1. Smart Vehicle to Grid
SMART V2G Applications
We will be end-users partner in managing their grid connection
INTRODUCTION
The vehicle-to-grid (V2G) concept has been in existence for nearly two decades.
The premise is that plug-in electric vehicles (PEVs) and their batteries represent a mobile
power resource that can be easily upgraded to share power to the benefit of the grid.
However, the underlying technologies for V2G have yet to emerge from the pilot project
phase.
One potential misuse of the term V2G is as a market or a service.
It is not; it is a set of technologies implemented in PEVs to provide services to buildings,
utilities, and grid operators, and from there, we will be end-users partner in managing their
grid connection.
The primary purpose for adding V2G technologies is to derive revenue from ancillary services
when the vehicle is not being used for transport. Secondarily, vehicle to building (V2B), focuses
on lowering the energy cost of a building or providing emergency backup power.
PEVs with V2G technology will play a role in the ancillary services market, which addresses
regional power grids’ continual need for stabilization to match supply demand.
An increasing demand for power means customers will strain resources, and the higher
penetration of intermittent wind and solar power necessitates greater balancing resources.
Consequently, the ancillary services market is expected to grow.
V2G vehicles have an advantage over competing centralized generation assets because they
can stabilize the grid at the endpoints closer to demand.
Vehicles will compete with traditional generation sources as well as with emerging
technologies, such as stationary battery storage, for revenue from ancillary services such as
frequency regulation and demand response.

2. MARKET EVOLUTION
V2G is currently limited to pilot projects scattered around the world.
Many of these are part of larger endeavors studying the role of PEVs and wind and solar in
places where renewable power plays a significant role in the generation mix.
These projects are mainly leaded by Independent System Operators (ISO), and the data
collected from these projects could influence plans for commercialization.
Investments in V2G by interested parties such as automakers, utilities, and energy aggregators
will be strongly influenced by the global and regional penetration of PEVs.
Dozens of PEVs must be aggregated in a given area to produce sufficient power capacity to
interest grid operators and industry participants are waiting for these vehicles to be in place in
ample numbers before developing programs.
The number of vehicles that could participate in V2G will grow from just over 100,000 light
duty vehicles in 2011 to more than five million in 2017.
If PEV sales do not grow as rapidly as expected, V2G investment could be delayed.
Source: Pike Research
Cumulative Light-Duty PEV Sales by Region, World Markets: 2011-2017
The batteries used in plug-in electric vehicles (PEVs) will increasingly be utilized by property
owners and grid operators to provide a wide variety of energy services.

3. The power potential of the batteries can be used to reduce the utility costs of a building, or
when aggregated with other vehicles or stationary energy storage sources, to provide ancillary
services such as frequency regulation.
The expected penetration of PEVs will provide sufficient numbers to compete with stationary
energy storage and traditional peaking power plants. The additional cost for upgrading PEVs to
V2G is considered favorable to the creation of new power generation assets.
V2G is currently being tested in pilot projects around the world and will initially be pursued by
fleets and large consumers of energy where vehicles have established schedules for being
plugged in.
The highest demand for V2G will be in energy markets that are more open to new technologies
and with higher concentrations of intermittent renewable power.
Bulk energy storage applications such as storing excess wind energy production at night and
returning the power to the grid during times of higher demand have not been aggressively
pursued due to the potential negative impact of frequent full discharging on the cycle life of
the batteries.
We want to squeeze the market opportunity for V2G technologies to be utilized for demand
response, vehicle to private and public building and spaces, such as hospitals, airports, train
stations, industrial areas, etc.
The strategies of key market participants are profiled, and forecasts are provided for V2G-
enabled vehicles and service revenues through 2017.

4. Nearly 100,000 Vehicles are Enabled with Vehicle to Grid Technologies by 2011
By 2011, according to various reports, approximately 90,000 light-duty vehicles and an
additional 1,500 medium/heavy duty trucks are enabled with V2G technologies, creating a
strong foundation for V2G-based demand response, vehicle to building, frequency regulation,
and other ancillary service applications.
“V2G technologies are currently in the early pilot phase, with much work left to do before
they will be ready for full commercialization”.
“The earliest adopters will be fleet operators and large consumers of energy where vehicles
have established schedules for being plugged in. As the sector develops, V2G will be utilized
for an increasing array of grid support services.”
The highest demand for V2G, especially in the early years, will be in energy markets that are
more open to new technologies and with higher concentrations of intermittent renewable
power.
Investment in V2G by automakers, utilities, and energy aggregators will be strongly influenced
by the global and regional penetration of PEVs.
Dozens of PEVs must be aggregated in a given area to produce sufficient power capacity to
interest grid operators and industry participants are waiting for these vehicles to be in place in
ample numbers before developing programs.
The number of vehicles that could participate in V2G will grow from just over 100,000 light
duty vehicles in 2011 to more than 5 million in 2017, but substantial investment in
infrastructure and vehicle-based technology will be necessary to enable V2G services on a
large scale.
More than 5 million PEV are going to be Enabled with V2G Technologies by 2017
However, this whole concept is included and it is part of the city’s overall Low Carbon Living
Agenda, which also encompasses buildings, waste management, smart grids and energy
production.
We’re also seeking to link the provision of on-street and home EV charging points with new
ways to deliver low carbon mobility, including flexible hire schemes and also working with local
employers to introduce electric cars and vans into their company fleets.

5. Even as deployments of smart grid infrastructure have accelerated in recent years, the once
hyped home energy management (HEM) market has struggled to gain traction. Numerous
trials have led to only a few cases of industry deployments and to anemic rates of consumer
adoption. Today that is starting to change, and over the remainder of the decade momentum
will build in this nascent market. According to a new report from Pike Research, global annual
shipments of standalone HEM systems will grow from a quarter million in 2011 to nearly 4.7
million in 2020, with a compound annual growth rate (CAGR) of 38.3%. Combined revenue for
all HEM segments will grow from a base of $93 million in 2011 to more than $2 billion in 2020,
the cleantech market intelligence firm forecasts.
“The home energy management market will make steady progress over the coming eight
years,” says senior analyst Neil Strother. “It will be driven by government mandates, utility
programs, and a growing number of consumers looking to manage their energy bills. Also, a
combination of consumer desire to be more ‘green,’ home construction and retrofits with
energy management objectives, and new technologies surrounding plug-in electric vehicles
will help stimulate the market.”
HEM products can be viewed in five groups, or segments, along a continuum that moves from
paper bills (a mailed statement from the utility showing a customer’s energy usage as it
compares to households nearby), through standalone HEM systems, which include some
device-level tracking and automated device control capabilities, up to networked HEM,
comprising auto-pricing response capabilities, demand response (DR) load control, and home
automation controls. Of these, networked-HEM revenue will see the strongest growth (76.8%
CAGR), as utilities attempt to drive volume sales of networked HEM systems in order to make
DR and time-of-use pricing schemes feasible.