Plug-In Hybrid Electric Vehicle Value Proposition Study: Interim Report: Phase I Scenario Evaluation

Technical Report · Thu Jan 01 04:00:00 EST 2009

DOI:https://doi.org/10.2172/948057· OSTI ID:948057

Sikes, Karen R ^[1]; Markel, Lawrence C ^[1]; Hadley, Stanton W ^[1]; Hinds, Shaun ^[2]; DeVault, Robert C ^[1]

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1. ORNL
2. Sentech, Inc.

Plug-in hybrid electric vehicles (PHEVs) offer significant improvements in fuel economy, convenient low-cost recharging capabilities, potential environmental benefits, and decreased reliance on imported petroleum. However, the cost associated with new components (e.g., advanced batteries) to be introduced in these vehicles will likely result in a price premium to the consumer. This study aims to overcome this market barrier by identifying and evaluating value propositions that will increase the qualitative value and/or decrease the overall cost of ownership relative to the competing conventional vehicles and hybrid electric vehicles (HEVs) of 2030 During this initial phase of this study, business scenarios were developed based on economic advantages that either increase the consumer value or reduce the consumer cost of PHEVs to assure a sustainable market that can thrive without the aid of state and Federal incentives or subsidies. Once the characteristics of a thriving PHEV market have been defined for this timeframe, market introduction steps, such as supportive policies, regulations and temporary incentives, needed to reach this level of sustainability will be determined. PHEVs have gained interest over the past decade for several reasons, including their high fuel economy, convenient low-cost recharging capabilities, potential environmental benefits and reduced use of imported petroleum, potentially contributing to President Bush's goal of a 20% reduction in gasoline use in ten years, or 'Twenty in Ten'. PHEVs and energy storage from advanced batteries have also been suggested as enabling technologies to improve the reliability and efficiency of the electric power grid. However, PHEVs will likely cost significantly more to purchase than conventional or other hybrid electric vehicles (HEVs), in large part because of the cost of batteries. Despite the potential long-term savings to consumers and value to stakeholders, the initial cost of PHEVs presents a major market barrier to their widespread commercialization. The purpose of this project is to identify and evaluate value-added propositions for PHEVs that will help overcome this market barrier. Candidate value propositions for the initial case study were chosen to enhance consumer acceptance of PHEVs and/or compatibility with the grid. Potential benefits of such grid-connected vehicles include the ability to supply peak load or emergency power requirements of the grid, enabling utilities to size their generation capacity and contingency resources at levels below peak. Different models for vehicle/battery ownership, leasing, financing and operation, as well as the grid, communications, and vehicle infrastructure needed to support the proposed value-added functions were explored during Phase 1. Rigorous power system, vehicle, financial and emissions modeling were utilized to help identify the most promising value propositions and market niches to focus PHEV deployment initiatives.

• Research Organization: Oak Ridge National Laboratory (ORNL)
• Sponsoring Organization: EE USDOE - Office of Energy Efficiency and Renewable Energy (EE)
• DOE Contract Number: AC05-00OR22725
• OSTI ID: 948057
• Report Number(s): ORNL/TM-2008/076; VT0702030; CEVT120
• Country of Publication: United States
• Language: English

Related Subjects

24 POWER TRANSMISSION AND DISTRIBUTION
33 ADVANCED PROPULSION SYSTEMS
BUSINESS
COMMERCIALIZATION
COMPATIBILITY
ECONOMICS
EFFICIENCY
ELECTRIC POWER
ENERGY STORAGE
FINANCIAL INCENTIVES
FINANCING
FUEL CONSUMPTION
HYBRID ELECTRIC-POWERED VEHICLES
LEASING
MARKET
PEAK LOAD
POWER SYSTEMS
PRICES
Plug-in Hybrid Vehicle electricity
REGULATIONS
RELIABILITY