Commercial Buildings and the Grid in the Advent of Electric Vehicles: Challenges and Opportunities
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Electric Mobility White paper Commercial Buildings and the Grid in the Advent of Electric Vehicles: Challenges and Opportunities Exploring possibilities for commercial buildings and facilities to sustainably host public EV charging infrastructures. Delphine Clement Segment Manager Mobility, EMEA, Eaton Louis Shaffer Segment Manager Distributed Energy, EMEA, Eaton John Robb Segment Manager Commercial and Industrial Buildings, EMEA, Eaton
Introduction car sales in less than a decade, equal to global annual
sales of 10 million units (see figure 1).
The advent of EVs will be a game changer for all
parties involved in energy production, distribution and
Annual global light duty Figure1.
consumption. Potential stakeholders that decide to
vehicle sales
host smart, sustainable charging infrastructure can
Million cars per year
reap numerous business and revenue opportunities.
This whitepaper addresses the impact that electrical
vehicle (EV) growth will have on future power demand,
both on distribution systems and behind the meter in
commercial premises facilitating EV charging
infrastructure. Approaches to meeting these demands
in sustainable and scalable ways are considered.
While EVs today account for only a small share of new
car sales, significant growth is forecast by analysts,
investment banks and policy institutes. This uptake is
supported by the public and governments as part of
wide-ranging efforts to reduce transportation
ICE (Internal Combustion Engine) sales
emissions and improve air quality. However, meeting % of new EV sales
the expected massive growth in EVs means investing EV sales
Source: Bloomberg New Energy Finance
to ensure there is adequate charging infrastructure in
public places. If EV adoption rates are to be sustained,
Considerations going into this forecast include:
more rapid chargers will need to be sited in key
locations to allow convenient battery top-ups whether 1. Falling battery costs. These are reflected in lower
one is on a long drive or just running errands. EV sales prices, with the prediction being that
average lithium-ion battery prices (cells and packs
The impact of EV charging on electricity grids –
combined costs) will fall by more than 45% by
especially distribution systems – needs to be
2025, to $109kWh (see Figure 2).
considered ahead of an envisaged EV tipping point, to
alleviate the need for considerable grid reinforcement
expenses that will otherwise require billions of Euros Lithium-ion battery pack prices, Figure2.
of investment over the next decades. Smart policies historical and forecast
and deployment of enabling technologies are a core
2025 average 2030 average
consideration in this respect, as they have the $/kWh
lithium-ion lithium-ion
battery price: battery price:
potential to significantly mitigate grid stability 1000 $109kWh $73kWh
problems resulting from140 an EV upsurge, while at
900
the same time bringing 120 new business opportunities. 800
100 700
Energy storage, for example, can reduce peaks from $/kWh
600 1000
charging, and the cars80themselves can even 140
500 900
120 800
support the grid. Additionally, smart, two-way
60 100 electrical 400 700
300 600
charging infrastructure40can match the surplus
80 in 500
60 200 400
renewables generation 20 with EV charging,40 contributing 100 300
200
to the decarbonisation0of mobility. Operators20
of 0 100
2015 2020 2025 02030 2035 2040 0 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
facilities with carparks can be expected to provide2025 2030 2035
2015 2020 2040 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
BNEF observed valuaes: annual lithium-ion battery
fit-for-purpose, public EV charging capability, powered price index 2010-16
by clean energy generation. Investment will be paid Source: Bloomberg New Energy Finance
back through reduced cost of electricity, revenue from
supporting the grid, and increased loyalty from
customers who value being able to top-up their EVs at 2. Policies, incentives programs and urban emissions
such locations. regulations. Like UK and France or London and
Copenhagen , several more European countries
or cities are considering the possibility of
The EV tipping point is approaching
introducing an ICE ban or phase-out. Most of the
The convergence of EV-friendly policies, increasing countries in Europe are using incentives on EV
availability and affordability of electric cars is purchase, registration tax or on infrastructure to
accelerating the EV boom. According to Bloomberg facilitate the uptake of EV and meet EU 2025 CO2
New Energy Finance (BNEF), EVs and hybrid/plug-in emissions targets.
vehicles are expected to account for over 10% of new
2
3. Positive consumer experience. The effect this can Even with rapid chargers and the next generation of
have on driving EV sales should not be super-fast chargers, EVs will need to be plugged in
underestimated. New car models are able to for many minutes to charge, as future models will
travel further between charges and owners fully have bigger batteries to enable ranges of up to several
appreciate the benefits of driving cleaner, quieter, hundred kilometres on a full charge. Any public place
responsive cars that cost less to run and maintain. where cars are parked for at least 5-20 minutes could
potentially install chargers and reap numerous
4. Supply chain bandwidth. For very practical
benefits: from retaining existing customers and
reasons, the global automotive industry will not
attracting new ones, to increasing dwell time (i.e. how
be able to sustain supply chains indefinitely for
long a customer spends at an establishment), to im-
both ICE and electric vehicles. As manufacturers
proved sustainability credentials and positive branding
gradually commit to more EV product lines and
and PR opportunities. All of these factors drive reve-
total operating cost of EV is more and more
nue creation.
competitive, the trend will be reinforced and likely
accelerated also. Obvious initial sites for chargers include petrol stations
and service stations, offering cafés, shops and
restaurants. Tesla has been a first mover in this sense,
The need for investment in charging installing its network of Superchargers at such
infrastructure locations. Charging infrastructure can also be installed
ICE car owners take for granted that a petrol station at carparks serving the widest variety of facilities:
is within easy driving distance – a convenience factor • retail and entertainment complexes
turned into a deterrent when considering EV • supermarkets
alternatives at the current state of EV infrastructure • airports and railway stations
support. The public charging infrastructure thus needs • sports stadiums and fitness centres
to be extensive if consumers are going to embrace • universities and government buildings
the e-mobility transition and governments are going to • commercial offices
successfully decarbonise transportation. • hotels
• fleet depots
Community parking
home work Parking lots shopping leasure on the go
8 hrs 8 hrs 30min - 8hrs 30min - 3hrs < 30min
Target charge level 100% No target charge level Target charge level < 80%
3
Investing in this type of infrastructure presents designed to prevent local blackouts.
opportunities for public as well as private sector
In a separate study by the publication Energy Policy,
investment. For local authorities, installing chargers
unless rising domestic demand from EVs and heat
at public
pumps is actively managed, it could nearly double
carparks contributes to sustainability initiatives,
peak-time demand in the UK, which would require up
while the private companies that mostly operate
to a £36 billion (€40 billion) investment in network
these facilities could accrue new revenue through
upgrades by 2050. This finding suggests that at
park-and-charge tariffs.
European level, grid investments can be expected to
exceed several hundred billions of euros.
EVs are already proving disruptive in terms of defining
stakeholders who can potentially benefit from To avoid demand spikes caused by plugging in EVs
investing in or operating public chargers, particularly during the evening peak, smart charging technologies
rapid chargers, as EV drivers are currently underserved can deploy price signals to incentivise drivers to top-up
by places with such capabilities. when tariffs are cheapest, such as periods of surplus
renewable energy on the grid, or during low demand
times, such as nights and weekends.
Impact of rising EV numbers on the
power system
Behind the meter challenges
Electricity consumption from EVs will reach 1,800TWh
Lots of stakeholders who pay for their electricity and
in 2040, up from 6TWh in 2016 and equivalent to 5%
thus are “behind the meter” are thinking about adding
of global electricity demand. [Bloomberg New Energy
EV chargers for the reasons previously mentioned –
but have they considered the full implications of doing
EVs electricity demand by region Figure 3. so? Most hosting facilities are unlikely to already
have sufficient power capacity. Current versions of
rapid chargers typically have a power demand of 20
to 50kW, and we are now starting to see chargers
up to 150kW. Proper planning and careful design are
therefore required to avoid what could become a very
expensive upgrade of the site and even grid power
distribution network.
For example, take a large shopping centre with a
carpark with spaces for a thousand vehicles. Given
that forecasts expect EVs to account for 10% of new
car sales in 2025, the business could reasonably
expect to convert 10% or more of their capacity to
bays with chargers. Half could be equipped with lower
power chargers, but several could have rapid chargers
which need much more power. Even if only half are
used for charging at any one time, the site’s power
Finance, 2017] (see Figure 3). When and how these demand can easily grow by an extra megawatt,
EVs will charge will have an impact on the electricity effectively doubling the power need for some
grid. A study by the Institution of Engineering and customers (see Figure 4).
Technology into the impact of EVs on the UK’s dis- Similarly, fleet operators such as courier or logistics
tribution networks estimates that, as EV penetration firms will need to add significant EV charging – and
reaches 33% of households (around eight million), likewise exceed their current connection capacity.
voltage imbalances coupled with Upgrading grid connections is expensive – and often
overloaded distribution transformers could impair includes a higher rate tariff.
power lines.
In fact the issue is viewed so seriously in the UK that a Optimising the consumption of renewable energy
consultation paper has already been issued to con- to power EV chargers
sider an interim solution to allow network operators
to disconnect home EV charging for limited periods The cost of electricity generated by wind and solar PV
when a potential overload is detected [EA Technology, is fast becoming competitive with traditional forms of
2017]. In time it is expected that grid reinforcement generation and costs continuing to drop. This is
actions and market driven measures such as demand leading to a situation where investment in solar and
response will replace this, but the interim solution is wind dominate the future of electricity. According to
4comes mainly from clean renewable energy
sources. Carparks are ideal locations for onsite
Extra power renewable generation by upgrading bays with solar
PV generation to provide electricity for onsite rapid
chargers during the daytime. Adding storage then
enables increased self-consumption of renewables
and saves on energy costs through peak shaving.
The business case for investing in fast
charger assets
Power distribution
system Installing fast charging ports at locations with extensive
$ parking real estate such as supermarkets, airports,
university campuses and large offices, will incur
significant costs. In addition to the cost of fast chargers
themselves, which typically cost tens of thousands of
euros each, there are other expenditures to consider:
• An upgrade to the grid connection may be needed to
accommodate the increase in capacity of the site to
manage peaks when cars are charging. Such chang-
es may potentially also need permitting and incur
Figure 4.
$
EXTRA COST
Extra demand
in peak Power distribution
system
BNEF, over 70% of new power generation going
forward will be for wind and solar PV plants.
Large energy customers have jumped on board and
are sourcing more of their electricity from renewable
sources. For example, the global RE100 initiative has
a growing roster of companies, including Ikea,
Anheuser-Busch, InBev and the BMW Group who
have committed to sourcing 100% of their electricity
from renewables, often through locally sourced and
onsite generation. Not only is this approach more
cost-effective, it is also good for business because of
$
the positive branding and PR, with customers GRID SERVICES
REVENUE
rewarding companies that take steps to tackle climate
change and reduce emissions with their loyalty. A US
study on corporate social responsibility that included
1,200 consumers found that companies not seen as
responsible stood to lose as much as 39% of their $
potential customer base [Aflac, 2016]. SAVINGS
Within the context of this trend, investments in EV
Extra demand
chargers can really pay off if the energy powering EVs in peak
5additional charges from the local electricity distribu- which can save substantial sums in product wastage
tion company and downtime caused by any grid outages.
• Increased energy expenditure is not only from the
Customers may even gain revenue through the provi-
added energy used to charge the cars. Depending
sion of grid services such as demand-side response
on the rate structure for a site, significant high peak
or frequency control. The overall savings from storage
usage charges can also occur.
combined with these revenue streams create even
better business cases for implementing energy storage.
One efficient solution for mitigating the above costs is
energy storage (see Figure 4). Fast acting battery-based Other developments ongoing for managing and
energy storage reduces the impact of peaks when reducing the costs of EV charging
located behind the meter or inside the local distribution
As more consumers choose to drive EVs in the
grid. For the private owner, the need to upgrade the
coming years, a big challenge will be how to facilitate
grid connection impact can be reduced or even elimi-
this transition without causing energy prices to go up
nated.
while ensuring that renewables – not coal or other
In addition, using the battery storage during peak fossil fuels – provide the electricity needed for
demand times (“peak shaving”) can significantly cut powering transportation. Beyond battery storage, there
energy bills. Additional savings may also come from the are other methods of mitigating the impact from EV
improved power quality and back-up power capability, that are in earlier stages of development, such as DC
vehicles. As the incoming grid supply is not enough
to fully charge all of the parked EVs, the battery
is managed in such a way as to know what level
of charging each vehicle requires, topping up the
grid supply accordingly. The project is being run by
UPS in conjunction with the distribution network
operator UK Power Networks, with a grant from
government. To monetise the system, whenever
the battery is not required to support EV charging
it is made available to the network.
3.UK energy aggregator Open Energi has installed a
battery storage unit at the South Mimms motorway
services station on the outskirts of London, where
Learning from pilot projects 12 Superchargers are installed. As well as easing
grid congestion when several EVs charge up
Pilots can provide valuable learning and demonstrate simultaneously, the battery reduces peaks and
the commercial advantages of combining EV charging Open Energi is bidding available battery capacity
with energy storage. to generate revenues from grid balancing services.
1. In the UK city of Sheffield, Flexisolar has installed 4.Dutch start-up Fastned plans to implement pilots
a 50kW fast charger powered by a semi-transpar- to test the business case for integrating energy
ent 7kW solar PV carport, installed for three bays, storage with its rapid charging stations from 2018.
and a 20kWh battery storage system. The energy Potential locations include the UK and Germany.
storage system constantly monitors the carport They will also be providing grid services, such as
and building energy usage to optimise the revenue frequency regulation, when the energy in the bat-
available to the system owners. Average energy teries is are not needed to recharge EVs.
price savings of over 40% are achievable on large
Such pilots and first mover projects are demonstrating
systems, bringing costs down to £0.06/kWh.
the different business cases for combining storage
2.In the UK, the central London depot of courier and EV charging: the strategy stacks up the benefits
UPS is piloting a battery storage system to reduce of reduced capital investment and operational
the cost of charging freight EVs. UPS’s project- costs with new revenue opportunities and increased
ed EV fleet size will go from 50 to eventually 170 customer loyalty.
6grids, vehicle-to-grid (V2G), and smart charging. These According to Francisco Carranza, Nissan Europe’s
are discussed further below. director of energy services, fleet operators of Nissan
e-NV200 vans in Italy earned about €1,300 in the past
DC microgrids year in one of the first commercial V2G programme in
the world.[Bloomberg, August 2017]
PV in particular produces renewable energy as DC
power which today requires a conversion to AC to In another example, OVO Energy in the UK is
be useful. The same is true for batteries, so why not commercialising its own software platform to take
distributed storage resources, including solar-plus-
storage systems and V2G-enabled EVs and aggregate
Figure 5. these various units to operate as a virtual power plant.
OVO has partnered with Nissan to commercialise this
type of V2G service. Governments are also testing
this concept. Recently, the UK government granted
funding to a series of V2G projects to demonstrate
different commercial deployments of the technology,
including V2G bus fleets and a pilot involving domestic
consumers [Innovate UK, 2017].
DC Smart charging
Smart charging encompasses a collection of technol-
ogies and approaches, that shift the EV load to times
when energy is cheapest, such as whenever there is
use pure DC microgrids to directly connect EVs to PV
surplus solar or wind energy on the grid. For smart
onsite generation and batteries, and avoid the multiple
charging to achieve these outcomes, most EV drivers
conversions to and from AC? Such a system enables
will need some sort of incentive to charge their cars
prioritisation of power flows to minimise peak
at times when energy costs are lowest and avoid
demand. These DC microgrids in principal also provide
charging when overall demand is high. This can be
a simpler way to update existing local infrastructure
done via price signals or even special contracts (see
and enable cost-effective, green EV charging. There
Figure 7). How quickly autonomous driving
are currently several institutions studying DC grids,
technologies commercialise may also have a bearing
and early pilots are up and running or in planning (see
on the deployment of smart charging in the longer
Figure 5).
term. In such cases, energy storage can be deployed
as a buffer, recharging with electricity during off-peak
Vehicle-to-grid [V2G] times or during times when there is surplus energy,
EV cars might also be considered as battery storage
systems on wheels. By using bidirectional chargers,
idle EVs can function in aggregate as giant grid Figure 7.
batteries and provide services used by network
operators to stabilise electricity grids. This can
engender added revenues, or by timing when to
charge and discharge, simply lower the cost of buying
energy from the grid (see Figure 6). The values of $ COST
such services depend on the power capacity of the
batteries and the local electricity markets they TIME
participate in, and V2G pilots are now underway.
PEAK
Figure 6. SMART CHARGING
$
SAVINGS
Extra demand
$ in peak
Grid service revenue
7and supplying chargers at times of high demand and way to explore the accruable benefits and revenue
higher tariffs. opportunities of operating sustainable public charging
assets.
Conclusion The significant growth of EV’s is now assured, and
these cars require much more public charging. If done
For potential hosts of public charging, installing EV
right, this will be accomplished without unnecessary
infrastructure can provide real benefits that boost
costs and delays. Early commercial adopters that
business, whether it’s through attracting and retaining
intelligently size-up and & seize this opportunity will
customers, improved sustainability ratings, enhanced
be the winners in their space, garnering more loyal
branding or new revenue opportunities. However, such
customers and the potential new revenue streams at
investments need to consider the impact EV charging
the point where they are highest, before many more
can have on site and for the electric grid. Additional
players are in the same markets.
costs may be required to expand the grid
connection and upgrade the power distribution
equipment. Incorporating battery storage coupled with
renewable energy generation provides a sustainable
EV charging solution, which may also provide added
cost savings or revenue opportunities from local
network support and wider grid balancing.
References
Undertaking an initiative to install EV charging
necessitates a rethink on how to transform a portion 1. The Aflac 2016 National Survey on Corporate Social Responsibility.
of parking real-estate into a sustainable charging hub. August 2016. https://www.aflac.com/docs/about-aflac/csr-survey-as-
Alignment and acceptance across different sets/2016-csr-survey-deck.pdf
departments and the C-suite level is paramount for 2. Innovate UK: Innovation in Vehicle-to-Grid (V2G) Systems: CR&D – 2017
successful implementation of such projects. Competition Results. https://assets.publishing.service.gov.uk/govern-
Fortunately, a growing number of pilots are showing ment/uploads/system/uploads/attachment_data/file/680165/Innovation_
how commercially available enabling technologies in_Vehicle-to-Grid__V2G__Systems_-_CR_D_-_Competition_Results.pdf
such as energy storage from batteries can be deployed 3. Electric Vehicle Outlook 2017 – Bloomberg New Energy Finance - July
to underpin a variety of business cases for operator 2017 https://data.bloomberglp.com/bnef/sites/14/2017/07/BNEF_
hosts and other stakeholders investing in EV charging EVO_2017_ExecutiveSummary.pdf
assets.
4. New Energy Outlook 2017 – Bloomberg New Energy Finance - 2017
Rather than wait for competitors to capitalise on the https://about.bnef.com/new-energy-outlook/
opportunities afforded by the growth in EV adoption, 5. Global RE100 initiative. http://there100.org/
potential investors should now start planning for
6. Parked Electric Cars Earn $1,530 From Europe’s Power Grids – Bloomberg
their own enabling EV charging infrastructure. From a
– August 2017 https://www.bloomberg.com/news/articles/2017-08-11/
potential host’s perspective, a sensible first step is to
parked-electric-cars-earn-1-530-feeding-power-grids-in-europe
engage with the right partner, one that understands
7. Smart EV, facilitating plug-in vehicle uptake – EA Technology – 2017
how behind-the-meter power infrastructure integrates
https://www.eatechnology.com/projects/smart-ev/
with site loads as well as the grid. Designing and
implementing a pilot at one or two sites can be a good 8. OVO V2G charger – Cleantechnica - 2018
Changes to the products, to the information contained in this
document, and to prices are reserved; so are errors and omissions.
Only order confirmations and technical documentation by Eaton is
binding. Photos and pictures also do not warrant a specific layout or
functionality. Their use in whatever form is subject to prior approval
by Eaton. The same applies to Trademarks (especially Eaton, Moeller,
and Cutler-Hammer). The Terms and Conditions of Eaton apply, as
referenced on Eaton Internet pages and Eaton order confirmations.
Eaton
EMEA Headquarters
Route de la Longeraie 7 Follow us on social media to get the
1110 Morges, Switzerland Eaton is a registered trademark. latest product and support information.
Eaton.eu
All other trademarks are property
© 2018 Eaton of their respective owners.You can also read
