Hybrids On Steroids! Plug-In Hybrid Vehicle
Technology Offers The Best Of Both Gas And Electric Worlds
Half-electric, half gas, and extremely green, plug-in hybrid
vehicles promise new levels of energy efficiency -- plus significant market
opportunities for electronics makers
by Lee H. Goldberg
It may not be too long before you'll be able to buy a five passenger sedan or small minivan that runs on batteries around town, burns conventional fuel on the highway, and delivers an impressive 70 - 80 mpg equivalent fuel efficiency. Dubbed "plug-in hybrid electric vehicles" (PHEVs) by their proponents, their ability to use grid-produced power for many daily transportation needs could provide drivers with the best features of electric and internal combustion power while allowing electric utilities to even out peaks in their baseline loads for increased profits and lower pollution. For electronics manufacturers, they represent a large potential market for the power control and storage systems that will drive these unique vehicles.
In a recent seminar held by the Association of Energy Service Professionals (AESP), representatives from the Electric Power Research Institute (EPRI), Austin Energy (a municipal electric company), and Southern California Edison provided some surprising insights on why PHEVs may account for a significant fraction of the cars and vans on the road as early as 2010.

Also known as "gasoline-optional"
vehicles or "hybrids on steroids," PHEVs have both a petroleum-fired
and an electric motor, but carry a much larger pack of high-capacity Li-Ion
or Ni-MH cells than conventional hybrids. While they would not deliver the
100+ mile range most users would need from an all-electric, the lighter,
less expensive battery packs would store enough energy for most local trips
(20 to 60 miles) and rely on the gas engine for longer journeys (see Fig. 1a). This would mean that
a car used for short commutes and local grocery runs would draw most of
its power from a wall plug while it sat parked overnight. At an estimated
4 mile/kWH for a first-generation PHEV, the "fuel" costs would
be a quarter of a conventional auto at current gasoline prices. And, even
with the losses involved with generating and delivering the electricity
to the car's batteries, a power plant charging a PHEV contributes creates
much less CO2 per mile than even an equivalent straight hybrid car (see
Fig. 1b).
Initial studies indicate that 1st-generation HPEVs will deliver 20 - 30% improvement in energy efficiency over "straight" hybrid technology. And because of their extremely efficient drivetrains, relatively simple modifications such as low-rolling resistance tires, a 10% mass reduction, and moderate aerodynamic improvements could boost efficiency by another 30+%.
Utilities have lots of reasons to want PHEVs on the road. Most obviously they would represent an excellent market for unused capacity that sits idle during late evening hours. Charging vehicle batteries while most of the world is asleep could shift a large chunk of energy demand to baseline generating facilities which often use low-emission, high-efficiency combined cycle natural gas-fired technologies. PHEVs also make a ready-made repository for wind- or hydro-generated electricity which is on tap regardless of demand.
Initial studies indicate that a mid-sized PHEV with a 20-mile range will be able to achieve full charge in a bit under five hours from a standard 120 V ac outlet, and around nine hours for a battery load for a 60-mile range. And if the vehicle has access to a higher 220 V ac service the charge times are cut nearly in half. The electric utilities are considering several different metering schemes to encourage their customers to make best use of the off-peak capacity. Concepts under study include offering PHEV owners a discounted rate for all their electricity, installing a time-of-day metering system that offered discounts for off-peak energy, or installing a second dedicated meter for the vehicle charger that would be billed at a lower rate.
While there are currently
no PHEVs on the market, several manufacturers are engaged in development
programs to begin limited production before the end of the decade. Panelist
Bob Graham of EPRI describes a pilot program that they've been working on
with Daimler-Chrysler for several years, which includes six prototype HPEV
vans based on Daimler's Sprinter model (see Fig. 2).
Developed in Europe, the vans have a permanent-magnet electric motor
inserted between their diesel engine and transmission with a clutch to disconnect
the motor for all-electric operation (see Fig. 3). In its hybrid mode the electric motor can be used
to provide more power for hills and passing, or as a regenerative brake.
The van's Li-Ion battery pack has been sized that a nominal 20-mile journey
will use between 60 % and 80 % of their capacity, with longer trips using
a mix of diesel and electric. Graham says that this "series" configuration
makes it easy to adapt conventional designs and production lines to accommodate
a PHEV drivetrain. The next phase involves producing 20 more plug-in hybrid
vans in 2006, with limited production slated for 2008/9.
Graham acknowledged that as with any emerging technology PHEVs have many technical and market hurdles to overcome before they achieve commercial success. For example, the cost of the vehicle's Li-Ion batteries is still substantial, and still adds too much to the cost of a vehicle to be cost-effective in most applications. But Graham was confident that a growing demand for the batteries is encouraging manufacturers to bring much more production capacity on-line and allow economies of scale that will drive down prices dramatically by the time PHEVs are in full production. In addition, manufacturers producing PHEV technologies should be able to use their advanced electric drivetrains as an easy migration path to either fuel-cell powered or all-electric vehicles as battery and fuel cell prices mature.
But despite the apparent market demand for conventional hybrids, PHEVs still face a "chicken and egg" problem with normally-conservative auto makers who are unsure that there will be enough customers willing to pay an estimated $5,000 premium for the first vehicles to roll off the line. The price differential between all-petro-cars and PHEVs is expected to shrink as the development and costs are amortized and the electric drivetrain components move down the cost/quantity curve towards full production volumes, but this does not solve the initial problem of convincing Ford, GM, or Daimler/Chrysler to take the first step. Mark Kapner, a senior. strategy planner at Austin Energy described initiative that they have developed to break this deadlock.
In a bold move to jump-start PHEV demand, Austin Energy and several other utilities are working with Detroit auto makers on a "market generation" program, named Plug-In Austin. The program's main focus is a campaign to obtain "soft orders" for PHEVs, to assure the manufacturers that there will be customers who have already committed to buy plug-ins when they become available. Meanwhile, EPRI is working with the Natural Resources Defense Council (NRDC) on a study to make sure that there is enough surplus baseline power to support widespread charging of plug-ins at night while other demand is low.
So far, pledges from Austin-area municipalities, government, industry, and private pledges total 10,000, with 1000 actual orders for fleet applications. The partnership anticipates it should be able to create around 50,000 semi-firm fleet vehicle orders when the national campaign kicks off in early 2006. Kapner estimates that since most companies will need 2.5 to 4 years from the time they decide to put a plug-in on the market, we should see the first PHEVs rolling off the American assembly lines as early as 2008, but more likely in the 2009/2010 timeframe.
While PHEVs will not constitute a major fraction of the North American vehicle fleet for perhaps a decade, even relatively modest 50,000 - 100,000 production levels for hybrids and plug-in hybrids could mean significant market opportunities for electronics manufacturers. Even at these low production volumes, the additional $500 - $1,500 worth of electronics used by each of these vehicles would constitute an additional $25 M - $150 M opportunity for chip makers and automotive electronics vendors.