GM makes electric vehicles with massive Ultium battery packs. This positions GM perfectly to enter into the energy business in a new way.
The movement away from internal combustion engines and coal-burning electric power plants is creating challenges in the energy industry that many might not think about. During most of the time that we’ve harnessed electricity to power our homes, energy companies have made just enough electricity to support the usage of the service areas. This could become a problem, especially since most energy companies don’t have viable solutions for storing excess electricity.
Blackouts Created by Heat Waves are the Immediate Result
If you’ve ever wondered why large cities sometimes experience blackouts during heat waves it’s because the electric supplier doesn’t have stores of energy to send to homes as the heat goes up. When it gets hotter outside, we often turn up our air conditioning, and if it’s the weekend, most of us turn on several electrically-powered appliances that draw from the electric grid. This increase in usage could overload an electric grid and create a blackout situation in large cities. This means energy companies need solutions to help improve and solve this problem.
EVs Are Changing the Peak Draw Times for Electricity
Typically, the peak times for electricity use in most homes are after homeowners arrive from work. This means between 4 pm, and 11 pm is the peak draw time at homes. Most businesses draw the most electricity during the day unless that business operates mostly in the afternoon or evening window. In both cases, the electric draw is lowered overnight when most homes are dark, and people are sleeping. The move toward electric vehicles is changing this. Homeowners with at-home charging stations plug in their electric vehicles at night to recharge, which draws a lot more electricity during this non-peak time.
Most Drivers Won’t Use the Entire Driving Range Every Day
Although many EV owners will want to have a full charge when they leave the house in the morning, many will never use the entire battery range in a single day. Most EVs have large battery packs with capacities of 60 to 200 kWh of energy. The GM Ultium batteries are some of the largest, which puts GM in the right position to enter the energy business. These large EV batteries make the perfect emergency home generators. The large size of the Ultium batteries means a GMC Hummer EV could power a home for up to seven days, and the homeowner can use all of the appliances while drawing energy from the electric truck.
Why Not Use The EVs as a Storage Solution?
While electric utility companies work to find ways to store electricity, automakers are supplying the perfect short-term solution to the world. The only challenge is to figure out how to make it beneficial for all involved. GM seems to have the ideal solution. Some of the energy used while charging an EV could be sent back to the electric grid to allow the grid to stabilize. EVs plugged in during peak times would supply the largest amount of power, and homeowners could be rewarded with lower lease payments for their GM electric vehicles. Of course, GM intends to be the “middle man” in this situation, creating the right chargers to draw some power from EVs to support the electric grid.
the GM Energy Business Offers a Three-Prong Approach
The new GM Energy business will have three ways to bring power to the electric grid and allow utility companies to maintain a flattened grid until storage solutions are found. These three approaches will be Ultium Home to draw small amounts from single-EV homes, Ultium Commercial, which will draw from fleets of EV, and Ultium Charge 360 to develop the products to support these ventures. The goal is to offer backup power as required, lower the cost of EV ownership, and supply some power back to utility companies.
Could This Solution Be a Supplement to Sustainable Solutions?
Allowing energy companies to draw some power from an EV battery while its charging can stabilize the electric grid of an area. Will electric companies pay for this service, similar to how some companies pay homeowners to have solar panels installed on the roof? Solar and wind are two of the most sustainable solutions offered. Unfortunately, both rely on the environment and could face low supply challenges if the winds die down for a few days or a lengthy storm hits, blocking out the sunlight.
Another sustainable solution is to create dams and harness the energy of running water, but this is becoming increasingly more costly and difficult in the United States. Most of the large rivers already provide water power converted to electricity, but our reliance on this energy is so great that it’s not quite enough. EVs could be the answer, and GM is entering the energy business to help find a solution and make some money in the process.
Our Reliance on Electricity Is Only Growing
Electric vehicles haven’t taken over the automotive market yet, but they soon will. Once most vehicles on the road are powered by electricity, what will our reliance on the electric grid become? Will all electric vehicles become storage and supply stations for electric utility companies going forward? Will electric companies ask owners to charge for shorter times or at different times of the day, much like they do now with some delayed draw benefits?
How Can GM Set Up the Ultium Power Supply Network?
It shouldn’t come as any surprise that modern EV locations are known at all times. In fact, most modern vehicles with GPS systems are easy to locate. Because GM can locate all of the Ultium-powered vehicles and know where they reside, setting up this power draw system could be pretty easy. Of course, this system would require the approval of the owner and driver of the electric vehicle.
GM proposes their energy business to be a win for all. The energy company receives power from EVs to stabilize the grid as needed, homeowners can receive a lower payment on EVs leased through GM, and GM receives a payment from the utility company for facilitating this solution.
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