Plug-In Electric Vehicle Policy Analysis

Plug-In Electric Vehicle Policy AnalysisPlug-In Electric Vehicle Policy Analysis

Clean Cities Clean Cities Coalition/Western Coalition/Western

Michigan UniversityMichigan University

Rob Ozar PE, ManagerRob Ozar PE, Manager

Energy Efficiency Energy Efficiency SectionSection

Michigan Public Michigan Public Service Service

CommissionCommission

Transportation ElectrificationTransportation Electrification

1) Balance of Trade/Oil Imports2) National Security3) Environment

Barriers to Electric Vehicle AdoptionBarriers to Electric Vehicle Adoption

Only 7% of car buyers are Only 7% of car buyers are likely to consider electric likely to consider electric vehicles.vehicles.

Source: Kelly Blue Source: Kelly Blue BookBook

Key Concerns:Key Concerns:

1) Range anxiety (drivable 1) Range anxiety (drivable range)range)

2) Availability of public 2) Availability of public charging stationscharging stations

3) Initial cost3) Initial costNissan Leaf

Ford Focus

Customer Wants…Customer Wants…

74% of customers indicated 74% of customers indicated that public fast charging that public fast charging facilities would influence facilities would influence their decision to purchase a their decision to purchase a PEV.PEV.

Source: MPSC/DTE/U of Source: MPSC/DTE/U of M GrantM Grant

Customers want…Customers want… Less than 15 minute Less than 15 minute

charge timecharge time 350 mile range350 mile range Additional Purchase Additional Purchase

IncentivesIncentives Source: Kelly Blue Source: Kelly Blue

BookBook

PEV Range from LansingPEV Range from Lansing(24 kWh - limited public charging stations)(24 kWh - limited public charging stations)

30 Miles each way

PEV Range from LansingPEV Range from Lansing(24 kWh - available public charging stations)(24 kWh - available public charging stations)

60 Miles

PEV Range from LansingPEV Range from Lansing(36 kWh - available public charging stations)(36 kWh - available public charging stations)

100 Miles

PEV Range from LansingPEV Range from Lansing(48 kWh - available public charging stations)(48 kWh - available public charging stations)

140 Miles

Short-ChargeShort-ChargeRange RealitiesRange Realities

ChargeCharge

TypeTypeCharge RateCharge Rate

(kW)(kW)Range Per 1 Hour Range Per 1 Hour

Charge (miles)Charge (miles)

Level 1Level 1 1.51.5 7.57.5

Level 2Level 2 3.33.3 16.516.5

Level 2Level 2 6.66.6 3333

Level 2Level 2 >6.6>6.6 >33>33

Policy Options Reducing Range Anxiety

0

5000

10000

15000

20000

25000

0 10 20 30 40 50 60 70 80 90 100

% Reduction in Range Anxiety

Battery Capacity

Public Charging Station Density

Public Charging Station

Economics with 5 year Payback

$0.22/kWh Mark-up

Conflicting Public PoliciesConflicting Public Policies Economic Policy promoting public charging stations to decrease Economic Policy promoting public charging stations to decrease

range anxiety may work against utility regulatory policy promoting range anxiety may work against utility regulatory policy promoting off-peak charging. off-peak charging.

Current limits regarding sale-for-resale need to be re-evaluated. Current limits regarding sale-for-resale need to be re-evaluated. Note FERC Order 888: “Note FERC Order 888: “The term “sale of electric energy at wholesale” The term “sale of electric energy at wholesale”

when used in this Part means a sale of electric energy to any person for resalewhen used in this Part means a sale of electric energy to any person for resale.”.”

Connors Creek / DTE