PJM©2009www.pjm.com

Implications of Electric Transportation for the National Grid

Ken Huber

PJM Interconnection

February 19, 2010

PJM©20092

PJM as Part of the Eastern Interconnection

www.pjm.com

PJM member companies 550+millions of people served 51peak load in megawatts 144,644MWs of generating capacity 164,895 miles of transmission lines 56,499GWh of annual energy 729,000generation sources 1,287square miles of territory 168,500area served 13 states + DC

26% of generation in Eastern Interconnection23% of load in Eastern Interconnection19% of transmission assets in Eastern Interconnection

19% of U.S. GDP produced in PJM

PJM©20093

PJM’s Role in the Smarter (Robust) Grid

Generation

Transmission & Sub-transmissionDistribution

Customer

Smart Metering, Demand Response, PHEV, Energy Conservation and Distributed Resources

Smart Metering, Demand Response, PHEV, Energy Conservation and Distributed Resources

Substation AutomationSubstation AutomationSCADA and Phasor MeasurementsSCADA and Phasor Measurements

The Smart Grid is realized by merging data from these areas of automation to achieve a total end-to-end systems view by integrating information technology and operational technology.

Energy StorageEnergy Storage

ISO/RTO

Two-Way Communication and Control

PJM©20094

4

PJM Real-Time Markets

Market Requirement Market Size

Economic Scheduled Day Unlimited (Peak Shaving) Ahead

Regulation Automatic Control 1% Peak LoadObtainable in 5 min

Synchronous Synchronized Largest Unit Reserve Obtainable in 10 min

Black Start 16 Hour Minimum Location Specific

PJM©20095

Smarter Grid Network – Smart Home

GridSignal

• Smart ApplianceEnergy Management

• Smart Charger (PHEV)Storage

• Ancillary Services Signals• Price Signals• Generation Mix• Reliability Control• Load Curtailment

Aggregator

PJM©20096

PJM Load and Wind Resources – August 26, 2009

PJM©20097

PJM Load and Wind Resources – August 26, 2009

PJM©20098

PJM Load and Wind Resources – August 26, 2009

PJM©20099

Wind Generation in PJM - Operational and Proposed

www.pjm.com

* In planning queue - August 2009

PJM©200910

Vehicle Economic ChargingAssumptions• 1,000,000 PEV Vehicles by 2015•~18% of U. S. Population is within the PJM territory• ~ 180,000 PEV Vehicles in the PJM Territory• ~ 33** Miles traveled per vehicle per day• ~ Average vehicle fuel usage: 22** mpg• ~ No tax compensation

Daily cost per PEV Vehicle Gasoline: 33 miles/day * $3.00 /gal // 22 miles/gal = $4.50Electric: 33 miles/day * $.07 / kWh // 4 miles/kWh = $0.60

Annual cost/savings Cost: Gasoline: 365 days * $4.50 /day = $1650 Electric: 365 days * $0.60 /day = $220 Savings: ~ $1400 annually per vehicle 180,000 vehicles (within PJM) = ~ $250,000,000 annual

** U.S. Bureau of Transportation Statistics

PJM©200911

Load (MW x 1000)

Hour of Day7 9 11 13 15 17 19 21 23

120

110

100

90

Vehicle Charging Impact on PJM

1 3 5

80

60

20

40

Capacity for 25+ million PEVs

Charging Energy180,000 PEV Vehicles * 33 miles // 4 miles/ kWh = ~ 1500 MWh

~ 500 additional MW over 3 valley hours

PJM©200912

Load in GW

Hour of Day

1 3 5 7 9 11 13 15 17 19 21 23

120

110

100

90

80

60

20

40

Regulation

Grid Benefits – Frequency Regulation

PJM©200913

Fast Regulation: Speed Matters…

A fossil power plant following a regulation command signal

Energy Storage (batteries / flywheels) accurately following a regulation command signal

Energy Storage OutputRegulation Signal

PJM©200914

Vehicles with Vehicle-2-Grid Participating in the Regulation Market

Vehicles• ~18% of U. S. Population is within the PJM territory• 180,000 PEV Vehicles in the PJM Territory

V2G Equipped PEVs within PJM • Assume 10% of Vehicles have V2G capability• Bi-Directional Power (with inverter) – 15 kW• 18,000 vehicles * 15 kW = 270 Mw

Availability for Participating in Regulation• Plugged In 12 hours each day (6 pm–6 am)

365 days * 12 hours = 4380 hours/year

Payment for participation in the PJM Regulation Market• PJM average historic price paid for regulation = $35/MWh• PJM Regulation price during valley load periods = $28/MWh• Per Vehicle: 4380 hrs * $28 * .015 MW = $1800 annually• PJM Overall: 4380 hrs * 270 MW * $28 = ~$33,000,000 annually

PJM©200915

Mid-Atlantic Grid Interactive Car Consortium V2G Demonstration Project

• Mid-Atlantic Grid Interactive Car Consortium (MAGICC)

• Over 21 months experience with the MAGICC battery electric vehicle responding to the PJM market signals

10

PJM©200916

AES Grid-Scale Energy Storage System

www.pjm.com

Operational Details• Altairnano, Inc – Lithium Ion nano titanate battery

• Energy: 300 kWh• Efficiency: 90% round trip

• Power: 1 MW for 15 minutes • Usable Charge Range: 5% - 99%

PJM©200917

GridSignal • Frequency Regulation Signal

Aggregator

~ $850/day

~ $10/day (20 Hrs.)

“Cash Back” for Storage

1 MW

0.018 MW1.018 MW