Green Wombat

photo originally uploaded by flexkramer

The electric utility industry’s blossoming love affair with plug-in hybrid cars continues. A study conducted by Xcel Energy (XEL) – a Minneapolis-based utility that serves 8 midwest and western states – and the U.S. government’s National Renewable Energy Laboratory has found that filling Colorado’s roads with plug-in hybrids could cut vehicle greenhouse gas emissions in half without igniting a power plant building boom. Provided, that is, utilities construct so-called smart power grids that charge plug-in hybrids when electricity demand is low. A smart grid can also let car owners feed power back to the grid during peak demand when their vehicles are idle, say, during the work day. "To make a dent in issues like climate change and dependence on foreign oil, the grid must change," said Xcel Energy chief administrative officer Ray Gogel in a statement. "Plug-in hybrid electric vehicles have the potential to help us better use renewable and other non-traditional energy sources while creating a grid that is more interconnected, balanced and reliable.”  In the study, a NREL computer model simulated the addition of large numbers of plug-in hybrids equipped with a 9-kilowatt battery to the Colorado market, predicting their electricity usage and greenhouse gas emissions under real-world driving conditions. "How much would be saved in vehicle emissions depends on when drivers charge their cars," Xcel said. "Incentive programs may induce customers to charge … at certain times and will help Xcel Energy minimize emissions and operating costs as well as incremental utility infrastructure investment."

Plug-in hybrids use long-lasting rechargeable batteries so the car relies less on its gas engine. While some companies offer kits to convert traditional hybrid cars like the Prius into plug-ins, automakers have yet to bring a so-called PHEV to market. However, California utility PG&E (PCG) has talked to Toyota (TM) about producing a plug-in hybrid and General Motors (GM) and Ford (F) have such cars on the drawing board. PG&E is developing smart grid technology that would detect when and where the cars are plugged in, charging their owners variable rates depending on the time of day and also allowing the cars to return power to the grid. At last week’s Cleantech Forum in San Francisco, Hal LaFlash, PG&E’s director of renewable energy planning and policy, noted that wind farms tend to generate peak power in the evenings when electricity demand falls. "We can use off-peak loads from wind farms to charge vehicles," he said. "A shift to electric vehicle could complement renewables."

Utilities’ promotion of plug-in hybrids makes is a winner for the industry on several counts.

They win green kudos, they get to tap another energy source to balance
power demands and they potentially can cash in on any renewable energy credits associated with plug-ins.  For instance, California’s new Low Carbon Fuel Standard  requires transportation fuel sold in the state to be 10 percent less carbon intensive by 2020. The standard lets utilities that provide power electric vehicles to sell credits to oil companies – say, ExxonMobil (XOM) – that fail to meet the mandate.