Plug-In Electric Vehicles Are Emerging as a Viable Enabling Technology for Microgrids and Virtual Power Plants within the Next Five Years
Plug-in electric vehicles can offer grid services under new business model platforms when aggregated and optimized with smart controls
A new report from Navigant Research discusses how to develop a strategy to best extract grid services embedded in plug-in electric vehicle (PEV) batteries, charging loads, and charging infrastructure to help support microgrid and virtual power plant (VPP) deployments.
The projected growth in PEVs offers both challenges and opportunities to distribution utilities. If not managed in an intelligent way, PEVs can pose a threat to overall grid reliability. Yet, if aggregated and optimized with smart controls, they can offer grid services under new business model platforms such as microgrids and VPPs. Click to tweet: According to a new report from @NavigantRSRCH, PEVs are emerging as a viable enabling technology for microgrids and VPPs within the next 5 years.
“While the primary purposes of these platforms differ—resiliency versus bidirectional value exchanges—they share the common goal of extracting value from distributed energy resources (DER) portfolios,” says Peter Asmus, research director with Navigant Research.
To succeed in the market, according to the report, PEV ecosystem stakeholders should support the development of communication standards, shape regulations on frequency regulation services, and explore new energy as a service (EaaS) business models. Meanwhile, microgrid ecosystem stakeholders should focus on how PEVs provide value internally to the microgrid during emergency islanding and pair PEV fleets with stationary storage devices. VPP ecosystem stakeholders should use advances in artificial intelligence, advocate for market reforms, and seek opportunity in the distributed energy resource management system (DERMS) market.
The report, Implementing EV-Based Grid Services for Microgrids and VPPs, discusses how to develop a strategy to best extract grid services embedded in PEV batteries, charging loads, and charging infrastructure to help support microgrid and VPP deployments. The study defines the grid services possible from PEVs, showcases global deployments that tap PEVs as DER for microgrids and VPPs, and identifies lessons learned from deployments that point to market opportunities. Actionable recommendations for PEV, microgrid, and VPP stakeholders when implementing PEV-based applications within the next 5 years are also provided. An Executive Summary of the report is available for free download on the Navigant Research website.
* The information contained in this press release concerning the report, Implementing EV-Based Grid Services for Microgrids and VPPs, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.