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Utility Week 22nd June 2018

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28 | 22ND - 28TH JUNE 2018 | UTILITY WEEK Customers Market view A recent report from the Society of Motor Manufacturers and Traders showed that consumer adoption of electric vehicles (EVs) in the UK is surging. EV registrations were between 1.3 and 2.9 per cent of the total every month for the past two years. In 2017, more than 47,000 EV cars took to the road. There are plenty of challenges for the energy industry when it comes to EVs. This includes deciding how we will make up for the loss of petrol taxes and VAT as EVs gain increasing market share, how the electric- ity networks will respond to the changing mobility of storage (charged EV batteries) as a resource, and whether or not the edge of the distribution network is the right place to integrate chargers. Too much of the debate, however, has focused on what we can't do rather than on how we can embrace this new energy vector. EVs present the industry with an opportu- nity to show consumers just what is possible and they will help the UK solidify its right- ful place as a leader in the worldwide move- ment toward clean energy and a sustainable future. At such a critical point, the industry needs passion and leadership. Improvements in technology and efficient manufacturing are driving electric car costs down to price points that are nearly on a par with petrol-powered vehicles, leading some analysts to predict that dozens of different EV models will be available by 2020. Also, there are incentives to drive adop- tion. In London, all-electric vehicles and eligible plug-in hybrid vehicles qualify for a 100 per cent discount on the Congestion Charge. The rest of the UK should consider similar incentives to accelerate adoption. This means that a suitable charging infrastructure will have to be available more quickly than some have anticipated. "It's the critical infrastructure that's key," Graeme Cooper, project director of electric vehicles for National Grid, said at a recent industry conference. "It's about future- proofing the network so it has the capacity to charge cars as quickly and efficiently as possible." When asked if National Grid could support the EV transition if sales of fos- sil fuel-powered cars were banned in 2030, Cooper responded emphatically: "Absolutely, no problem at all." This is the passion and leadership our industry needs. Another solution to ensure that customers buy at the scale we need is to install "smart chargers" that let EVs charge when the network can accommodate the load and when price signals match the networks' characteristics. Ovo Energy has launched the largest ever trial of smart vehicle chargers, so electric car owners can automatically store power when it's cheap and sell it back to the grid at a higher price during periods of peak demand. However, the only way for this to work on a large scale would be for all chargers to be "smart" – with the ability to communicate with all other chargers on the network and be automatically controlled at a neighbour- hood level in conjunction with the local electrical infrastructure. This system would require advanced controls and the technol- ogy, practically speaking, is not ready for large-scale deployment in the market today. We must also bear in mind that cost is king for consumers. This includes the cost of buying the EV plus ongoing charging and maintenance. Technology has driven down costs in all three categories, but the industry is mired in jargon. We must stop talking about the cost of energy as price per kilowatt- hour and adopt units consumers understand, such as distance, capacity and utilisation. In other words, how many miles can I drive before I need to charge again? Will there be power available? Will I have access to a fast charger or will I have to wait if only a Level 1 or Level 2 charger is available? Many cultural barriers can be overcome as technology advances to allow faster charging cycles. When charging cycles match the time it takes to refuel at a petrol station, consumer acceptance is likely to skyrocket. But fundamentally what all of the above demonstrates is that the UK needs a national strategy specifically for EVs and the "Road to Zero Strategy" is just one of the mechanisms needed. There are too many far-reaching problems at present and it is essential that equipment manufacturers,EV manufacturers, network operators, and the system operator are all on board. There is still plenty of work to do but EVs are here to stay, and what a future they could usher in. Imagine a fully-automated world where our cars are synchronised with our calendars and all devices are fully connected to the utility network, communicating precise charging requirements in real-time. The only question that matters is what we must do to enable this carbon-free future we all desire. Jeff Casey, UK business development director, Burns & McDonnell Embrace the EV opportunity There are plenty of challenges for utilities when it comes to EVs – from a smart charging infrastructure to incomprehensible jargon – but the benefits are too important to ignore, says Jeff Casey.

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