During Silicon Valley Leadership Group Alternative Energy Solutions Summit, April 9, 2007, Pacific Gas & Electric Co. showcased the world’s first utility Vehicle-to-Grid (V2G) technology demonstration. The demonstration marks a milestone in the development of technologies to make electric vehicles suppliers of electricity to homes and businesses.

V2G technology allows for the bi-directional sharing of electricity between electric vehicles (EVs) and plug-in electric hybrid vehicles (PHEVs) and the electric power grid. The technology turns each vehicle into a power storage system, increasing power reliability and the amount of renewable energy available to the grid during peak power usage.

PG&E’s prototype PHEV, converted in partnership with the Bay Area Air Quality Management District and Energy CS, adds a lithium-ion battery to a traditional Toyota Prius. The additional battery capacity increases the vehicle’s ability to run completely on electricity. In front of many of the Silicon Valley’s industry and governmental leaders, PG&E showed the reverse flow of energy from the vehicle back to the outlet.

Once connected to the outlet, PG&E then ran several lights and appliances to show how V2G could benefit its customers.

Although PG&E’s PHEV currently is in prototype form, the company sees the possibility that its customers will be able to take advantage of V2G technology and PHEVs by providing power to their home or businesses during hot summer days to avoid high energy prices and help prevent outages. In addition, V2G technology could provide the ability for customers to sell back energy to the utility during high-demand times to avoid blackouts.

V2G technology also serves as a way to increase the amount of renewable energy used during peak energy hours. During times of maximum demand, electrical utilities have to buy power from expensive and less efficient fossil fuel power-generating sources. PHEVs will charge their batteries at night when energy is inexpensive and is generated with a larger percentage of renewable resources. When demand is high the next day, instead of turning on a fossil-fuel based generator, the utility can purchase the renewable energy stored in the vehicle batteries.