Getting power to vehicles like this battery-electric Ford Focus will create a multi-billion dollar business on its own.
There should be as many as 3 million or more electric vehicles plying the world’s roadways by 2015, according to a new study by Pike Research, and that will create a major headache for utilities around the globe creating a likely need for as much as a $5.1 billion investment in a smart grid/smart charging infrastructure.
The challenge is to not just make sure there’s enough electricity to charge all those vehicles, says Pike, but to ensure that tomorrow’s battery cars are recharged in the most efficient manner. In the U.S., for example, the Department of Energy has estimated that there’s enough power to supply millions of EVs – but only during off-peak hours.
“Electric vehicle IT systems are necessary since utilities will face an immediate impact from EV charging on their localized power distribution equipment,” says John Gartner, a senior analyst with Pike Research, based in Boulder, Colorado.
He stresses that, “During the early part of the decade, EV charging will not interfere with utilities’ overall ability to keep up with total electricity demand, but certain neighborhood transformers and other distribution assets could be quickly overwhelmed in areas with rapid EV adoption.”
The auto industry is already at work to find ways to minimize grid loading. The 2011 Chevrolet Volt, for example, will allow a user to remotely program the vehicle’s charger using a smartphone app so that the plug-in hybrid takes advantage of reduced-rate power in off-peak hours. Nissan will take similar steps with its new Lead battery-electric vehicle.
The industry has already adopted standards for a common 220-volt fast charger and is working on something similar for 440-volt quick charging systems that could deliver up to 80% of a battery’s capacity in as little as 10 to 15 minutes. But the adoption of more extensive standards, Pike cautions, likely won’t occur until 2012 or later.
A separate study quoted by TheDetroitBureau.com, earlier this week, forecasts the market for vehicle rechargers alone will reach $3.1 billion later this decade. (Click Here for that story.)