To navigate the intersection of electric vehicles and the electric grid, the U.S. auto industry and the country’s electric utilities must ‘work together,’ according to a new analysis from Alliance for Automotive Innovation.

“Vehicle Grid Integration: The Convergence of the Automotive and Electric Power Industries” examines the economic and technical aspects of vehicle-grid integration (VGI) required for a successful transition to electrified mobility in the U.S.

The report includes recommendations to utilities, regulators and policymakers to get the electric grid EV ready, including rate design, managed charging, vehicle telematics capabilities and bidirectional charging technology.

John Bozzella, president and CEO, Alliance for Automotive Innovation said: “The automotive and electric power industries are converging. What does that mean? It means drivers increasingly consider electric utilities as the gateway to reliable and affordable electric mobility. But EV drivers expect no compromise transportation – with convenient, reliable and affordable EV charging. This new report is a roadmap to achieve these goals and increase policy cooperation between automakers and utilities.”

Vehicle-Grid Integration Policy Recommendations:

• Utilities and regulators should adopt optional EV rates to ensure commercial viability of fleet electrification and charging stations in lightly trafficked areas;
• Utilities should make time of use (TOU) rates universally available to all EV drivers and structure programs to enable technologies like smart charging;
• Utilities should make both whole-house and EV-only time varying rates available to customers;
• Utilities and regulators should adopt programs and policies that compensate EV drivers for exporting power to the grid;
• Utilities should partner with automakers to develop marketing, education and outreach to EV drivers about ways to lower electricity bills by participating in demand response programs.