Toyota Motor will begin selling "affordable" plug-in hybrid cars in 2011, upping the ante on General Motors and Nissan Motor as they aim to take the lead in the field of rechargeable cars.
Toyota's first plug-in model, the Prius Plug-In Hybrid (PHV), will add an external charging function and more batteries to the popular Prius to enable longer-distance driving on electricity alone.
Because it can also run on gasoline, plug-in hybrids--such as GM's upcoming Volt due for sale next year--eliminate the "range anxiety" seen as one of the main shortcomings of battery-powered pure electric cars.
The Prius PHV can travel 14.5 miles using only the electric motor, making a short commute possible on zero emissions, Toyota said. On a full charge and full tank of gas, the car could theoretically travel 870 miles, it said.
Prius Plug-In Hybrid concept car
(Credit: Toyota)Nissan's pure electric Leaf car due for sale in 2010 has a range of 100 miles on a single charge.
Toyota, the world's biggest automaker and by far the top seller of gasoline-electric hybrid cars, said it would aim to sell "several tens of thousands" of plug-in hybrid cars to the general public in an "affordable" price range.
Executive Vice President Takeshi Uchiyamada, Toyota's R&D chief and father of the original Prius, declined to specify a price range but indicated it would likely be far cheaper than 3 million yen ($33,770).
"Nowadays in the United States, they sell after-market kits for about 1 million yen ($11,260)" to convert a hybrid car into a plug-in, he told a presentation on Monday. "Of course, we would have to do much better than that as a mass producer."
The third-generation Prius starts at $22,400 in the United States.
Uchiyamada said he expects the mass-produced plug-in cars--which may not take the shape of the Prius--to be sold globally.
GM's Chevrolet Volt, on track to become the first mass-market plug-in hybrid in the United States, could cost as much as $40,000 before a $7,500 consumer tax credit is applied, GM has said. The U.S. automaker expects to sell about 10,000 Volts in the first year of production and 60,000 in its second full year.
Toyota will begin leasing its Prius PHV globally this month, starting with 100 to the French city of Strasbourg. By mid-2010, it will have about 600 on lease, mostly to governments and businesses in Japan, the United States and Europe.
"The arrival of these new generation plug-in hybrid vehicles in our urban landscape will open a new chapter in our transport policy," Strasbourg Mayor Roland Ries said at a hand-over ceremony in Tokyo.
Strasbourg has 300 recharging stations and has been a leader in efforts for sustainable mobility.
Story Copyright (c) 2009 Reuters Limited. All rights reserved.
Additional stories from Reuters
A group of CEOs on Monday came out favor of a regional roll-out of electric vehicles in up to eight cities to demonstrate the viability of the technology and incubate the fledgling industry.
The Electricifcation Coalition held a press conference in Washington, D.C. and released an Electrification Roadmap, which prescribes the business and policy steps required to ramp up electric vehicle adoption.
There are 13 members of the coalition, including the CEOs of Nissan Motor, FedEx, Pacific Gas & Electric, and battery maker A123 Systems. The coalition was spun out of Securing America's Future Energy, a lobbying group focused on reducing U.S. imports of oil.
The Electrification Coalition argues that light-duty electric vehicles are the only technology that can cut oil imports and reduce carbon emissions in the near term. Its report (click for link) focuses on what's required to make electric cars available at large scale.
"I think we have the conditions for the mass market. But it's going to take more time," said Carlos Ghosn, the president and CEO of Nissan. "The investments to be made are huge. To make 50,000 batteries is a $250 million investment."
Of all the major automakers, Nissan is the most bullish on electrification. It is releasing an all-electric family sedan called the Leaf in the U.S. and Japan next year. It projects that 10 percent of new cars sales in 2020 will be electric, which is higher than most analysts' projections.
The shift presents challenges to auto makers that are unsure of consumer acceptance. Utilities and municipalities need to prepare in order to make these vehicles more consumer-friendly but they, too, are unsure what the volume of sales will be.
To take some uncertainly out of the picture, the Electrification Coalition advocates a "foothold strategy." Six to eight cities would create a number of incentives for electric vehicles, such as preferential parking and public charging stations. They would apply for government incentives and then test out the system to help bring electric cars to "critical mass," explained David Crane, the president and CEO of power generator NRG Energy.
In the first phase, the plan calls for getting 50,000 to 100,000 light-duty plug-in vehicles on the road per year in certain areas starting next year and then expand to 25 cities. Its report sets a target of having 25 percent of new vehicle sales be plug-ins by 2020, which is 5 million vehicles. A jump to 90 percent of new vehicle sales being plug-ins by 2030 would represent roughly 17 million units, according to data from consulting company PRTM.
For consumers, batteries should be owned and financed separately from the car itself, Crane said. Because batteries are an expensive component that makes it more expensive than a comparably-sized gasoline car, auto makers, including Nissan, are looking at ways to keep monthly car payments roughly the same by leasing batteries.
Governments around the world have established financial incentives for electric vehicles because it improves national security and addresses environmental problems, Nissan's Ghosn said. He noted that France, the U.S., and Japan each have established a tax credit of about $7,500 to consumers who buy an electric car.
In addition to federal tax credits, the coalition endorses incentives for municipalities dedicated to bringing in electric vehicles. Also required is technology to allow consumers to charge at off-peak times.
Speakers at the coalition launch also underscored the economic reasons for which governments are pushing electrification. Reducing oil imports would mean that billions of dollars of U.S. wealth would stop being exported, said Crane.
Government programs to drive investing in electric vehicle manufacturing also help the U.S. auto industry adapt to emerging technologies.
"We can do this. This is something we have the ingenuity for--we have enough innovation. What we need to do is capture that and use that to our advantage to build factories," said David Vieau, the CEO of A123 Systems.
Click for larger image.
(Credit: Electrification Coalition)
In the past few weeks, I've had an opportunity to experience the cutting edge in plug-in electric vehicle technology. In some cases, you'd think you're just driving a regular car.
The bulk of production plug-in electric vehicles available now are either utility trucks, small cars that top out at 25 miles per hour, or the pricey Tesla Roadster sports car. Now automakers are building plug-in sedans and SUVs with lithium ion batteries designed for the mass market.
Judging from the cars I've driven, automakers are trying to strike a balance between enticing consumers with new technology but not asking them to make sacrifices. So even though electrification is shaking up the auto industry, the biggest learning curve for owners may be around fueling rather than driving. And if the goal is to make plug-ins mainstream, that's probably a good thing.
Consider the electric Ford Focus which is due out in 2011. It runs entirely on batteries for a range of about 100 miles and will be manufactured side-by-side with the gasoline edition.
During my drive two weeks ago, I was eager to feel the acceleration. Vehicles that run off electric motors have "instant torque," which means you get the car's top acceleration at all speeds. The Focus was indeed zippy and responsive, but when I asked if it was better than the gasoline Focus, Ford's director of global electrification Nancy Gioia told me that it'd be the same--on purpose.
Ford dialed back the potential acceleration of the electric Focus so drivers can expect the same from the gasoline and electric versions. The same is true for braking.
"That makes the technology less scary and more familiar--and, actually, safer. Because if you jump from an (electric car) to a regular car, you don't want to have to remember very different (conditions)," she said. Limiting the maximum available acceleration also saves the batteries to help deliver on expected range.
Electric drive
Another car in the all-electric category is the Think City, made by Think of Norway, which I got a chance to drive last week. From a design point of view, it's almost the polar opposite of the high-end Tesla Roadster. The Think City can go about 100 miles on its batteries and it's highway capable with a top speed of 60 miles per hour. In its first iteration, it only has two seats in the front and a hatchback.
Once again, I found the acceleration pretty good and responsive during my quick loop around a parking lot roof. But don't expect sports car-caliber handling. It struck me as a car simply designed to get you from one place to the next, but on electric charge. The company expects to start selling the Think City in Europe later this year and build a plant for the U.S. market next year.
Nissan, Tesla Motors, and Coda Automotive are among the other automakers betting on all-electric sedans. The thinking is that the limited range is acceptable for people who would rather fuel up on electricity than oil for their daily commutes. GM executives, for example, project that more than 90 percent of drivers could do 90 percent of their driving in electric mode.
If you drive 50 miles a day, all-electric cars probably aren't the best fit for your primary car. That said, a 100-mile range with daily charging can meet a lot of Americans' daily driving needs and rental cars are always available for long road trips.
Auto industry executives say it will be substantially cheaper to drive on an electric charge, but the high cost of batteries and power electronics raise the upfront cost. Ford's electric Focus, for example, will cost more than the gasoline version, although it should be eligible for a tax credit for plug-ins. The Chevy Volt is said to cost about $40,000, and Nissan's Leaf is said to cost in the $25,000 to $35,000 range, although the company is looking at options, such as battery leasing, to lower that upfront cost.
Plug-in hybrids
Analysts project electrics to be a very small slice of the overall market for hybrids and electric vehicles in the next five years because of the limitations on range and the anticipated higher cost associated with the new technology.
Sales of hybrids, meanwhile, are projected to grow. But what remains to be seen is how much traction plug-in hybrids will get. Toyota, Ford, and General Motors are preparing plug-in hybrids, which will start arriving in showrooms over the next two or three years. Initially, plug-in hybrids are being tested with fleet operators.
After taking the Focus for a ride, I took a spin in a prototype of a plug-in hybrid Ford Escape SUV being tested by utilities gauging the impact of plug-ins on the grid. The driving, again, was familiar; acceleration, handling, and the interior is all what I'd expect in an SUV. What was different is that I was quickly drawn to the fuel-efficiency feedback system.
In this case, the Escape drives mostly on its 10 kilowatt-hour battery (compared to a 1.5 kilowatt-hour battery in a regular hybrid) for the first 30 miles or so. But when you need an extra boost of power, the gasoline engine will kick in, which you can hear and see on the in-car display.
The big advantage of gas-electric vehicles, of course, is that you can fuel up away from an electrical socket. Overall, fuel economy will improve the more often you can charge up. In a test of its fleet of converted plug-in Priuses, Idaho National Labs found that its average mileage was 55 miles per gallon, but fuel economy dropped significantly if cars were not charged every day.
The technological twist on the plug-in hybrids is the extended-range electric vehicle or a series hybrid--an approach being used by the Chevy Volt and Fisker Automotive luxury sedans. In this case, it's the electric motor that moves the car all the time and the gas engine is used to run a generator for the motor. When I was taken for a drive in the Volt by a GM auto engineer this summer, I found the Volt had a lot of pep and handled turns well.
Having driven a number of plug-in vehicle variants over the past year, it's clear that these cars will work just fine for everyday driving. The technology of lithium ion batteries leaves plenty of room for both utilitarian and performance cars. Nobody can say how much more the average consumer will be willing to pay for fuel efficiency from the new technology, but the biggest change to daily habits may come when drivers fuel up by plugging in rather than filling 'er up.
Fisker's first car, the Karma, is set to be released next year. Its Delaware plant is set to make its next luxury car, which will also be a plug-in hybrid.
(Credit: Fisker Automotive)Upstart carmaker Fisker Automotive on Tuesday said it will purchase a plant in Wilmington, Del., to make a plug-in hybrid sedan.
The facility, which used to be a General Motors factory, will begin manufacturing a plug-in hybrid in late 2012, which the company expects will cost almost $40,000 after federal tax credits. U.S. Vice President Joe Biden and Delaware Gov. Jack Markell are scheduled to speak at an announcement ceremony on Tuesday morning.
Production of Fisker's "family-oriented" car, called Project Nina, will result in 2,000 factory jobs. The company anticipates making 75,000 to 100,000 cars per year by 2014. "Wilmington is perfect for high-quality, low-volume production," CEO Henrik Fisker said in a statement.
The Wilmington assembly plant, closed in July this year, produced a handful of relatively low-volume cars from GM's shed brands, including the Pontiac Solstice and Saturn Sky.
Fisker's first car, called the Karma, is a high-end luxury car priced at about $88,000. The Karma, which is will be manufactured in Europe, will be available in the middle of next year.
Fisker Automotive received $528.7 million from a Department of Energy loan in September, which will fund the purchase of the factory from GM. The company expects to buy the plant for $18 million and spend another $175 million to retool the factory over the next three years.
The technology used by Fisker, called an extended-range electric vehicle or series hybrid, is similar to that used by General Motors' Chevy Volt. The Karma will go 50 miles on batteries, and then a gasoline engine will run a generator for longer rides, for a total range 300 miles.
DETROIT--For plug-in electric cars, it's no longer a question of if. It's a question of when and how.
After many years of buildup, plug-in vehicles aimed at mainstream buyers are set to come to the market starting next year. But even with the momentum around plug-ins, many questions remain unanswered over how this technology transition will impact the ailing auto industry and how the cars will received by consumers.
"You have the feeling that we're at the beginning of something that could be very special," said David Cole, the chairman of the Center for Automotive Research, which is funded by government and corporate sources, during the opening of the Business of Plugging In conference here on Tuesday. "There are a great many uncertainties, but we have to recognize that the key invention is here with the lithium ion battery."
The sold-out conference, which attracted about 600 people, represented the varied groups needed to deliver these vehicles: automakers and supply chain suppliers, electricity utilities, policy makers, tech entrepreneurs, and investors.
Regardless of the initial volumes of electric-vehicle sales, the stakes in this shift are high. Electric vehicles promise to reduce pollution from transportation, decrease oil imports, and provide economic opportunity for a broad number of businesses.
Compared to biofuels or hydrogen fuel cell technologies, the large automakers and several start-ups have coalesced around electrification, to a greater extent. But there still remains the question of how much money consumers are willing to pay and how easily they can adjust strong habits.
"We've placed big bets in this area...(but) the question is: will consumers want these vehicles?" Bill Ford, the chairman of Ford Motor, said during a Wednesday talk. "The short answer is, it depends on how many trade-offs they need to make...and I think customers aren't prepared to make many trade-offs at all."
Hybrid premium
Plug-in cars come in various forms, but the larger battery means a higher purchase price than today's hybrids or equivalent gasoline models. If consumers are going to accept that up-front cost, automakers need to convince them that owning an electric car is cheaper in the long run. One idea that automakers are seriously considering is leasing batteries, which could make the monthly payments for a new electric car comparable to a gasoline version.
The actual prices for many cars aren't yet known, since companies have not yet decided. Nissan's all-electric Leaf sedan, set for its U.S. debut next month and availability next year, is said to be in the $25,000 to $30,000 range. Industry executives estimate that the electric Chevy Volt, due late next year, will be in the $40,000 range.
Fueling up an electric car is less expensive than running the equivalent gasoline-only vehicle, and auto industry executives say the maintenance is simpler on electric drives (no more oil changes, for example). Jonathan Lauckner, General Motors' vice president of global program management, on Tuesday said the cost per mile of the Volt could be a sixth of a gasoline car's, offering as much as $1,500 a year in savings. Those savings get better, if gas prices go up and if drivers can charge up more than once a day.
And consumers want this information. Surveys show that consumers are drawn to plug-ins for environmental reasons, but fuel savings are actually more important, according to a survey of U.S. drivers done by Ernst & Young. Safety, of course, is another high priority.
"We've always had a disconnect between the purchase price and the usage cost, where consumers way undervalue the usage costs, which will continue to be a problem here," Richard Curtain, of the Institute of Social Research at the University of Michigan, said during a panel on Wednesday. "If it got to less than a $5,000 premium, that would allay many of the concerns of the consumer."
Industry executives say volume production, a goal of the Department of Energy's $2.4 billion grant program launched in August, will help bring down costs in the coming years, much the way hybrid components fell in price. But that up-front premium is tough to totally erase, given that electrification is competing with a deeply entrenched technology: the internal combustion engine.
Battery improvements will help the cost picture as well. Many companies are working on batteries--a new generation of lithium ion batteries and other chemistries--that can pack more energy. More "energy-dense" batteries means that drivers will get a longer driving range from a battery of a given size. Ultracapacitors, another storage method, have also been proposed as way to work with batteries in vehicles.
Technology horse race
The different routes automakers are taking to electrification affects costs. General Motors' Chevy Volt has generated plenty of buzz, but company executives say its design will make at least the first generation of the car pricey. GM hopes to wring thousands of dollars from the Volt power train, notably the battery and power electronics in the second generation of the car.
Fisker Automotive, a start-up that received a $528 million loan from the Department of Energy, is using a similar power train for its planned Karma and Nina high-end luxury cars. Called an extended-range electric vehicle or a series hybrid, these cars will run on battery charge only in the beginning--40 miles in the case of the Volt--and then use an internal combustion engine to operate a generator for the electric motor on longer trips.
A handful of automakers--Ford, Nissan, Think, and Coda Automotive among them--are making all-electric vehicles, also called battery-electric vehicles. Because of the limited range of about 80 miles to 100 miles, these cars are being sold as second cars in the United States or Europe or for city driving.
By contrast, Toyota, which has already sold millions of Priuses, believes that the way to sell large volumes of plug-in cars is to build on the existing hybrid technology, where batteries and the gasoline engine both propel the car.
"We think that blended (mode) is going to be the only way to reach the cost parity that the consumer is going to want," said Justin Ward, the advanced power train program manager at the Toyota Technical Center. "There (are) a lot of high-end cars, but how high do you go before it becomes unattainable for the general consumer?"
Infrastructure
Electric and hybrid cars aren't going to take over the market any time soon, because of cost and because they face competition from more efficient gasoline engines and diesels. Market researcher IHS Global Insight projects that pure-electric and range-extended electric vehicles will account for just more than 1 percent of the total market by 2014, with hybrids and plug-in hybrids being nearly 21 percent.
But even though plug-ins of various types will be a niche in the early years, utilities need to start preparing now. On a local level, utility executives are concerned that just a few plug-in cars, which can pull as much juice as a whole house when charging, will strain local power grids. That's particularly true, if consumers install faster 220-volt charging ports, which will cut charge time to about two or three hours, from six or eight.
The way to avoid stressing the grid is to charge cars at off-peak times, utility executives say. Pacific Gas & Electric, considered one of the most aggressive utilities in embracing new technologies, plans to offer customers a 220-volt charger that has a timer so consumers can take advantage of lower rates at off-peak times. Using a smart-grid technology, a car charger could pick its charge time and rate by communicating through a smart meter.
But what if someone can't charge at home? Like others, utility industry group the Edison Electric Institute advocates new building codes demanding that all new buildings are wired so that charging stations can be added in places such as underground parking garages in apartment buildings or retail areas, according to Anthony Earley, the chairman of the institute and CEO of utility DTE Energy.
A few charging stations will go a long way, according to people who spoke at the conference. "We act like this is a chicken-and-an-egg problem, but it's really not," said Mark Duvall, the director of electric transportation at the Electric Power Research Institute. "They are not enabling technologies, in my opinion, but they can help."
If plug-in electric vehicles are wildly popular with consumers and fleet owners, the industry will then face the challenge of having sufficient capital to scale up. During a discussion on battery technologies, academics said that even now, there isn't a sufficient workforce to do the engineering required for electric vehicles, with the most glaring hole in materials science.
Although higher manufacturing should significantly cut battery prices, there were regular questions about the supply of lithium at the conference. Overall, auto and battery company executives said lithium supply is not a pressing concern. Lithium could be extracted from different sources and can be recycled, said Yet Ming Chiang, the chief scientist of battery upstart A123 Systems and professor of ceramics at the Massachusetts Institute of Technology.
The U.S. auto industry has an opportunity to be reinvigorated with electric auto technologies, as its seeks to transition from the "rust belt to the green belt," Michigan Gov. Jennifer Granholm said Wednesday. China, meanwhile, is investing heavily in electric transportation, which national leaders see as a way to "leapfrog" to the latest technologies, said Yibing Wu, the managing director of Legend Holding, the company that makes Lenovo laptops and is moving into clean energy.
On an environmental level, plug-in hybrid cars have 30 percent lower carbon emissions, even if a car is fueled by coal-fired power plants, Earley said. That's particularly important on a global level, since hundreds of millions of cars are expected to be sold in the coming years in developing countries, said Ann Marie Sastry, a University of Michigan professor and a co-founder of a Khosla Ventures-backed battery company Sakti3.
"The small car is absolutely going to be essential for electrification and to all of us because it doesn't matter where the carbon comes from--whether we generate it or it comes from the emerging economies," Sastry said. "It's imperative (that) the United States play a role in this technology development because of our own interest in climate change."
Automakers are expected to agree this week to use the SAE J1772 five-pin charging system and coupler as the standard connection for plug-in vehicles.
(Credit: SAE International)The Society of Automotive Engineers International, the organization that sets the standard for aerospace and automotive industry technology, will vote this week to make the SAE J1772 charging system and coupler the standard connection for plug-in vehicles, according to a General Motors executive.
Britta Gross, director of GM's Global Energy Systems, shared the news during a live Web chat at GM's Fastlane blog on Tuesday evening.
"As Jon Lauckner said this morning, the Volt comes with a 120-V charger and if you can find a normal outlet, you can charge the Volt," Gross said.
She went on to add that all major automakers will eventually equip cars with the same charging coupler when their respective plug-in cars in the pipeline reach the consumer market because a standard agreement was being reached.
"Yes, GM's Gery Kissel is chair of the SAE J1772 standards committee. The standard is going to a vote this week after two and a half years of work. All major automakers are expected to agree to adhere to these charging standards. All infrastructure that goes in from now on should be J1772 compliant so all plug-in vehicles can use it," Gross said.
Gross is referring to the SAE J1772 or SAE electric vehicle conductive charging cable and coupler which has five pins and can be used with 120V or 240 V single phase electrical systems.
The agreement would allow charging stations throughout the world to plug in to any standard plug-in vehicle in the same way nozzles at gas stations are standardized to fit gas- or diesel-powered vehicles, respectively.
DETROIT--There's a great deal of interest from consumers in plug-in vehicles but electricity utilities say they need to prepare even before electric cars start to plug in.
Industry association the Edison Electric Institute on Wednesday issued a pledge that its members will take steps to smooth the transition to electrically fueled vehicles. The chairman of the institute and CEO of utility DTE Energy, Anthony Earley, voiced the industry's support for plug-in vehicles here at the Business of Plugging In Conference.
"The industry's challenge will be to effectively manage this transition," Earley said. "We recognize that now is the time. After years of debate, the electric vehicle is ready for prime time."
In a DOE-sponsored program, a number of utilities are testing the mileage improvements and impact on the grid of plug-in electric vehicles.
(Credit: Martin LaMonica/CNET)The statement underscores the growing interconnectedness between the auto and utility industries that's occurring as a wave of plug-in electric cars approach car dealerships.
Plug-in hybrid or pure-electric cars promise to be cheaper to fuel up--the equivalent of $1 per gallon, Earley said. But there are a number of barriers to widespread adoption, including higher upfront costs and the potential impact on the electricity grid.
Utility executives say that adding just a few plug-in electric vehicles to an area could overload the local distribution circuit, particularly if drivers install faster 220-volt chargers at home. There have also been concerns that fueling millions of vehicles from the grid will require construction of more power plants to meet the added demand.
Utilities and auto executives say there is sufficient demand to charge vehicles in the near term with existing power plants if cars are charged at off-peak times, typically overnight. But there needs to be some products and policy changes to ensure that off-peak charging takes place en masse.
In its pledge, the Edison Electric Institute said that they will seek to install more charging stations in public places. Also, it will encourage development of policies that give consumers cheaper electricity rates at off-peak times.
Utilities are now working in a U.S. Department of Energy-sponsored program to test the impact of plug-in electric vehicles. The Edison Electric Institute also said that utilities will establish customer support and education.
DETROIT--If plug-in electric cars become popular in your neighborhood, you may face an electricity supply crunch when it comes to charging.
There have been a number of studies measuring whether the national power grid can fuel large numbers of electric vehicles. But the biggest concern regarding the impact of plug-ins is at the local level, where adding just a few vehicles could strain a local circuit, said Peter Darbee, the CEO of California utility Pacific Gas & Electric, during a talk at the Business of Plugging conference here Tuesday.
Darbee predicts that demand for plug-in vehicles will be very high, as turned out to be the case with cell phones. Based on early data, it's clear that purchasers of plug-in electric vehicles live near each other. Berkeley, California, for example, represents 18 percent of all customers in PG&E's territory while Fresno is only 2 percent.
PG&E CEO Peter Darbee; John Lauckner, General Motors' vice president of global program management; and George Pataki, former New York governor and counsel at Chadbourne & Parke, on a panel at the Business of Plugging In conference in Detroit.
(Credit: Martin LaMonica/CNET)But high concentrations of plug-in electric vehicles poses a serious challenge to utilities, Darbee said. Plug-in electric cars could draw electricity equivalent the amount needed to run one home, or up to three homes in certain places, he said.
"You can see if you have three or five electric cars arrive in a neighborhood, you're going to overload the local circuits, and that will lead to blackouts," Darbee said. "So we see it as an opportunity but we also see it as a challenge of significant proportions."
Darbee said that utilities need to work with auto companies and policy makers to ensure that customers have a smooth experience and that the grid is not stressed.The utility--considered one of the most progressive in the U.S.--is also taking a number of steps to avoid potential problems.
PG&E plans to recommend that consumers have a 220-volt charging point at home, which will allow most plug-in electric cars to recharge in two or three hours, rather than six or seven hours for a regular 110-volt outlet. Although it's more convenient for consumers, that higher-voltage charging significantly boosts the draw--as much as 6.6 kilowatts.
Darbee said that PG&E is a strong endorser of plug-in electric vehicle technology because it can significantly reduce carbon dioxide emissions and reduce imports of foreign oil. But there is a "nightmare" scenario for utilities. That's when large numbers drivers come home on a hot day when the load is already maxed out and they turn on air conditioners and lights, and plug in their cars.
"If that (charging) were at 220 (volts), the results would be pretty dramatic and pretty negative. You would create a peak on top of the current peak load. The effect would be to bring down the electrical system if you had substantial concentrations in the area," Darbee said.
To avoid that situation, PG&E plans to offer a 220-volt charger along with a timer. The consumer would be able to get off-peak rates--called dynamic pricing--by charging between 11:00 p.m. and 4:00 a.m.
Smart-grid technology, whereby homes are equipped with meters that can communicate with the utility, gives more flexibility. In that case, the utility could charge three electric cars in succession or at different rates overnight to ease the draw on a local circuit. Or the utility could offer consumers a menu of charging alternatives.
In about seven or 10 years, utilities are envisioning vehicle-to-grid capability in which a plug-in electric car owner would sell electricity from a battery back to the grid. A driver could program the system so that the stored energy is sold only at a certain price, Darbee said.
The costs of bulking up local electricity circuits should be shared by all people in a service territory, he argued. "Just like when there were hair dryers or electric driers, there was a shared cost," he said.
BOSTON--Ford Motor expects to manufacture as many as 2 million all-electric and gas-electric vehicles in the next 10 years, betting that rising oil prices and consumer interest will sustain a long-term transition to new technologies.
The company has set a goal of making 10 percent to 25 percent of its fleet "electrified" by 2020, which represents somewhere between 800,000 and 2 million cars, said Nancy Gioia at a media event here on Wednesday. Ford announced on Wednesday that Gioia will hold a newly created position of director of global electrification, which covers hybrids, plug-in hybrids, and battery-electric vehicles.
Plug-in electric vehicles promise to offer a much lower cost-per-mile than gasoline cars and deliver substantial environmental benefits. But in the near term, hybrids will likely represent the largest volume in the mix of technologies, said Gioia at the event.
"We've finally demonstrated the technology, the life, the durability, the safety (of hybrids)--all of that has reached a comfort zone to make it viable. Now it's going to be affordability that will drive mass market adoption," she said.
A demo of a Ford Focus, done with Magna, that runs on batteries alone. Ford plans to introduce the car in 2011.
(Credit: Martin LaMonica/CNET)FRAMINGHAM, Mass.--If you want to find out about the cutting edge in green automotive technology, talk to fleet managers.
Although they may have a reputation for stodginess, operators of corporate and municipal fleets are pushing the limits of alternative fuels in both passenger cars and trucks. These projects are driven both by environmental programs and fuel savings, according to attendees at the AltWheels 2009 Fleet Day conference here on Monday.
In the past year, new products, notably hybrid and all-electric commercial trucks, are coming to market. Also, the confidence level in the various alternative energy technologies is firmer, speakers said.
"This is not toy science anymore. This is real utility," said Mike Payette, the fleet equipment manager for Staples, which hosted the event at its corporate headquarters. "It's working exactly as this technology is supposed to work."
Staples has just received hybrid and all-electric delivery trucks made by Smith Electric Vehicles which it will begin testing. The stop-and-go traffic of delivery trucks is well suited to hybrid and electric technology as the trucks can charge batteries during braking.
(Credit: Martin LaMonica/CNET)Fleet managers said that the use of hybrid sedans and SUVs has been picking up for salaried employees, such as salespeople or police and fire workers. New York City, for example, has bought more than 3,000 hybrids--Toyota Priuses and Nissan Altimas--since 2001 as part of an effort to reduce the city's greenhouse gas emissions, said Steve Weir, director in the Office of Fleet Administration.
Now, hybrids are being scaled up for bigger jobs. Staples recently received hybrid and all-electric delivery trucks from Smith Electric Vehicles that it will test in different locations. The initial cost is higher--partially offset by government stimulus spending--but Payette estimates that operating the electric and hybrid delivery trucks will cost about half as much as their diesel equivalents.
From a technology point of view, hybrids and battery-electric vehicles are well suited for deliveries, since the stop-and-go nature of the driving allows the trucks to recharge the batteries during braking. Also, the length of trips is well understood, whereas consumers will typically do a mix of driving, including long trips.
But that doesn't mean that electric or hybrid vehicles make sense in every application, said attendees, who are using propane, natural gas, and biodiesel. Fleet managers need to also consider the driving range--Staples' electric delivery truck can go between 100 and 120 miles--as well as the weight of what's being transported.
"The question is not whether it will work, it's whether it will work for me--that's what's different," said Stephen Connors from the Laboratory for Energy and the Environment at the Massachusetts Institute of Technology. "It's all about the drive cycle."
In many cases, in-car technology and programs to promote environmentally aware driving can deliver significant fuel savings, attendees said. The City of Keene, N.H., delivered monthly reports on fuel usage and mileage to department heads in an effort to encourage fuel efficiency habits, such as cutting idling. But far more effective are mechanical systems that enforce driver behavior, said Steve Russell, the former fleet superintendent.
For example, Staples changed the top speed of its Isuzu delivery trucks to 60 miles per hour and installed a system that automatically shuts trucks off after three minutes of idling. Those adjustments showed fuel savings between 4.3 percent and 5 percent on 75 vehicles, according to Payette.
Other fleets are simply converting to four-cylinder vehicles, at times adding more amenities to motivate employees to convert. Heating and cooling equipment company Carrier was able to meet its emissions-reduction goals by choosing a different size vehicle and reducing the weight of deliveries, said purchasing manager Denise Cross.
Business case
Conference speakers said that many efforts to make their fleets more environmentally friendly were driven by corporate environmental sustainability efforts, which can help improve a company's image. But at the same time, there is scrutiny on the financial implications of using hybrids or biofuels, for example.
"We were in a state of flux last year: 'is this going to work?' This year, we're able to put vehicles in place and say that there are lower emissions overall--so we have proof," said Tom Hartner, the manager of global sourcing at Millipore. "Now we're trying to make sure we can deliver at a lower cost--that's where we're going."
Often, the financial picture includes the cost of vehicles, the cost of fuels--biodiesel or natural gas, for example--and ongoing maintenance and infrastructure costs. Staples is projecting that it will be able to get its hybrid and electric trucks competitive on price compared to diesel after funding for the government-aided project runs out, said Payette. "I don't want to be the greenest company to go out of business," he said.
In many cases, corporations don't get federal tax incentives for hybrid passenger cars. But there is federal stimulus money available for projects to test and ramp up production of components for plug-in electric vehicles. For example, a number of utilities are testing how plug-in electric vehicles can fit into smart-grid projects, where cars are charged at off-peak times and act to stabilize power grid frequency.
MIT's Connors said that one of the underlying questions with green auto technologies is what will happen after the stimulus funding ends--and whether these projects will continue if oil prices drop significantly. But corporations and auto suppliers need to go through the trial programs to test various technologies and help bring down the cost of components, he said.
Staples' Payette said he expects the cost of battery and electric motors for vehicles to drop 40 percent as volumes ramp up. Although there isn't a widespread refueling infrastructure, biofuels and natural gas look promising as well, he said.
