Electric Vehicle Integration into the Grid ISM 270, January 27, 2011 Geoff Ryder SAP Labs, LLC 1 Notes on ISM 270 Homework, Discussion 2 Electric Vehicles: Demand Management; Grid and Battery Asset Management; Billing for Networked EV Business Models. Agent-Based Grid Simulation Project 3 Notes on Programming Tools Safe Harbor Statement This document is intended to outline future product direction, and is not a commitment by SAP to deliver any given code or functionality. Any statements contained in this document that are not historical facts are forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The timing or release of any product described in this document remains at the sole discretion of SAP. 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Readers are cautioned not to place undue reliance on these forward-looking statements, and they should not be relied upon in making purchasing decisions. strictly confidential Estimate: California statewide cumulative investment through 2020 to achieve RPS goals strictly confidential SAP’s Utilities Solution Map Suppliers & Partners Generation Transmission & Distribution Meter Operation Retail & Services Customers & Channels Asset Life Cycle Management Supply Operations Resource Management Meter Reading Services Energy Capital Management Selling of Energy and Services Customer Service Management Billing of Energy and Services Customer Financial Management Collaborative Services & Intercompany Data Exchange Enterprise Management & Support Analytics Strategic Enterprise Management Financial Analytics Operations Analytics Workforce Analytics Management Accounting Corporate Governance Financials Financial Supply Chain Management Financial Accounting Human Capital Management Talent Management Travel Management Life-Cycle Data Management Workforce Process Management Workforce Deployment Corporate Services Incentive and Commission Environment, Health and Safety Real Estate Management Management Operations Support Project and Portfolio Quality Management Indirect Procurement Global Trade Services Management strictly confidential Estimate: California statewide cumulative investment through 2020 to achieve RPS goals strictly confidential Delivering the Business Case Business Objects Explorer On Device Sustainability Reporting EHS Analytics Raj Valame, energy management for manufacturing Sustainability Performance Mgt EHS Mgt Carbon Impact Global Batch Mgt Reach Compliance AMI Integration for Utilities Supply Chain Mgt Transportation Mgt Supplier Relationship Mgt Recycling Administration On Premise MII Manufacturing Integration On Demand + Add-on Orchestration Sustainability is an IT integration challenge strictly confidential Palo Alto Energy Efficiency Showcase: $2M Investment in Clean Tech Dec. 9, 2010 http://www.cnbc.com/id/15840232/?video=1707896067&play=1 EVs and Chargers LED, Light Controls COIL DC Conversion Solar PV Panels Telepresence All Projects Cost $250K Purchase, lease guarantor $434K $128K $1.2M $300K $2.31M Annual Carbon Footprint Reduction (metric tons) 32 tons 70 tons 235 tons Projected 215 tons Projected 255 tons 807 tons Payback 12 years 5 years 5 years 5 years 1 year 4 years Approximate Annual Savings $21K Over same size gaspowered fleet $80K $24K $240K $300K $0.67M Video: Better Place Battery Swapping Operation, Timed Here are links that describe our EV-related deployments at SAP Palo Alto: http://www.cnbc.com/id/15840232/?video=1707896067&play=1 http://www.youtube.com/watch?v=csV1W75hhZ0 strictly confidential Electric Vehicles: Compare costs per mile Approximation: 1 kWh = 4 miles of driving distance Nissan Leaf: approx. 25 kWh battery pack = 100 miles before recharging Case: my Nissan Maxima, 20 mpg, 15 gallon gas tank, $3 per gallon One fill-up is $45, and I can travel 300 miles. Cost per mile is $45 / 300 = $0.15 per mile Case: a new Nissan Leaf. Electricity costs $0.1 per kWh. One fill-up is $0.1 * 25 = $2.50, and I can travel 100 miles. Cost per mile is $2.50 / 100 = $0.025 per mile! strictly confidential Charging Station Capacity Home charging unit Say your EV has a 25 kWh battery pack. To charge it all the way from zero: Level 1 Charger: 120 V AC, 14 A = 15 hours to charge Level 2 Charger: 240 V AC, 14 A = 7.5 hours Level 3 Charger (not available for most homes): 480 V DC, 125 A = 42 minutes strictly confidential Data from Tokyo Electric Power Company (TEPCO) strictly confidential Oil Dependence: $1T (+ $100B) annually © SAP 2009 / Page 12 strictly confidential Roll-out Schedule for Plug-in Electric Vehicles Saturn VUE BYD in Europe Fisker Karma Chevrolet Volt PHEV BEV Kia LPG/Electric EPRI, Eaton, Ford Trouble Truck Subaru Stella Chrysler Nissan LEAF Smart for Two BMW Mini E ZENN City BYD EV in China Mitsubishi iMiEV Tesla Roadster Toyota Prius Ford Escape BYD F3DM Hyundai Aptera 2009 2010 2011 Tesla Roadster Nissan Leaf Prius PHEV 2012 Hyundai i10 strictly confidential New Electric Vehicles from China Beijing Automotive Industry Holding Co. BE701 200 km per charge Changan Automotive Group (Ford partner) BenBen electric conversion (Canada) Shandong Baoya Vehicle Co.: the Baoya Electric Car 150 km per charge Haifei Auto Group: Saibao, 160 km per charge strictly confidential $ Revenue Impact of EVs Electric Power Utilities EV-Driven Electricity Sales Automobile OEMs ICE Car Sales and Service New Capital Investments New Distribution-Level Infrastructure, Programs for EV Owners EV Sales and Service Current US Vehicle Fleet: ~ 246M US EV Sales, 2015: ~ 1M? strictly confidential Data from Argonne National Labs strictly confidential Data from Argonne National Labs strictly confidential Pricing for the Nissan Leaf strictly confidential Electric Vehicles: It’s All About the Battery Internal Combustion Engine (ICE) Vehicle OEM Gas station Weak relationships after purchase Electric Power Utility OEM Car Utility Manufacturer --Set up home charging station --Needs OEM-authorized service --Billing relationship for fuel --OEM responsible for battery asset management --Demand management, load shaping --Grid asset management strictly confidential Large-Scale EV Infrastructure Business Models Turnkey (e.g. BetterPlace) Car Utility Demand mgmt Utility Centric (e.g. RWE) Charge Station Centric (e.g. Coulomb Tech) Manufacturer Car Car Utility Demand mgmt Power supply Manufacturer Power supply & Billing (opt.) Utility Demand mgmt Electricity Distributor Own battery & charge station Subscribe $/ mile Battery rental Sell car w/o battery Electricity distributor Charge stations Billing Pay to charge Sell car w/ battery (or lease) Power supply & Billing Public and private charging stations by multiple operators Pay utility bill Pay utility bill Manufacturer Charge Sell car w/ battery (or lease) strictly confidential Video: Better Place Battery Swapping Operation, Timed URL: Better Place battery swapping demo, Yokohama strictly confidential Video: Better Place Battery Swapping Operation, Timed strictly confidential 1 Demand Management Internal Combustion Engine (ICE) Vehicle OEM Gas station Weak relationships after purchase Electric Power Utility OEM Car Utility Manufacturer --Set up home charging station --Needs OEM-authorized service --Billing relationship for fuel --OEM responsible for battery asset management --Demand management, load shaping --Grid asset management strictly confidential The Impact of Electric Vehicle Charging on the Grid Problem: can older poletop transformers in our service territory handle the new load? Orange: typical peak residential electricity use, kW Blue: peak EV charging rate, kW Springdale, AR 7.7 South Bend, IN 6 Dulles, VA 4.6 Hartford, CT 4.3 San Francisco, CA 3 Tesla, 240V at 80 A 19.2 PEV, 240V at 32 A 7.7 PEV, 240V at 15 A 3.6 PEV, 120 V at 12 A 1.4 0 5 10 15 20 25 (Research by Arindam Maitra, EPRI, 2010) strictly confidential SAP CUSTOMERS PROCESS 2.5 BILLION UTILITY BILLS PER YEAR strictly confidential Asset Capacity versus EV Penetration Level (Research by Arindam Maitra, EPRI, 2010) © SAP 2008 / Page 26 strictly confidential Solution: Manage EV Charging Demand through Time of Use Pricing (TOU) MW MW Shift demand Hour of day Hour of day strictly confidential Example of a Time of Use Pricing Schedule (PG&E Team, PlugIn San Jose, 2010) © SAP 2008 / Page 28 strictly confidential SAP and its partners enable utility-centric EV charging Billing 4 MDUS Utility Bill Residential Electricity Electric Vehicle Charging … … 1 3 4 AMI 2 Charging Station Operator 3 Business or Residence Building Power Control Unit Smart Meter: 2 Electric Vehicle Charging Station 1 4 The charging station is a submeter to the smart meter. The AMI channel for the station is mapped to a device in the SAP billing system. …through AMI, bypassing the smart meter, but using the same protocol. …using a proprietary protocol to the network operation center of the charging station operator, and from there directly submitting data to MDUS. …directly from the charging station operator to SAP billing software. Other electricity loads strictly confidential Utility-centric EVSE deployments are taking place in the midst of the rollout of the smart grid. Role of eMobility companies in the smart grid ecosystem: Distributed generation and storage Networked vehicles Grid optimization Demand response Communication layer: HW, SW, Control Smart meter services Image credit: GTM Research. Downloaded 10/13/2010 http://www.greentechmedia.com/images/wysiwyg/research-blogs/taxonomy-large.jpg strictly confidential EV Owners Get TOU Pricing Signals through Vehicle Telematics Apps Announced at CES, 2011 Ford Focus Electric, due out in late 2011 With Microsoft, Inc.: MyFord Mobile Software automatically charges the vehicle during off-peak hours, when utility rates are cheapest. © SAP 2008 / Page 31 Credits: Detroit Edison, Inc. Automatiks, Inc. Telematics Detroit Conference, 2010 strictly confidential 2 Battery and Grid Asset Management Internal Combustion Engine (ICE) Vehicle OEM Gas station Weak relationships after purchase Electric Power Utility OEM Car Utility Manufacturer --Set up home charging station --Needs OEM-authorized service --Billing relationship for fuel --OEM responsible for battery asset management --Demand management, load shaping --Grid asset management strictly confidential Electric Vehicle Management File View Tools Help Public Charging Station 2601a Bryant St Model: ABC 45c Year: 2009 Last maintenance: 9/12/09 Next maintenance: 10/19/10 S S 3:21PM Bryant St / – 25th San Francisco, CA 94110 24th Transformer Charging Stations 2601a Bryant St O P 2601b Bryant St O S 2635 Bryant St P 2645 Bryant St P S 2650 Bryant St E S 2660 Bryant St E 2665 Bryant St E 2675 Bryant St E P T Block view Usage profile S strictly confidential Asset management of electrified vehicle infrastructure There will be a multitude of ownership and lease models for charging stations with the installation and maintenance typically sub-contracted to local service providers Charging Station Operators Extensions to SAP Asset Management Utilities Vehicle Manufacturer On-demand Asset Management Hub Service providers Home Office Service providers Public - City Public - Corporate Other strictly confidential 3 Billing for Networked EV Business Models Internal Combustion Engine (ICE) Vehicle OEM Gas station Weak relationships after purchase Electric Power Utility OEM Car Utility Manufacturer --Set up home charging station --Needs OEM-authorized service --Billing relationship for fuel --OEM responsible for battery asset management --Demand management, load shaping --Grid asset management strictly confidential Billing and pricing need to accommodate heterogonous technologies and business models Utility Supplier PG&E PG&E Charging Network Operator Charge Location / Operator Home Office Nightly recharge Daily daytime recharge Charge Station Ad-hoc recharge ID ID End User ID Customer relationship Battery charging Billing relationship strictly confidential CeBIT demo, March, 2010: SAP Enables Consolidated Billing for eMobility Utility company #2: a separate utility that owns the charging station Utility company #1: the EV driver’s home utility SAP server, Palo Alto, CA Webtech server, Canada Coulomb server, Campbell, CA Equipment at the CeBIT conference floor: the networked console of an EV, from Webtech, and a networked charging station, from Coulomb strictly confidential Utility Company Business Models: Predicted EV-Related Revenue Streams Source: Frost and Sullivan % of Total Revenue Electricity, 20% EVSE Sales, 35% Install, Maintain EVSE, 25% Other Services, 20% © SAP 2008 / Page 38 strictly confidential Simple ROI for one charging station, for a small business. One networked pedestal-mount EVSE costs $4K. $2.00 1K dollars $0.00 Model revenue needed to break even +1 Year +2 +3 +4 +5 +6 ($2.00) Parameter Value ($4.00) Interest rate 5%, annual EVSE Cost $4,000 (EVSE) + $2,000 (install) EVSE lifetime 7 years ($6.00) With no public subsidy, the charging station must generate ~$1000 per year in revenue or more for the investment to have a positive net present value (NPV). With public subsidy for 50% of total cost ~$500 per year Options for revenue: (1) Reselling utility company electricity revenue sharing agreement with EVSE network operator and utility (2) Charging more to park by the EVSE (priority classes, fleet discounts?) (3) Additional sales volume from higher customer traffic or longer customer stays (4) Providing other services for, e.g., municipal government (5) Claiming “low-carbon fuel credits” for electricity sold (6) Other types of revenue sharing with EVSE network operator strictly confidential Pricing structures for electrical fuel, considering models from the utility, telecom, airline and oil & gas industries Billing Telecom Fleet Gas Stations PrePay Traditional Utilities Credit Debit Open for discussion Airline Pricing Cash Tiered Rate Timeof-use Flat Rate Service level Realtime Price based on volume per period, e.g. 10c for the first 10 kWh, 15c for 10kWh – 20 kWh Price based on time of use, e.g. 10c for off-peak/ nights & weekends, 25c for peak / daytime Unlimited use of service, e.g. unlimited text messages or nation-wide calls price based on service level agreement, e.g. $29.99 for 512kB upload / 6 Mb download speed market-based prices, e.g. gasoline prices related to oil prices Airlines are another industry with sophisticated pricing models and a service/product with similar characteristics to electricity. Overbooking flights is an particular interesting strategy for maximizing utilization of capacity. strictly confidential SAP’s Sybase mcommerce solutions: SingTel MobilePay Insert subhead here as a full sentence at 18 point font, bold strictly confidential Examples of vehicle telematics: differentiated service offerings for EV drivers Factors influencing prices Service Type Notes Road access E-day, other priority class Parking For 2-wheel EVs, cars, light delivery trucks, tour buses Level 1 charging Very slow; emergency charge, or 2-wheel charge Level 2 charging Most commonly deployed EVSE type Level 3 charging Very crowded; need a “Fast Pass”? Battery swap Value-added services Not a standard across all EV types Buy parking, charging, and movie tickets in one transaction Regulations on EVSE ownership, use, business models Contracts by type of use: Commuter Recreation Postal service Small business delivery Private or public buses Service trucks (e.g., utilities) Public services (e.g. police) Taxis Type of communications, and intermediaries SMS message display screen in the car smart phone strictly confidential Standards for EV Communication: Security? Privacy? EVCP Protocol Stack Business and Technology Issues Application-Level Protocol XML HTTP, HTTPS Hard-wired interface Other wireless standards Zigbee ® WiMAX ® WiFi ® Bluetooth ® 2.0, 3.0 Cellular (GPRS,EDGE ®) TCP/IP • Authentication / Security / Privacy • X.509 certificates (certificate authority, when issued and by whom) • Security on both sides of transaction • Privacy equivalent to existing fueling models (e.g. cash / credit / debit payment at gas station) • Identity data • VIN number • (universal) utility ID • ... • Protocol Categories • Billing protocol • Vehicle battery charging protocol • Vehicle sensor data protocol • Vehicle services delivery protocol (e.g. POS services) • Vehicle diagnostics information protocol • • Protocol Uniformity Same protocols for all charging infrastructure (residential, standalone, private, workplace, etc.) ? strictly confidential Trading LCFS credits will generate additional revenues. It requires separate accounting of electricity used for transportation LCFS credits for $$$ LCFS Markets It is still under debate which entity can claim the revenues generated from LCFS credits, candidates include utilities, vehicle manufacturers, and car owners Implications for AMI and Accounting Solutions Metering of transportation used electricity, e.g. sub-metering Dual data record management through complete AMI infrastructure Metering and accounting of non-residential, transportationused electricity Create account for transportation-used electricity, link to trading sub-system and financial accounting system (after LCFS are being sold) Smart Meter (residential use) Sub-Meter (transportation use) strictly confidential Conclusions, Next Steps Contact: geoff.ryder@sap.com 1 EV Demand Management Time of Use Pricing, through AMI and Vehicle Telematics. Call for innovation: driver communications, demand response... 2 Grid and Battery Asset Management Through existing asset management platforms. Call for innovation: security, privacy of EV drivers’ personal information... 3 Billing for Networked EV Business Models Time of Use Pricing, through AMI and Vehicle Telematics. Call for innovation: new networked business models + revenue streams to make infrastructure deployment more profitable, and to lower costs... © SAP 2008 / Page 45 strictly confidential