SUMMER INTERNSHIP REPORT

A Study of the Proposed Ancillary ServicesIn Indian Power Sector and the Prospects of using Electric Vehicles in Providing Ancillary Services

UNDER THE GUIDANCE OF

Ms. Vardah Saghir, Senior Fellow, CAMPS, NPTI&

Mr. Saurabh Gupta, Manager, AF Mercados EMIAt

AF Mercados Energy Markets International, Gurgaon

Submitted By

SAARTHAK KHURANA

ROLL. NO. – 72

MBA – POWER MANAGEMENT

(Under the Ministry of Power, Govt. of India)

Affiliated to

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

AUGUST, 2013

DECLARATION

I, Saarthak Khurana, Roll no. 72 / Semester III / Class of 2012-14 of the MBA (Power

Management) Programme of the National Power Training Institute, Faridabad hereby declare that

the Summer Training Report entitled “A STUDY OF THE PROPOSED ANCILLARY SERVICES

IN INDIAN POWER SECTOR AND THE PROSPECTS OF USING ELECTRIC VEHICLES IN

PROVIDING ANCILLARY SERVICES” is an original work and the same has not been submitted to

any other Institute for the award of any other degree.

A Seminar presentation of the Training Report was made on ………………….. and the suggestions as approved by the faculty were duly incorporated.

Presentation In-Charge Signature of the candidate

(Faculty)

Counter signed Director/Principal of the Institute

Acknowledgement

I am having great pleasure in presenting this report on ‘The Study of the Proposed Ancillary

Services in Indian Power Sector and the Prospects of using Electric Vehicles in Providing

Ancillary Services’. I take this opportunity to express my sincere gratitude to all those who have

helped me in this project and contributed to make this a success.

I would like to express my sincere gratitude to Mr. Saurabh Gupta, Manager and Mr. Vikas

Gaba, Associate Director, AF Mercados EMI for giving me an opportunity to work under their

guidance and a rare chance to work in a prestigious research project on an upcoming subject.

I would like to express my heartiest thanks to Mr. Anish De, CEO, AF Mercados EMI for giving

me a chance to work at their esteemed organization, and providing me with the necessary

resources, ideas and facilitating me in this project.

I express my heartfelt regards to, Mr.S.K.Chaudhary, Principal Director, CAMPS-NPTI, and Mrs

Manju Mam, Director, CAMPS-NPTI whose guidance was of invaluable help for me. I am also

thankful to my internal project guide Ms Vardah Saghir, Senior Fellow, NPTI for her support

towards completion of my project.

I also extend my thanks to all the faculties in CAMPS (NPTI), for their support and guidance in my

project.

Saarthak Khurana

Executive Summary

The current Indian Power Sector is broadly governed by the Indian Electricity Act of 2003. The

basic premise of this act is to design competition in every sphere of the power sector. Trading is

a very important part of a competition driven deregulated power market. For efficient trading in a

deregulated power market, it is important that the energy spot market remains a valid model of

the underlying physical power system during each market interval. This includes quality of

supply and system security issues. This provides a valuable perspective on the role of ancillary

services in the deregulated power markets. Ancillary services can be defined as those services

that are necessary to ensure the system integrity and stability that provide for services not

included in the energy spot market and that would not be provided on the basis of energy prices

alone. The Indian power system should be operated in a safe, secure and reliable manner. In

order to fulfill this obligation the state power pools should control technical characteristics of the

system, such as frequency and voltage through ancillary services agreements.

The RISO/SISO should determine the ancillary services requirements on a regional grid basis

and load zone basis using demand forecasts for the time frame for which the ancillary services

are to be procured. As per the CERC staff paper, Frequency Support Ancillary Services (FSAS)

envisage harnessing of the generation resources on pan India basis to achieve economy and

efficiency. Similarly, Voltage Control Ancillary Service (VCAS) is proposed on the reactive

compensation required node-wise. Black Start Ancillary Service (BSAS) is also proposed, which

needs to be implemented in a coordinated manner. It is proposed that the system operator,

namely National Load Despatch Centre (NLDC) should be the nodal agency for implementation

of the ancillary services as NLDC monitors the real-time grid conditions on the round the clock

basis.

These services can be provided by using grid connected electric vehicles. Besides this in order to

meet future transportation needs, control climate change, address health issues related to

emissions, and phase out dependence on oil, today's propulsion technologies have to be replaced

by more efficient and environmentally friendly alternatives. Electric vehicles are such a

technology that can aid the transition. A couple of countries like Germany, Denmark, and

Sweden have already decided to switch electricity production from fossil fuel to renewable

sources, thus further improving sustainability of electric cars when compared with internal

combustion engine vehicles.

The electric propulsion systems are being developed for a wide range of medium- and heavy-duty vehicle sizes and applications, including transit buses offer several advantages such as:

Increased efficiency, potentially lowering fuel cost Better acceleration, allowing quick merging into heavy traffic Decreased emissions Quieter operation Grid Support Operations

Grid connected vehicles can support the grid in a number of ways. Depending on the vehicle and

the needs of the driver, the grid support services would be available whenever the vehicle is

plugged in -- typically at the vehicle driver's home or place of work.

List of Figures

Figure 1 - Schematic of charging operation of NiMH Batteries

Figure 2 - Schematic of charging operation of Li-Ion Batteries

Figure 3 - Comparative analysis of battery types

Figure 4 - SAE charging configuration and rating terminology

Figure 5 - Series hybrid design structure

Figure 6 - Parallel hybrid design structure

Figure 7 - NEMM 2020 structure

List of abbreviations

FCAS - Frequency Control Ancillary Service

NCAS - Network Control Ancillary Service

VCAS - Voltage Control Ancillary Service

SRAS - System Restart Ancillary Service

CERC - Central Electricity Regulatory Commission

NLDC - National Load Dispatch Centre

RISO - Regional Independent System Operator

SISO - State Independent System Operator

RLDC - Regional Load Dispatch Centre

SLDC - State Load Dispatch Centre

Li-Ion - Lithium Ion

NiMH - Nickel Metal Hydride

SAE - Society of Automotive Engineers

EV - Electric Vehicle

HEV - Hybrid Electric Vehicle

BEV - Battery Electric Vehicle

PHEV - Plug-in Hybrid Electric Vehicle

V2G - Vehicle to Grid

Table of Contents

Heading Page No.

Chapter 1

Introduction 1

Objective 2

Research Methodology 2

Chapter 2

Introduction to Ancillary Services 3

Types of Ancillary Services 5

Standards and Provisions of Ancillary Services 7

Ancillary Services in Indian Power Sector 8

Frequency Control Ancillary Services 10

Voltage Control Ancillary Services & Black Start Ancillary Services 15

Nodal Agency 18

Market Surveillance 18

Issues 19

Chapter 3

Introduction to Electric Vehicles 23

Evolution & Current Indian Scenario of EV 24

Battery Technology 26

Charging Technology 37

Drive-train Technology 41

Advantages of EV Technology 43

Govt Policies & Market Prospects of EVs 45

Chapter 4

Introduction to V2G technology 51

V2G and Power Markets 54

Power Capacity of V2G 57

Revenue vs. Cost of V2G 59

Chapter 5

Findings and Conclusion 63

Chapter 1

1.1 Introduction

Ancillary Services have always been an integral part of the electricity industry. They were and are always needed when electricity is to be transferred reliably and delivered with satisfactory quality. In India also, ancillary services have grown along with the grid. They have traditionally been a part of grid operation and are mostly mandatory. Reforms in Indian electricity sector along with evolution of electricity markets have led to a paradigm shift and electricity is now seen as a tradable commodity, rather than just an infrastructural requirement. In a ‘market oriented electricity industry’, commercial mechanisms need to be in place for procurement of various services and to have prompt response from the entities. As a result ancillary services also should be separated from basic system services and remunerated appropriately. This gains additional strength from the fact that a structured ancillary service market would complement reliability of the power system.

The Central Electricity Regulatory Commission after detailed consultation with various system operators and load dispatch centres decided that ancillary services market was needed to aid the current Indian Power Scenario. CERC issued a staff paper on the Introduction of Ancillary Services Market in Indian Power Scenario that invited suggestions from all stakeholders. The primary providers of most ancillary services are generating stations. But the Indian Scenario is unique compared to the world as it runs a fairly high power deficit of almost 8-9%. Thus a new and more innovative approach is needed to address the issue of ancillary services market.

One such innovative idea is to use grid connected electric vehicles to provide ancillary services. This has been made possible by the ongoing implementation of smart grids in the country. It envisages that fleets of electric vehicles connected to the smart grid can be used not only to provide ancillary services but will also mitigate issues pertaining to high pollution in cities and would help reduce the dependence on oil imports for fuel thus rendering a great service to the nation. In the recent past, researches have been conducted in the developed countries to explore the possibilities of vehicle to grid (V2G) operations for load management and grid support. This report aims to study the suggested Ancillary Services Market in India, the technological and market prospects of electric vehicles and combining the knowledge to create an understanding of V2G operations whereby Electric Vehicles are used to provide Ancillary Services

1.2 Objective

The objective of this report is to study the proposed Ancillary Services Market in the Indian Power Scenario. It is aimed at also developing an understanding of the technical and commercial aspects of electric vehicles and thereby exploring the technical possibility of using electric vehicles to provide the proposed ancillary services.

The prospect of using of Electric Vehicles is named possible by the ongoing implementation of smart grids. Smart Grids can enable the use of smart grid connected loads and sources which can absorb or inject power as per requirements relatively quickly and permit the distributed storage strategy of vehicle to grid operations by Electric Vehicles.

1.3 Research Methodology

The research methodology employed is primarily of secondary research. As the field of bi-directional power transfer in electric vehicles is an ongoing subject of research in leading universities of developed nations, the report utilizes information published in various scientific journals, government regulations and legislations and research papers. Various documents from leading government agencies were consulted for the formulation of this report.

Chapter 2

2.1 Introduction to Ancillary Services

The electricity sector has been change which has been reshaping the industry. A significant

feature of this change is to allow for increased competition which was the cornerstone of the

Electricity Act of 2003. It promotes competition among in almost all sections of the industry and

tries to create market conditions in the industry. These market conditions significantly help

reduce cost of energy production and distribution, minimize inefficiencies, optimize manpower

use and increase customer choice.

In this unbundled environment, important issues are also related to the type and level of services

that should be included in system operation. In order to maintain the safe and reliable operation

of the system, the system operator needs to its disposal various services. Therefore, it is

important to quantify which system services should be provided by generators and which should

be delivered by the transmission entity. Electrical power systems are designed and constructed to

produce and deliver electricity at nominal voltage levels, waveform purity, phase balance and

frequency. These are important attributes to the quality of supply of electricity delivered to the

market participants at their respective connection points and to the integrity of the power system

as a whole. Deviations from defined standards may result in economic losses to market

participants, and or may jeopardize the security of the whole power system.

Trading is a very important part of a competition driven deregulated power market. For efficient

trading in a deregulated power market, it is important that the energy spot market remains a valid

model of the underlying physical power system during each market interval. This includes

quality of supply and system security issues. This provides a valuable perspective on the role of

ancillary services in the deregulated power markets. Ancillary services can be defined as those

services that provide for services not included in the energy spot market and that would not be

provided on the basis of energy prices alone.

Ancillary services can be defined as a set of activities undertaken by generators, consumers and

network service providers and coordinated by the system operator that have the following

objectives:

Implement the outcomes of commercial transactions, to the extent that these lie within

acceptable operating boundaries. That is, ensure that electrical energy production and

consumption by participants match the quantities specified by the outcomes of spot

markets.

Maintain availability and quality of supply at levels sufficient to validate the assumption

of commodity like behavior in the main commercial markets. This can be achieved by

keeping the physical behavior of the electricity industry within acceptable operating

boundaries defined by planning studies in conjunction with operator experience.

In a competitive power market, there are energy market and different ancillary service markets.

To ensure the electricity energy to be delivered reliably and the system to be operated securely,

various ancillary services are needed. There are different types of ancillary services such as

voltage support, regulation, etc. The real power generating capacity related ancillary services,

including regulation down reserve (RDR), regulation up reserve (RUR), spinning reserve (SR),

non-spinning reserve (NSR) and replacement reserve (RR), are particularly important.

Regulation is the load following capability under automatic generation control (AGC). SR is a

type of operating reserve, which is a resource capacity synchronized to the system that is

unloaded, is able to respond immediately to serve load, and is fully available within ten minutes.

NSR differs from SR in that NSR is not synchronized to the system. RR is a resource capacity

non synchronized to the system, which is able to serve load normally within thirty or sixty

minutes. Reserves can be provided by generating units or interruptible load in some cases. When

provided by generating units, the amount of reserve that can be supplied depends on the ramping

rate, unit capacity and current dispatched output. Energy and ancillary services are unbundled in

a competitive market, and can be provided separately by different market participants.

2.2 Types of Ancillary Services

Ancillary services can be divided into the following three categories that are described in more

detail below:

Related to spot market implementation, short-term energy-balance and power system

frequency. These will be labeled Frequency Control Ancillary Services (FCAS).

Related to aspects of quality of supply other than frequency (primarily voltage magnitude

and system security). These will be labeled Network Control Ancillary Services (NCAS).

Related to system restoration or re-start following major blackouts. These will be labeled

System Restoration Ancillary Services (SRAS).

Spot-market implementation involves ensuring that participating generators and loads achieve

their energy targets specified in the market solution for the current spot market interval.

The Indian power system should be operated in a safe, secure and reliable manner. In order to

fulfill this obligation the state power pools should control technical characteristics of the system,

such as frequency and voltage through ancillary services agreements. The RISO/SISO should

determine the ancillary services requirements on a regional grid basis and load zone basis using

demand forecasts for the time frame for which the ancillary services are to be procured. All users

of the system should be provided the following ancillary services.

Automatic Generation Control: The ability of a generating unit to respond to signals from

the SISO/power pool in order to correct the system frequency within specified period and

prevent overloading of network elements. The power pool should determine the total

amount of AGC capacity required through studies that identify the amount of regulation

required to meet control performance criteria and also by considering the likely variation

in load over the period. This is the regulation response required to accommodate normal

variations in demand and generation.

Governor Control: There should be inherent ability of a generating unit’s governor to

correct the system frequency within a specified time frame. Provision of this service is a

requirement of all generators connected to the system. All generating units are supposed

to inform the power pool about the status of the unit's governor control.

Contingency Reserve: The generating units should be able to increase the energy output

from unloaded condition in response to transmission facility contingencies on the

transmission system within specified time. The power pool should determine the total

amount of contingency reserve capacity required to meet control performance criteria.

This requirement is a function of the larger generation units and load blocks on the

system as well as the combined demand. In most instances, the larger generation and load

blocks on the system will be constant, and so the contingency reserve requirement

becomes a simple function of demand.

Reactive Power: The ability of a generator to control system voltage by the generation or

absorption of reactive power should be known. Provision of this service is a requirement

for all generators connected to the system. The power pool should conduct technical

studies based on the quantities, characteristics and locations of forecasted demand to

determine the quantities and locations of reactive support required to maintain voltage

levels and reactive power margins within limit.

System Restart: The good response of a generator to self-start and supply the

transmission system after a complete system failure is desirable. The power pool should

prepare an emergency restoration plan. The power pool should determine the quantities

and locations of self-start generating units that are required in order to provide system

restart service. This determination should be based on contingency studies performed in

the preparation of the emergency restoration plan. Such studies should, at a minimum,

take into account the range of reasonable initiating disturbances, the magnitude, extent

and likelihood of the outage. It should monitor the status of generation after the initialing

disturbance and the system demand level at the time of the disturbance

2.3 Standards and Provisions of Ancillary Services

The System Operators should establish the standards for ancillary services. The ancillary

services standards should, at a minimum, comply with the system appropriately. The RISO/SISO

may change its ancillary services standards as needed to account for variations in system

conditions, real time dispatch constraints, contingencies, voltage stability transient stability and

dynamic stability requirements, and other conditions. The periodic review of the operation of the

transmission system should be done to determine whether the ancillary services standards should

be revised.

Payments to service providers for ancillary services can be categorized as following.

Availability Payments: Due for every trading period in which the contracted generating

unit is available to provide the service.

Usage Payments: Due, on a per event basis, for each time the particular service is used.

Payment for Reactive Power: Every generating unit should be able to provide a minimum

amount of reactive power to the power pool which allows for dispatch instructions

directing the generating unit to operate at any point within a band of specified power

factor. In the event when the power pool requires reactive power from a generating unit

outside this band, such that it limits the real power output of that unit, the power pool

should compensate the generating unit for its lost opportunity cost.

2.4 Ancillary Services in Indian Power Sector

Ancillary Services are support services which are required for improving and enhancing the

reliability and security of the electrical power system. Ancillary Services are an indispensible

part of the electricity industry. World over these services have evolved based on the prevailing

structure of electric supply system and operational practices in the country. In India also,

ancillary services have grown along with the grid. They have traditionally been a part of grid

operation and mostly mandatory.

In vertically integrated utilities the responsibility of generation, transmission and distribution

was with one organization. Ancillary services were therefore an integral part of electrical supply

and not dealt with separately. However, since the liberalization of the electricity supply industry,

the resources required for reliable operation have been treated as an ancillary service that the

system operator has to obtain from other industry participants. In a deregulated power system the

system operator often has no direct control over individual power stations and has to purchase

these services from other service providers. The design of Ancillary Services market should be

such that it complements system reliability.

Ancillary Services are defined, under Regulation (2) (1) (b) of the CERC (Indian Electricity Grid

Code), Regulations, 2010 (IEGC) as follows:

“in relation to power system (or grid) operation, the services necessary to support the power

system (or grid) operation in maintaining power quality, reliability and security of the grid, e.g.

active power support for load following, reactive power support, black start, etc;”

One of the objectives of the IEGC, as given in Regulation 1.2 is the “Facilitation for functioning

of power markets and ancillary services by defining a common basis of operation of the ISTS,

applicable to all the Users of the ISTS”.

The IEGC, under Regulation 2.3.2 (g) also made operation of Ancillary Services as an exclusive

function of Regional Load Dispatch Centres (RLDCs).

Regulation 8 of the Central Electricity Regulatory Commission (Power Market Regulations)

Regulations, 2010, provides for the introduction of new products in Indian Electricity Market in

the future, including Ancillary Services Contract. The Regulation 8 is reproduced below:

“Notwithstanding anything contrary contained in these Regulations, no person shall enter into

or transact in any of the following types of contracts unless the same has been permitted to be so

launched or introduced by the Commission in terms of notification issued in this behalf -

(i) Derivatives Contracts

(ii) Ancillary Services Contracts

(iii) Capacity Contracts”

Regulation 11 (1) (b) of the Central Electricity Regulatory Commission (Unscheduled

Interchange Charges and Related Matters) Regulations, 2009 provides for utilization of the

amount left in the UI pool account fund towards providing ancillary services. The

Regulation is reproduced below:

“(1) The amount left in the UI pool account fund after final settlement of claims of Unscheduled

Interchange charges of the generating station and the beneficiaries shall be transferred to a

separate fund as may be specified by the Commission and shall be utilized, with the prior

approval of the Commission for either or both of the following activities:

(a) …….

(b)Providing ancillary services including but not limited to ‘load generation balancing’ during

low grid frequency as identified by the Regional Load Dispatch Centre, in accordance with the

procedure prepared by it, to ensure grid security and safety:”

There are basically three main types of Ancillary Services, viz. real power support services or

Frequency Support Ancillary Services (FSAS)/ Load following, Voltage or reactive power

support services and Black start support services. To start with, as per CERC’s staff paper,

Ancillary Services could be introduced for improving the reliability and security of the grid.

However, given the power deficient situation in the country, it would be desirable that to start

with the ancillary services be simple to implement.

2.5 Frequency Support Ancillary Services (as per CERC proposal)

FSAS would be the service offered through bids by a generating station or any other authorized

entity on behalf of the generating station to make itself available for dispatch and get dispatched/

scheduled by the nodal agency to support the system frequency. Hence, the focus of introducing

Frequency Support Ancillary Service (FSAS) would be to maintain the frequency within the

band specified in the IEGC.

It is seen that there is some surplus generation capacity lying unutilized at some point of time but

at the same time load shedding is being carried out by the utilities. Similarly, there is captive

generation capacity available with industrial users like steel industries, sugar industries, etc.

which are lying un-utilized and could be harnessed to supply to the inter- State grid at the time of

utter need to maintain grid security. There is, therefore, a need for a mechanism such as

Frequency Support Ancillary Services (FSAS) to utilize these undespatched/ surplus capacities

to enhance the power supply to the grid, when required, to maintain grid security.

To start with, the generators having surplus capacity, (i.e. either un-requisitioned surplus

capacity by the beneficiaries of that capacity or generators who could not find buyers for that

capacity or surplus captive capacity) may be enabled to bid into the power exchange for

enhancing grid security when their services are sought by the system operator.

FSAS, at present in the Indian context, aims to stabilize the grid frequency by maximizing

unutilized generation and minimizing load shedding, under certain conditions, for ensuring grid

safety and security. Gradually as this market grows and imbalances are better handled with

improved system security and reliability, this market could phase out the UI Mechanism. It is

however pertinent to mention that introduction of ancillary services may not automatically mean

a good frequency profile.

Integration of renewable energy in the grid is one of the biggest thrust areas. The installed

generation capacity of renewable generators is expected to grow manifold in the coming years.

Considering the high variability and unpredictability of generation from renewable, the FSAS

would serve to stabilize the frequency for increased integration of renewable sources into the

grid. Frequency Support Ancillary Service (FSAS) can be used to complement the diurnal

changes in renewable generation. FSAS can thus also be used as a mechanism to facilitate

renewable integration by reducing the impact of their variation.

Eligibility Criteria

All the sellers and regional entities which are part of the scheduling and deviation settlement

mechanism for real and reactive power with voice and data telemetry facilities in accordance

with the regulations framed by the Central Commission and Central Electricity Authority to be

eligible to participate in the ancillary market. No Objection Certificate (NOC)/ Standing

Clearance issued by the concerned SLDC/RLDC for participation in the day ahead market in the

power exchanges to be considered valid for participation in the ancillary services market subject

to the condition that the capacity cleared for day ahead transaction in power exchanges for any

participant plus the capacity cleared for FSAS shall not exceed the total capacity for which

SLDC clearance has been obtained. Further the un-requisitioned surplus from the inter-State

Generating Stations (ISGSs) whose tariff is determined by the Commission should mandatorily

bid in the FSAS.

Market Platform

The implementation of FSAS would be facilitated through bidding in the Power Exchanges. A

separate product could be constituted for this purpose, comprising of sellers interested in

participating in the Ancillary Service market. Competitive bidding process would be followed

for procurement of FSAS. The Commission may by an order provide an overall ceiling for

charges for services rendered through power exchanges including service charges for any

subordinate service providers. The market participants would be free to bid in any of the Power

Exchanges for providing ancillary services. The power exchanges and members of the user group

to enter into ancillary services contract.

Bidding and Price Discovery

The window for receiving bids in Frequency Support Ancillary Service market to be opened after

closure and clearance of the day-ahead market (DAM) in the power exchanges. The bids to be

invited on a day ahead basis for which the window would be open for submitting bids considered

for dispatch next day.

The participants in FSAS market to submit time-block-wise bid quantum and price along with

the location, for the next day in the power exchanges. Bids to be placed for standard time blocks

of 2 hours, to facilitate stacking of the bids by the nodal agency. The window for receiving bids

in FSAS to remain open for 2 hours after the opening of the window for the FSAS. The power

exchanges to provide information to the nodal agency.

The ISGSs having un-requisitioned surpluses shall also bid for the FSAS. The combined stack of

bids would be prepared by the nodal agency based on the bids received on the power exchanges.

The revenue earned over and above the fuel cost by such ISGSs for providing FSAS to be shared

in the ratio of 1:1 with the beneficiaries of the ISGS.

The nodal agency would be responsible for preparing combined bid area-wise, time-block-wise

stack of the bids received from all the power exchanges. The stack to be prepared on the

principle of merit order of bids.

The prices payable to the providers of FSAS would be based on the principle of “pay-as bid” and

the amount payable would be for the dispatched quantum at the bid price of the participant.

Based on the estimated additional generation requirement in the system as identified by the nodal

agency and merit order stack, bids to be dispatched under FSAS would be identified.

Dispatch of FSAS bids in real time

If the frequency remains 0.05 Hz below the lower operating frequency range as specified in the

IEGC for two consecutive time-blocks, the nodal agency to give instructions to the FSAS

provider to dispatch in the third time block for dispatching generation from the fifth time block.

The principle of ensuring merit order in dispatch of FSAS bids to be discounted in case of real

time congestion in the network. If dispatch of a lower cost stacked bid is likely to further stress

an already congested corridor, then that bid would be skipped and the next bid in the stack would

be considered for dispatch provided it also does not aggravate the condition of congestion in the

network.

The limit of the Available Transfer Capability (ATC) across the control area would also be

followed while dispatching the bids.

If the frequency remains at 50.0 Hz for two consecutive time blocks, after kicking-in of the

FSAS, the nodal agency to give instructions for withdrawal of FSAS. The generation dispatched

under FSAS would be given a dispatch certainty for 8 time blocks (i.e. 2 hours). In case

withdrawal instructions are given by the nodal agency before the completion of 2 hours, 50% of

the bid price to be paid to the seller for the period falling short of 2 hours. Further, in case a

seller, whose power has been scheduled, fails to provide the committed generation in real-time

then the seller would be liable to pay 1.5 times the bid price or the applicable UI rate whichever

is higher.

Scheduling of Frequency Support Ancillary Services (FSAS)

Once the dispatch decision is taken, scheduling request under FSAS to be routed through Power

Exchanges. The quantum of bids dispatched to be directly incorporated in the schedule of

respective FSAS providers. The dispatched bid quantum under FSAS to be booked to the

overdrawing regional entities in proportion of their overdrawal.

The scheduling and delivery of contracts on the power exchange to be in accordance with

Central Electricity Regulatory Commission (Open access in inter State Transmission)

Regulations, 2008, Central Electricity Regulatory Commission (Power Market) Regulations,

2010, and Central Electricity Regulatory Commission (Indian Electricity Grid Code)

Regulations, 2010 and as amended from time to time.

Accounting and Settlement of Frequency Support Ancillary Services (FSAS)

The power dispatched under FSAS to be incorporated into the schedule of the overdrawing

entities by the respective LDC. The payment to bidders would be through the power exchange

from the overdrawing entities in proportion of the quantum of overdrawal.

Payment to the bidders under FSAS to be on the basis of the scheduled quantum after accounting

for under-injection. No commitment charges payable to the bidders for making itself available in

the FSAS market.

The upper limit of UI rate without additional UI rate, as specified by the Commission from time

to time to be the ceiling price for the scheduled bids. The highest UI rate (i.e. the rate for a

frequency of 49.5 Hz at present and as modified from time to time, not counting the additional

UI rate) is linked to the variable cost of the costliest generation (which is generation mostly

based on liquid fuel). The logic is that when frequency goes below 49.90 Hz., the States would

be incentivized to use the liquid fuel based generation, whether their own generation or their

share from Central Generating Stations, since that would be cheaper than drawing unscheduled

power through the UI mechanism. One would like to question that since the choice for

requisitioning this generation is already with the States, they could do that themselves. The

reason is that the Regional Load Dispatch Centre is the apex body in real time grid operation in

the region, is the quickest to respond for maintaining frequency, as compared to the States who

have to follow the process of procurement of short-term power.

The energy dispatched under FSAS would be deemed to be delivered at the Regional periphery.

The under injection by the FSAS provider to be treated as per the CERC Unscheduled

Interchange Regulations. Any over injection by the FSAS provider shall not be paid for.

2.6 Voltage Control Ancillary Services & Black Start Services (as per CERC

proposal)

The Electricity Act 2003 entrusts the responsibility of transmission system planning on the CEA

and the CTU. While the CEA forms perspective plans, the CTU fine tunes them over a shorter

period in coordination with the CEA amongst others. While planning for the grid, the CEA and

CTU, use system studies for ensuring a proper voltage profile at various points in the grid.

However, the planning is done in anticipation of generators and loads coming up at various

points in the grid. Due to variations between the anticipated and the actual for generation and

load, the reactive power requirements change. The reactive power requirements also change as

more and more elements get added to the grid.

Since voltage is a local phenomenon and not a global phenomenon like frequency, the

requirement of capacitor and/or reactor at a various nodes (sub-station or switchyard of

generating station) may need to be changed. Therefore, we feel that the provision of reactive

power, which may require a change in location, could be allowed under reactive power support

ancillary services. There is already a commercial mechanism in the IEGC under Regulation 6.6

of the IEGC Regulations, w.r.t. voltage reference at the interchange point, which incentivizes

maintaining a proper voltage profile at all interchange points between control areas in the grid.

However, in case it is observed by the system operator that there is a critically low voltage in the

grid at one or more such interconnection points persisting during a season, the system operator

may requisition voltage support ancillary services from any service provider, who may bid the

same through the power exchange. Given that mobile substations, installed in trailers, which

allow flexibility for quick installation to restore supply, are gaining popularity, we feel that

mobile reactors or capacitors would be a big advantage and also result in reduction in cost, since

they could easily be moved from one sub-station to another, as per requirement. But to start with,

the mobile reactive compensation would be provided by the government owned transmission

companies only.

Presently, Part II “Grid Connectivity Standards applicable to the Generating Units” in the Central

Electricity Authority (Technical Standards for Connectivity to the Grid) Regulations, 2007

mandate hydro generating stations for providing black start facility. Incentives may be provided

to all the flexible generators who would provide black start facility when such services are

sought by the system operator.

Execution of Voltage Control Ancillary Services (VCAS)

The price bids for providing VCAS on nodal basis for the generating units other than those

providing active power and scheduled by Load Despatch Centre, to be submitted in the power

exchanges. Power exchanges to furnish the stack of node-wise bids for VCAS to the nodal

agency based on which the nodal agency would prepare combined node-wise stack.

The payment to be made on “pay as bid” on the actual node-wise reactive support subject to the

maximum ceiling rate of reactive energy as provided in the IEGC as amended from time to time.

The providers of VCAS to be paid as specified in Regulation 6.6 of the Central Electricity

Regulatory Commission (Indian Electricity Grid Code) Regulations, 2010 as amended from time

to time.

The mobile VCAS may be provided by the Government owned transmission companies. The

despatch and withdrawal of node-wise voltage support instruction for VCAS to be as per the

IEGC. The payment to be made to the supporting entity by booking against the reactive energy

drawing utility.

Execution of Black Start Ancillary Services (BSAS)

The generators capable of providing start up power to mandatorily provide the Black Start

Services as per the instructions of the load despatchers.

BSAS to be paid as when the same is required by the nodal agency. The generators capable of

providing start up power to mandatorily provide the Black Start Services as per the instructions

of the load despatchers.

The generators to be paid for one day capacity charges to such generators on the day of

providing the BSS, as determined by the Commission. The energy charges to be paid at twice the

energy charges determined by the Commission for the volume of energy supplied during the

restoration process.

Other flexible generators providing BSAS to be paid fixed and energy charges on the normative

figure to be specified separately.

2.7 Nodal Agency

Frequency Support Ancillary Services (FSAS) envisage harnessing of the generation resources

on pan India basis to achieve economy and efficiency. Similarly, Voltage Control Ancillary

Service (VCAS) is proposed on the reactive compensation required node-wise. Black Start

Ancillary Service (BSAS) is also proposed, which needs to be implemented in a coordinated

manner. It is proposed that the system operator, namely National Load Despatch Centre (NLDC)

should be the nodal agency for implementation of the ancillary services as NLDC monitors the

real-time grid conditions on the round the clock basis.

Section 27 (2) of the Electricity Act provides as under:

“Provided further that no Regional Load Despatch Centre shall engage in the business of

generation of electricity or trading in electricity in electricity.”

Operation of the Frequency Support Ancillary Services (FSAS), however, does not qualify as

trading of electricity as the mechanism would work similar to the Day Ahead Market (DAM) in

power exchanges. Role of the system operator will be limited to preparing combined merit order

stack based on the stacks of bids received from all the Power Exchanges and the despatch

decision shall be routed through the Power exchanges. The system operator will, therefore, not

be involved in trading.

2.8 Market Surveillance

Market surveillance would be a pre-requisite for successful implementation of the ancillary

services market. Hence, a Market Surveillance Committee may be constituted comprising of the

representatives from NLDC, RLDCs, RPCs, Power Exchanges and traders.

The sum of short term contracts and bid quantum in FSAS market not to be greater than the

standard clearance or NOC issued by the appropriate Load Despatch Centre. A penalty may be

imposed in cases of persistent under-injection by a participant in FSAS.

2.9 IssuesBased on the experience of implementation of various regulatory interventions the staff of the

Commission have tried to identify the likely challenges in implementation of the Ancillary

Services as outlined above. Some of the implementation challenges identified and pros and cons

on the issues are discussed below.

Need for Ancillary Service: Concerns have been raised by NLDC at regular intervals

before the Central Commission regarding grid in-discipline by the States, followed by

incidences of grid collapses twice in two days. Strong corrective measures are being

taken up so that such an event does not recur in future. Among other things, it is

understood that there are proposals to enhance powers of the regulators in terms of

enforcing grid discipline. It has been reported that system has achieved stable grid

frequency since the twin grid failures owing to efforts made by various agencies. In view

of this, one of the questions that arises is as to whether there is a need to introduce

Ancillary Services at this stage for better grid security and stability.

The argument on the other side is that the Ancillary Services primarily aim at improving

the reliability of System Operation. Further, ancillary services may also be seen as one of

the mechanisms which could be developed to replace UI mechanism in a long run.

Moreover, development of Ancillary market has not emerged from the incidences of grid

failure but is already imbibed in the statutory provisions as discussed above. NLDC has

filed a number of petitions in the past regarding grid indiscipline by grid participants to

the Central Commission which severely affected grid stability and security. Since the

objective of Ancillary Services is to facilitate a framework for ensuring grid security,

introduction of such services should not therefore depend on frequency of grid

indiscipline.

Payment Risk: There have been instances of default in payment of UI charges by the

overdrawing entities in the past and cases are still pending in the High Courts. As many

buyers of FSAS would be the same entities who are defaulting under UI mechanism, it

would be necessary to ensure that these players pay for overdrawl. Since the

transactions/payment would be routed through power exchanges, the power exchanges

would inherit the risk of default in payment by buyers. It would require a mechanism to

ensure that the buyers pay for overdrawl and secure power exchanges from such huge

financial obligation/risk.

CERC Power Market Regulations provide for the establishment of a Clearing House. A

possible solution could be considered by routing all trades by market participants through

the clearing house irrespective of the participation in the Power Exchanges or Bilateral

Market. Thus, some form of payment security mechanisms may be evolved for handling

the payment risk through the Clearing house.

Linkage to the UI Ceiling Rate: It has been proposed to keep upper limit of UI rate,

without additional UI rate, as specified by the Commission to be the ceiling price for

scheduled bids. This may be seen as in conflict with the philosophy of doing away with

UI mechanism in future. It may be contended that the link with UI mechanism may

encourage the players to benefit by resorting to similar gaming tactics under FSAS if the

prices are close to UI rate.

While one would be open to other proposals, it has been proposed to link the ceiling rate

with UI rate to start with. Going forward, the ceiling prices may be de-linked or changed

according to changing UI mechanism or indexed against a new reference in future.

Possible Breach of PPAs: One would like to contend whether we should identify

flexible generation plants before implementation of Ancillary Service. It has been

considered that hydro stations, especially pumped storage hydro stations, open cycle gas

stations and partly load coal stations would have the capability to provide Ancillary

Services in 30 minutes. It is possible that the generators may get lured by the high cost of

dispatch under FSAS. This may result into in a situation where some generators try to

breach the contracts/PPAs in order to supply power under FSAS. As only existing

generators would ramp up and supply power as FSAS, it would be necessary to ensure

that such plants do not give preference to FSAS at the cost of their PPAs. Similarly, there

would be upcoming generators who would not have identified beneficiaries. Such

generators may try to indulge in gaming to get better price for their power.

One probable solution against breach of PPAs could be to mandatorily obtain a

declaration from the providers of the Ancillary Services (generators) regarding the un-

requisitioned surplus capacity being committed under Ancillary Services in an affidavit

submitted to Power Exchange where they participate.

Load management by utilities: Under the UI mechanism, once intimated, the

overdrawing entities have an option to shed load to reduce their overdrawl. However, it

may be contended by some stakeholders that in case of FSAS, high cost power shall be

imposed on them which could have been avoided through load shedding. It has already

been proposed that charges for the ancillary services would be payable only by the

overdrawing entities. Utilities may choose not to overdraw and in such an event there

might not be any occasion to incur the cost on this account. Thus, there is no imposition

of additional burden as apprehended. Further, at a future date, the Commission may

consider introducing “Demand Response” as a separate product.

Market Design: In the initial stage of Ancillary Service, market design based on

Sequential Auction is proposed in which Energy Market would be cleared first and bid

for balance unsold quantity of power can be made in Ancillary Service market.

Experience from International market suggests that sometime this market design leads to

problems of economic withholding and price reversal. As such, different market designs

like Simultaneous or Simultaneous Co-optimization Auction of Energy and Ancillary

Service are prevalent in the advanced markets. With introduction of different products

like 10 minute and 30 minute Ancillary service, these new market designs can be tried in

India.

Commitment Charge: Under the proposed FSAS mechanism, the generators may

assume risk in terms of cost incurred in bidding everyday for supplying power under

FSAS. A generator does not get surety of dispatch even if it gets clearance for the next

day as its despatch is first dependent on lowering of frequency and secondly on its

position in merit order.

There is a view that on account of the uncertainty in the despatch of generation through

the Ancillary Service Market, there may a requirement to pay a commitment charge to

provide sufficient incentive to attract generators to this market. However, the generator

has the freedom to sell in the short term bilateral market subsequent to submission of his

bid for the ancillary services. In such a case, the generator may intimate the Power

Exchange and his bid would be treated as withdrawn. Thus the ancillary services provide

an additional avenue for sale of power to the generators. Another option could be that the

service provider be allowed to bid in two parts. While Capacity charge (which may

include Start up cost) may be paid as commitment charge, energy charge can be paid for

actual Ancillary Service Energy provided during system operation.

Forecasting: For optimum decision making for procurement of Ancillary Services, it is

necessary that the system operator provides load generation balance forecasting on daily

basis. In the Indian power System where Decentralized System operation has been

adopted, providing such forecasting is a challenging job for system operator in view of

the fact that it would depend on correct inputs from State Load Despatch Centers.

However in view of increasing Renewable participation in Indian Grid, it is required that

Load Forecasting capabilities at all level are improved to avoid uneconomic decisions in

procurement of Ancillary Power.

Chapter 3

3.1 Introduction to Electric Vehicles

Electric vehicles (EV) are vehicles that use one or more electric motors or traction motors for

propulsion. On a worldwide scale, 26% of primary energy is consumed for transport purposes,

and 23% of greenhouse gas emissions is energy-related. Street traffic represents a share of 74%

in the transport sector worldwide (IPCC data from 2007). In the near future, street traffic is

expected to grow enormously world over, particularly in the fast developing Asian countries.

In order to meet future transportation needs, control climate change, address health issues related

to emissions, and phase out dependence on oil, today's propulsion technologies have to be

replaced by more efficient and environmentally friendly alternatives.

Electric vehicles are such a technology that can aid the transition. A couple of countries like

Germany, Denmark, and Sweden have already decided to switch electricity production from

fossil fuel to renewable sources, thus further improving sustainability of electric cars when

compared with internal combustion engine vehicles.

Electric vehicles can be primarily classified into the following classes

Battery electric vehicles

Hybrid electric vehicles

Plug-in hybrid electric vehicles

Fuel cell electric vehicles

The basic components of an electric vehicle can be divided into the electric battery, the electric

motor, a motor controller and a power source which can be a fossil fuel engine, or grid electricity

or both. The technical design of a pure battery electric vehicle is much simpler in comparison to

a conventional fossil fuel powered internal combustion engine vehicle since no starting, exhaust

or lubrication system is needed. Also mostly there is no need for a gearbox either, and

sometimes, even a cooling system isn’t needed.

The battery charges with grid supplied electricity when plugged in via a charging device or it can

also receive charge during braking through recuperation. The battery charger is a critical device

since its efficiency can vary heavily between 60% and 97%, thus wasting only 3% to up to 40%

of the grid electricity as heat. The motor controller supplies the electric motor with variable

power depending on the load situation. The electric motor converts the electric energy into

mechanical energy and, this is used with a drive train, to create torque for turning the wheels for

driving.

3.2 Evolution and Current Indian Scenario for xEV

The history of EVs in India goes back to 1996 when the first electric three wheelers were

launched by Scooters India Ltd and were known as Vikram SAFA. They ran on a 72 volt lead

acid battery system. In 2000 BHEL designed an 18 seater electric bus which used an AC

induction motor and 96 volt lead acid battery packs. Mahindra and Mahindra Ltd also invested in

electric 3 wheelers in 1999 and also created a company MEML in 2001 for making electric

vehicles but it closed down due to the lack of demand of electric vehicles.

REVA, Bangalore in 2001 launce the REVA electric car which was designed by an American

company – Amerigon and used advanced battery management system. Mahindra and Mahindra

Ltd that redesigned the REVA to launch it as E2O.

Recently Hero Cycles collaborated with Ultra Motors (UK) to launch a range of electric bikes

under the brand Hero Electric. Other companies such as Electrotherm India, TVS Motor etc are

also manufacturing electric two wheeler vehicles. These bikes are generally charged at home so

don’t need special adapter. Batteries motors and other kits are imported from other countries and

assembled in plants here.

Department of Heavy Industries is the nodal Dept for automotive sector and has involved in

funding of research, design and development of electric vehicle systems in the country. Recently

MNRE also incentivized the purchase of electric vehicles through its Alternate Fuels for Surface

Transport Program (AFSTP). It had an outlay of 95 crores incentivizing OEMs who were

providing atleast one year service and setting up 15 service stations across the country. Also the

Centre for Science and Industrial Research is involved in research on lithium batteries for

electric vehicles. State governments like those of Delhi are providing demand side subsidies in

addition to VAT and road tax waiver.

But overall the desired results have not been achieved. The high cost of EVs, lack of

infrastructure and consumer mindset has hampered the demand. High battery costs and lack of

proper charging infrastructure remain the biggest stumbling blocks in the way of mass

production and adoption.

3.3 Battery technology

A battery is composed of a positive electrode (holding a higher potential) and a negative

electrode (holding a lower potential) with an ion-conductive but electrically insulating electrolyte

in between. During charging, the positive electrode is the anode with the reduction reaction, and

the negative electrode is the cathode with the oxidation reaction. During discharge, the reaction

is reversed, and so the positive and negative electrodes become cathode and anode electrodes,

respectively. The energy storage technologies being used in most electric vehicle systems are

rechargeable batteries. The energy storage units in the form of batteries can be recharged from

the engine or fuel cell or from the electric grid. In the case of plug-in hybrids, the vehicles can

use both common fossil fuels and grid electricity. One of the attractive features of the plug-in

hybrid vehicle is that it allows the use of grid supplied electricity generated using energy sources

other than the normal coal or gas such as wind or solar power.

The electrical energy storage batteries must be sized in such a way that they store sufficient

energy (kWh) and provide adequate peak power (kW) for the vehicle to have a specified

performance and acceleration. It should also have the capability to meet the needs of appropriate

driving cycles. For vehicle designs intended to have high all-electric range, the energy storage

unit must store sufficient energy to satisfy the range requirement in real-world driving

conditions. Also, the battery must meet appropriate cycle and calendar life requirements. These

requirements vary significantly depending on the vehicle’s driveline being designed, but they are

generally not too hard to determine once the vehicle performance parameters have been defined.

It is much more difficult to establish storage unit requirements for the weight, volume, and cost

of the energy storage units. There are clear upper limits on the characteristics which would

preclude the successful design and sale of the vehicles. The battery is sized to meet the specified

range and performance of the vehicle. The weight and volume of the battery can be calculated

from the energy consumption (Wh/km) of the vehicle and the energy density (Wh/kg, Wh/L) of

the battery discharged over the appropriate test cycle (power versus time).

In most cases for the battery powered vehicle, the battery sized by range can meet the power

(kW) requirement for a specified acceleration performance, gradeability, and top cruising speed

of the vehicle. The batteries in this application are regularly deep discharged and recharged using

grid electricity. Hence, cycle life for deep discharges is a key consideration and it is essential that

the battery meets a specified minimum requirement.

In the case of the charge sustaining hybrid-electric vehicle using either an engine or fuel cell as

the primary energy converter and a battery for energy storage, the energy storage unit is sized by

the peak power from the unit during vehicle acceleration. In most cases for the charge sustaining

hybrid vehicle designs, the energy stored in the battery is considerably greater than that needed

to permit the vehicle to meet appropriate driving cycles. However, the additional energy stored

permits the battery to operated over a relatively narrow state-of-charge range (often 5%–10% at

most), which greatly extends the battery cycle and calendar life. In principle, determination of

the weight and volume of the battery for a charge sustaining hybrid depends only on the pulse

power density (W/kg, W/L) of the battery. However, for a particular battery technology, it is not

as simple as it might appear to determine the appropriate power density value, because one

should consider efficiency in making this determination.

Specification of the energy storage requirement is critical to the design and practicality of

powertrain systems using ultracapacitors. The Wh requirement is highly dependent on the

strategy used to control the discharge/charge of the ultracapacitor in the hybrid-electric

powertrain. Storage specifications in the range of 75–150 Wh seem reasonable for mild hybrid

vehicles. The corresponding weight of the ultracapacitor units would be 15–30 kg with peak

power between 18–36 kW. The round-trip efficiency of the units at these powers would be 90%–

95%. The ultracapacitors would be periodically deep discharged when required to meet the

driving conditions, but would operate at shallower depths of discharge much of the time. The

cycle life requirement for the ultracapacitors in the mild hybrids would be in excess of 500 000

cycles.

Sizing the energy storage unit for plug-in hybrids is more complex than for either battery

powered or charge sustaining hybrids. This is the case because of the uncertainty regarding the

required all-electric range of the vehicles or even what is meant in detail by the term all electric

range. In simplest terms, all-electric range means that the hybrid vehicle can operate as a battery

powered vehicle for a specified distance without ever operating the engine or fuel cell. In this

case, the power of the electric drive system would be the same as that of the vehicle if it had

been a pure EV and the energy storage requirement (kWh) would be calculated from the energy

consumption (Wh/km) and the specified all-electric range. Hence, for large all-electric range, the

battery would likely be sized by the energy requirement and for short all-electric range; the

battery would be sized by the power requirement.

To further complicate the issue of battery optimization for plug-in hybrids, the concept of all

electric range can be interpreted to be mean that most of the driving is done using the battery and

assist from the engine or fuel cell would occur infrequently only when the power demand is high

and/or the vehicle speed exceeds a specified value.

The result would be that most of the energy to power the vehicle would be provided by the

battery and effective fuel economy could be very high (100 mpg or higher). In this way, the

power demand from the electric driveline (electric motor and battery) would be less than that for

the vehicle to operate as a pure EV. The energy consumption (Wh/km) would also likely be

reduced. Hence, both the energy and power requirements of the battery would be less demanding

resulting in a smaller, less costly battery for the same effective all-electric range.

In the case of plug-in hybrids, the battery will be recharged both from the engine or fuel cell and

from the wall-plug. The attractiveness of the plug-in hybrid is that a significant fraction of the

energy to power the vehicle will be grid electricity generated using energy other than petroleum.

Hence, for plug-in hybrids, battery cycle life becomes an important issue. The battery will be

recharged from a low state-of-charge (after deep discharges) more often than for the battery

powered EV. As a result, the battery cycle life requirement for plug-in hybrids will be more

demanding than for the pure EV. A minimum of 2000–3000 cycles will be required. Hence, both

in terms of power and cycle life, the plug-in hybrid application is more demanding for the battery

than the EV application.

Extensive research efforts and investments are being put in to the advanced battery technologies

that are suitable for EVs the world over. The U.S. government has been strongly supporting its

R&D activities in advanced batteries through the Department of Energy. Nearly $2 billion grants

have been given to accelerate the manufacturing and development of the next generation of U.S.

batteries and EVs. European Commission and government organizations in Europe and Japanese

Ministry of Economy, Trade and Industry (METI) are also actively supporting the R&D

activities in advanced batteries. Companies like BYD, Lishen, and Chunlan have obtained strong

subsidy supports from the Chinese government for the research and manufacture of advanced

batteries and electric vehicles.

In January 2013, the Indian government revealed information about its plan to spend 230 billion

rupees ($4.2 billion) to help stimulate a domestic market for electric vehicles. Indian Prime

Minister Manmohan Singh announced that government and manufacturers would equally split

the costs in order to create a domestic industry of low-carbon transport using Electric Vehicles.

Prime Minister Manmohan Singh also launched a national electric vehicle plan which is aimed to

help accelerate consumer adoption and domestic manufacturing of low carbon transport vehicles

in India. The National Electric Mobility Mission Plan (NEMMP) aims to improve national

energy security, along with increasing domestic manufacturing and tackle the environmental

impacts of the automotive industry.

Battery types

1. Lead Acid batteries – Originally, most electric vehicles have used lead-acid batteries. This is

due to the maturity in technology, very high availability, and considerably low cost. These

batteries have an environmental impact through their construction, use, disposal or recycling.

But the positive side is that the battery recycling rates are quite high thus reducing the

ultimate environmental cost of the batteries. Deep-cycle lead batteries have up to 70-75%

efficiency, but are relatively expensive and also have a shorter life than the life of the vehicle

itself, and generally need replacement every 3 years.

Lead-acid batteries in EV applications end up being a significant portion of the final vehicle

mass due to their high weight. They have very lower energy density compared to fossil fuels.

But the electric vehicles have relatively lighter drive trains when compared to conventional

vehicles so the low charge density is compensated to some degree. Recent advances in

battery efficiency, capacity, materials, safety, toxicity and durability are likely to allow these

superior characteristics to be applied in new designs. Lead-acid batteries powered the initial

modern EVs such as the original versions of the EV1 and the RAV4EV and the Indian

REVA.

2. Nickel-metal hydride battery technology has matured over the years. NiMH batteries less

efficient (60–70%) in charging and discharging compared to lead-acid batteries, but they

boast an energy density of 30–80 Wh/kg, which is far higher than lead-acid battery. The

active material in the negative electrode is metal hydride (MH), a special type of

intermetallic alloy that is capable of chemically absorbing and desorbing hydrogen. The most

widely used MH in NiMH today is the AB5 alloy with a CaCu5 crystal structure, where A is

a mixture of La, Ce, Pr, and Nd, and B is composed of Ni, Co, Mn, and Al. The active

material in the positive electrode is Ni(OH)2, which is the same chemical used in the Ni–Fe

and Ni–Cd rechargeable batteries.

Figure 1

The most commonly used active material in the negative electrode is graphite. During

charging, Li ions, driven by the potential difference supplied by the charging unit, intercalate

into the interlayer region of graphite. The arrangement of Li+ in graphite is coordinated by

the surface–electrolyte–interface (SEI) layer, which is formed during the initial activation

process. The active material in the positive electrode is a Li-containing metal oxide, which is

similar to Ni(OH)2 in the NiMH battery but replaces the hydrogen with lithium. During

charging, the Li+ (similar to the H+ in NiMH) hops onto the surface, moves through the

electrolyte, and finally arrives at the negative electrode. The oxidation state of the host metal

will increase and return electrons to the outside circuitry. During discharge, the process is

reversed.

3. Lithium-ion batteries, dominate the most recent group of EVs in development. The

traditional lithium-ion chemistry involves a lithium cobalt oxide cathode and a

graphite anode. This yields cells with an impressive 200+ Wh/kg energy density and good

power density, and 80 to 90% charge/discharge efficiency. The downsides of traditional

lithium-ion batteries include short cycle lives (hundreds to a few thousand charge cycles) and

significant degradation with age. The cathode is also somewhat toxic. Also, traditional

lithium-ion batteries can pose a fire safety risk if punctured or charged improperly. The

maturity of this technology is moderate.

Figure 2

The most commonly used active material in the negative electrode is graphite. During

charging, Li ions, driven by the potential difference supplied by the charging unit, intercalate

into the interlayer region of graphite. The arrangement of Li+ in graphite is coordinated by

the surface–electrolyte–interface (SEI) layer, which is formed during the initial activation

process. The active material in the positive electrode is a Li-containing metal oxide, which is

similar to Ni(OH)2 in the NiMH battery but replaces the hydrogen with lithium. During

charging, the Li+ (similar to the H+ in NiMH) hops onto the surface, moves through the

electrolyte, and finally arrives at the negative electrode. The oxidation state of the host metal

wil increase and return electrons to the outside circuitry. During discharge, the process is

reversed. Li ions now move from the intercalation sites in the negative electrode to the

electrolyte and then to the original site in the LiMO2 crystal. The commonly used electrolyte

is a mixture of organic carbonates such as ethylene carbonate, dimethyl carbonate, and

diethyl carbonate containing hexafluorophosphate (LiPF6). The separator is a multilayer

structure from PP, which provides oxidation resistance, and PE, which provides a high-speed

shutdown in the case of a short.

Most new EVs are utilizing new variations on lithium-ion chemistry that sacrifice energy and

power density to provide fire resistance, environmental friendliness, very rapid charges (as

low as a few minutes), and very long lifespans. These variants (phosphates, titanates, spinels,

etc.) have been shown to have a much longer lifetime, and a very large number of charge

cycles.

Figure 3

Aluminum Air Batteries (New Technology)

 An aluminum-air battery uses an aluminum plate as the anode, and ambient air as the cathode,

with the aluminum slowly being sacrificed as its molecules combine with oxygen to give off

energy.

The basic chemical equation is:

4Al + 3O2 + 6H2O → 4Al(OH)3 + energy

That is, four aluminum atoms, three oxygen molecules, and six water molecules combine to

produce four molecules of hydrated aluminum oxide plus energy. Water serves as a base for the

electrolyte through which ions pass to give off the energy that powers the vehicle's electric

motor.

Historically, aluminum-air batteries have been confined to military applications because of the

need to remove the aluminum oxide and replace the aluminum anode plates.

Israeli startup Phinergy thinks its aluminum-air energy storage device is a battery that could store

enough energy to offer up to 1,000 miles of real-world range. Phinergy says its patented cathode

material allows oxygen from ambient air to enter the cell freely, while blocking contamination

from carbon dioxide in the air--historically a cause of failure in aluminum-air cells. Each

aluminum plate, has enough energy capacity to power the car for roughly 20 miles, and the

demonstrated test car had 50 of those plates. The entire battery, weighs 55 pounds (25 kilograms)

giving it an energy density more than 100 times that of today's conventional lithium-ion pack.

It is also developing zinc-air batteries, which can be recharged electrically and do not sacrifice

their metal electrode as the aluminum-air cells do.

Battery Swapping

Tesla Motors - Tesla Motors unveiled a new option allowing a quick swap of battery packs in its

Model S cars.

Tesla CEO Elon Musk demonstrated the new battery swap process at Tesla's design studio in

Hawthorne, Calif. USA. The swap process took around 90 seconds compared to almost 4

minutes it took in filling the tank of a conventional sedan. The battery-swap option allows

drivers on long trips to pay for a quick change rather than wait for a recharge.

"The cost of pack swap will be equivalent to the cost of gasoline," Musk said. "That is what we

are going to make sure happens at the end of the day, except that obviously it will be more

convenient. It will take 90 seconds and not four or five minutes."

Tesla plans to offer the battery swap option at a number of locations around the United States,

including the supercharger stations the automaker is adding over the next few years.

The battery swap will first be offered later this year supercharger stations in California. It will

cost Tesla $500,000 to put the new technology into each recharging location. "We will start off

with the really fast, high-traffic corridors, because the assumption here is that if you want a pack

swap, time is of the essence," said Musk. "So we will start off on the I-5 corridor in California

and the Boston-DC route on the East Coast and they will be co-located with the Superchargers."

Tesla has not finalized how much it will cost to put in a new battery, they expects to charge

customers somewhere in the range of $60 to $80. The price will vary around the country and will

be comparable to the price of about 15 gallons of gasoline where the battery swap takes place.

After a battery swap, Model S owners will have the option of either keeping the loaner battery or

getting their original battery pack back. It's a small price that should not stop Tesla owners from

using the service on long drives. It gives electric car owners a speedy option to eliminate range

anxiety. Instead of building in a 30- or 40-minute break to recharge every 260 miles on a road

trip, Tesla owners can theoretically get a battery swap in 90 seconds and it would make long

drives in an electric car much more reasonable.

In the long run, Musk notes, everyone should build their own EVs and the market for credits will

dry out. Tesla is working with utilities in California to help stabilize the electric grid at the

charge stations. These racks of batteries from people’s cars will be part of that, so it’s at least

possible that the investment in “SuperSwapping” will net out smaller than it appears given

contracts with utility companies.

Better Place was a venture-backed international company that developed and sold battery-

charging and battery-switching services for electric cars. It was formally based in Palo Alto,

California, but the bulk of its planning and operations were steered from Israel, where both its

founder Shai Agassi and its chief investors resided.

Israel was also the location of the company's first large-scale commercial pilot for battery-

switching services. The company opened its first functional charging station the first week of

December 2008 at Cinema City in Pi-Glilot near Tel Aviv.The first customer deliveries of

Renault Fluence Z.E. electric cars enabled with battery switching technology began in Israel in

the second quarter of 2012,and by mid September 2012, there were 21 operational battery-swap

stations open to the public in Israel.

Better Place implemented a business model wherein customers entered into subscriptions to

purchase driving distance similar to the mobile telephone industry from which customers

contract for minutes of airtime. The initial cost of an electric vehicle might also have been

subsidized by the ongoing per-distance revenue contract just as mobile handset purchases are

subsidized by per-minute mobile service contracts. Better Place's goal was to enable electric cars

to sell for $5,000 less than the price of the average gasoline car sold in the United States, or the

impact of electric cars would be minimal.

The Better Place approach was to enable manufacturing and sales of different electric cars

separately from their standardized batteries in the same way that petrol cars are sold separately

from their fuel. Petrol is not purchased upfront, but is bought a few times a month when the fuel

tank needs filling. Similarly, the Better Place monthly payment would cover electric "fuel" costs

including battery, daily charging and battery swaps. Better Place was to allow customers to pay

incrementally for battery costs including electric power, battery life, degradation, warranty

problems, maintenance, capital cost, quality, technology advancement and anything else related

to the battery. The per-distance fees would cover battery pack leasing, charging and swap

infrastructure, purchasing sustainable electricity, profits, and the cost of investor capital.

The Better Place electric car charging infrastructure network was based on a smart grid software

platform using Intel Atom processors and Microsoft .NET software, or comparable vendors. This

platform was first of its kind in the world and was to enable Better Place to manage the charging

of hundreds of thousands of electric cars simultaneously by automatically time-shifting

recharging away from peak demand hours of the day, preventing overload of the electrical grid

of the host country. Better Place would be able to provide electricity for millions of electric cars

without adding a single electricity generator or transmission line by using smart software that

oversaw and managed the recharging of electric cars connected with Better Place.

After implementing the first modern commercial deployment of the battery swapping model in

Israel and Denmark, Better Place filed for bankruptcy in Israel in May 2013. The company's

financial difficulties were caused by the high investment required to develop the charging and

swapping infrastructure, about US$850 million in private capital, and a market penetration

significantly lower than originally predicted by the company.

3.4 Charging Technology

For the PHEV and EV markets to expand, developing charging infrastructure is a priority. This

effort allows for charging at multiple locations, including at home and at public stations, and

helps reduce consumer range anxiety.

The design, manufacture, and operation of EV and PHEV charging systems and their

infrastructure have given rise to several key standards that end-users should be aware of. Safety

is the most important factor that is driving the adoption of these standards. Among the agencies

involved in developing these standards are: the National Fire Protection Agency (NFPA), the

Society of Automotive Engineers (SAE), and Underwriters Laboratories (UL). 

Electric Vehicle Supply Equipment (EVSE) is designed to safely deliver electrical power to

charge an electric vehicle.  While there are emerging and legacy charging technologies, most

current EVSE utilizes conductive charging.

Inductive Charging – In the 1990's electric vehicles used inductive charging.  An inductive

charger uses mutual inductance to transfer electrical energy from the source to the vehicle. This

works much the way a transformer works.  In this system an insulated paddle containing an

electrically energized primary coil is brought close to a secondary coil within the vehicle. The

magnetic field of the primary coil then induces a charge in the secondary coil.  

Wireless Charging – Charging EV wirelessly is a new technology. J2954 is an emerging

standard. Currently Plugless Power  sells a system where the primary coil is located on the

ground and secondary coil is attached to the underside of the EV.  To charge the EV is parked

over the coil. 

Conductive Charging – A conductive charger has a direct metal-to-metal electrical connection

(typically through an insulated wire/cord set) between the source and the charging circuitry. The

circuitry and its controls may be housed within the vehicle or external to it. SAE has adopted

J1772 as the conductive charging standard. All new EVs are compatible with this standard.

Conductive charging equipment is classified by the maximum amount of power in kilowatts

provided to the battery. There are several levels of charging equipment. In North America, the

standards are:

AC Level 1, which is a 120-volt (V) alternating current (AC) plug. A full charge at Level

1 can take between 8 and 20 hours, depending on the battery capacity of the vehicle.

Charging rate is approximately 1 kW.

AC Level 1 supplies 120V single phase power at up to 12 Amps (with a normal NEMA5-

15 120 V grounded receptacle) or 16 Amps (with a NEMA 5-20R 120V grounded

receptacle).  A portable “cord set” with built in EVSE is plugged in into a wall receptacle

using a standard three prong plug and into the electric vehicle using the standard J1772

EV connector.  This allows the convenience of charging anywhere that has a standard

home receptacle, but is slower than level 2.  For example, a Nissan Leaf with its battery

charge totally depleted would take about twenty hours to completely recharge.

AC Level 2, which is a 240-volt AC plug and requires installation of home charging

equipment. Level 2 charging can take between 3 and 8 hours, again depending on the

battery capacity of the vehicle. Charging rates fall within a range of 3 kW to 20 kW.

AC Level 2  supplies 208-240V single phase power at up to 80 Amps.  Most EVs today

charge at about 3.3 kW with 6.6 kW models available in 2013.  Level 2 equipment allows

faster charging than the Level 1 equipment.  For example, a Nissan Leaf with its battery

charge totally depleted would take about seven hours to completely recharge at 3.3 kW.

Direct Current (DC) fast charging, which is as high as 600 V, enables charging along

heavy traffic corridors and at public stations. A DC fast charge can take less than 30

minutes to charge a battery to most of its capacity.

The CHAdeMO DC Quick Charging Standard  is a DC Quick Charging Standard (also

called Fast Charging) originating in Japan.  The charger is located outside the EV and

feeds DC current to the car’s battery pack through a standard cable and connector (JARI).

The EV sends a command for the desired charge rate using a CAN bus communication

protocol to the charger.  Some Nissan and Mitsubishi cars have been equipped to use this

charging method in addition to Level 2.  This charge method is much faster than AC L1

or L2, offering a 80% charge in as little as 30 minutes. 

It is expected that most PHEV and EV owners will recharge their vehicles overnight at home.

Level 1 and Level 2 charging equipment will be the primary option for home charging. Vehicle

manufacturers have already developed stations for home charging. For example, according to

Nissan, in order to “pre-wire” a home charging dock for the Leaf EV, a 220/240 V 40-amp

dedicated circuit is required.

In order to shift electrical load to off- peak hours Hawaiian Electric encourages EV owners to

program their vehicles to start charging after 9 pm.  By avoiding charging during peak load times

they avoid the need to add new “peaking” generation.  Also, in conjunction with the Time of Use

rates, the Hawaiian Electric Company is to install devices to temporarily pause charging in

response to grid emergencies.  Both of these programs are important to increasing our capability

to utilize greater amounts of renewable energy

Public charging stations will make PHEVs and EVs more convenient, help allay range anxiety,

and increase these vehicles’ useful range. Public charging stations use Level 2 or DC fast

charging, and are located in high-density locations, such as shopping centers, parking lots, and

garages

Asian and European countries are evolving charging standards that seek to harmonize with but

may not be identical to these standards. Discussions towards broader international standards are

ongoing. The Society of Automotive Engineers (SAE) J1772 Standard in North America is at the

forefront of efforts to standardize charging. All major vehicle and charging system

manufacturers support this standard, which should eliminate drivers’ concerns about whether

their vehicle is compatible with the infrastructure. The Underwriters Laboratories verified the

safety and durability of the SAE J1772 connector in 2009. The SAE J1772 Standard, which was

adapted on January 14, 2010, is for electrical connections for electric vehicles, and details the

physical and electric characteristics of both the charge system and coupler.

This Standard defines a five-pin configuration for the connector used for Level 1 and Level 2

charging. The connector is designed to survive more than 10,000 connection and disconnection

cycles. Level 3 configurations are currently under development, as is a Direct Current fast

charging configuration.

Manufacturers are already introducing charging stations that are compliant with current

standards. For instance, Coulomb Technologies of the United States retails commercial and

residential charging stations that are compliant with the J1772 Standard.

Figure 4

3.5 Drive Train Technologies

SERIES HYBRID: In this configuration, the power plant provides power to the electric

motor(s), which drives the wheels. There is no mechanical connection between the power plant

and the wheels. An advantage of this configuration is the ability to set the power plant to operate

at its maximum efficiency. [2] Systems using this configuration are also known as Range

Extended Electric Vehicles (REEV). Vehicles in this configuration are driven only by electric

traction where electric motors have very high power to weight ratios and thus offer sufficient

torque over a wide speed range. Also with the use of electric motors only for traction, the need

for a multiple speed gearbox and transmission is eliminated which reduces the weight of the

vehicle substantially. As the internal combustion engine is not directly used in powering the

drive train, it allows the designers to use different types of engines such as micro turbines or

rotary Atkinson engine which can be more fuel efficient than conventional internal combustion

engines. The system includes an all electric motor powered traction system, an engine to run the

generator, a generator to produce electricity and a battery bank to store electricity for driving the

electric traction motors. It may have a regenerative braking system in which as soon as the brake

pedal is pressed, the motor becomes a generator and produces electricity over the distance that it

takes the vehicle to stop utilizing its inertia. Super-capacitors are generally used in this operation

to support in charging of the battery through regenerative braking In case of plug in hybrids, the

battery bank can be charged using external electric supply and the internal combustion engine

can be made to kick in only after the state of charge in the battery falls to a certain predetermined

level due to usage. This can help cut emissions further.

Figure 5

SERIES HYBRID DESIGN STRUCTURE

PARALLEL HYBRID: This configuration has two power paths. The wheels can be driven by

the power plant, the electric motor(s), or both. An advantage of this configuration is the

combined power due to the electric motor and power plant driving the wheels simultaneously. [2]

If the two power sources are joined at an axis in parallel, the speeds at this axis must be identical

and the torque from each source gets added together. Two power sources may be added to the

same shaft with the electric motor lying between the engine and transmission, and the torques

add up. Parallel hybrids can make do with a smaller battery pack rely more on regenerative

braking and the internal combustion engine which can also act as a generator for supplemental

recharging. They are more efficient on highway driving compared to urban stop-and-go

conditions or city driving. A type of parallel hybrid is the power split or series parallel hybrid in

which they utilize power-split devices. The main principle behind this system is the decoupling

of the power supplied by the engine from the power demanded by the driver. Thus it allows the

engine to run at optimal speed and the supplementary power can be provided by the electric

motor. This is very useful in cases when engines have high efficiencies at low rpm which can

support cruising and when the acceleration power is needed, it can be supplied by the electric

motor.

Figure 6

SERIES – PARALLEL DESIGN STRUCTURE

PARALLEL HYBRID DESIGN

STRUCTURE

3.6 Advantages of Electric Vehicle Technology

Electric vehicles typically combine an energy storage device, a power plant (only for hybrid and

plug in hybrid), and an electric propulsion system. Energy storage devices are most often

batteries, but other possibilities include ultracapacitors and fly-wheels. Power plant options

include internal combustion engines, gas turbines, and fuel cells. The efficiency of a hybrid

system depends on a number of factors, such as the combination of subsystems, how the

subsystems are integrated, and the control strategy employed.

Electric propulsion systems are being developed for a wide range of medium- and heavy-duty

vehicle sizes and applications, including transit buses. Electric propulsion systems offer several

advantages to transit agencies:

• Increased efficiency, potentially lowering fuel cost

• Better acceleration, allowing quick merging into heavy traffic

• Decreased emissions

• Quieter operation.

Sources of Efficiency and Emissions Reductions

Whenever a power system transfers energy from one form to another – such as a hybrid’s

conversion of mechanical energy into electricity and then back again – the system will

experience a decrease in energy efficiency. Hybrid electric vehicles offset those losses in a

number of ways which, when combined, produce a significant net gain in efficiency and related

emissions reductions.

These aspects of the EV system are able to save so much energy that the vehicle as a whole

overcomes these initial conversion losses. There are four primary sources of efficiency and

emissions reduction found in hybrids:

• Smaller Engine Size: Most traditionally “direct drive” vehicle engines are sized to provide

enough power for relatively infrequent, fast accelerations. In the more frequent cruising mode,

these engines are much larger than they need to be. By adding an electric motor to deliver partial

or complete power during accelerations, an EV can be equipped with a smaller, more efficient

combustion engine while providing acceleration performance equal to its conventional

counterpart.

• Regenerative Braking: Regenerative braking recovers energy normally lost as heat during

braking, and stores it in the batteries for later use by the electric motor. Therefore, the engine-

powered generator is used to produce electric energy only when regenerative braking does not

provide a full charge.

• Power-On-Demand: EVs can temporarily shut off the combustion engine during idle or

coasting modes, when the electric motor alone can provide sufficient power to keep the vehicle’s

systems running without burning petroleum fuel.

• Constant Engine Speeds and Power Output: In a hybrid application, the diesel engine can be

designed to operate more consistently at its optimum engine speed, power output and operating

temperature to increase fuel efficiency and reduce emissions. In a series hybrid this is done by

providing power only to the electric generator rather than to the wheels directly. In a parallel

hybrid, the diesel engine only powers the wheels directly when it is operating and optimum

speeds. This at relatively constant, optimum performance level also improves the performance of

emissions control technologies.

3.7 Govt Policies and Market Prospects

Electric Vehicles are considerably costly upfront as compared to conventional vehicles. This has meant that they have had very low market penetration even though they have existed for a few decades now. But govt incentives and policies are now favoring the use of Electric Vehicles the world over thus changing the market scenario.

Government Incentives for EV/PHEV in USA

The fleet of plug-in electric vehicles in the United States is the largest in the world. Since 2008

over 1,16,000 plug-in electric cars have been sold in the United States which are highway

capable. The U.S. was the world's leader in plug-in electric car sales in 2012, with a 46% share

of global sales.

Under the American Federal Government, The Energy Improvement and Extension Act of 2008,

and the American Clean Energy and Security Act of 2009 (ACES) granted tax credits for new

qualified plug-in electric drive motor vehicles as an incentive to boost the sales of such vehicles.

The tax credit offered for a new plug-in electric vehicles is worth $2,500. In addition to that,

$417 is offered for each kilowatt-hour of battery capacity over 4 kwh (the portion of the credit

determined by battery capacity cannot exceed $5,000). Therefore, the total amount of the credit

allowed for a new PEV is $7,500 in USA.

In accordance to the American Recovery and Reinvestment Act 2009, the U.S. Department of

Energy announced the release of up to $2 billion in federal funding for two competitive

solicitations that would be competitively awarded and would be cost-shared agreements for the

manufacture of batteries based on advanced technologies and related drive train components. It

also announced $400 million of funding for ‘transportation electrification demonstration and

deployment projects’.

The American Clean Energy and Security Act (ACES), calls for all electric utilities to, “develop

a plan to support the use of plug-in electric drive vehicles, including heavy-duty hybrid electric

vehicles”. It also provides for “smart grid integration,” allowing for efficient, effective delivery

of electricity which not only accommodates the additional demands of plug-in electric vehicles

but also offers grid support services like ancillary services when needed using funding from

department of energy in developing appropriate smart grids.

The new qualified plug-in electric vehicle credit phases out for a PEV manufacturer over the

one-year period beginning with the second calendar quarter after the calendar quarter in which at

least 200,000 qualifying vehicles (cumulative sales after December 31, 2009) from that

manufacturer have been sold for use in the United States. Qualifying PEVs are eligible for 50%

of the credit if acquired in the first two quarters of the phase-out period, and 25% of the credit if

bought in the third or fourth quarter of the phase-out period.

The American Recovery and Reinvestment Act of 2009 also offered a tax credit for plug-in

electric drive conversion kits. The credit given was worth 10% of the cost of converting a vehicle

to a qualified plug-in electric vehicle and in service after February 17, 2009. The maximum

amount of the credit is $4,000. This availability of credit was withdrawn on all conversions

taking place post December 31, 2011.

The American government also pledged US$2.4 billion in the form of federal grants in order to

support the development of next-generation of electric cars and advanced batteries. It also

pledged another US$115 million for the installation of charging infrastructure for electric

vehicles in 16 different metropolitan areas throughout the country. United States had 5,678

charging stations across the country with 16,256 public charging points as of March 2013. In his

State of the Union address in 2011, President Barack Obama set a target for the U.S. to have 1

million electric vehicles on the road by 2015.

A very large volume of funding for fleet buses is provided under the Diesel Emissions Reduction

Act which is a part of the Energy Policy Act of 2005. It offers grants and loans for changing

conventional diesel buses to an alternative less polluting fuel type of modify them to comply

with stringent emission standards. The Environmental Protection Agency submitted a report on

the success of DERA implementation in August 2009, where it credits DERA program of

reducing emission of 46,000 tons of nitrogen oxide and 2,200 tons of fine respirable particulate

matter. This emission reduction translated into a public health benefit up to $1.4 billion and

saved almost 3.2 million US gallons of fuel in 2008 which meant a saving of $8 million. The

report said that more than of 14,000 diesel engine powered fleet vehicles were made cleaner

under DERA.

Government Incentives for EV/PHEV in UK

The British Government actively supports plug in electric vehicles as a mechanism for reducing

emissions in cities. The support for these vehicles comes under different schemes. The first is in

the form of purchase incentives whereby it offers grants under plug-in car grants for passenger

vehicles and plug-in van grants for vans and similar vehicles in commercial operations.

The Plug-in Car Grant program was initiated on 1 January 2011 and is applicable throughout the

U.K. The programme is aimed at reducing the up-front cost of eligible plug-in electric cars. This

is done by providing a 25% grant of the cost of new plug-in electric cars. The funding per car is

capped at GB£5,000. Private as well as business fleet buyers can avail this grant. The grant

programme allows consumers to buy an eligible plug-in electric car discounted at the point of

purchase and the subsidy is claimed by the manufacturer afterwards.

The Plug-In Van Grant was created by extending the Plug-In Car Grant in February 2012. Plug-

In Electric Van buyers can receive 20% grant on the value of their purchase. The grant per

vehicle is capped at GB£8,000. To be eligible for the grant, vans have to meet certain

performance based criteria to ensure safety, range, and ultra-low tailpipe emissions. Business and

private customers both can receive the discount at the point of purchase.

In November 2009, a new scheme called "Plugged-in-Places" was announced. It dedicated a sum

of £30 million to investigate the viability of providing electric supply for plug-in vehicles. The

programme funding is between six cities and it aims at encouraging local government and private

businesses to participate and bid for funds. The programme aims to install vehicle recharging

points across the UK. The programme offers match-funding to the investments by a consortium

of businesses and public sector partners to undertake the installation of plug-in electric vehicle

recharging infrastructure in prime locations across the UK. As of now 8 Plugged-In Places have

been created in UK.

The London Congestion Charge is completely waived for Plug-In Battery Electric Vehicle and a

discount is given to Plug-In Hybrid Electric vehicles. The original Greener Vehicle Discount was

replaced by the Ultra Low Emission Discount (ULED) scheme that came into force on 1 July

2013. The ULED enforces more stringent emission standards that limited the free access to the

congestion charge zone and currently there are no internal combustion-only vehicles that meet

the new stringent emission criteria. The measure is designed to limit the growing number of

diesel vehicles on London's roads. This encourages the sale and use of Plug-In Electric Vehicles.

Government Incentives for EV/PHEV in Norway

Norway has the highest number of per capita plug-in electric vehicles in the world. The

government of Norway has made very significant contribution in ensuring this. All electric cars

in Norway are exempted from all non-recurring vehicle fees. The plug-in electric vehicles are

also exempted from paying sales tax, annual road tax, all public parking fees, and toll payments.

Electric vehicles are also free to use the bus lanes. These incentives are to stay in effect till 2018

or until the 50,000 EV target is achieved.

Norwegian tax system levies higher taxes to heavier vehicles, that is why heavier plug-in hybrids

are more expensive than similar conventional cars due to the extra weight of the battery pack and

its additional electric components. But from 1 July 2013, the existing weight allowance for

conventional hybrids and plug-in hybrids of 10% has been increased to 15% for PHEVs to make

them competitively priced even on being heavier.

Mere tax exemptions for electric vehicles in Norway amount to almost USD $11,000. This is

almost equal to a USD $1,400 exemption every year over the car’s eight year life span. Along

with this, the cars in Oslo also toll exemption worth another USD $1,400 a year and free parking

worth more than USD $5000. Coupled with this are other additional financial incentives worth

USD $400. And other non financial incentives include the refight to drive in bus lanes. The

overall benefit of owning and electric car in Oslo is almost to the tune of USD $8,200 per car per

year.

Government Incentives for EV/PHEV in Japan

The Japanese government initiated its incentive program for cleaner vehicles way back in 1996

under the Clean Vehicles Introduction Project. The project continued up till 2003 and provided a

purchase subsidy of up to 50% of the incremental cost of the clean energy vehicle over the

conventional vehicle. In 2009, the Green Vehicle Purchasing Promotion Measure was introduced

that implemented tax deductions and exemptions for efficient and environmentally friendly

vehicles defined by a given set of criterion.

The new next generation vehicles, such as electric and fuel cell vehicles, plug-in hybrids etc. are

exempted from acquisition tax as well as tonnage tax. Other fuel efficient and low emission

passenger cars, are given tax exemptions from 50 to 75% depending on the compliance of the

new vehicle as compared to established fuel efficiency standards. Acquisition tax on used vehicle

is reduced by 1.6% to 2.7% which amounts to almost 150,000 yen to 300,000 yen. Electric and

fuel cell vehicles receive a 2.7% reduction while plug-in hybrids get a 2.4% reduction. The next

generation electric vehicles including fuel cell vehicles are also given a 50% exemption from the

annual automobile tax.

Subsidies given for the purchase of new environmentally friendly vehicles without scrapping of a

used car are 50,000 yen to 1,00,000yen. But if the consumer is scrapping a vehicle that is 13 year

old or more, the subsidies are raised to 1,25,000 yen to 2,50,000 yen. The subsidy for larger

vehicles like buses and trucks which meet emission criteria ranges between 2,00,000 yen to

9,00,000 yen, but just like cars, if the customer scraps a 13 years or older similar vehicle, then

the subsidies are raised to 4,00,000 yen to 18,00,000 yen.

Government Incentives for EV/PHEV in India

The government of India in 2012 launched the National Electric Mobility Mission Plan 2020. It

aims to ‘encourage reliable, affordable and efficient EVs that meet consumer performance and

price expectations through government-industry collaboration for promotion and development of

indigenous manufacturing capabilities, required infrastructure, consumer awareness and

technology; thereby helping India to emerge as a leader in EV 2&4 wheeler market in the world

by 2020, with total EV sales of 6-7 million units thus enabling Indian automotive industry to

achieve global EV manufacturing leadership and contributing towards national fuel security.’

To expedite decision making in the industry, the govt has set up National Council for Electric

Mobility which will have ministers of various academia and will be chaired by the Minister for

Heavy Industry. To aid the council, there will be a 25 member National Board of Electric

Mobility comprising of secretaries of various stakeholder ministries. National Automotive Board

is to be set up which will have domain and technical experts and it will be the nodal agency for

all ongoing and new government initiatives for the automobile sector.

Figure 7

Chapter 4

4.1 Introduction to Vehicle to Grid (V2G) Technology

PHEVs have within them the energy source and power electronics capable of producing

electricity that can be converted to 50-60Hz AC which is same as the one power homes and

offices. When electricity flows from cars to power lines, it is called "vehicle to grid" power, or

V2G. Cars pack a lot of power: one typical electric-drive vehicle can produce 10kW, the average

draw of 10 houses.

Most American passenger vehicles are, on average, parked and idle for about 23 hours each day.

During this time, they create no value for the user, and there exists an associated cost because

they need to be stored – parked – while not in use. With the advent of PHEVs, there is the

prospect that idle vehicles can create value to their owners while parked. By connecting these

PHEVs to the electric power grid, a large scale, dispatchable electric power generating resource

is created. The potential exists for the economic value generated to offset the costs of electric

vehicles.

Types of Energy Services Vehicles Could Offer - Grid connected vehicles can support the grid

in a number of ways. Depending on the vehicle and the needs of the driver, the grid support

services would be available whenever the vehicle is plugged in -- typically at the vehicle driver's

home or place of work.

Peak power sales - Grid-connected vehicles could be aggregated by an energy services

company to provide power into existing markets. The most likely is the same-day/hour

ahead market.

Spinning reserves - The Independent System Operator (ISO) is required to maintain

sufficient reserve generating capacity spinning and synchronized with the grid, ready for

immediate power generation. EVs can provide equally-fast power on demand, with the

added benefit of little or no 'spinning' or idling losses.

Base load power - Base load power involves contracting to provide power for extended

periods. This energy could be sold directly to a business that owns the parking space

(such as an employee's place of work). Hybrid or fuel cell vehicles for which the grid

interconnection also includes a source of fuel are the most viable here.

Peak power as a form of direct load control (DLC) - Utility companies have forms of

direct load control (DLC) in which they pay their customers for the right to interrupt

power to certain loads when system demand is high. For example, in California, these are

typically targeted at residential air conditioning systems. In a similar fashion, a utility

could contract with a vehicle owner or system aggregator to be able to directly control

power delivered by connected vehicles – the system-effect of which is the same as

directly shutting off loads.

Peak power to reduce demand charges - One of the simplest forms of service is to

locally control the vehicle power output in a way to reduce the peak power demand of a

business. By having fast response power capacity on the customer side of the meter, the

peaks of a business’ power demand can be provided by connected vehicles. This will

reduce the demand charge the business pays to the electric utility. If the demand charge is

based on kVA rather than kW, then the connected vehicles can also function to supply the

businesses reactive power needs, and hence reduce the kVA seen by the utility. Demand

charges typically range from $5 to $15 per kW (peak 15 min average power) per month

in the US cities.

Reactive power - Utility companies must provide reactive power (VARs) to meet the

non-unity power- factor loads of its customers and to maintain overall system stability.

Large numbers of vehicles with inverter connections to the power grid offer the potential

for localized production of VARs to meet the needs of the distribution utility.

Other value created - There are numerous other values created by distributed generation

or storage but are not as directly quantifiable as those above. These include:

Deferral of transmission distribution and capacity investment – By getting

more energy delivered into regions where the distribution grid has reached its

capacity, it will be possible to defer costly upgrades to the system.

Potential emissions reduction – Energy stored in electric vehicles has the

potential for reducing local emissions. For hybrid vehicles, local emissions will

have to be evaluated to determine whether there are any benefits compared to fuel

used by central power plants.

Potential for cogeneration – In the case of fuel cell or hybrid vehicles, power

generation will also produce waste heat. It may be possible to capture this heat for

beneficial purposes, but this will entail adding a heat transfer loop into the

interface between the vehicle and the grid.

Reduction of transmission losses – Since power can be delivered at or near the

point of end-use, losses associated with delivering the power are nearly zero.

Battery Electric Vehicles – Battery powered electric vehicles are different from plug in hybrid

or fuel cell vehicles as they don't generate electricity. They are instead a distributed storage

medium that time-shifts the generation and consumption of electrical energy, providing, for

example, peak power, reliability, distributed storage, and reactive power. There are associated

losses and battery costs that must be factored in for any economic analysis.

When considered only for daily peak or base-load power, the economics may not be favorable to

battery storage because the resulting battery wear-out costs per kWh are too high.

There are two areas in which the economic viability needs to be explored.

-First, other energy services, including hour-ahead, spinning reserves, and others can

have high values, above their cost in battery wear-out.

-Second, batteries for electric vehicles have two general types of wear out.

These are degradation due to use (cycling) and degradation due to calendar time. There is some

evidence that suggests that calendar life may prove to be the life limiting factor for some EV

batteries and not necessarily the cycling time. If this is the case, the incremental cost of

additional cycling within the calendar life may be small or even zero.

Some of the value-generating services that could be offered by electric and hybrid vehicles don't

require significant energy transfer. For example, peak power sold as spinning reserves to the ISO

or dispatchable power to the distribution company may be activated only a few times per year.

Reactive power or grid support services would not require any net energy flow from the vehicle.

4.2 V2G and Power markets

Electricity is grouped in several different markets with correspondingly different control

regimes. Here we discuss four of them—baseload power, peak power, spinning reserves, and

regulation—which differ in control method, response time, duration of the power dispatch,

contract terms, and price. We focus particularly on spinning reserves and regulation, which must

deliver power within minutes or seconds of a request.

All these electricity resources are controlled in real-time by either an integrated electric utility or

an Independent System Operator.

Baseload power

Baseload power is provided round-the-clock. In India this typically comes from coal-fired plants

that have low costs per kWh. Baseload power is typically sold via long term contracts for steady

production at a relatively low per kW price. V2G has been studied across multiple markets of US

which have a similar structure, showing that EVs cannot provide baseload power at a

competitive price. This is because baseload power hits the weaknesses of EVs—limited energy

storage, short device lifetimes, and high energy costs per kWh—while not exploiting their

strengths—quick response time, low standby costs, and low capital cost per kW.

Peak power

Peak power is generated or purchased at times of day when high levels of power consumption

are expected—for example, on hot summer afternoons. Peak power is typically generated by

power plants that can be switched on for shorter periods, such as gas turbines. Since peak power

is typically needed only a few hundred hours per year, it is economically sensible to draw on

generators that are low in capital cost, even if each kWh generated is more expensive. Our

studies have shown that V2G peak power may be economic under some circumstances. The

required duration of peaking units can be 3–5 h, which for V2G is possible but difficult due to

on-board storage limitations. Vehicles could overcome this energy-storage limit if power was

drawn sequentially from a series of vehicles.

Spinning reserves

Spinning reserves refers to additional generating capacity that can provide power quickly, say

within 10 min, upon request from the grid operator. Generators providing spinning reserves run

at low or partial speed and thus are already synchronized to the grid. Spinning reserves are the

fastest response, and thus most valuable, type of operating reserves; operating reserves are “extra

generation available to serve load in case there is an unplanned event such as loss of generation.”

The provision of spinning reserves is practically absent in India currently due to the high cost of

implementation, the perpetual deficit, the high fuel costs and also lack of sufficient evacuation

infrastructure. Spinning reserves globally are paid for by the amount of time they are available

and ready. For example, a 1MWgenerator kept “spinning” and ready during a 24-h period would

be sold as 1MW-day, even though no energy was actually produced. If the spinning reserve is

called, the generator is paid an additional amount for the energy that is actually delivered (e.g.,

based on the market-clearing price of electricity at that time).

The capacity of power available for 1 h has the unit MW-h (meaning 1MW of capacity is

available for 1 h) and should not be confused with MWh, an energy unit that means 1MW is

flowing for 1 h. These contract arrangements are favorable for EVs, since they are paid as

“spinning” for many hours, just for being plugged in, while they incur relatively short periods of

generating power. Contracts for spinning reserves limit the number and duration of calls, with 20

calls per year and 1 h per call typical maxima. As spinning reserves dispatch time lengthens,

from the typical call of 10 min to the longest contract requirement, 2 h, fueled vehicles (PHEVs)

gain advantage over battery vehicles because they generally have more energy storage capacity

and/or can be refueled quickly for driving if occasionally depleted by V2G.

Spinning reserves, along with regulation are forms of electric power referred to as “ancillary

services” or A/S. Ancillary services account for 5–10% of electricity cost, or about $ 12 billion

per year in the U.S., with 80% of that cost going to regulation.

Regulation

Regulation, also referred to as automatic generation control (AGC) or frequency control, is used

to fine-tune the frequency and voltage of the grid by matching generation to load demand.

Regulation must be under direct real-time control of the grid operator, with the generating unit

capable of receiving signals from the grid operator’s computer and responding within a minute or

less by increasing or decreasing the output of the generator. Depending on the electricity market

and grid operator, regulation may overlap or be supplemented by slower adjustments, including

“balancing service” (intra hour and hourly) and/or “load following.”

Some markets split regulation into two elements: one for the ability to increase power generation

from a baseline level, and the other to decrease from a baseline. These are commonly referred to

as “regulation up” and “regulation down”, respectively. For example, if load exceeds generation,

voltage and frequency drop, indicating that “regulation up” is needed. A generator can contract

to provide either regulation up, or regulation down, or both over the same contract period, since

the two will never be requested at the same time.

Markets vary in allowed combinations of up and down, for example, PJM Interconnect requires

contracts for an equal amount of regulation up and down together, whereas California

Independent System Operator (CAISO) is more typical in allowing contracts for just one, or for

asymmetrical amounts (e.g., 1MW up and 2MW down).

Regulation is controlled automatically, by a direct connection from the grid operator (thus the

synonym “automatic generation control”). Compared to spinning reserves, it is called far more

often (say 400 times per day), requires faster response (less than a minute), and is required to

continue running for shorter durations (typically a few minutes at a time).

The actual energy dispatched for regulation is some fraction of the total power available and

contracted for. We shall show that this ratio is important to the economics of V2G, so we define

the “dispatch to contract” ratio as

where Rd–c is the dispatch to contract ratio (dimensionless), Edisp the total energy dispatched

over the contract period(MWh), Pcontr the contracted capacity (MW), and tcontr is the duration

of the contract. Rd–c is calculated separately for regulation up or down.

4.3 Power capacity of V2G

Three independent factors limit V2G power:

(1) The current-carrying capacity of the wires and other circuitry connecting the vehicle through

the building to the grid

(2) The stored energy in the vehicle, divided by the time it is used

(3) The rated maximum power of the vehicle’s power electronics.

The lowest of these three limits is the maximum power capability of the V2G configuration. We

develop here analysis for factors 1 and 2, since they are generally much lower than 3.

Power limited by line

Vehicle-internal circuits for full-function electric vehicles are typically upwards of 100kW. For

comparison, average home maximum power capacity is typically 20–50kW, with an average

draw closer to 1-2 kW in urban environments. To calculate the building-wiring maximum, one

needs only the voltage and rated ampere capacity of the line:

where Pline is power limit imposed by the line in watts (here usually expressed in kW), V the

line voltage, and A is the maximum rated current in amperes. For example, home wiring at 240V

AC, and a typical 50A circuit rating for a large-current appliance such as an electric range, the

power at the appliance is 50A×240V so it yields a line capacity of 12kW maximum for this

circuit. Based on typical home circuits, some would be limited to 10kW, others to 15kW as the

Pline limit. For a commercial building, or a residential building after a home electrical service

upgrade (at additional capital cost), the limit could be 25kW or higher.

On the vehicle side, most existing (pre-V2G) battery vehicle chargers use the National Electrical

Code (NEC) “Level 2” standard of 6.6kW. The first automotive power electronics unit designed

for V2G and in production, by AC Propulsion, provides 80A in either direction, thus, 19.2kW at

a residence (240 V). This V2G unit has been used in one prototype plugin hybrid and several

battery electric vehicles for various studies in US.

Power limited by vehicle’s stored energy

The previous section analyzed V2G power as limited by the line capacity. The other limit on

V2G power is the energy stored on-board divided by the time it is drawn. More specifically, this

limit is the onboard energy storage less energy used and needed for planned travel, times the

efficiency of converting stored energy to grid power, all divided by the duration of time the

energy is dispatched. This is calculated as

where Pvehicle is maximum power from V2G in kW, Es the stored energy available as DC kWh

to the inverter, dd the distance driven in miles since the energy storage was full, drb the distance

in miles of the range buffer required by the driver, ηveh the vehicle driving efficiency in

miles/kWh, ηinv the electrical conversion efficiency of the DC to AC inverter (dimensionless),

and tdisp is time the vehicle’s stored energy is dispatched in hours.

In a specific application, dd would depend on the driving pattern, the vehicle type (e.g., battery

EVs may be recharged at work), and the driver’s strategies for being prepared to sell power.

The fuel cell vehicle, or hybrid in motor-generator mode, can provide only regulation up (power

flows from vehicle to grid), not regulation down (power from grid to vehicle), so it has no

analogy to the battery EV’s recharge during regulation down. Power capacity of V2G is

determined by the lower of the two limits, Pline or Pvehicle.

4.4 Revenue versus cost of V2G

The economic value of V2G is the revenue minus the cost.

Revenue equations

The formulas for calculating revenue depend on the market that the V2G power is sold into. For

markets that pay only for energy, such as peak power and baseload power, revenue is simply the

product of price and energy dispatched. This can also be expanded, since energy is P* t,

where r is the total revenue in any national currency, pel the market rate of electricity in

Rs/kWh, Pdisp the power dispatched in kW (for peak power Pdisp is equal to P, the power

available for V2G), and tdisp is the total time the power is dispatched in hours.

On an annual basis, peak power revenue is computed by summing up the revenue for only those

hours that the market rate (pel) is higher than the cost of energy from V2G.

For spinning reserves and regulation services the revenue derives from two sources: a “capacity

payment” and an “energy payment.” The capacity payment is for the maximum capacity

contracted for the time duration (regardless of whether used or not). For V2G, capacity is paid

only if vehicles are parked and available (e.g., plugged-in, enough fuel or charge, and contract

for this hour has been confirmed). The energy payment is for the actual kWh produced; this term

is equivalent to what the equation helps calculate as revenue from either spinning reserves or

regulation services, with the first term being the capacity payment and the second term the

energy payment.

where pcap is the capacity price in Rs/kW-h, pel is the electricity price in $/kWh, P is the

contracted capacity available (the lower of Pvehicle and Pline), tplug is the time in hours the EV is

plugged in and available, and Edisp is the energy dispatched in kWh.

For spinning reserves, Edisp can be calculated as the sum of dispatches,

where Ndisp is the number of dispatches, Pdisp the power of each (presumably equal to the

vehicle capacity P), and tdisp is the duration of each dispatch in hours. A typical spinning

reserves contract sets a maximum of 20 dispatches per year and a typical dispatch is 10 min long,

so the total Edisp will be rather small.

For regulation services, there can be 400 dispatches per day, varying in power (Pdisp). In

production, these would likely be metered as net energy over the metered time period. To

estimate revenue we approximate the sum of Pdisp by using the average dispatch to contract ratio

(Rd–c) defined by first equation, and rearrange the earlier equations to get

Thus, for forecasting regulation services revenue we substitute the outcome from the above

equation in the earlier equations to get.

Cost equations

The cost of V2G is computed from purchased energy, wear, and capital cost. The energy and

wear for V2G are those incurred above energy and wear for the primary function of the vehicle,

transportation. Similarly, the capital cost is that of additional equipment needed for V2G but not

for driving. Assuming an annual basis, the general formula for cost is

where c is the total cost per year, cen the cost per energy unit produced (calculated below), Edisp

the electric energy dispatched in the year, and cac is the annualized capital cost.

For spinning reserves we would use in the above equation the values of Edisp computed by

For regulation, substituting values of Edisp computed by

Thus the total annual cost to provide regulation is

where cen is the per kWh cost to produce electricity. The equation for cen includes a purchased

energy term and an equipment degradation term

where cpe is the purchased energy cost, and cd is the cost of equipment degradation (wear) due to

the extra use for V2G, in Rs/kWh of delivered electricity. The purchased energy cost cpe is the

cost of electricity, hydrogen, natural gas, or gasoline, expressed in the native fuel cost units (e.g.,

Rs/kg Natural Gas), and ηconv is the efficiency of the vehicle’s conversion of fuel to electricity

(or conversion of electricity through storage back to electricity). The units of ηconv are units of

electricity per unit of purchased fuel. Thus equations computed cen, the cost of delivering a unit

of electricity, is expressed in Rs/kWh regardless of the vehicle’s fuel.

Degradation cost, cd, is calculated as wear for V2G due to extra running time on a hybrid engine

or fuel cell, or extra cycling of a battery. Shallow cycling has less impact on battery lifetime than

the more commonly reported deep cycling.

As the vehicle fleet moves to electric drive (hybrid, battery, and fuel cell vehicles), an

opportunity opens for “vehicle-to-grid” (V2G) power. V2G only makes sense if the vehicle and

power market are matched. For example, V2G appears to be unsuitable for baseload power—the

constant round-the clock electricity supply—because baseload power can be provided more

cheaply by large generators, as it is today. Rather, V2G’s greatest near-term promise is for quick-

response, high-value electric services. These quick-response electric services are purchased to

balance constant fluctuations in load and to adapt to unexpected equipment failures.

The results suggest that the engineering rationale and economic motivation for V2G power are

compelling. The societal advantages of developing V2G include an additional revenue stream for

cleaner vehicles, increased stability and reliability of the electric grid, lower electric system

costs, and eventually, inexpensive storage and backup for renewable electricity.

Chapter 5

Findings and Conclusion

The power sector in India is a fast maturing one and ancillary services are currently provided mandatorily by different sections of the industry like the generating companies. But it has been observed that the ancillary services are of great importance and need to be taken separately. As per the Indian Electricity Act of 2003, competition is to be promoted in every sphere of the sector and the proposed staff paper by CERC on Ancillary Services Market aims to do the same. The three types of ancillary services that are slated to be opened to market operation are – Frequency Control Ancillary Service, Network Control Ancillary Service and System Restart Ancillary Services.

It has been studied that grid connected electric vehicles are capable of providing aforementioned ancillary services. The electric vehicles industry is fast growing with rising adoption in the developed country markets. Not only do they provide a relatively cheaper cost of operation, they also offer other benefits like reduced emissions in cities and also reduce the dependency of oil. It was found that the biggest barrier to large scale adoption of electric vehicles was two-fold.

The first was a very high upfront cost. Electric vehicles cost considerably more than their conventionally powered counter parts. The second is the lack of charging infrastructure in public places which limits the electric range of the vehicles. To tackle the first problem, the governments of the world are providing heavy subsidies and incentives. Countries like Norway provide incentives that can amount up to $8200 per car per year. For the second hurdle, an increasingly large charging base is being developed in public places in the developed nations. Also plug-in hybrid electric vehicles have successfully extended the range of the vehicles by using petrol or natural gas as a secondary fuel thereby reducing the psychological fear of range limitation people had in their mind linked to electric vehicles.

It has been shown in various researches across the world that vehicle to grid operations are a feasible possibility as modern electric vehicles can be equipped with bidirectional inverters that can not only use energy from grid to charge themselves but also supply energy back to the grid if demanded. This has been made possible with the use of smart grids that can communicate with such distributed storage infrastructure.

In a country like India where normal generating stations face multiple challenges such as fuel supply and environmental clearances, Electric Vehicles can become a suitable alternative in providing short term power in the form of ancillary services. The Government of India introduced the National Electric Mobility Mission in 2012 that aims to facilitate the adoption of electric vehicles by providing incentives and subsidies at both the customer end and the manufacturers end.

This opportunity can be utilized to create infrastructure in the form of large parking stations which provide grid connectivity in the form of charging connections to the electric vehicles. it can provide a win-win situation for all players where the vehicle owners and the parking station can offer their vehicles and infrastructure to provide ancillary services to the grid, the system operators and power sector benefits from the increased grid reliability and the reduced dependence on oil because of the use of electric vehicles also helps reduce pollution in cities and curb the large outflow of foreign exchange in the form of payments for oil imports.

As the Indian markets are still developing and highly price sensitive, the use of this technology can be promoted by first adoption by government bodies themselves in the form of public transport fleets. That has advantages in itself as the parking infrastructure and the parking and driving durations are much more certain in that case rather than that of private vehicles. Also it has been learnt from the example of adoption of CNG vehicles in Delhi that once the technology is demonstrated to be functional, economical and successful by use in public transport, the mass adoption increases manifold.

It will be ideal if government agencies took the lead and switched their bus fleets from convention gas or diesel powered vehicles to smart, grid connected electric vehicles and also increase the pace of implementation of smart grids. Thereby not only unleashing the technical and financial potential of using electric vehicles to provide ancillary services but also offering the citizens cleaner air in cities and reducing the burden on the nation’s forex reserves.

Future Study

Electric vehicles can also be used to mitigate the variability issues with renewable energy sources such as wind and solar. These renewable sources of energy cannot be perfectly estimated or predicted thereby creating variability issues. A recent order on accurate scheduling for renewable energy sources also ran into difficulties due to the inability to perfectly schedule the production through such renewable sources.

Electric vehicle fleets can be connected to the renewable energy generating stations and can absorb power during over generation and supply back during under generating thereby offering a great deal of stability and reliability in scheduling power from such sources of renewable energy. A future study to understand the technical and commercial requirements, the feasibility and impacts of such an implementation can be conducted.

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