Plug-in Hybrid Electric Vehicle Value Proposition Study - Final Report

Citations Over Time

Abstract

PHEVs have been the subject of growing interest in recent years because of their potential for reduced operating costs, oil displacement, national security, and environmental benefits. Despite the potential long-term savings to consumers and value to stakeholders, the initial cost of PHEVs presents a major market barrier to their widespread commercialization. The study Objectives are: (1) To identify and evaluate value-added propositions for PHEVs that will help overcome the initial price premium relative to comparable ICEs and HEVs and (2) to assess other non-monetary benefits and barriers associated with an emerging PHEV fleet, including environmental, societal, and grid impacts. Study results indicate that a single PHEV-30 on the road in 2030 will: (1) Consume 65% and 75% less gasoline than a comparable HEV and ICE, respectively; (2) Displace 7.25 and 4.25 barrels of imported oil each year if substituted for equivalent ICEs and HEVs, respectively, assuming 60% of the nation's oil consumed is imported; (3) Reduce net ownership cost over 10 years by 8-10% relative to a comparable ICE and be highly cost competitive with a comparable HEV; (4) Use 18-22% less total W2W energy than a comparable ICE, but 8-13% more than a comparable HEV (assuming a 70/30 split of E10 and E85 use in 2030); and (5) Emit 10% less W2W CO{sub 2} than equivalent ICEs in southern California and emits 13% more W2W CO{sub 2} than equivalent ICEs in the ECAR region. This also assumes a 70/30 split of E10 and E85 use in 2030. PHEVs and other plug-in vehicles on the road in 2030 may offer many valuable benefits to utilities, business owners, individual consumers, and society as a whole by: (1) Promoting national energy security by displacing large volumes of imported oil; (2) Supporting a secure economy through the expansion of domestic vehicle and component manufacturing; (3) Offsetting the vehicle's initial price premium with lifetime operating cost savings (e.g., lower fuel and maintenance costs); (4) Supporting the use of off-peak renewable energy through smart charging practices. However, smart grid technology is not a prerequisite for realizing the benefits of PHEVs; and (5) Potentially using its bidirectional electricity flow capability to aid in emergency situations or to help better manage a building's or entire grid's load.

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