lowest price? What if you plug in somewhere else? What if you‘re not at home and low on energy? With a standard like ZigBee Smart Energy in place, both the consumer and the utility are able to intelligently manage these scenarios, capitalize on the benefits and minimize system risks. Homes will be a key factor in any V2G equation. The largest number of distributed generation devices, and the home base for GEVs, will be the consumer‘s home. All of these devices must be connected in a highly secure, seamless and intuitive manner to win widespread consumer adoption and confidence. Influencing consumer behavior in homes will also be essential to reducing electric demand. With the sheer number of residences and consumers, workable demand response and load control programs will require a high level of information, communication, automation and participation. Since 2006, the ZigBee Alliance has taken the lead in delivering open energy management solutions. Today, ZigBee Smart Energy is the market leading home area network (HAN) and advanced metering infrastructure (AMI) standard. More than 40 million meters around the world are in the process of being rolled out by utilities at a rate of 20,000 per day. Connecting a wide array of devices is at the heart of ZigBee since it was launched in 2002 to promote open standards for wireless sensor networks. ZigBee makes it easy and cost effective to put sensors and controllers in everything, enabling devices to network and exchange information for a variety of purposes. By doing so, we achieve an Internet of Things and the ability to gain control over the devices we use everyday including everything from energy-heavy applications, like heating and air conditioning or lighting systems, to the constant loads of home security systems and consumer electronics. ZigBee provides consumers




with greater control of their energy usage within their home and delivers added convenience, safety and comfort features that can also help them save money. By adding in V2G and other distributed generation platforms, such as microturbines or solar panels, consumers will see increasing opportunities to use energy wisely and to become energy producers rather than just users.

Learn more @ zigbee.org


ZigBee Smart Energy is the market leading standard to connect both vehicles and homes to the Smart Grid.

Visit www.ZigBee.org/SmartEnergy for more information

©2010 ZigBee Alliance. All rights reserved.



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