IT AND THE EV

Electric Vehicle Information Technology Systems; Vehicle, Smart Grid, and Utility IT Systems for Data Analytics, Smart Charging Management, and Customer Information Management
John Gartner and Clint Wheelock, 3Q 2010 (Pike Research)

"…The second comeback of the electric vehicle (EV) in little more than a decade has a much greater likelihood of success and will have a transformative effect on driving habits as well as the automotive and electric power industries. Automakers are planning to produce hundreds of thousands of vehicles per year that plug in starting in 2012. By 2015, Pike Research forecasts that more than 1 million plug-in hybrid electric vehicles (PHEVs) and EVs will be sold annually around the world, and during that year, more than 3 million EVs sold to date will be plugging in to recharge their batteries.

"EVs can draw power via standard 110 V outlets, but the vast majority of charging sessions are expected to occur via electric vehicle service equipment (EVSE) that will monitor power quality and can deliver power much faster than a standard outlet when Level 2 (up to 6.7 kW) charging is utilized. Both residential and commercial EVSEs monitor power quality and contain intelligence that enables charging to be scheduled based on the time of day, grid conditions, or the cost of electricity. Investments in EVSE have begun in advance of EV sales, and are expected to be sold on a greater unit basis than the vehicles. By 2015, more than 4.7 million charge spots (residential and commercial) will be installed."

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"The majority of EVSEs will be networked and managed via IT and communications systems that aggregate power demand and enable a coordinated response to changing grid conditions…EVs will not immediately impact utilities' ability to keep up with the aggregated demand, the impact on distribution assets that deliver power to customers could be immediate in some areas…EVs are expected to be purchased in clusters around neighborhoods that have historically seen high adoption of hybrid vehicles…As thousands of EVs begin to plug in daily, peak demand at the conclusion of the work day could be increased if intelligence is not built into the charging process…

"Utilities view EV IT systems as key to maximizing the use of renewable power, such as wind energy, which is generally strongest at night when demand is low. Through a smart charging system, EVs can absorb excess renewable power, and also be used as a replacement for fossil fuel power plants for grid services…EV IT systems that enable customers to schedule charging based on price signals, allowing EV owners to reduce their cost of charging and specify the use of only renewable energy will prompt future EV sales…"

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"Investments in EV IT systems are initially focusing on collecting data and presenting it to consumers, with $125 million invested globally in 2010. By 2015, we forecast that annual investment will grow by more than tenfold as data analytics and integration with utilities' internal information systems becomes paramount. Investments in EV IT in the United States will grow to $371.9 million in 2015, representing 24.5% of the global market ($1.5 billion). The Asia-Pacific region, led by China, will be the largest market by far for EV IT…

"By 2013, utilities will begin investing in EV IT systems and services so that the aggregated load of EVs can be managed as an asset and integrated into their demand response (DR) and other energy management systems. The focus in investment will shift towards data analytics and integration applications, making up more than half of EV IT investment globally by 2015…The lack of standards today will encourage many companies to hold off on investment until interoperable products are released…The strong regulation of utilities in the United States will also slow adoption of EV IT
Systems…The understanding of the benefits of EV IT across all aspects of grid operations including load management, the use of renewable power, and being able to avoid capital investment in generation and transmission equipment, are not well known today. Greater knowledge of the lifetime value of EV IT systems including the financial benefits from reducing carbon emissions would make it easier for utilities to justify the investment…"