Electric Vehicle (V2G) Report 2010 - Smart Grid Insights - Zpryme & ZigBee Alliance

Smart Grid Insights: V2G
This V2G report by Zpryme:

 Begins with a global perspective and progresses into high-growth markets
such as US, China, Japan, Germany, UK, South Korea, and Denmark
 Delves into drivers and trends such as Smart Grid and charging station
deployments, renewable energy policy, rising energy costs, auto
manufacturer financial viability pressures, universal standard adoption,
telematics, and brand loyalty
 Explores the role of the battery space, rising cost of fossil fuels, and the
Deepwater Horizon Oil Spill
 Discloses the actionable insights and opportunities to capitalize and
prepare for the V2G market in both the short and long term
 Concludes with commentary from the experts in V2G: University of
Delaware, Austin Energy, Plug in America, Ford Motor Company,
Grid2Home, Electrification Coalition, Coulomb Technologies, Smart Grid
Library and ZigBee Alliance

This issue proudly sponsored by:

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July 2010

Business & Consumer Insights Have Evolved. | www.zpryme.com | www.smartgridresearch.org

Zpryme and ZigBee would like to
Zpryme would like to extend the kindest regards to the following
extend the kindest regards to the
organizations that contributed to this issue of Smart Grid Insights:

following organizations that
contributed to this issue of Smart
Grid Insights:

Learn more @

ZigBee Alliance | zigbee.org

University of Delaware | udel.edu/V2G

Austin Energy | austinenergy.org

Ford Motor Company| ford.com

Coulomb Technologies| coulombtech.com

Electrification Coalition | electrificationcoalition.com.org

Grid2Home | grid2home.com

Plug in America | pluginamerica.org

Smart Grid Library | smartgridlibrary.com

― … [EV breeding
Dear Executives,

While BP, government leaders, and Hollywood luminaries such as James Cameron
and Kevin Costner have all played a role in finally putting a cap on all three
valves in the Gulf of Mexico well Zpryme was sifting through the overwhelming
feedback for this month‘s issue. Thank you for the candid outreach - more than half
of the requests for this month‘s topic were related to automotive and the ongoing
grounds] like China and
message to shift away from our dependency on fossil fuels; thus it was a natural
choice for our firm to select V2G. Also, our current members might have noticed
that we did not have an April, May, or June issue; this was for good reason as we
South Korea will have a
bundled April, May, June, and July to make this one of the most comprehensive
report on V2G that‘s available to the public. major piece of V2G –
as will [automotive
Why V2G? Swelling demand for electric vehicles bundled with environmental
conservation and energy efficiency will mean a robust car industry for decades to
come. Emerging [EV breeding grounds] like China and South Korea will have a
major piece of V2G – as will [automotive nerve centers] such as the US, UK,
Denmark, Germany, and Japan. That‘s why it‘s imperative that even at its infancy
stage preparation should be made for the next generation of smart vehicles,
V2G.
nerve centers] such as
Who will produce vehicles that connect to the Smart Grid that consumers will love?
Is the development of charging stations growing at the same pace as V2G
the US, UK, Denmark,
technology? What members of the Smart Grid ecosystem will get involved to
make V2G a reality? What V2G standards will be in place? These questions will
help form the auto industry of tomorrow and the energy leaders of today. For
Germany, and Japan.
now, leadership from experts such as Dr. Willett Kempton and his team at
University of Delaware, Coulomb Technologies and the ZigBee Alliance are rising
to the challenge to take proactive steps to answer these questions.

In brief, 2010 will be a landmark year for next-gen autos and the Smart Grid.
Please feel free to email Zpryme your feedback, comments, and suggestions
about this month or upcoming issues to smart.grid@zpryme.com.

Kind Regards,

Jason S. Rodriguez
CEO & Director of Research
Zpryme Research & Consulting, LLC

Table of Contents
Executive Summary........................................................................................................ 1
Background & Scope .................................................................................................... 6
V2G Concept ............................................................................................................. 8
Methodology .................................................................................................................. 9
V2G: Marketplace ...................................................................................................... 12
V2G Factsheet ......................................................................................................... 13
Global Market......................................................................................................... 14
Vehicle Unit Forecast.............................................................................. 15
Vehicle Market Forecast ........................................................................ 16
Infrastructure Forecast............................................................................ 17
Technology Forecast .............................................................................. 18
Revenue Forecast ................................................................................... 19
Global V2G Summary ........................................................................... 20
US Market ................................................................................................................ 24
China Market ........................................................................................................... 27
Japan Market .......................................................................................................... 30
Germany Market .................................................................................................... 33
UK Market ................................................................................................................ 36
South Korea Market ............................................................................................... 39
Denmark Market ..................................................................................................... 42 V2G: A Closer Look .................................................................................................... 45
Drivers ....................................................................................................................... 46
Trends........................................................................................................................ 49
The Battery Space .................................................................................................. 51
Insights....................................................................................................................... 51
Opportunities........................................................................................................... 52
Experts Plug-in ............................................................................................................. 54
University of Delaware ......................................................................................... 55
Austin Energy ........................................................................................................... 57
Smartgridlibrary.com............................................................................................. 58
Plug In America ....................................................................................................... 59
Electrification Coalition .......................................................................................... 60
Coulomb Technologies ........................................................................................... 62
Ford Motor Company & Grid2Home ................................................................. 63
ZigBee Alliance ....................................................................................................... 64

V2G Marketplace
Executive Summary Background & Scope Methodology V2G Marketplace V2G: A Closer Look Experts Plug-in

Executive Summary they pay to charge the battery. The consumer-reward model will play
a major role in the aggressive development of V2G. At the helm of
The BP Gulf oil spill has confirmed that the global electric vehicle V2G (and often referred to as the Father of the Vehicle-To-Grid) is Dr.
revolution is upon us. In a recent June article by the Baltimore Sun, (US) Willett Kempton and his team of graduate students at The University of
Brad Heavner State Director at Environment Maryland affirmed, "the Delaware where they are focused on making this automotive
catastrophe of the BP oil spill in the Gulf of Mexico is making it more technology a mainstream reality. V2G is still is in its infancy stage,
clear than ever that we need to work harder to reduce our however because of the strides made by Dr. Kempton and his team it is
dependence on oil … the US Senate must pass a comprehensive global increasing its footprint in the US and even Europe. "Ten years ago, this
warming bill that caps emissions and invests in clean energy options, was just a plan. Today, it's a real project and in ten years, we'll be
including electric vehicle technology." Similar sentiment was echoed by producing tens of megawatts of power this way," said Dr. Kempton,
Loyola de Palacio, Vice-President of the European Commission and back in February of this year at the annual meeting of the American
Commissioner responsible for energy and transport, ―during the next Association for the Advancement of Science.1
few decades, the dependency on imported energy sources into the EU
will increase substantially and it is likely that the flow of this energy will So how can the automotive, power, and technology industries get closer
increasingly depend on the political and economic stability of the oil to engaging the V2G model? V2G is in an early stage, which means
and gas producing regions.‖ companies such as auto, Smart Grid technology integrators and
telematic manufacturers can prepare themselves for market entry by
EVs are becoming increasingly more marketable, because they appeal closely monitoring government legislation, standards, Smart Grid and
to a wide spectrum of consumers. There will be more drivers in the charging station rollouts, and security.
market for electric cars in the next two years than the projected supply
from production lines, according to results from a poll by Ernst & Young. The V2G marketplace is positioned for explosive growth as consumers
More than 25% of the 4,000 drivers surveyed across the US, Europe, refine their relationship with their vehicle and manufacturers become
China and Japan said they would consider buying an electric vehicle. creative with application of Smart Grid technologies within vehicles. As
more charging stations roll out automakers from Nissan to GM to Tesla
There are many types of consumers considering purchasing an EV: the will prepare for production of more EVs, inevitably setting the V2G
environmentally conscience who value zero emissions and alternative stage.
fuel sources, the economically driven who are attracted to minimal
vehicle depreciation and fuel savings, and movers-and-shakers who are V2G Marketplace (projections developed by Zpryme)
drawn to the immersive in-car experience and stylish exterior.
Collectively, these are the same consumers that will be owners and
evangelists for the next generation of vehicles, V2G (Vehicle to the 1.056 million (V2G Units)
Grid).
V2G Units: From 2015 to 2020, global V2G vehicle unit sales are
What is V2G? A V2G vehicle is one that can connect, communicate, and projected to grow from 103,900 to 1.06 million, respectively. The
sell demand response services to the grid. As a result, consumers will V2G vehicle unit sales compound annual growth rate (CAGR) from
become independent of the gas pump while receiving financial 2015 to 2020 is projected to be 59.0 percent.
compensation for their actions. To help lay this groundwork for V2G,
Delaware (US) passed a law in 2009 requiring utilities to compensate
electric car owners for power sent back to the grid at the same rate 1 Discover News, New Electric Car Pays For Itself, Karin Zeitvogel, February 19, 2010

Learn more @ Learn more @ Page | 1
www.zpryme.com www.zigbee.org


Smart Grid deployments, renewable energy policy, rising energy costs,
$26.6 billion (V2G Vehicle Market Value) consumer and business environmental awareness, green stimulus
packages, a reduction in the price for V2G vehicles, strong HEV/PHEV
demand, auto manufacturer financial viability pressures, and a move
V2G Vehicle Market Value: From 2015 to 2020, the global V2G towards universal standard adoption. V2G trends will be motivated by
vehicle market value is projected to grow from $3.2 billion to $26.6 telematics, brand loyalty, charging station deployments, and the
billion, respectively. The V2G vehicle market value CAGR from 2015 ongoing rollout of the Smart Grid. Collectively, these factors will be the
to 2020 is projected to be 53.1 percent. gel that will shape V2G consumer adoption and encourage new
entrants to compete in this space.

$6.7 billion (V2G Infrastructure Market Value) The Battery Space

For the automotive industry, securing access to high-quality, cost-
V2G Infrastructure Market Value: From 2015 to 2020, the global V2G effective rechargeable batteries that inspire consumer confidence in
infrastructure market is projected to grow from $659.9 million to $6.7 ‗range anxiety‘ is crucial for future success in the V2G arena.2
billion, respectively. The compound annual growth rate (CAGR) from
2015 to 2020 is projected to be 58.9 percent. Insights and Opportunities

 For the next five years the market for residential charging
$10.5 billion (V2G Technology Market Value) stations will provide a greater opportunity than commercial
charging stations
 Japan's current leadership in the EV space will position the
V2G Technology Market Value: From 2015 to 2020, the global V2G nation to pioneer the next generation of V2G for the
technology market is projected to grow from $1.5 billion to $10.5 mainstream consumer
billion, respectively. The compound annual growth rate (CAGR) from  The hardware/software industry is relatively untapped in the
2015 to 2020 is projected to be 46.8 percent. V2G space, but companies such as AC Propulsion and Azure
Dynamics are two that have established footprints in this
$2.9 billion (V2G Total Revenue) 
industry
Environmental catastrophes such as the BP oil spill are playing a
significant role in how consumers will gradually minimize their
V2G Total Revenue: From 2015 to 2020, global V2G grid revenues fossil fuel dependency
are projected to grow from $284.4 million to $2.9 billion,  Currently, there are only a small handful of players developing
respectively. The compound annual growth rate (CAGR) from 2015 to V2G hardware and software, leaving this space easily
2020 is projected to be 63.5 percent. accessible for new entrants and partnerships
Drivers and Trends

V2G technology advancement and adoption will be driven by global 2Wall Street Journal; Toshiba, Mitsubishi Motors Developing Electric Car Batteries; Juro Osawa
and Yoshio Takahashi, July 2, 2010.

Learn more @ Learn more @
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― ―
Experts Plug-in: Quotes Worth Noting

University of Delaware Electrification Coalition

Business models for how to use this colossal The biggest challenge for V2G applications is
energy storage resource practically and getting cars on the road and making sure they

―
profitably will be coming up like mushrooms meet consumers’ needs..

―
after the rain.
Coulomb Technologies
Austin Energy
Our market is limited now to people who will
Austin Energy predicts that they may have up buy stations in anticipation of the cars… that
to 30,000 PHEVs in 2015 and 190,000 in problem will be gone in a year and it will be

― ―
2020. all about how fast we can scale.
Smart Grid Library Ford Motor Company & Grid2Home

When an EV fulfills transport and mobile The biggest challenge for the industry will be to
storage functions, its value as an owner asset ensure interoperability between

―
appreciates enormously. independently developed and supplied
equipment. in t

―
Plug In America

There are no natural incentives for automakers ZigBee Alliance

to initiate V2G… incentives must be created..
The advent of grid-enabled vehicles extends
the control consumers have over their energy
usage, and provide one of the biggest bang-
for-buck impacts on the environment.

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V2G Share of Global Vehicle Annual Sales, 2020*
V2G Share of Global Vehicle Annual Sales, 2015*
Global Vehicle Unit Sales = 81.2 million Global Vehicle Unit Sales = 89.4 million
60 70

30
40
50

0
80
90
50 60 70
20 0

10
0
40 80
8 1 . 2 M
30 90
20

―
V2G Vehicle Share of Global Vehicle Market 0.1%
V2G Vehicle Share of Global Vehicle Market,
Global Share of All Vehicle Types, 99.9%

10
Although V2G vehicles are
expected to see strong
growth from 2015 to 2020,
these next-gen autos will
[only account for 1.2%] or 8 9 . 4 M
[12 out of 1,000 vehicles]
of the global vehicle market
space by 2020. V2G Vehicle Share ofof Global Vehicle Market, 1.2%
V2G Vehicle Share Global Vehicle Market
Zpryme Global Share of All Vehicle Types, 98.8%

*Source: Global V2G forecast by Zpryme; global automotive forecast by A.T. Kearney

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s

| Background & Scope

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Background & Scope fluctuates at a much faster ramp rates than any existing
generation.
Vehicle-to-Grid (V2G) Definition  Provide electrical storage to allow increased use of intermittent
renewable energies such as wind power and photovoltaics. Up
The following definition of V2G has been taken from Mid-Atlantic Grid to a certain percentage of generation, the fluctuations of wind
Interactive Cars Consortium (MAGICC), a research partnership between and solar are handled by today‘s grid management. To
University of Delaware, Pepco Holding, Inc., PJM Interconnect, displace large fractions of fossil generation, electrical storage
Comverge, Inc., and the Atlantic County Utilities, Authority (ACUA). will be needed. Fleets of V2G-capable vehicles constitute such
a system, capable of holding MWs of electricity for later use.
V2G technology utilizes the stored energy in electric vehicle batteries
to contribute electricity back to the grid when the grid operators Elements needed for V2G
request it. Revenue from V2G will reduce the customer cost of electric
vehicles; it will also increase the efficiency and reliability of the existing  A plug-in car - Either a plug-in hybrid or pure electric will work.
grid today by decreasing petroleum use and creating a much larger The economic value of V2G is proportional to kW capacity of
share of intermittent renewable energies such as wind and solar in the the power plug.
future. V2G allows electric-gasoline hybrids or fully-electric vehicles to
provide power back to the grid. Electric-drive vehicles, whether  Control Signal from the electric grid - In most areas of the US,
powered by batteries, fuel cells, or gasoline hybrids, contain the the Independent System Operator (ISO) provides an electronic
energy source and power electronics capable of producing the 50 Hz signal to request frequency regulation, reserves, and other
or 60 Hz AC electricity to power our homes and offices. The key to forms of fast-response, high value power. Additionally, a local
realizing economic value from V2G is making the power available utility may want to signal for other V2G services, such as peak
without compromising the driving requirements of a single vehicle load shedding or relief on targeted parts of the distribution
owner, yet meeting the time- critical "dispatch" needed by the electric system.
distribution system.
 Computing to mediate driver and grid needs - There must be
Using V2G technology, the cost of such storage can be shared between intelligent mediation between driver and grid operator needs.
the electrical system and the transportation system, making it
economically more efficient. Using IP or broadcast protocols, utilities Market Definitions
grid operators can ―talk‖ to plugged-in cars, buy electricity from car
owners when it is needed, and sell it back when demand is lower. For each of the projections, the expected manufacturer selling prices
have been used to calculate the market value. All figures are stated in
Expected results US nominal dollars. Also, some percentages may not add up exactly to
100% due to rounding.
 Increased reliability and efficiency of existing electric grid.
V2G cars can take reduce over-loaded distribution feeders V2G vehicles: for the purpose of this report, a V2G vehicle is one that
when energy demands are high. They can supplement or can connect, communicate, and sell demand response services to the
replace spinning reserves and provide regulation as demand grid. A vehicle with grid capacity can be a Battery Electric Vehicle
(BEV) or a Plug-in hybrid electric vehicle (PHEV). Vehicle units sold are

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expressed in annual units. Cumulative V2G vehicles on the road are not demand response programs associated with the vehicle or
reported. V2G vehicles are produced and sold by automobile vehicles.
manufactures to dealers or directly to large commercial and public
customers.  Equipment: this equipment such as computers, networking
equipment, cabling, processors, and circuits that allow for the
V2G vehicle market value: the V2G vehicle market value is the execution, management, reporting, and processing of V2G
aggregate of expected annual revenues received by automobile tasks.
manufactures for the sale of V2G vehicles (wholesale values).
V2G grid revenues: V2G grid revenues are the aggregate total of the
V2G infrastructure: without the proper infrastructure in place, the V2G expected payments made to all V2G vehicle owners. Payments are
market will not get very far. The infrastructure in this report refers only made to V2G vehicle owners by grid operators or utilities for the sales
to infrastructure that will support V2G vehicles. Infrastructure comprises of their ‗grid power‘ in the vehicle back to the grid.
of residential charging stations, commercial/public charging stations,
distribution systems upgrades to the grid, software and systems, The five categories symbols in this report are:
equipment, and data storage.
 V2G vehicle unit  V2G technology
V2G technology: V2G technology is comprised of the key components
an automobile manufacture must place into a vehicle to produce a V2G  V2G vehicle market value  V2G infrastructure
vehicle. Without these key components (V2G technology), a vehicle
cannot communicate with the grid and/or sell demand response
services. Software and system vendors and equipment manufacturers  V2G grid revenue 
are expected to sell these components to automobile manufactures.
However, system operators, utilities, and V2G vehicle owners will need Forecast period: the forecast period for this report is 2015 – 2020.
to purchase and install some of these components as well. In this report, This period was arrived at after a thorough review of V2G literature,
V2G technology is broken into 3 components or segments: public PHEV and EV reports, and from industry expert interviews.
Although views sometimes varied widely on when the market will be
fully developed, the consensus view of our research showed that 2015
 Drive systems (power electronics unit): the drive system is the is a viable target date for formal market development. The period
most expensive component among the key V2G technology from 2010 to 2015 is seen as the testing and demonstration phase
components. The drive system operates as a DC-AC inverter (market infancy). See the Methodology in this report for a list of the
and enables bi-directional power to flow from the vehicle to the key reports, studies, and sources used in developing the forecast
grid. Drive system innovation and evolution is critical to period.
increasing adoption of V2G technology.
Geographic coverage: This report showcases the projected Global
 Software and communication systems: for example, ZigBee market values from 2015 to 2020, and the projected market for the
Smart Energy and HomePlug enable the two-way US, UK, China, Denmark, South Korea, Japan, Germany, and the Rest
communication between the grid and the vehicle. Further, they of the World (ROW) from 2015 to 2020.
allow monitoring, scheduling, and analysis of charge times and

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V2G Concept

Battery
Petroleum

Hybrid

Fossil
Biomass
Electrolysis
Ect. Fuel Cell

V2G Concept
The V2G concept is that battery, hybrid, and fuel cell vehicles all can send power to the electric grid, power that all three

Power Grid already generate internally. For battery and plug-in hybrid vehicles, the power connection is already there. For fuel cell
and fuel-only hybrids, an electrical connection must be added. Orange arrows indicate electric flow from vehicles to the
grid (Source: University of Delaware V2G Research Group, learn more at www.udel.edu/V2G/concept).

Page | 8

Methodology

| Methodology

Page | 9


Methodology Technologies Program and the DOE Office of Electricity
Delivery & Energy Reliability)
The projections presented in the report were derived through rigorous  A Test of V2G for Energy Storage and Frequency Regulation
analysis and evaluation of the BEV, PHEV, Hybrid, and Next in the PJM System, William Kempton et al.
Generation Vehicle markets. Further, heavy investigation into the Smart  Annual Energy Outlook 2010 – 2007 to 2035 Projections,
Grid industry was analyzed as the Smart Grid is considered a main US Energy Information Administration
driver of growth for V2G technology. Last, infrastructure development
and projected deployments were assessed to identify the feasibility of 3. Forecast model: Time series forecasting was used to derive the
a market to support the projected number of V2G vehicles. The seven projections in this report. Using the historical sales data from
points below provide an overview for the inputs for the projections in hybrid and next-generation vehicles (alternative fuel vehicles),
this report. projections were forecasted for each country and the ROW
starting with 2015 as the base period. Thus, our projections
1. Historical data and market performance: Historical data on assume V2G market penetration will follow a growth trajectory
Hybrid and next generation vehicle sales in the countries path similar to hybrid and next-generation vehicles. The
covered in this report and around the globe were analyzed to summation of the forecasts formed the global market in each
identify growth modes and expected unit sales at the market respective forecast. The key forecast, which formed the basis
entry phase and market development phase. Once forecasts for all other projections, was the V2G vehicle unit forecast.
were produced, the data were used to test the validity of the Econometric modeling was used to establish a price – demand
growth in units and the annual compound growth rate in specific relationship of the increase in sales with respect to the expected
markets. price of a V2G vehicle. This relationship further contributed to
our expected decrease in the costs to produce V2G vehicles for
2. Establishing market forecast period: The forecast period of automobile manufactures.
2015 to 2020 was arrived at after examining and studying the
expected development of PHEV and EV market and the 4. Costs, price, Smart Grid, and infrastructure considerations:
reduction in costs of V2G technology. The reports listed below Reductions in cost and the price of the V2G vehicles to
were critical to developing the projections and forecast period. consumers are expected to fall as the market expands.
However, significant cost and price reductions are not expected
 Electric Vehicles in the United States – A New Model with until the market development phase begins. Unit purchase
Forecasts to 2030, Center for Entrepreneurship & incentives and penetration of hybrids was also taken into
Technology (CET) Technical Brief consideration. Affordability by main stream consumers is not
 Technology Roadmap – Electric and plug-in hybrid electric likely to occur until 2020. Additionally, stated Smart Grid
vehicles, International Energy Agency deployments are expected to remain ‗on schedule‘ and thus be
 Assessment of Plug-in Electric Vehicle Integration with able to support the integration of V2G vehicles. Key basic
ISO/RTO Systems, KEMA, Inc and the ISO/RTO Council infrastructure such as charging stations is expected to be built in
conjunction with planned BEV and PHEV programs for utilities
 Plug-In Hybrid Electric Vehicle Value Proposition Study – and governments. In other words, static V2G technology
Interim Report: Phase 1 Scenario Evaluation, Sentec, Inc. capabilities will exist instead of dynamic V2G technology. For
(funded by the US Department of Energy Vehicle example, dynamic V2G technology would mean a V2G vehicle
could charge and sell back to the grid from anywhere a

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charging station is available while static means this can only
happen from a fixed station pre-determined by a utility or ISO.

5. Automobile manufacturer BEV and PHEV model announcements:
In 2009 and 2010, major automobile manufacturers such as
Ford, Toyota, and Nissan announced EV, Hybrid, and PHEV
models or potential models and made EVs and PHEVs a key to
their future growth. Although none have formally announced a
V2G vehicle, it is safe to assume that they will soon offer such
vehicles once a viable market opportunity is clearly present.
Thus the BEVs and PHEVs in their portfolio offer a natural
transition to V2G enabled BEVs and PHEVs.

6. Explicit government BEV and PHEV targets and programs: The
seven governments in this report have set aggressive targets for
BEVs and PHEVs in their respective countries. These targets
provided key data regarding optimal penetration for BEVs and
PHEVS. Further these announcements gave support for the
expected cost and end-user prices due to economies of scale.
Announced targets for each respective government are
discussed in the market projections for each country in this
report.

7. Other key assumptions: Global economic growth remains
relatively steady and stays on trend, especially growth in Asian
markets. Additionally, our analysis assumes no global
imbalances, recessions, or geopolitical crises occur. Next,
consumer demand in each respective country is driven by
upper-income buyers while fleet demand driven by the
commercial and public sector. Finally, rising costs of gasoline
are expected to follow the trend predicted by the US Energy
Information Administration.

Page | 11

mon Islands Mexico Luxembourg Eritrea Portugal Bahamas Greenla
dova Tonga Niue Sao Tome and Principe Somalia Netherlands Ant
V2G: Marketplace

t Lucia Trinidad and Tobago Congo Democratic Republic of the (Za
awi Anguilla [United States] Nauru New Caledonia (French) Slova
elau French Guiana Christmas Island Lithuania Bouvet Island Mald
wana Chad [Denmark] Liechtenstein
V2G: Equatorial Guinea Guadelo
Marketplace
nch) Benin Cuba Svalbard and Jan Mayen Islands Hungary Armenia Bol
ada Northern Mariana Islands Nigeria Russia Bosnia-Herzegovina Eg
eria [China] Brazil Sri Lanka Palau Saint Pierre and Miquelon Ni
bia Dominican Republic Mozambique Malta Saint Helena Saudi Arabia
ador Mauritania [United Kingdom] Suriname Israel Uruguay Cyp
ed Arab Emirates Slovenia Polynesia (French) Norway Grenada Belg
an San Marino Andorra [Germany] Syria Greece Cameroon Argen
ei Liberia [South Korea] Guinea Montenegro Thailand Sudan S
and Nevis Panama Morocco Albania Jamaica India Bahrain Jor
muda Singapore [Japan] Chile Turks and Caicos Islands Falkland Isla
wan Turkey Cocos (Keeling) Islands Estonia Iraq Hong Kong Mauritius Ma
Page | 12


Global V2G Market Factsheet 2020
V2G Factsheet

Country Units Market Infrastructure Technology Revenue

Global 1,056 $26.6 $6.7 $10.5 $2.9

US 296 $8.1 $1.8 $2.8 $.654

China 294 $6.5 $1.8 $2.8 $.521

Japan 188 $4.4 $1.2 $1.8 $.735

Germany 62 $1.6 $.377 $.587 $.587

UK 45 $1.3 $.277 $.432 $.323

South Korea 30 $.72 $.175 $.283 $.053

Denmark 13 $.038 $.081 $.126 $.093

thousands US billions US billions US billions US billions
Source: Zpryme

Page | 13


Global V2G Market 2020
Global Market

1.056 million (V2G Units)
$26.6 billion (V2G Vehicle Market Value)
$6.7 billion (V2G Infrastructure Market Value)
$10.5 billion (V2G Technology Market Value)
$2.9 billion (V2G Total Revenue)
Source: Zpryme

Smart Grid Cloud
Spanish utility Iberdrola has selected Itron for the first phase of its smart metering program (The initial deployment will see the delivery of 100,000 meters to the Spanish city of Castellon). Aruba Networks, has agreed
to acquire Azalea Networks for $40.5M in a cash and stock deal. Telvent to implement Smart Grid project for Maharashtra India (The cost of the program is approximately $10.3B). Coulomb Technologies, which
started installing 4,600 charging stations under its $37M ChargePoint America program, will also be providing 1,800 home charging points to Chevrolet Volt customers. OG&E to spend up to $366.4M on Smart Grid
deployment to the rest of its Oklahoma service area by the end of 2012 (other agreement puts OG&E in line to receive $130 in stimulus funds from the US government for the project). EPRI and the Tennessee Valley
Authority (TVA) are collaborating for a prototype integrated solar-assisted electric vehicle charging station that will be erected at the institute‘s Knoxville, Tenn., research laboratory. EnergyAustralia, will lead a
$100 million "Smart Grid, Smart City" project in the state of New South Wales that will begin later this year. The project will be a little bit of everything when it comes to Smart Grid, from substation automation and
charging stations for electric vehicles to home area networks and time-of-use pricing. Sensus, claims more than 7M advanced meter endpoints at water, gas and electric utilities across the United States and Canada.
Energate, an Ottawa clean technology startup has raised $7.2M in venture capital funding to drive sales of Smart Grid technology aimed a reducing energy consumption in the home. ENMAX and Cisco are co-
developing a Smart Grid power system in Calgary, Canada (The agreement is part of the power provider's plan to move to a more high-tech service model - coined "Utility 2.0").

Page | 14


Closer Look: From 2015 to 2020, global V2G vehicle unit sales are projected to grow from 103,900 to 1.06
Vehicle Unit Forecast
million, respectively. The V2G vehicle unit sales compound annual growth rate (CAGR) from 2015 to 2020 is
projected to be 59.0 percent.

Global V2G Vehicle Unit Forecast
1,200,000 2015 - 2020 | Compound Annual Growth Rate = 59.1%
Source: Zpryme
1,056,732

1,000,000

800,000 766,289

600,000
542,974

400,000 363,241

229,209
200,000
103,641

0
2015 2016 2017 2018 2019 2020
Denmark 1,591 2,902 4,413 6,434 9,599 13,202
South Korea 2,998 5,562 8,893 13,754 19,856 29,622
UK 4,185 7,303 14,290 24,195 32,930 45,221
Germany 6,493 11,793 19,166 31,097 42,985 61,486
ROW 18,963 45,626 65,325 92,240 132,019 129,369
Japan 18,914 58,133 87,734 125,319 150,834 187,642
China 14,414 33,559 59,205 101,948 170,886 293,922
U.S. 36,082 64,331 104,216 147,986 207,181 296,268

Page | 15


Vehicle Market Forecast
Closer Look: From 2015 to 2020, the global V2G vehicle market value is projected to grow from $3.2 billion
to $26.6 billion, respectively. The V2G vehicle market value CAGR from 2015 to 2020 is projected to be 53.1
percent.

Global V2G Vehicle Market Value Forecast
$30 2015 - 2020 | Compound Annual Growth Rate = 53.1% | (US millions)
Source: Zpryme
$26.6

$25

$20.1
$20

$15 $14.8

$10.3
$10

$6.7

$5
$3.2

$0
2015 2016 2017 2018 2019 2020
Denmark $0.1 $0.1 $0.1 $0.2 $0.3 $0.4
South Korea $0.1 $0.2 $0.2 $0.4 $0.5 $0.7
UK $0.1 $0.2 $0.4 $0.7 $0.9 $1.3
Germany $0.2 $0.4 $0.6 $0.9 $1.2 $1.6
ROW $0.6 $1.4 $2.0 $2.7 $3.8 $3.6
Japan $0.5 $1.6 $2.3 $3.2 $3.7 $4.4
China $0.4 $0.9 $1.5 $2.4 $3.9 $6.5
U.S. $1.1 $2.0 $3.1 $4.3 $5.8 $8.1

Page | 16


Closer Look: From 2015 to 2020, the global V2G infrastructure market is projected to grow from $659.9
Infrastructure Forecast
million to $6.7 billion, respectively. The compound annual growth rate (CAGR) from 2015 to 2020 is projected
to be 58.9 percent.

Global V2G Infrastructure Forecast
$8,000 2015 - 2020 | Compound Annual Growth Rate = 58.9% | (US millions)
Source: Zpryme

$7,000 $6,685.7

$6,000

$5,000
$4,543.0

$4,000

$3,269.3
$3,000

$2,223.1
$2,000
$1,435.8

$1,000
$659.9

$0
2015 2016 2017 2018 2019 2020
Denmark $10.0 $18.1 $27.4 $39.8 $59.1 $81.0
South Korea $18.8 $34.4 $54.4 $82.4 $117.5 $175.1
UK $26.2 $45.6 $88.8 $149.6 $202.8 $277.3
Germany $40.7 $73.6 $119.1 $192.3 $264.7 $377.1
ROW $129.0 $290.5 $373.1 $484.0 $641.6 $1,005.3
Japan $118.6 $362.8 $545.0 $775.1 $928.9 $1,150.7
China $90.4 $209.4 $367.8 $630.6 $1,052.4 $1,802.4
U.S. $226.2 $401.4 $647.4 $915.3 $1,275.9 $1,816.8

Page | 17


Technology Forecast
Closer Look: From 2015 to 2020, the global V2G technology market is projected to grow from $1.5 billion to
$10.5 billion, respectively. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be
46.8 percent.

Global V2G Technology Forecast
$12,000 2015 - 2020 | Compound Annual Growth Rate = 46.9% | (US millions)
Source: Zpryme
$10,485.3
$10,000

$8,000 $7,765.3

$6,000 $5,910.7

$4,376.4

$4,000
$3,086.0

$2,000 $1,533.9

$0
2015 2016 2017 2018 2019 2020
Denmark $24.3 $40.2 $55.7 $73.9 $100.5 $126.1
South Korea $45.7 $77.1 $112.2 $158.0 $207.9 $283.0
UK $63.8 $101.3 $180.3 $278.0 $344.8 $432.0
Germany $99.0 $163.5 $241.8 $357.3 $450.1 $587.4
ROW $242.5 $540.6 $618.0 $732.5 $1,123.5 $1,589.9
Japan $288.4 $806.0 $1,106.8 $1,439.7 $1,579.5 $1,792.6
China $219.8 $465.3 $746.9 $1,171.2 $1,789.4 $2,808.0
U.S. $550.2 $891.9 $1,314.8 $1,700.2 $2,169.5 $2,830.4

Page | 18


Revenue Forecast
Closer Look: From 2015 to 2020, global V2G grid revenues are projected to grow from $284.4 million to
$2.9 billion, respectively. The compound annual growth rate (CAGR) from 2015 to 2020 is projected to be 63.5
percent.

Global V2G Revenue Forecast
$3,500
Revenues Generated from Selling Regulation &
*Benchmarks for
$3,000 Spinning Reserve* $2,904.2

expected payments 2015 - 2020 | Compound Annual Growth Rate = 63.5% | (US millions)
from grid sales Source: Zpryme
received by V2G $2,500
vehicle owners are
based on averages
presented by studies $2,050.1
conducted by the $2,000
University of
Delaware and PJM
Interconnect, the
FERC‘s ‗Cash Back $1,500 $1,446.8
Hybrid‘ presentation,
and the United States
Postal Service‘s
Electrification of $1,000 $934.9
Delivery Vehicles
Feasibility Study
Report. $570.7
$500
$284.4

$0
2015 2016 2017 2018 2019 2020
South Korea $4.8 $9.0 $14.8 $23.5 $34.8 $53.2
Denmark $10.9 $20.0 $30.6 $44.9 $67.3 $93.0
ROW $27.4 $67.0 $97.6 $140.2 $204.1 $203.4
Germany $32.0 $58.8 $96.7 $158.5 $221.6 $320.4
UK $17.0 $33.2 $72.6 $137.8 $210.0 $323.0
China $20.8 $50.5 $92.9 $166.7 $291.1 $521.7
U.S. $72.2 $131.2 $216.9 $314.1 $448.5 $654.2
Japan $63.3 $200.9 $312.8 $461.2 $572.8 $735.4

Page | 19


Global V2G Summary Projected V2G Vehicle Units
Market Segementation by Country | 2015
South
Global V2G Vehicle Units Korea Denmark
2.9% 1.5%
From 2015 to 2020, global V2G vehicle unit sales are projected to UK 4.0%
grow from 103,900 to 1.06 million, respectively. The V2G vehicle unit Germany
sales compound annual growth rate (CAGR) from 2015 to 2020 is 6.3%
projected to be 59.0 percent.
ROW U.S. 34.8%
 In 2015, the US, Japan, and China are projected to dominate 18.3%
the V2G vehicle market, accounting for 34.8 percent, 18.2
percent, and 13.9 percent of the global V2G unit sales,
Japan China
respectively. In 2020, the V2G vehicle unit market share of the 18.2% 13.9%
US, Japan, and China are projected to be 28.0 percent, 27.8
percent, and 17.8 percent, respectively. Source: Zpryme

 In 2015, the collective V2G vehicle market share of Germany, Projected V2G Vehicle Units
the UK, South Korea, and Denmark are projected to account for Market Segementation by Country | 2020
14.7 percent of global V2G unit sales. In 2020, the collective South
V2G vehicle unit market share of Germany, the UK, South Korea Denmark
2.8% 1.2%
Korea, and Denmark are projected to account for 14.2 percent UK 4.3%
of global V2G unit sales.
Germany
5.8%
 From the 2015 to 2020, V2G vehicle unit sales in China, the
UK, Japan, and South Korea are projected to grow the fastest ROW U.S. 28.0%
among the seven countries covered in this report. 12.2%

Global V2G Vehicle Market Value Forecast Japan
17.8% China
27.8%
From 2015 to 2020, the global V2G vehicle market value is projected
to grow from $3.2 billion to $26.6 billion, respectively. The V2G Source: Zpryme
vehicle market value CAGR from 2015 to 2020 is projected to be 53.1
percent (see Global V2G Vehicle Market Value Forecast on page 13).

 In 2015, the V2G vehicle market value is projected to be the
highest in the US ($1.1 billion) and Japan ($0.5 billion)
However, in 2020 the US ($8.1 billion) and China ($6.5 billion)
are projected to be the two largest markets.

Page | 20


Global V2G Infrastructure Projected V2G Infrastructure
From 2015 to 2020, the global V2G infrastructure market is projected South
to grow from $659.9 million to $6.7 billion, respectively. The compound Korea Denmark
UK 4.0% 2.8% 1.5%
annual growth rate (CAGR) from 2015 to 2020 is projected to be 58.9
percent.
Germany
6.2%
 In 2015, the US is projected to lead the V2G infrastructure U.S.
market, accounting for 34.3 percent ($226.2 million) of the 34.3%
global market. However, in 2020, the US share of the global ROW
19.6%
market is projected to shrink to 27.2 percent ($1.82 billion).
China is projected to be just behind the US with 27.0 percent
($1.80 billion) of the global market in 2020. Japan China
18.0% 13.7%
 Public charging stations are projected to make up the largest
share of V2G infrastructure, accounting for 57.1 percent Source: Zpryme
($376.9 million) of the global market in 2015 and 63.2 percent
($4.23 billion) of the market in 2020. During this time period, Projected V2G Infrastructure
the compound annual growth rate for V2G public charging Market Segementation by Country | 2020
stations is projected to be 62.1 percent. South
Korea Denmark
UK 2.6%
 Residential charging stations are projected to account for 16.7 4.1% 1.2%
percent ($124.4 million) of the global market in 2015 and 14.5
percent ($1.21 billion) of the market in 2020. During this time Germany
period, the compound annual growth rate for V2G residential 5.6%
U.S.
charging stations is projected to be 57.5 percent. 27.2%
ROW
 Global V2G related distribution system upgrades are 15.0%
projected to grow from $110.4 million to $966.3 million from
2015 to 2020. During this time period, the compound annual Japan
17.2% China
growth rate for distribution system upgrades is projected to be 27.0%
54.3 percent.
 Global V2G IT infrastructure expenditures, which includes Source: Zpryme
software, equipment, storage, and other IT related products,
are projected to grow from $48.2 million to $286.6 million
from 2015 to 2020. During this time period, the compound
annual growth rate for V2G IT infrastructure is projected to be
42.8 percent.

Page | 21


Global V2G Technology Projected V2G Technology
From 2015 to 2020, the global V2G technology market is projected to South
grow from $1.5 billion to $10.5 billion, respectively. The compound Korea Denmark
UK 3.0% 1.6%
annual growth rate (CAGR) from 2015 to 2020 is projected to be 46.8 4.2%
percent.
Germany
6.5%
 In 2015, the US is projected to lead the V2G technology U.S.
market, accounting for 35.9 percent ($550.2 million) of the 35.9%
ROW
global market. However, in 2020, the US share of the global 15.8%
market is projected to shrink to 27.1 percent ($2.83 billion).
China is projected to be just behind the US with 26.9 percent
Japan
($2.81 billion) of the global market in 2020. 18.8%
China
14.3%
 V2G drive systems are projected to make up the largest share Source: Zpryme
of the V2G technology market, accounting for 91.2 percent
($1.4 billion) of the global market in 2015 and 90.7 percent
($9.5 billion) of the market in 2020. During this time period, the
compound annual growth rate for V2G drive systems is Projected V2G Technology
projected to be 46.6 percent. Market Segementation by Country | 2020
South
 The global market for V2G software and systems is projected Korea
UK 2.7%
Denmark
to grow from $57.0 million to $354.6 million from 2015 to 1.2%
4.1%
2020. During this time period, the compound annual growth
Germany
rate for V2G software and systems is projected to be 44.1 5.6%
percent. U.S.
27.1%
ROW
 The global market for V2G equipment is projected to grow 15.2%
from $41.5 million to $331.4 million from 2015 to 2020.
During this time period, the compound annual growth rate for Japan
V2G software and systems is projected to be 51.5 percent. 17.2% China
26.9%

Source: Zpryme

Page | 22


Global V2G Grid Revenues
Projected Global V2G Technology Segementation by Component
2015 and 2020
From 2015 to 2020, global V2G grid revenues are projected to grow
100% from $284.4 million to $2.9 billion, respectively. The compound annual
90% growth rate (CAGR) from 2015 to 2020 is projected to be 63.5
Percent of Total Market

80% percent.
70%
60%
50%
 In 2015, V2G grid revenue is projected to be the highest in the
40% US ($72.2 million) and Japan ($63.3 million). However, in 2020
30% Japan ($735.4 million) is projected to exceed the US ($654.2
20% million) in grid revenues. Japan‘s lead in 2020 can be most
10% attributed to the cost of electricity in Japan relative to
Source: Zpryme 0% electricity costs in the US.
2015 2020
Other/Misc 2.4% 2.7%
Equipment
 From the 2015 to 2020, V2G grid revenue in China and the UK
2.7% 3.2%
Software and Systems
are projected to grow the fastest among the seven countries
3.7% 3.4%
Drive System
covered in this report.
91.2% 90.7%

Projected Global V2G Infrastructure Segementation by Component Projected V2G Revenue* Projected V2G Revenue *
Market Segementation by Country | 2015 Market Segementation by Country | 2020
2015 and 2020 South South
Denmark Korea Denmark Korea
100% 4.4% 1.9% 3.2% 1.8%
90% ROW
Percent of Total Market

ROW
11.0% 7.0%
80%
70% Japan
25.5% Germany Japan
60% 11.0% 25.3%
50% Germany UK 11.1%
40% 12.9% U.S.
30% U.S. 22.5%
UK 6.8% 29.1% China
20% China
18.0%
10% 8.4%

Source: Zpryme 0% Source: Zpryme Source: Zpryme
2015 2020
Other 0.1% 0.1% *Benchmarks for expected payments from grid sales received by V2G vehicle owners are based on averages
Storage 3.4% 2.2% presented by studies conducted by the University of Delaware and PJM Interconnect, the FERC‘s ‗Cash Back Hybrid‘
presentation, and the United States Postal Service‘s Electrification of Delivery Vehicles Feasibility Study Report.
Equipment 1.2% 0.6%
Software and Systems 2.6% 1.4%
Distribution System Updgrades
(Grid) 16.7% 14.5%

Commerical/Public Charging
Stations 57.1% 63.2%

Residential Charging Stations 18.8% 18.0%

Page | 23


USUSV2G Market 2020
Market

296 thousand (V2G Units)
$8.1 billion (V2G Vehicle Market Value)
$1.8 billion (V2G Infrastructure Market Value)
$2.8 billion (V2G Technology Market Value)
$654 million (V2G Total Revenue)
Source: Zpryme

Smart Grid Cloud
The Federal Energy Regulatory Commission (FERC) released its National Action Plan on Demand Response report, which identifies strategies various stakeholders can use to promote demand
response efforts. EPCE was awarded a $2.55M Smart Grid Workforce Training and Development Grant. Memphis Light, Gas and Water division is likely to expand the size of its Smart Grid
demonstration project from 1,000 households up to 1,900. Atheros Communications has executed an agreement with the US DOE under to receive $4.5M in grant funding to develop powerline
chips designed to provide two-way data communications over existing AC wiring. Toshiba and Kyocera have been chosen to work on Smart Grid demonstration projects in New Mexico (NEDO
will be investing $30M over four years on micro-grid and smart house demonstration projects). The Utilities Telecom Council and Verizon plan to conduct a study of the communications and
information technology requirements of the nation's utilities. San Diego Fabless Startup is receiving $6M to create Smart Grid chip. Tampa Electric Co. launched a pilot project that will evaluate the
SunWave solar photovoltaic system from Petra Solar. Opelika’s Light and Power department has undertaken a $30M project to connect every home in the city with fiber-optic cable. FirstEnergy
won $57.4 million in federal grants for Smart Grid technologies in Ohio, Pennsylvania and New Jersey. GE and a group of four venture capital firms are putting up $200M to push development of
new technologies in smart grid electrical systems.

Page | 24

Electric Vehicle (V2G) Report 2010 - Smart Grid Insights - Zpryme & ZigBee Alliance

Electric Vehicle (V2G) Report 2010 - Smart Grid Insights - Zpryme & ZigBee Alliance

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