Reforming the transportation sector has the potential to also help support and even improve the electric grid. Transportation electrification across all components of the sector, from heavy equipment at ports to transit vehicles to passenger light cars, will require drawing on the electric system. This increase in electricity demand will require a robust distribution system and require electric utilities and system managers to be strategic about grid upgrades and planning. If the shift toward electric transportation is done strategically, and in coordination with electric system, it has the potential to actually serve to strengthen the grid and help to incorporate other key clean resources such as renewable wind and solar generation. For example, managed EV charging can absorb otherwise under-tapped capabilities of the grid (such as excess distribution capacity or renewable generation), which can then lead to improved revenue flows for better grid maintenance and ultimately better overall rates for all consumers. Additionally, if integrated into the electric grid well, EVs can provide grid reliability services, such as local power services, energy storage, and a foundation for resiliency measures such as microgrids. Policymakers may wish to pursue policies that specifically seek to capture these and other grid benefits.
The National Renewable Energy Laboratory (NREL) Electric Vehicle Grid Integration Project has also been exploring multiple capabilities related to EV integration. For example, it has studied “managed charging” capabilities in which EVs, in combination with smart charging infrastructure, can provide value through electric load management and reduce EV charging costs, and is exploring how it can develop vehicle to grid communication systems to reduce peak-power demands.
NREL, as well as others, have explored how EVs can help to integrate intermittent renewable resources by acting as grid-connected batteries. For example, NREL is studying how EVs can support local power quality, especially in scenarios with a high penetration of renewables, by leveraging charge system power electronics to monitor and enhance local power quality and improve grid stability. A modeling exercise in Germany also showed that EVs contributed to balancing intermittent renewable resources, in part by helping to consume nighttime wind generation. States are also taking action to explore EV integration capabilities. California, for example, established a working group in 2014 and at the end of 2017 released a whitepaper exploring interactions between EVs and the electric grid and final recommendations for regulatory actions the state could take to “unlock” the benefits of EVs for the grid.
Policies with Potential to Improve Grid Stability