Utility Week

Special report: EVs UTILITY WEEK | 25TH -31ST MAY 2018 | 9 POLITICAL VIEW Policymakers are struggling to stay ahead of the curve The shi to an electrified trans- port system is already threatening to outrun the ability of policy- makers to respond, says Dan Brown, EVs lead at the Renewable Energy Association (REA). "The pace of change in EVs is moving extremely quickly." A lot will depend on how far- reaching the mooted ban on pet- rol and diesel engines is when it finally emerges. The "loosest" definition would encompass non-plug-in hybrids, which rely on internal combustion engines to power their batteries. However, the government could insist that in order to comply with its 2040 tar- get, vehicles must be "plug in". The tightness of this defini- tion will have implications for the strain that the shi to EVs will impose on the electricity network. This is one of the big- gest challenges that the EV revo- lution poses for policymakers. Oliver Rix, a partner in con- sultancy Baringa's energy advi- sory practice, forecasts that the overall network should cope with what will be a "modest rate" of growth in the EV market. He says: "Over time, it doesn't look dramatic." However, even with a low take-up, a concentration of sales in a particular neighbourhood could overload local capacity. Rix says: "There may be cluster- ing of people buying at earlier stages that lead to local issues." Demand load balancing will help DNOs, he says: "Smart charging may help with the rela- tively small number of occasions when there isn't capacity." However, while "helpful", this greater flexibility in the system can only "postpone" the need for more wide-ranging work to reinforce local networks, says Robert Evans, chair of the UK Electric Vehicle Supply Equipment Association. DNO incentives At a hearing late in March the Business, Energy and Indus- trial Strategy Select Committee's inquiry into EVs, he argued that DNOs are not incentivised to provide charging infrastructure ahead of increases in demand. He says. "If you set aspira- tions for electricity in 2040 but you don't change the way the DNOs are regulated to operate, you have a problem." Given that Ofgem recently announced there will be no RIIO- ED1 mid-period review, the exist- ing incentive structure for DNOs looks set in stone until 2023. DNOs will still have to upgrade, though, says Evans: "Systems and substations need to be updated in any case. They are going to have to work on their networks if there is more renewable and distributed generation." An uncertain future What makes it even harder to plan the system are the uncer- tainties surrounding how the EV transition will pan out, says Matt Finch, business and economic analyst at the Energy and Cli- mate Intelligence Unit. "It's not just putting a charger in place but thinking about what will be needed in 20 years' time. The key infrastructure challenge is making sure you have this all ready at an appropriate time when you don't know what that will be." Tesla already claims its new Roadster will have a range of 620 miles, which could allay range anxiety, widely cited by consum- ers as the chief factor putting them off from buying an EV. Companies installing charg- ing points in locations like fill- ing stations could find they are redundant and that they are le with a stranded asset. To adjust to this rapidly changing situation, companies will need to be able to respond quickly. The REA's Brown argues that EV infrastructure should be no longer require full blown plan- ning permission, such as is the case with mobile phone masts. This would mean changes to the National Planning Policy Framework. It illustrates that for policymakers across Whitehall, the transition to an EV future looks set to be a bumpy ride. David Blackman, policy cor- respondent T oday, EVs are not just seen as hav- ing the potential to revolutionise transport, but also how we manage our utilities. The potential to revolutionise the utilities industry is best demonstrated by vehicle-to-grid's (V2G) future impact on national electricity networks. V2G technology will one day soon enable electric plug-in cars to sell electricity from their batteries back to the grid or store their excess charge in household batteries that will light homes and power businesses. EVs have a collaborative use when plugged into the grid because they can support tradi- tional energy suppliers and networks in making the UK grid more sustainable and more stable. Essentially, they can put power into the grid, reducing reliance on power stations during peak demand. V2G technol- ogy will, once installed, give every house- hold the chance to become an independent energy supplier to the national grid. This, together with renewable energy sources such as solar and wind turbines, will help create a more reliable, clean and sustainable energy network for the future. When operational at scale, it is also likely to disrupt the demand for traditional energy suppliers to the UK. Nissan's vision is for V2G to provide free driving electricity for customers and make cars an integral part of the UK's sustainable future. V2G technology offers consumers a real opportunity to switch from being a passive consumer to an active player in the energy market. In 2040, a ban on the sale of all diesel and petrol cars will come into force and galvanise the future of EVs. This is currently driving a huge surge in the development of EVs by manufacturers, bringing broader choice to consumers than ever before. To the prospective EV buyer, the ability of a vehicle to support an integrated network of technol- ogy throughout their lives, including V2G systems set up in their home, will over the coming years be as important as mileage, charge times and overall sustainability. Change on this scale is slow and steady. Consumers are increasingly experiencing the benefits of owning an electric car. Similarly, over the coming years as V2G is rolled out, they will enjoy the financial benefits that come with V2G and home energy storage. Comment: Francisco Carranza, MD, Nissan Energy Services V2G technology will make every household a utility player.

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