A groundbreaking settlement agreement between Pacific Gas and Electric Company (PG&E) and the Vehicle-Grid Integration Council (VGIC), Electrify America LLC, and the Public Advocates Office at the California Public Utilities Commission (CPUC).
The settlement approves the establishment of the nation’s first “vehicle-to-grid” (V2G) export compensation mechanism for commercial electric vehicle (EV) charging customers in its California service area.
The V2G export rate will assist in EV adoption and provide upfront incentives to help commercial customers offset fleet costs. The innovative solution will allow the company’s fleet vehicles to export power back during peak energy demand periods to support the grid.
V2G school buses and other electric vehicles will be able to participate in the rate, with real-time response depending on grid conditions. Also, charging equipment paired with stationary energy storage systems will be available to support the grid and allow for backup power when needed, like during grid outages.
PG&E’s service area includes more than 420,000 EVs, and as the number grows, the opportunity grows for these vehicles to serve as a flexible grid resource to support a more reliable, affordable, and efficient energy system. With more electric vehicles becoming available on the road, solutions like V2G can help stabilize California’s grid during times of peak energy.
“The adoption of the nation’s first V2G export rate aligns with our core focus of proactively preparing the grid, increasing access to EV infrastructure, and supporting EV adoption through rates, rebates, tools, and education,” said Aaron August, PG&E Vice President, Utility Partnerships and Innovation.
PG&E’s new export rate structure can help serve as a model for other utility regulators, state agencies, and industry partners as they tackle the challenges of providing adequate power to the emerging EV market.
“The CPUC’s decision is a strong step forward for Californians and in support of the state’s grid, implementing the nation’s first dynamic export rate for EV charging customers,” Ed Burgess, VGIC Policy Director, said. “As ever-greater numbers of EVs hit the roads, this innovative rate option will allow EV owners to further benefit from their investment in clean transportation. Leveraging the capability of EVs as a grid resource will help integrate more clean energy into our power system, reduce energy bills for all utility customers, and support California’s ambitious decarbonization goals. We appreciate PG&E’s constructive approach to supporting this program, and believe it serves as a guidepost for other forward-looking energy providers to follow across the country.”
PG&E serves more than 16 million people across 70,000 square miles in Northern and Central California. The company aims to prepare the grid for 12,000 GWh of EV-related electric load and improve processes to enable rapid, safe EV energization and interconnection as part of its 2030 target.
PG&E is also planning to enable two million EVs to participate in vehicle-grid integration applications to further support its efforts in promoting EV adoption, reliability, and resilience. There is a wide range of resources and programs that support commercial and residential electric vehicle customers.
Featured photo: electric school bus, courtesy of GreenPower Motor Company.
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