The future has always been some proverbial time or place that we look forward to, but the truth is the future is ever-present. It is what we make of it daily, essentially summing up our lives. We have moved from using sticks and stones to the era of the industrial revolution to the technological advancements of the 21st century, paving the way for improvements in electric vehicles technologies. Being ready for the future is not a question of when but a question of, for what?
Understanding The Basics Of EVs
EVs (Electric Vehicles) can also be called plug-in vehicles. They come in several makes, models and different capabilities that hope to accommodate different drivers’ needs. The major distinguishing feature of an EV compared to other vehicles is that it can be plugged to charge from an off-board electric power source.
There are two basic types of EVs with distinguishing specifications; they are:
- All-electric vehicles (AEVs) are powered by one or more electric engines with a range of 80 – 100 miles in regular models and up to 250 miles in some luxury models. They don’t produce fossil fuel emissions because they do not use petroleum-based fuels. They charge from the electric grid and store the energy in batteries within the vehicle.
- Plug-in Hybrid Electric Vehicles (PHEVs) use both an electric motor and combustion engine. They can be charged from an electric grid. They also store their electric energy in available batteries while retaining the ability to switch to a fuel-based combustion engine when needed, especially for long-distance journeys. Some PHEVs are also called extended-range electric vehicles (EREVs).
Both types of vehicles recharge from the electric grid and use a form of charging called regenerative braking. This type of charging is gotten from the energy that is mostly lost while braking. Under the AEVs umbrella, there are the Battery Electric Vehicles (BEVs) and Fuel Cell Electric Vehicles (FCEVs).
Five Global Projections On Electric Vehicles.
Global projections on Electric Vehicles have varied from country to country, sector to sector and manufacturer to manufacturer, but a few similarities dominate the top spots. GlobalData’s latest analysis estimates EVs will account for 11.7% of light vehicle production by 2030 – up by 1.9% compared to 2019’s 10-year forecast.
Most global populations have felt the effects of greenhouse gases, so any innovation that seems to move us in a direction opposing our planet’s gradual decay is welcome. EVs are one of those innovations that have piqued our interest as well as making an impact on the global economic markets. With that said, let us go over the five most remarkable global projections for EVs to date.
1. Increase in the production of Electric Vehicles
Despite EVs playing a minor role in the car manufacturing sector for years. Analysts in 2020 projected that EVs should hit 6.7% of production by 2024 before hitting 7.8% in 2021 as opposed to their 2019 estimates of a 4.4% production rate within four years, rising to 4.9% by 2024.
This change in projections results from growing interest and wide coverage of EVs globally. More and more people are aware of EV production, the shift in needs and the desire to participate in this movement. Simultaneously, manufacturing companies are making huge efforts to put their new electrified or hybrid models on display, betting heavily on EVs’ arrival into the mainstream.
2. EVs will lead the CASE megatrends before any other trend within the automotive industry
According to analysts, the CASE megatrends – connected cars, autonomous vehicles, shared mobility services and electrification – are the leaders of the automotive industry. Compared to the rest, EVs maintain the trend with the highest potential, leading with actual figures and returns on investment. The rest still seem like science fiction.
3. Electrification of heavy-duty trucks, air and sea transport:
Charging solutions, including heavy-duty batteries with the ability to cater to the aviation, shipping and trucking industries, are the way forward for global electrification. The sale of heavy-duty trucks worldwide hit about 6000 units in 2019, with more room for expansion. The development and standardisation of high power chargers are taking off, providing expansion of these vehicles’ range of operations.
Legislation in countries like Europe, China, and the USA mandates the electrification of shipping operations at ports, gradually making it a commonality. Electric taxiing – the electrification of ground operations in aviation – offers the potential to reduce CO2 emissions and the cost of operations for airlines.
4. EVs will increase electricity demand, reducing reliance on oil
This will effectively reduce greenhouse gas emissions. Almost 0.6 million barrels of oil products per day were avoided in 2019, thanks to Electric Vehicles. According to the Global EV Outlook 2020, “in 2019, the electricity generation to supply the global electric vehicle fleet emitted 51 Mt CO2-eq, about half the amount that would have been emitted from an equivalent fleet of internal combustion engine vehicles, corresponding to 53 Mt CO2- eq of avoided emissions.” With this, it is easy to see how EVs can turn the climate change debate around, with help from other sectors, of course.
5. Expansion of EV charging systems
For now, most charging is done at home for the elite EV owners, but analysts project that an impressive expansion is on the horizon. In 2019 people privately owned about 6.5 million chargers; light-duty vehicle slow chargers in homes, apartment buildings and workplaces created convenience for those that chose to own EVs. The number of publicly accessible chargers globally increased by 60%, a rate higher than EV stock growth. With the expansion of this market, it is only obvious that ownership of EVs will also increase.
The future, as they say, is now, and it seems EVs have a stranglehold on it. Projections remain optimistic about the growth of the Electric Vehicle industry, and so do we at Hive Power, with the best technological systems ready to help you grab your future by their steady horns.
You may have heard of the Vehicle-to-Grid(V2G) business model for electric cars, but no one has convinced you of how viable and profitable it could be if done on a larger scale. Then stay-on to this blog-post, as we have the experts’ answers for you.
This article explores the practical business model for V2G. Primarily for a fleet manager, and how much benefits you can harness from such a model. We are aware that there are still many people sceptical about the success and profitability of the V2G business model; a careful read of this will resolve your doubts.
An Overview of What V2G Technology Involves
Vehicle-to-Grid is a bi-directional interaction between an electric vehicle and an energy distribution grid. With V2G, an electric car can send its stored energy to the network and vice versa when the vehicle’s battery pack needs to be charged.
For V2G to be possible, a connecting system that allows the bi-directional flow of energy and information must be present. One of the communication interfaces is called the ISO/IEC 15118 – “an international standard defining a vehicle to grid (V2G) communication interface for bi-directional charging/discharging of electric vehicles.” CharIN, a Berlin-based company, recently began the implementation of the ISO 15118 communication interface – also called Plug and Charge.
Another protocol that’s already in use is the CHAdeMO – a DC charging protocol for EVs; CHAdeMO Association, a Japanese-based company, develop it. Car manufacturers like Toyota, Mitsubishi, Nissan, Tesla, Kia, Mazda, Subaru, BD and Peugeot already have the CHAdeMO interface in place in some of their EVs.
It’s sufficient to say that a couple of EVs are ready for the V2G technology application; however, what are the benefits and who are the stakeholders?
A Business Case For V2G
As energy produced from renewable sources is increasing, there’s been a challenge of effectively distributing the energy we produce because renewable energy sources (RES) have their peculiarities. For instance, wind turbines and photovoltaic cells produce electricity when the wind blows, and the sun shines. Since these are not predictable, we must manage the energy produced effectively.
“Effectively” means that when the produced energy from a RES is not needed, the energy is stored; and when it’s needed, you supply it back into the grid. You can easily proffer a solution for building battery bank centres, but there are consequences of capital and profitability.
Instead of constructing battery banks, there are impressive batteries with substantial capacities already present in electric vehicles that we can harness. And fortunately, EVs now have a wider spread across the world, and we’ve predicted the spread to increase.
An important question that may pop-up is – won’t the car be in-use? Research shows that most cars are in use about 2-3 hours of the day. Most times, we park our vehicles. It’s possible to exploit this situation for V2G, especially if the EV owner follows a patterned charge-and-use cycle; which is why using V2G for a company fleet proves to be the most productive business model.
Therefore, this leaves us with a large pool of mobile battery capacity that the grid can adopt for temporary energy storage. Aside from storing energy, we can use V2G to regulate the grid’s frequency and also manage the energy demand response during peak and off-peak periods.
All these said, the adoption of V2G adds value to these stakeholders:
- Utilities: V2G services can help to store and manage energy produced from RES. It’s also an economical solution for ancillary services in a grid.
- DSOs can adopt V2G services as a demand balancing mechanism and load control within a local grid.
- The EV owner enjoys monetary perks and favourable charging conditions.
- The EV Fleet manager is the focus of the article and thus deserves that we discuss separately. A company fleet manager also falls under this category.
Indirectly, adopting V2G saves the environment by promoting renewable energy sources and avoiding the production of new Lithium-ion batteries(whose manufacturing process can be harmful to the environment.)
How Can an EV Fleet Manager Benefit From The V2G Business Model?
For an individual user, V2G offers minimal benefit in comparison with the amount of investment that you will need for running a full V2G service. However, a fleet manager with access to a significant number of EVs can add a new source of revenue by adopting V2G services for the EVs managed by his/her company.
An EV fleet manager can provide V2G business services for frequency control or for managing peak shaving.
Frequency Control V2G business Model:
Through active communication with the grid, the EVs in a fleet supply energy or draw energy from the grid in response to its current frequency value. This model also favours the life-span of the EV’s batteries as it involves a shallow charge/discharge cycle of the battery.
Managing Peak Shaving V2G business Model:
During peak periods, the EVs supply energy to the grid to meet the excessively high demand for electricity. While during the off-peak hours, you can charge up your EVs to their normal state. Unlike the frequency control model, this reduces the life-span of the vehicle’s battery.
The analysis below is an excerpt from Kaufmann, A. (2017). Vehicle-to-Grid Business Model–Entering the Swiss Energy Market (Doctoral dissertation, University of St. Gallen).
“Assuming a 10kW bidirectional charger, and an EV available for V2G services 12 hours a day on average. The revenue accumulated over one month is 10kW x (12hr x 30days) x 0.029CHF/kWh = 104 CHF as a capacity price only.”
According to the analysis, the revenue you can generate per month from one EV is approximately $105, which sums up to $1,260 per year. A fleet with 20 EVs can produce up to $25,200 annually. Fifty EVs will generate $63,000 annually – this’ just an example as V2G services can be dynamic.
To boost revenue generation, an EV fleet manager can decide to target EV users with a more organised movement pattern and charging sequence.
Operating a V2G business service as a fleet manager will require an active management system that allows you to optimise your processes and provide your fleet services more efficiently. Our Hive Manager solution is integrated with blockchain technology to enable you to control your EV fleet system locally effectively.