PG&E to create first U.S. export rate incentive for vehicle-to-grid use of commercial electric vehicles
In a move to shore up the grid during peak energy demand periods, Pacific Gas and Electric Company (PG&E) requested – and this week received approval – to launch the nation’s first vehicle-to-grid (V2G) export compensation mechanism for commercial electric vehicle customers.
Focused on California, this new rate could incentivize commercial customers to buy electric in the first place and, further, to export power back onto the grid during peak demand periods from those vehicles by helping offset fleet costs. Commercial, in this case, also includes vehicles such as school buses. The rate will be available to charging equipment and stationary energy storage systems.
“The adoption of the nation’s first V2G export rate aligns with our core focus of proactively preparing the grid, increasing access to EV infrastructure, and supporting EV adoption through rates, rebates, tools, and education,” Aaron August, PG&E vice president of utility partnerships and innovation, said.
California represents the largest EV market in the United States, with more than 420,000 electric vehicles sold in PG&E’s service area alone – more than one in six of the country’s total. Capitalizing on that, PG&E made an agreement to lock in this rate with the Vehicle-Grid Integration Council (VGIC), Electrify America LLC, and the Public Advocates Office at the California Public Utilities Commission (CPUC) this month.
“As ever-greater numbers of EVs hit the roads, this innovative rate option will allow EV owners to further benefit from their investment in clean transportation,” Ed Burgess, VGIC policy director, said. “Leveraging the capability of EVs as a grid resource will help integrate more clean energy into our power system, reduce energy bills for all utility customers, and support California’s ambitious decarbonization goals.”
The new plan also fits into PG&E’s longer-term goals, which include preparing the grid for 12,000 GW hours of EV-related electric load and improved processes for rapid EV energization and interconnection by 2030. The company also foresees more than 2 million EVs being able to join through vehicle-grid integration applications to bolster grid reliability during the energy transition and beyond.
