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A Conversation with John Clark, CEO of V2Green
By Will McNamara
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McNamara: As an introduction, please provide a short overview of V2Green (when it was formed, your business model, etc.)?
Clark: V2Green builds and deploys Smart Grid solutions for utilities. Our technology establishes intelligent, two-way communication between the electrical grid and distributed power resources. The flow of electricity to and from significant sources of load, power storage, and generation can then be adaptively managed to avoid damaging grid stress, cost-effectively produce essential grid services, and increase the integration of renewable energy in power generation.
Plug-in electric vehicles (PHEVs) are a particularly valuable power resource, at once representing a source of load, a means of storing power, and offering the ability to return energy to the grid when needed. Fully realizing the economic and environmental potential of PHEVs requires control over the power flow. V2Green technology allows utilities to manage vehicle-charging behavior, within parameters set by owners. In real-time, utilities are able to increase charging levels when renewable energy, such as wind or solar power, is available and also delay or slow charging during peak periods, thereby minimizing demand spikes and the need for expensive, carbon-intensive energy generation. By managing the power flow, the existing grid infrastructure will be able to support the wide-scale adoption of PHEVs and utilities will have the ability to cost-effectively utilize the vehicles as storage and in the production of critical grid services such as spinning reserves or system regulation. Perhaps most importantly, V2Green technology facilitates the increased integration of renewable power in energy generation and accelerates the adoption of PHEVs, reducing the greenhouse gasses that cause climate change.
V2Green was founded in late 2006 on the belief that electricity will play a vital role in addressing the twin crises of climate change and dependence on foreign oil. The company is based in Seattle and led by an experienced team of hardware, software, and communication industry veterans.
McNamara: For someone just becoming familiar with PHEVs, please provide an overview of how the vehicle-to-grid (V2G) technology actually functions.
Clark: Well, the V2Green System is an integrated client-server solution. The V2Green Server communicates with distributed power resources, controlling the timing and pace of the energy flow to and from the electrical grid and managing the information generated by these activities. In the case of PHEVs, in-vehicle clients consisting of electronics and embedded software transmit commands to the car’s power electronics and communicate performance data back to the V2Green Server via cellular, WiFi, utility AMI networks, or other communication methods. The V2Green System also delivers online data collection and aggregation, allowing analysis of vehicle performance, efficiency and driver behavior.
Acting as a power flow management platform, the V2Green Systems allows utilities to employ charging control scenarios, including smart charging and V2G.
- Smart Charging. Managing the flow of power to PHEVs enables utilities to control the load impact on the grid and utilize the vehicles as distributed energy storage. This minimizes the need for expensive infrastructure investments, reduces operating costs, and increases the integration of renewable energy in power generation. Apart from the V2Green System, no additional investment in hardware or software is required.
- Vehicle to Grid (V2G). The V2Green System also allows utilities to manage the flow of energy back to the grid when necessary. In the case of vehicles, this reversed flow is known as V2G. Broad, commercial deployment of V2G lies in the future, when both PHEVs and grid-charging sites have the ability to flow power bi-directionally. In 2008, Xcel Energy will deploy the V2Green System in the first real-world field trail of V2G technology, demonstrating both its capabilities and economic value.
McNamara: Does the V2Green System assume a standard communications interface that a utility must have in place to be functional? How does V2Green’s software interface with other load-control or metering technology that a utility might have in place (in other words does V2Green promote interoperability with its products)?
Clark: Essentially, V2Green System is communications agnostic. Our technology supports a wide variety of communication methods, including the following:
- Cellular data networks
- WiFi bridging to the internet
- HomePlug bridging to the internet or AMI networks
Zigbee bridging to an AMI network.V2Green is a strong believer in standards and interoperability, believing both will be key to delivering successful solutions to the marketplace.
McNamara: In the alliance between electric utilities, tech companies, and automakers that are joining forces to develop “smart-charging,” what do you think each sector brings to the table?
Clark: Smart charging allows the majority of the broad social and economic benefits promised by PHEVs to be realized. The utilities, experiencing reduced operating costs and new electricity revenue, will encourage PHEV adoption through economic incentives and customer-friendly charging tariffs. The resulting lower cost of “fuel” will lower the cost of ownership and drive plug-in vehicle sales, encouraging automakers to further their investments in clean-energy transportation. The net benefit includes reduced reliance on imported oil, lower fossil fuel consumption, and a decrease in the greenhouse gas emissions that cause climate change.
Today, as many leading utilities begin to undertake PHEV/smart charging field trials, the automotive industry is engaged in setting standards for vehicle-grid communication that will guide vehicle design and innovation in the future. V2Green is focusing decades of experience in hardware, software, and communications on bridging the gap between the grid and plug-in vehicles, as well as other power resources.
McNamara: Why are we seeing more electric utilities jump on the PHEV bandwagon now?
Clark: Plug-in vehicles will be commercially available in less than two years. Major auto manufactures, including General Motors and Toyota, have announced plans to introduce PHEVs by 2010. Leading electric vehicle manufactures such as Tesla Motors, Think Global, and Zenn Motors are expected to have cars on the road before then.
These vehicles, essentially mobile batteries, represent a significant opportunity for utilities. Assuming their interaction with the grid can be managed, PHEVs represent a new, distributed power resource that can be used to store renewable energy and cost-effectively produce grid services. However, even small clusters of uncontrolled vehicles charging at peak periods could significantly stress the distribution system and trigger major infrastructure investments.
Many leading utilities across the nation, including Xcel Energy, Austin Energy, and Seattle City Light, are initiating PHEV field trials and demonstration projects to better understand the impact plug-in vehicles will have in their service areas. Given that each grid has unique challenges and constraints, particularly at the distribution level, utilities are eager to inform their strategic planning process with relevant experience and data.
McNamara: Some utilities may be concerned about the strain that charging all these PHEVs might put on the electric grid. What would you say to alleviate those concerns? Do you believe there should be a “charging queue” so that the impact on the gird is minimized?
Clark: Many of the nation’s leading research institutions, from the National Renewable Energy Laboratory (NREL) to the Pacific Northwest National Laboratory (PNNL), have assessed the impact of PHEVs on the electrical grid, reaching optimistic conclusions. NREL concluded that “no additional capacity would be required for even a massive penetration of PHEVs” and PNNL asserted that “84 percent of the cars, pickup trucks and sport utility vehicles (SUVs) could be supported by the existing infrastructure. This suggests a gasoline displacement potential of 52 percent of the nation’s oil imports.”
Intrinsic to these PHEV studies is the critical, yet under-emphasized, assumption that the charging behavior of these vehicles, and thus their impact on the existing grid, will be controlled. NREL suggests charging will occur overnight, PNNL assumes the entire PHEV load will be “managed to fit perfectly into the valleys of load demand without setting new peaks,” and the Electric Power Research Institute (EPRI) asserts that PHEVs will significantly reduce greenhouse gas emissions given the existence of “programs to actively manage the charging load.”
V2Green provides the power flow management required for the existing grid infrastructure to support the wide-scale adoption of PHEVs.
McNamara: What about software that would synchronize PHEVs with hourly electricity prices? Is that something V2Green is offering?
Clark: Yes. It is possible for the V2Green Server to receive economic inputs from the utilities, allowing electricity pricing to be taken into account when scheduling and managing the flow of power to PHEVs. Matching vehicle charging behavior to off-peak pricing will result in a savings on “fuel” that we anticipate will be passed on drivers for participating in smart charging programs.
McNamara: V2Green recently announced a deal to monitor plug-ins used by the Idaho National Laboratory, and the company is also working with utilities in Denver and Austin on managing timing and pace of vehicle charging. What is the significance of those partnerships?
Clark: Managing the flow of power to a PHEV is difficult. Unlike an air conditioning system or a power storage system, plug-in vehicles intermittently connect to the grid and their mobility means they connect from multiple locations. Additionally, a PHEV’s is uniquely dependent on human behavior. Having solved the challenge of controlling the power flow to PHEVs, it is easier for V2Green to provide management solutions for other distributed resources.
Our engagements with utilities and leading research institutions provide real-world experience and data to inform our continued product development efforts. Each field trial will demonstrate the effect of PHEVs on the grid infrastructure and the potential benefits of power flow management; however, each investigation is taking a different approach.
- Throughout their Midwest service area, Xcel Energy will be exploring the potential impact and benefit of both smart charging and V2G – controlling the flow of power to and from six converted Ford Escape Hybrids.
- Austin Energy is focused on controlling charging behavior to capture the West Texas wind that typically blows overnight. They are investigating using smart charging to increase the integration of renewable energy in their power generation operation and employing PHEVs in the production of critical grid services, such as system regulation and spinning reserves.
- Seattle City Light is deploying 13 converted vehicles to understand the impact of deploying a PHEV fleet in an urban environment and potential economic advantages of smart charging.
- Idaho National Labs is deploying the V2Green System in 57 converted PHEVs, specifically for data collection and analysis of vehicle performance and driver behavior.
McNamara: The concept of using PHEVs as a back-up power system for a home or for the power grid may be difficult for the general public to grasp. How do you think that PHEVs will really change our day-to-day lives?
Clark: A significant reduction in the cost of their daily commute will be the most immediate day-to-day change in the lives of PHEV owners. Conservatively, a PHEV will be able to travel between 20 to 40 miles using electricity at an anticipated “fuel” cost of less than $1 a gallon. Most PHEV drivers will be able to drive back-and-forth to work without burning fossil fuels. With $4 per gallon gasoline prices on the horizon, this represents a significant cost savings. Conceivably, PHEV drivers will also feel a sense of empowerment, having made a significant commitment to reducing the tail-pipe emissions that result in climate change.
Over time, the wide-scale adoption of PHEVs has the ability to reduce the country’s dependence on foreign oil and improve our overall energy security.
McNamara: Is there a distinction between PHEVs and pure electric cars?
Clark: A plug-in hybrid electric vehicle is equipped with a combustion engine, burning fossil fuels, and an electric motor. When the charge is depleted in the vehicle’s battery, the combustion engine will seamlessly engage. For the driver, the primary difference between today’s hybrid vehicles and a PHEV will be increased distance they can travel using electricity as fuel.
Fully electric vehicles are fueled solely by electricity, equipped with electric motors and larger battery packs. They will have a significantly greater all-electric range, traveling 100-200 miles per charge. Unlike PHEVs, fully electric vehicles will require recharging to travel further if they’ve depleted their charge.
McNamara: What impact do you think PHEVs will have on home area networks (HANs)?
Clark: We anticipate PHEVs will be one of many distributed power resources managed via HANs as the technology becomes available in conjunction with the rollout of utility AMI networks. The V2Green System is able to control the power flow to both PHEVs and fully electric vehicles through an AMI/HAN network just as easily as any other communication path.
McNamara: Prototypes of PHEVs suggest 70 mpg to 120 mpg is possible. What has been your experience at V2Green?
Clark: Yes, we have seen PHEVs deliver the extremely attractive mileage you reference.
McNamara: What are you seeing in terms of projected cost of a standard PHEV?
Clark: We anticipate the price of both conversion kits and PHEVs to fall over time as the technology becomes more widespread and economies of scale come into play.
McNamara: As always, California seems to be a leader, with its recent regulation requiring automakers to put 58,333 PHEVs on the state's roads from 2012 through 2014. What do you think of that regulation, and should other states impose similar mandates?
Clark: In general, V2Green supports the adoption of PHEV mandates by the states, believing they will accelerate the availability of plug-in vehicles. However, we are disappointed in the recent ruling by the California Air Resources Board (CARB). Rather than introducing a new, wide-reaching mandate for the availability of PHEVs, CARB chose to modify California’s existing Zero Emission Vehicle (ZEV) mandate, reducing both its strength and magnitude.
McNamara: Great talking with you. Thanks for your time, John.
Contact the author at will.mcnamara@kema.com.
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Download the April 2008 Issue
Use the link below to download the PDF of the full issue of the April 2008 Automation Insight for the complete print versions of the articles.
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[download] Automation Insight - April 2008 (.pdf 157 kb)
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