SEPA urges regulators to move on vehicle-grid-integration to mitigate EV impacts on grid

Warning of a 10-20 GW increase in peak load electric vehicles could cause across the United States, a new report from the Smart Electric Power Alliance (SEPA) showcases the foundations of vehicle-grid-integration (VGI) development and deployment for state regulators.

This, the organization says, could help manage expected impacts on the larger grid. The report — A Regulatory Roadmap for Vehicle-Grid Integration — defines VGI and discusses how to develop its foundations through a mix of utility survey data and analysis of VGI-related utility findings. In SEPA’s estimation, this is important due to regulatory and stakeholder knowledge about VGI capabilities remains a major barrier to program development.

“Regulatory guidance and innovation are critical for enabling new utility business models, including programs for transportation electrification and vehicle-grid-integration,” Janet Gail Besser, Managing Director of SEPA Pathways, said. “This report provides guidance for developing a VGI regulatory roadmap to ensure that increasing EV deployment benefits all customers and the electricity system.”

The report, which was funded by the Copper Development Association, called for developing a comprehensive benefit-cost analysis framework for application to transportation electrification. This, its authors stressed, would allow contrasting cost-effectiveness tests from utility filings to be addressed. Further, regulatory hurdles can be addressed in parallel, particularly if utilities and regulators begin incentivizing VGI through passive management strategies.

From there, the report notes that easy enrollment and participation, coupled with actual financial benefits, will be key to guaranteeing positive customer experiences, and therefore, the success of such programs. However, if doing the bare minimum, EV charging infrastructure at utilities must consider utilities’ long-term VGI plans to guarantee installed devices will be able to meet future needs and avoid early replacement or stranded assets.

Regulators can push the process forward through guidance and incentives to utilities across the board, from experiment and test use cases to deployment of technology and interoperability problem-solving.