Vehicle-Grid Integration (VGI) Roadmap: Enabling Vehicle-Based Grid Services
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CALIFORNIA Vehicle-Grid Integration (VGI) Roadmap: Enabling vehicle-based grid services February 2014 The California ISO thanks the California Energy Commission and the California Public Utilities Commission for their support in the development of the VGI Roadmap. We also acknowledge the commitment to this effort shown by our industry stakeholders who participated in workshops leading up to the draft roadmap. Stakeholder engagement and ongoing feedback were critically important. Additionally, the ISO recognizes the work of DNV-GL, which facilitated the stakeholder process, integrated comments and developed the roadmap tracks. TABLE OF CONTENTS 1. Executive Summary ....................................................... 1 2. What is Vehicle-Grid Integration .............................................. 3 3. Identified Barriers ......................................................... 5 3.1 Value of VGI .....................................................5 3.2 Market Product Definitions, Requirements, and Processes ........................5 3.3 Technology and Coordination ..........................................5 4. VGI Roadmap ........................................................... 6 4.1 Track 1: Determine VGI Value and Potential .................................6 Activities for Determining VGI Value Track ..................................6 4.2 Track 2: Develop Enabling Policies, Regulations and Business Processes. .8 Activities for the Develop Enabling Policies Track ..............................9 4.3 Track 3: Support Enabling Technology Development ..........................11 Activities for the Support Enabling Technology Development Track .................11 5. Conclusion and Next Steps ................................................. 13 Appendix A: Detailed Roadmap Tracks ........................................15 Appendix B: Summary of Relevant Policy .......................................18 Appendix C: Activities Reference Information .....................................22 Appendix D: Standards Overview ............................................29 Appendix E: Index of Terms ................................................38 1. EXECUTIVE SUMMARY Vehicle electrification presents an unprecedented opportunity, stakeholder review process to ensure the roadmap captured through charging strategies and aggregation, to contribute the ideal course of actions. The intention is to keep to the reliable management of the power grid, without consumers in the driver’s seat during the transformation to impacting consumer driving habits. a cleaner grid by enabling managed EV charging consistent with grid conditions. Eventually, two-way interfaces between The State of California, long a leader in promoting EVs and the bulk power network could benefit both EV implementation of sustainable, clean energy resources, owners and the grid-at-large. is at the forefront of policies that fight climate change while advancing a green economy. Through an executive Creative approaches identified in this roadmap are expected order in 2012, Governor Jerry Brown set a target of 1.5 to lead to EV charging behavior that is beneficial or at least million zero-emission vehicles (ZEVs) on California roads not adverse to grid reliability. This roadmap also promotes by 2025.1 To realize this goal, the Governor’s Interagency the aggregation of EV resources that can be bid into the Working Group on Zero-Emission Vehicles published a ISO’s wholesale market as grid services—leveraging the ZEV Action Plan.2 The plan identifies actions across a synergies between EVs and the grid. number of agencies and organizations that when executed Vehicle electrification and smart grid technology advance California’s ZEV goals. implementation present an opportunity for EVs, through This Vehicle-Grid Integration (VGI) Roadmap accomplishes charging strategies and aggregation, to support and one of the ZEV Action Plan activities—mapping a way to provide valuable services to contribute to reliable develop solutions that enable electric vehicles (EV) to provide management of the electricity grid. At a minimum, grid services while still meeting consumer driving needs. managed or smart charging strategies are needed to ensure that EVs do not increase peak load, requiring As the main grid operator for the state, the California additional generation or capacity expansions. Ideally, Independent System Operator Corporation (ISO) took the charging is coordinated with grid conditions and the lead in drafting the VGI Roadmap in coordination with the ability for aggregation of EVs to respond to grid operator Governor’s Office, the California Energy Commission, the signals. The VGI Roadmap provides a high-level plan California Public Utilities Commission and the California to enable this combination of activities. Air Resources Board. The effort included a comprehensive VISION: Electric vehicle charging creates a reciprocal relationship between battery-powered cars and the power grid in a way that produces mutual benefits. Without compromising the driving habits of consumers, incentives should be pursued as a way to aggregate vehicle charging to develop valuable grid services. 1 California Executive Order B-16-2012. 2 The Governor’s Interagency Working Group on Zero-emission Vehicles published a Draft Action Plan for public comment in 2012, and a first edition in 2013. 1 California Vehicle-Grid Integration (VGI) Roadmap: Enabling vehicle-based grid services February 2014 The following diagram summarizes the path to enable EVs The track activities include articulating VGI impacts to the to provide grid services. The roadmap begins with a value electricity system, identifying and quantifying VGI value assessment drawing from VGI use cases. The use cases streams and cost components, and estimating VGI market include the extent of vehicle aggregation, communication potential for various VGI use cases. needs, and the grid service being provided. As the value Track 2, “Develop Enabling Policies, Regulations, and assessment progresses, use cases are adjusted, refined Business Processes,” includes activities to define wholesale and prioritized. At the same time, program development and retail products and programs and associated policy. begins. As the California Public Utilities Commission (CPUC) The program development will identify how VGI resources will interact with the grid at the distribution and wholesale Determine VGI impacts, value and levels, including compensation. It also includes clarifying market potential settlement processes and defining signal and messaging interactions. Refine, adjust and prioritize VGI use cases Define program and product requirements Develop, refine and implement policy Identify and develop enabling technology Demonstrate performance and implement grid service capabilities and stakeholders develop programs, they are evaluated Track 3, “Support Enabling Technology Development,” in the context of existing policy. This evaluation identifies includes activities to develop enabling technology including needs for new policy and refinements to existing policy. standards that support VGI aggregation, communication, For use cases requiring little or no policy development, and control requirements. Enabling VGI technology will activities commence to implement and test the grid service facilitate EV aggregations to support grid services as capabilities. Policy work continues to support other valued articulated in the use cases. Policymakers, grid operators, use cases. Enabling technology development advances on and original equipment manufacturers (OEMs) must a separate supporting path. coordinate to enable VGI use cases that include two-way power flow. The roadmap is organized in three inter-dependent tracks: Steps to enable EV aggregations to provide grid 1. determine VGI value; services are already underway in California. Rulemaking 2. develop enabling policy; and proceedings and standard development efforts that will define the future for VGI are in progress.3 Research, 3. support enabling technology development. development and demonstrations have begun to explore the potential for VGI services and to enhance enabling Track 1, “Determine VGI Value,” will determine the value technologies. This roadmap is the first step toward defining and increase understanding of market potential for grid future steps towards meeting the goal of EV aggregations services enabled by VGI. This value determination will contributing to grid reliability. support how program developers and operators define VGI programs and facilitate industry investment decisions. Articulating value based on use cases is critical in Track 1. 3 Most notably, the CPUC has an active rulemaking on Alternative Fueled Vehicle Programs, Tariffs and Policies, R.13-11-007, which is in support of Executive Order B-116-2012 and which will conduct activities associated with this VGI Roadmap. California Vehicle-Grid Integration (VGI) Roadmap: Enabling vehicle-based grid services 2 February 2014 2. WHAT IS VEHICLE-GRID INTEGRATION? The term vehicle-grid integration or VGI, as used in this the regulatory considerations with each roadmap, encompasses the ways EVs can provide grid “dimension” and proposes a path toward implementation. services. To that end, EVs must have capabilities to manage The four use case categories are: charging or support two-way interaction between vehicles 1. Unidirectional power flow (V1G) with one and the grid. Managed charging refers to the technical resource and unified actors