California approves $11.7M vehicle-to-grid pilots in PG&E footprint
In 2019, California lawmakers passed Senate Bill 676, legislation that required the state’s Public Utilities Commission to establish strategies and metrics for integrating electric vehicles into the grid. The commission in turn approved a decision at the end of 2020 that, among other things, authorized the state’s investor-owned utilities to propose VGI pilots. This would allow for a better understanding of how electric vehicles can be used to improve grid reliability and flexibility.
Last July, PG&E filed a proposal with the CPUC for four pilot programs. The first, a three-year residential pilot, would focus on helping 1,000 single-family customers with EVs adopt bidirectional charging technologies. The second proposed pilot had a similar focus but was designed for fleets of medium and heavy-duty EVs that charge at commercial buildings. The utility outlined plans to sign up more than 200 bidirectional medium and heavy-duty vehicles as part of the second pilot.
PG&E also proposed a plan to address public safety power shutoffs in California. For $1.5 million, the utility plans to test 200 residential and commercial EVs that could charge and discharge in a multi-customer microgrid, along with solar power, to power communities during the outages.
The commission's resolution, which is scheduled for a vote on April 7, would approve three of the four pilots that PG&E has proposed. Regulators noted that if successful, the pilots would address several broader policy goals - for example, offering technology for backup power and deferring distribution upgrades. However, regulators have outlined a few proposed modifications to PG&E's original plan, including requiring PG&E to justify or reduce the customer enrolment budget for the commercial fleets pilot.
The draft resolution would not allow PG&E to get money for a pilot project that would explore the value of EV power exports in the California Independent System Operator market services. The utility has not justified the proposed budget for the pilot, so the draft resolution does not allow it. However, PG&E can file another advice letter with the commission within 60 days of its approval to address the issue.
According to the Vehicle-Grid Integration Council, there is a potential to use 5,000 MW of electricity in California today. This would be done by using devices that respond to price signals, like time-of-use rates or demand response programs. When it comes to using cars to provide electricity back to the grid, California could see 469 MW of total technical potential from just considering Nissan LEAF vehicles that are on the road today. At a 5% participation rate, this would offer 23 MW of potential net peak contributions.
Bidirectional charging capabilities can provide EV customers with new sources of revenue as well as value, for instance as backup power, Woogen said. The most costly component to get these benefits is the battery – “and in a sense, that’s already bought and paid for as a means of mobility. As a customer, you’re able to leverage an embedded cost and unlock latent battery capacity to squeeze additional value out of your fleet or your vehicle, if you would like to,” he added.
PG&E spokesperson Ari Vanrenen said in an emailed statement that bidirectional charging technology has a lot of potential to help PG&E's customers and the electric grid as a whole.