ELECTRIC-VEHICLE SMART CHARGING INNOVATION LANDSCAPE BRIEF © IRENA 2019 Unless otherwise stated, material in this publication may be freely used, shared, copied, reproduced, printed and/or stored, provided that appropriate acknowledgement is given of IRENA as the source and copyright holder. Material in this publication that is attributed to third parties may be subject to separate terms of use and restrictions, and appropriate permissions from these third parties may need to be secured before any use of such material. ISBN 978-92-9260-141-6 Citation: IRENA (2019), Innovation landscape brief: Electric-vehicle smart charging, International Renewable Energy Agency, Abu Dhabi. ACKNOWLEDGEMENTS This report was prepared by the Innovation team at IRENA’s Innovation and Technology Centre (IITC) with text authored by Arina Anisie, Francisco Boshell and Javier Sesma. Valuable external review was provided by Ulf Schulte, Mereille Klein Koerkamp-Schreurs and Stephan Hell (Allego), Carlo Mol (VITO), Kalle Petteri Rauma (TU Dortmund), Carlos Pueyo (CIRCE) and Stefan Nykamp (Innogy SE), along with Martina Lyons, Nina Litman-Roventa and Paul Komor (IRENA). Report available online: www.irena.org/publications For questions or to provide feedback: [email protected] DISCLAIMER This publication and the material herein are provided “as is”. All reasonable precautions have been taken by IRENA to verify the reliability of the material in this publication. However, neither IRENA nor any of its officials, agents, data or other third- party content providers provides a warranty of any kind, either expressed or implied, and they accept no responsibility or liability for any consequence of use of the publication or material herein. The information contained herein does not necessarily represent the views of all Members of IRENA. 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Rather, it is intended as a contribution to technical discussions on the promotion of renewable energy. www.irena.org ELECTRIC-VEHICLE SMART CHARGING Basic 1 BENEFITS smart charging Smart charging of EVs enables: • Reduce grid infrastructure investments Flexibility • Network congestion management provided by EVs • Peak shaving Advanced smart • Provision of ancillary services charging low high Flexibility KEY ENABLING FACTORS 2 3 SNAPSHOT Charging infrastructure development and ➜ 5.6 million EVs on the world’s roads as of the deployment beginning of 2019 ICT control and communication protocols ➜ 5.2 million EV chargers in 2018 (540 000 publicly available) Define roles and responsibilities of stakeholders ➜ Smart charging of EVs can significantly reduce the peak load and avoid grid Design regulation for vehicle-grid reinforcements, at a cost of 10% of the total integration cost of reinforcing the grid Big data and artificial intelligence for smart charging WHAT IS SMART CHARGING? Smart charging means adapting the charging cycle of EVs to both the conditions of the power system and the needs of vehicle users. This facilitates the integration of EVs while meeting mobility needs. ELECTRIC-VEHICLE SMART CHARGING Smart charging for electric vehicles (EVs) holds the key to unleash synergies between clean transport sector and low-carbon electricity. It minimises the load impact 3 from EVs and unlocks the flexibility to use moresolar and wind power. INNOVATION LANDSCAPE BRIEF ABOUT THIS BRIEF his brief is part of the IRENA project “Innovation innovations to create actual solutions. Solutions Tlandscape for a renewable-powered future”, to drive the uptake of solar and wind power span which maps the relevant innovations, identifies the four broad dimensions of innovation: enabling synergies and formulates solutions for integrating technologies, business models, market design high shares of variable renewable energy (VRE) and system operation. into power systems. Along with the synthesis report, the project The synthesis report, Innovation landscape for a includes a series of innovation landscape briefs, renewable-powered future: Solutions to integrate each covering one of 30 key innovations identified variable renewables (IRENA, 2019a), illustrates across those four dimensions. The 30 innovations the need for synergies between different are listed in the figure below. INNOVATION DIMENSIONS ENABLING TECHNOLOGIES BUSINESS MODELS MARKET DESIGN SYSTEM OPERATION 1 Utility scale batteries 12 Aggregators 17 Increasing time 25 Future role of distribution 2 Behind-the-meter 13 Peer-to-peer electricity granularity in electricity system operators batteries trading markets 26 Co-operation between 14 Energy-as-a-service 18 Increasing space transmission and 3 Electric-vehicle granularity in electricity distribution system smart charging 15 Community-ownership markets operators 4 Renewable models 19 Innovative ancillary power-to-heat 16 Pay-as-you-go models 27 Advanced forecasting services 5 Renewable of variable renewable 20 Re-designing capacity power-to-hydrogen power generation markets 28 Innovative operation 6 Internet of Things 21 Regional markets of pumped hydropower 7 Artificial intelligence 22 storage and big data 23 Market integration 8 Blockchain 29 Virtual power lines of distributed energy 30 Dynamic line rating 9 Renewable mini-grids resources 10 Supergrids 24 Net billing schemes 11 Flexibility in conventional power plants 4 ELECTRIC-VEHICLE SMART CHARGING This brief provides an overview of the services that electric vehicles (EVs) can provide to the power system through smart charging, and of The brief is structured as follows: the importance of such charging schemes for the smooth integration of EVs in the grid. This brief looks into unidirectional (V1G) and bidirectional I Description vehicle-to-grid (V2G) technologies and on their role in integrating higher renewable energy II Contribution to power sector transformation shares, while providing services to the grid. III Key factors to enable deployment For a more in-depth study of all these aspects, together with business models and regulatory IV Current status and examples of ongoing framework analysis, projections of the flexibility initiatives provided by EVs to the system and the possible impact of the expected mobility disruptions, please V Implementation requirements: Checklist read IRENA’s report ‘Innovation outlook: Smart charging for electric vehicles’ (IRENA, 2019c). 5 INNOVATION LANDSCAPE BRIEF I. DESCRIPTION Vs represent a paradigm shift for both as of the beginning of 2019. China and the Ethe transport and power sectors, with the United States were the largest markets, with potential to advance the decarbonisation of 2.6 million and 1.1 million EVs, respectively. If both sectors by coupling them. Although the most of the passenger vehicles sold from 2040 transport sector currently has a very low share of onwards were electric, more than 1 billion EVs renewable energy, it is undergoing a fundamental could be on the road by 2050 (see Figure change, particularly in the passenger road vehicle 1). IRENA analysis indicates that future EV segment where EVs are emerging. battery capacity may dwarf stationary battery capacity. In 2050, around 14 terawatt-hours According to Germany’s Centre for Solar (TWh) of EV batteries would be available to Energy and Hydrogen Research (ZSW), provide grid services, compared to 9 TWh of 5.6 million EVs were on the world’s roads stationary batteries (IRENA, 2019b). Figure 1: Growth in EV deployment between 2010 and 2050 in Paris Agreement-aligned scenario Passenger electric cars on the road <0.5 mil 6 mil 157 mil 745 mil 1 166 mil 2010 2019 2030 2040 2050 Source: IRENA, 2019b 6 ELECTRIC-VEHICLE SMART CHARGING The cost reductions in renewable power Smart charging allows a certain level of control generation make electricity an attractive low-cost over the charging process. It includes different fuel for the transport sector in many countries. A pricing and technical charging options. The significant scaling up in EV deployment represents simplest form of incentive – time-of-use an opportunity for the power sector as well. EV pricing – encourages consumers to move their fleets can create vast electricity storage capacity. charging from peak to off-peak periods. More They can act as flexible loads and as decentralised advanced smart charging approaches, such as storage resources, capable of providing additional direct control mechanisms, will be necessary flexibility to support power system operations. as a long-term solution at higher penetration With smart charging, EVs could adapt their levels and for the delivery of close-to-real-time charging patterns to flatten peak demand, fill balancing and ancillary services, as illustrated load valleys and support real-time balancing of in Figure 2. the grids by adjusting their charging levels. The use of EVs as a flexibility resource via smart Such mechanisms range from simply switching charging approaches would reduce the need for on and off the charging, to unidirectional control