VTO released a white paper examining the Challenges and Opportunities of Grid Modernization and Electric Transportation.
July 5, 2017
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Earlier this year, the Department of Energy’s Vehicle Technologies Office released a white paper examining the Challenges and Opportunities of Grid Modernization and Electric Transportation. Aimed at electric company and public power executives, it seeks to provide information addressing the importance of the interaction between transportation electrification and the electric grid. Grid investments that support electric vehicle transportation as a part of planned modernization efforts can enable a more efficient and cost-effective transition to electric transportation and allow investor-owned electric companies and public power companies the realize new revenue sources in times of flat or declining loads.
The growth of plug-in electric vehicles (PEVs) is coming at the same time the electric power sector is experiencing significant changes in generation mix and load driven by a variety of factors. These new technologies are making it possible to operate the electric grid more efficiently and effectively, but it requires capital investments and an increased need for data management and coordination at all levels and among a number of energy system participants. The technology and data revolution also creates a new intersection between transportation, buildings and electric companies. PEVs present opportunities for growth and innovation as well as economic gains, improved environmental performance and new choices for customers looking to reduce their total energy consumed.
Because the relationship between grid modernization and electric transportation is complementary, the paper argues both sectors ought to address critical issues such as reliability, privacy, data management, affordability, and security jointly. To realize the full potential of the opportunity, however, several technical challenges require the attention of both sectors. Challenges include:
- Cyber Security: while the grid connection point is governed by grid cyber security standards and norms, PEVs are not. Without well-defined cyber security standards for PEVs and their connection to smart charging stations, these vehicles could be a weak link introducing additional risk to the overall electric grid.
- Privacy: privacy of individual data is an important factor to individuals, companies, and governments. The complexity of privacy necessitates careful recognition of the specific challenges such as connectivity, cyber security standards, and uniformity.
- Modernization Levels: grid modernization efforts vary by electric company across the country and analysis of these current activities may provide useful lessons learned on their implications for transportation electrification.
- Reliability Levels: as new models of PEVs become more advanced, receiving information about traffic, weather, and other externalities is more common and used to operate vehicles safely. These communication links, potentially powered by the grid, may require an even higher level of reliability to ensure the overall transportation system.
- Big Data Management: integrating transportation with the electric power sector adds complexity to the challenges associated with managing and processing large volumes of data quickly.
- Modeling: unlike stationary loads on the grid today, PEVs are mobile loads able to appear at any charging point, adding complexity to the modeling of the grid and load forecasting. Having the electric power and transportation sectors collaborate on an infrastructure model tool that can be used by communities to plan and verify PEV and electric vehicle supply equipment investments would improve load forecasting and capital investment planning.