Giving municipal fleet EVs a second job: Emergency response with V2G

Could electric vehicles (EVs) help solve our power issues? As an untapped resource for enhancing grid resilience, EVs have the potential to serve as mobile energy storage units that can contribute to grid stabilization during extreme weather that causes grid instability and power outages.

Heat waves are on the rise, a concerning trend highlighted by the Environmental Protection Agency (EPA). In fact, major cities across the United States have experienced a substantial increase in the frequency of these heat waves, with the number escalating from an average of two annually in the 1960s to six per year in the 2010s and 2020s. The repercussions of this intensifying heat are far-reaching and have profound implications for municipalities, impacting their budgets, necessitating a change in electrification planning, and emphasizing the need for enhanced grid resilience.

Municipalities are facing significant challenges as their budgets are strained to cope with the aftermath of these outages. The cost of repairs, emergency response, and the overall recovery process can put immense pressure on local governments. Furthermore, the strain on public services during these outages, such as emergency health care, transportation and communication systems, can add further burdens.

Integrating EVs into the grid resilience strategy offers multiple benefits. It enhances the overall reliability of the power supply, allowing critical facilities and services to remain operational during outages. It also reduces the need for expensive grid infrastructure build outs and upgrades, as EVs can act as distributed energy storage units that can supplement grid capacity. Finally, it promotes the adoption of electric transportation and supports sustainable energy goals by maximizing the utilization of renewable energy sources.

Unidirectional vs bidirectional EV charging
Municipal leaders can deploy EVs to enhance grid resilience, reduce reliance on traditional power sources, and help mitigate disruptions during natural disasters. Leveraging the battery capacity of EVs, municipalities can establish vehicle-to-grid (V2G) systems.

V2G systems are different from conventional EV chargers that only allow power to flow from the grid to the battery. Best-in-class V2G platforms consist of a UL-certified V2G charger and AI-driven software that manages functions to charge and discharge an EV battery and optimizes EV and utility data for “earning opportunities” all while prioritizing driving and protecting battery health. The bidirectional EV chargers draw power to and from the grid. During peak demand or emergencies, EVs can supply stored energy back to the grid, acting as a decentralized power source and reducing strain on the overall grid infrastructure.

There are currently 2 million EVs on the road now, with an estimated 28 million more by 2030, accounting for approximately 32 percent of all new U.S. vehicle sales. Many automobile manufacturers have already made bidirectional charging available for consumers or are planning to in the near future.

Return on investment
There are additional benefits with V2G for municipalities. Conventional chargers and V2G platforms cost nearly the same. But V2G has a positive ROI; municipalities can earn revenue from their local utility while their fleet EVs are parked—without disrupting vehicle utilization. One light-duty EV can earn thousands of dollars for sending energy stored in the EV battery to the grid for a few hours each evening during the summer. This means that the charger pays for itself in two-three years.

EVs Second Job: Emergency response with V2G
Last year during a particularly brutal heat wave, California asked electric vehicle owners to limit when they plugged in to charge, fearing rolling blackouts during a busy holiday weekend. When used as mobile generators, bidirectional chargers could assist in similar situations. The typical electric car battery holds about 60 kilowatt hours of electricity, which is enough to power a home for roughly two days.

If more municipal fleet EVs were bidirectionally enabled and paired with a V2G charger, municipal fleets could have a second job; powering buildings during extreme weather events. During emergencies, municipalities could reassign available bidirectional EVs, such as school buses, to support utility demand needs or to power buildings used as heat shelters. Programs can also be designed to strategically deploy EVs as power sources during crises, providing additional backup power to critical infrastructure such as hospitals, shelters, and emergency communication systems.

What’s more, the local utility can send alerts to commercial fleets about the need for more energy to the grid, setting the right market pricing signals to create a priority to support a locality’s electricity needs.

Collaborating with Utilities
The development of infrastructure capable of supporting the integration of EVs as power sources during emergencies includes establishing a network of V2G bidirectional charging stations that not only facilitate normal EV charging but also allow for V2G services.

City and county leaders who want to electrify their fleets and connect those vehicles to critical infrastructure should engage their local utilities, cooperatives, or municipal utility departments early in the decision and planning process. Utility engineers will be able to help city engineers, planners, facilities managers, fleet managers, DPW directors and sustainability managers understand the utility infrastructure that support critical buildings such as the police and fire departments, city hall, DPW, and gathering spaces such as schools and libraries. Some cities and counties may seek to deploy V2G on private property that serves the community and vulnerable populations such as grocery stores, drugstores, hospitals and nursing homes. Early engagement with the utility will enable the utility to evaluate the ability of existing infrastructure to support V2G asset deployment at the buildings. In addition to ensuring suitable power delivery capacity to charge EVs, the utility can work with the municipality to coordinate infrastructure upgrades on municipality’s property with the utility’s infrastructure upgrades. Coordinating upgrades is important so that the municipality can be assured that the utility can power and support their new V2G investment during emergencies.

Training and preparedness
Training and preparedness are crucial to effectively utilize EVs as battery storage sources during natural disasters. Municipal leaders should organize regular drills and exercises involving school systems, emergency response teams, municipal fleet managers and even private fleets to simulate and evaluate the deployment of EVs as mobile energy storage assets. These simulations can help identify challenges, refine protocols, and improve overall response capabilities.

The incorporation of electric vehicles into emergency response plans represents an innovative solution for enhancing grid resilience and minimizing disruptions during natural disasters. This integration offers numerous benefits, including increased grid reliability, reduced carbon emissions and improved community resilience. With careful planning and implementation, cities and counties can pave the way for a future where EVs not only revolutionize transportation but also serve as a vital resource during times of crisis.

Making a choice
Municipal leaders can make important decisions today about EV charging—that will drive benefits for years to come. Working alongside smart city planners, public utility commissions and the private sector participants, these leaders can develop plans to shift fleet EVs from grid load to smart city asset-generating revenue, supporting grid resilience and accelerating adoption of EVs.

John Wheeler is co-founder, CFO and chief strategy officer of Fermata Energy. He is an expert on the return on investment of V2G technologies for public and private sector fleets.

George Miller serves as business development director for Fermata Energy, the leading provider of V2G (vehicle-to-grid) EV charging services and the first to have municipal customers earn revenue from utilities.