V2G Synergies can Help California Deliver on Its Promises

By Robert Perry, Synergistic Solutions Consulting

These days, Gov. Newsom has set up a cot in the Crucible. Buffeted by wildfires, the COVID pandemic and crumbling infrastructure, he must also deliver on ambitious emissions reduction targets, especially in the transportation sector, where emissions have been moving upwards. An additional degree of difficulty thrown on top of this Gordian knot is a looming pandemic-induced recession that threatens to bring the economy crashing down. The moment calls for bold innovation, a strong political will, and multiple synergies for every dollar invested. A heavy lift indeed.

But the Governor is not one to shrink from a challenge. On September 23rd, he announced the issuance of Executive Order N-79-20 which mandates the elimination of all in-state sales of light-duty internal combustion engine (ICE) vehicles by 2035, and all medium/heavy-duty vehicles by 2045. To accomplish this monumental task, California will need to design and implement policy so favorable to zero-carbon vehicles (ZEVs) that no Californian in their right mind would ever again want to buy an ICE vehicle.

Shortly following the announcement, Gov. Newsom was interviewed by Kara Swisher of the NY Times[1] and asked which technologies California should focus on. His response was prophetic (my emphasis):

Transportation, I don’t think there’s anything more potent and profound in that space. And transportation is about mobility, broadly defined, not traditional vehicles with a car with a driver in a single occupancy car. I think reimagining transportation. So we can jest about tunnels and we can jest about high speed this or driverless. But mobility radically changing is a great opportunity also to reform our energy grid and reform our competitiveness in terms of our resiliency.

To make that happen, vehicle-to-grid (V2G) technology will be the key. A commercially viable technology, V2G allows zero-emission vehicles (ZEVs) to both charge from an energy source and discharge power into a residence, business or the energy grid. Current conventional wisdom dictates that transitioning to a 100% renewable energy economy will require massive reserves of energy storage to tame affordable but intermittent renewable generation. What if California could tap into a burgeoning EV resource, increasing energy storage capacity by orders of magnitude while also radically reducing vehicle emissions?

The synergies from implementing V2G technologies are manifold:

Enhanced Energy Resilience. V2G offers a compelling value proposition to EV ownership by allowing the vehicle to also serve as a power center in a variety of ways. First and foremost, EVs can allow residential and business properties to function during power outages that are becoming more regular due to climate change.  

For example, in the light-duty sector the Nissan Leaf, already undergoing V2G trials in several countries, has a battery system that can fully power a typical home for multiple days, even if the EV is not charged during any of the days in question.[2] At the opposite end of the spectrum, heavy-duty EVs, with expected generation capacities of between 150-450KW, could be repurposed to discharge power at substations and critical facilities during outages.[3] Take the Kenworth T680 FCET, which is “fed by a pair of 114-kilowatt (153-horsepower) Toyota Mirai fuel-cell stacks and a 12-kwh Toshiba lithium-ion battery pack to store energy for use when maximum power is required. Together, those components can deliver maximum power of 500 kW (670 hp).”[4]

If properly implemented, widespread adoption of V2G-enabled EVs across the production spectrum would provide substantial protection at all levels against power outages of unlimited duration.

Creation of Flexible, Distributed Energy Infrastructure. The V2G value proposition also creates incentives to maximize on-site generation, with planned usage of all excess energy for EV charging and/or electrolysis of water into hydrogen. In an outage scenario, the property can either export excess energy to adjacent properties or dispatch vehicles to supply critical back-up services at vulnerable locations. This “overbuilding” of solar capacity can also fully power a property during periods of low generation (i.e., rainy, cloudy or smoke-filled days). In all cases, the fundamental prerequisite is to have a planned use for all energy generated.

Promotion of Mobility as a Service (MaaS). As V2G establishes an energy umbilical cord between EVs and properties, real estate developers will seek to incorporate EVs as a feature, particularly in multi-family construction where residents can have the option to reserve shared V2G vehicles as part of a multi-modal system of transportation ranging from e-bikes/scooters to long-distance FCEVs to zero-carbon bus and train mass transit. MaaS transportation systems advance EV adoption by both reducing the overall number of vehicles while also allowing for the purchase of ZEVs, with or without V2G capabilities.

Reparation of Social and Environmental Injustices. A tragic consequence of systemic environmental injustice is the historic co-location of low-income communities and commercial-industrial zones with high air pollution levels that impose a low quality of life and inordinate sickness/mortality rates. By reducing emissions and enhancing local energy resiliency, the V2G value proposition can potentially convert a community’s biggest liability into its biggest asset, with local revenues earned from V2G benefits allowing for transition to a greener, more just environment. The focus on local development can also lead to local creation of good jobs, which brings us to . . .

Jumpstarting California’s Economic Recovery. On all levels, the COVID pandemic has wrought massive human and economic devastation. Economically, California has moved from a surplus to a deficit increasing at a geometric rate, and each dollar spent must resolve as many problems as possible. As an enabling technology, V2G can serve to pool resources that would otherwise be separate and duplicated, reducing overall economic cost. For example, to ensure energy resilience, the current strategy is to “invest” in fleets of mobile diesel generators that will plug into substations during power outages. The cost of these seldom-used “assets” is significant and serves no other purpose, whereas development of V2G infrastructure allows for repurposing transportation resources to provide incredibly valuable services during both normal and emergency conditions. By taking the lead in this emerging technology, California’s economy can be transformed through development of an agile, resilient zero-carbon energy system.

V2G Implementation Hurdles are Substantial but Surmountable. To be clear: V2G technology is an enabler, not a panacea. Achieving this audacious goal will require immediate action on two fronts:

Commercialization of V2G Technologies and other Distributed Energy Resources (DERs). Successful completion will require a significant investment of time and resources, and development of powerful financial incentives in the form of standards, tariffs and rebates to stimulate market adoption by the private sector. This in turn requires . . .

Coordination and Collaboration between State Agencies, Local Governments and Private Interests. The obvious first step would be to get regulatory agencies and auto manufacturers on the same page with a mandate to develop a standard V2G interface for all EVs. Currently, there are a number of light-duty V2G product offerings slated to come to market within the next few years that require no alteration to the standard charging interface.[5] This valuable discharge capability must be transferred to medium/heavy-duty FCEVs through a standardized means of interconnection and is integral to implementing both EO N-79-20 and the Advanced Clean Trucks ruling by the California Air Resources Board (CARB). To develop such a V2G framework, Vote Solar and The Climate Center jointly urged the Public Utilities Commission to immediately issue a Request for Information proceeding “specifically directed to EV manufacturers and V2G equipment suppliers, to standardize the interconnection of light, medium, and heavy-duty EVs at both Make Ready substations and other locations that serve critical loads.”[6]

The good news: California’s most valuable resource is, and always has been, human. As of this writing, significant time and resources have been invested in the June 30th publication of a multi-agency Final Report of the Joint Agencies Vehicle-Grid Integration Working Group, which can serve as a central resource and reference guide for the design and implementation of zero-carbon back-up generation.[7] This report reviews numerous V2G use cases and policy recommendations, and has as one of its prime objectives “Improving grid resiliency and security, including for public safety power shuto? (PSPS) events.”[8] There are also concurrent proceedings addressing wildfire mitigation, climate adaptation and most importantly, commercialization of microgrid technologies that can most effectively integrate V2G capabilities.

This ambitious strategy for V2G integration cannot be achieved without an unprecedented level of cooperation and coordination among state regulatory agencies (CPUC, CARB, CEC), local governments (city/county councils/supervisors, school districts, and transit agencies), Community Choice Agencies (CCAs) and private commercial-industrial interests. The need for broad cooperation to achieve both optimal benefits and cost-effectiveness is why community engagement has been a recurrent theme in many regulatory proceedings and prior to the pandemic, a bill empowering communities to participate in energy resilience planning was received positively and slated for legislative review and approval.[9]

From societal, economic and environmental perspectives, California is both at a crossroads and the edge of a precipice. Holistic approaches using enabling technologies like V2G can open a door to incredible opportunity, but a coordinated and collaborative approach that empowers the most vulnerable will allow us to pass through that door.

Robert Perry serves as the principal consultant for Synergistic Solutions, an energy consulting firm developing multi-faceted solutions that create synergies between societal sectors and optimally benefit broad cross-sections of the community. Prior to creating Synergistic Solutions, Mr. Perry served as Program Manager and Director of Energy Research for the World Business Academy, a non-profit, solutions-based think tank and action incubator.

[1] Kara Swisher, Sway Podcast, “Gavin Newsom: ‘We Decided to Pull the Band-Aid Off,” September 24, 2020, at ~30:54. Transcript also available at link.

[2] Nissan LEAF Vehicle to Grid v2g infographic, EVAdoption.

[3] Ballard / NAFCE, “Fuel Cell Electric Trucks: An Analysis of Hybrid Vehicle Specifications for Regional Freight Transport,” June 2020 p.13.

[4] Green Car Reports, “Toyota and Kenworth to Build 10 Fuel-Cell Semis for LA Port Duty,” January 9, 2019.

[5] CleanTechnica, “Ossiaco Has Built The One Home Solar Inverter To Rule Them All,” August 20, 2020. See also Green Car Reports, “Nissan Leaf as Home Energy Device: Wallbox will Soon Enable it in the U.S.” March 26, 2020.

[6] https://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M347/K767/347767579.PDF

[7] California Public Utilities Commission DRIVE OIR Rulemaking (R. 18-12-006), “Final Report of the Joint Agencies Vehicle-Grid Integration Working Group,” June 30, 2020 (the “VGI Report”).

[8] VGI Report, p. 6

[9] SB-1314, Community Energy Resilience Act of 2020, sponsored by Sen. Chris Dodd.