PJM©2009

Electric Vehicles and the Power Grid

American Association of State Highway and Transportation Officials

October 29, 2010Biloxi, MS

Sean McNamaraManager, Member RelationsPJM Interconnection

www.pjm.com

PJM©20092

PJM’s Responsibilities

• Ensures the reliability of the high-voltage electric power system

• Coordinates and directs the operation of the region’s transmission grid

• Administers a competitive wholesale electricity market

• Plans regional transmission expansion improvements to maintain grid reliability and relieve congestion.

www.pjm.com

PJM©20093

Air Traffic Controllers for the Transmission Grid….Operators of for Energy

Markets…

Match Generation to Load

PJM©20094

PJM as Part of the Eastern InterconnectionKEY STATISTICSPJM member companies 650+millions of people served 51peak load in megawatts 144,644MWs of generating capacity 164,905 miles of transmission lines 56,250GWh of annual energy 729,000generation sources 1,310square miles of territory 164,260area served 13 states + DCInternal/external tie lines 250

26% of generation inEastern Interconnection

23% of load inEastern Interconnection

19% of transmission assetsin Eastern Interconnection

19% of U.S. GDP produced in PJM

6,038 substations

www.pjm.com

PJM©20095

PJM’s Role in the Smarter (Robust) Grid

Generation

Transmission & Sub-transmissionDistribution

Customer

Smart Metering, Demand Response, PHEV, Energy Conservation and Distributed Resources

Substation AutomationSCADA and PhasorMeasurements

The Smart Grid is realized by merging data from these areas of automation to achieve a total end-to-end systems view by integrating information technology and operational technology.

Energy Storage

ISO/RTO

Two-Way Communication and Control

PJM©20096

Smarter Grid Network – Smart Home

GridSignal

• Smart ApplianceEnergy Management

• Smart Charger (PHEV)Storage

• Ancillary Services Signals• Price Signals• Generation Mix• Reliability Control• Load Curtailment

Aggregator

PJM©20097

• Enable greater penetration of PHEVs through coordination with state SMART Grid and retail tariff innovation initiatives

• Develop infrastructure to support non-traditional demand based regulation resources

• Develop operational tools and forecasting techniques to enable PHEV deployment

• Develop Vehicle to grid / Plug-in hybrid electric vehicles (PHEVs) protocol

• Participate in Mid-Atlantic Grid Interactive Cars Consortium (MAGICC) – electric companies, research institutes, and vehicle manufacturers

• Test storage batteries in regulation markets

Integrate SMART Grid with PHEVs

PJM©20098

Vehicle Economic ChargingAssumptions• 1,000,000 PEV Vehicles by 2015•~18% of U. S. Population is within the PJM territory• ~ 180,000 PEV Vehicles in the PJM Territory• ~ 33** Miles traveled per vehicle per day• ~ Average vehicle fuel usage: 22** mpg• ~ No tax compensation

Daily cost per PEV VehicleGasoline: 33 miles/day * $3.00 /gal // 22 miles/gal = $4.50Electric: 33 miles/day * $.07 / kWh // 4 miles/kWh = $0.60

Annual cost/savingsCost: Gasoline: 365 days * $4.50 /day = $1650Electric: 365 days * $0.60 /day = $220Savings:~ $1400 annually per vehicle180,000 vehicles (within PJM) = ~ $250,000,000 annual** U.S. Bureau of

Transportation Statistics

PJM©20099

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PJM LoadAugust 26, 2009

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PJM Load and Wind Resources – August 26, 2009

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PJM Load and Wind ContributionAugust 26, 2009

PJM Load, MWPJM Total Wind, MW

PJM Load and Wind Resources – August 26, 2009

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PJM Load and Wind ContributionAugust 26, 2009

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PJM Load and Wind Resources – August 26, 2009

PJM©200912

40,888 MW

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Wind Generation in PJM - Operational and Proposed

www.pjm.com

PJM©200913

Load (MW x 1000)

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Vehicle Charging Impact on PJM

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Capacity for 25+ million PEVs

Charging Energy180,000 PEV Vehicles * 33 miles // 4 miles/ kWh = ~ 1500 MWh

~ 500 additional MW over 3 valley hours

PJM©200914

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Regulation

Grid Benefits – Frequency Regulation

PJM©200915

Fast Regulation: Speed Matters…

A fossil power plant following a regulation command signal

Energy Storage (batteries / flywheels) accurately following a regulation command signal

Energy Storage OutputRegulation Signal

PJM©200916

Vehicles with Vehicle-2-Grid Participating in the Regulation Market

Vehicles• ~18% of U. S. Population is within the PJM territory• 180,000 PEV Vehicles in the PJM Territory

V2G Equipped PEVs within PJM• Assume 10% of Vehicles have V2G capability• Bi-Directional Power (with inverter) – 15 kW• 18,000 vehicles * 15 kW = 270 Mw

Availability for Participating in Regulation• Plugged In 12 hours each day (6 pm–6 am)

365 days * 12 hours = 4380 hours/year

Payment for participation in the PJM Regulation Market• PJM average historic price paid for regulation = $35/MWh• PJM Regulation price during valley load periods = $28/MWh• Per Vehicle: 4380 hrs * $28 * .015 MW = $1800 annually• PJM Overall: 4380 hrs * 270 MW * $28 = ~$33,000,000 annually

PJM©200917

• Smart Meter allows car to roam

• Mid-Atlantic Grid Interactive Car Consortium (MAGICC)

• Over one year experience

MAGICC – PJM’s PHEV Demonstration Project

www.pjm.com

PJM©200918

AES Grid-Scale Energy Storage System

www.pjm.com

Operational Details• Altairnano, Inc – Lithium Ion nano titanate battery

• Energy: 300 kWh• Efficiency: 90% round trip

• Power: 1 MW for 15 minutes • Usable Charge Range: 5% - 99%

PJM©200919

GridSignal • Frequency Regulation Signal

Aggregator

~ $850/day

~ $10/day (20 Hrs.)

“Cash Back” for Storage1 MW

0.018 MW1.018 MW

PJM©200920

The Ohio State UniversitySmart@CAR Current Research Activities

www.pjm.com

• Modeling of PHEVs and interactions with the grid• PHEV Energy Management• PHEV-Grid Connectivity Issues• PHEV Fleet Studies

PJM©200921

PHEV- Win, Win, Win, Win

4. Recharge Off Peak/ Higher Use of Power Industry Assets

www.pjm.com

1. Reduce Oil Imports/Energy Independence

2. Reduced Cost of Fuel and Cash Back

3. Reinvent Auto Industry

PJM©200922