I for one would be reluctant to keep cycling my battery, thus reducing its lifespan and raising my overall cost. The higher price offered by the utility would have to be very high to make that worth it. But it won't be high enough to compensate for the cost of battery energy because it will have been set to obtain energy from other, less expensive renewable sources.

Regardless, I also fall into the camp that the day of the individual owning a car is coming to a close. We are going to enter Energy Descent largely with the infrastructure we have now and the turnover will be very slow. As the economy continues its deterioration and the unemployment numbers mount, this will become increasingly obvious to people. Vehicle to Grid will be one of those wonderful ideas that we never got to see implemented, in my view.

-Andre'

"But it won't be high enough to compensate for the cost of battery energy because it will have been set to obtain energy from other, less expensive renewable sources."

Probably utilities would be willing to pay a very high premium for rarely used peak power - $1/KWH would, on those rare occasions, look very cheap. During the CA power crisis power was going for $20+/KWH.

"We are going to enter Energy Descent largely with the infrastructure we have now and the turnover will be very slow."

Well, let's discuss this again: That's only if you agree with Hirsch that GDP is 1:1 causally related to oil. OTOH, Ayres seems to contradict this entirely: he shows that GDP is related to applied energy (exergy), and only very loosely linked to energy BTU's (BTU's only explain 14% of GDP). Energy efficiency and energy intensity can change.

Further, oil is only one source of BTU's.

Hi, Nick.

Yes, I believe that Hirsch's conclusion is a good starting point. To be very clear, he does not say that it will exactly be 1:1. Here is exactly what he says:

...recognizing the approximate nature of these considerations, we conclude that a ratio of 1:1 is a reasonable approximation for a future circumstance where world oil shortages act as a drag on world GDP, i.e., numerical values ranging from 0.6 to 2.5 are of order of unity. A ratio of one-tenth would seem too small and a ratio of 10 would be too large. While greater accuracy would be desirable, this approximation is believed adequate for our analysis, since our final conclusions are not highly sensitive to this assumption.

This is quite a bit different than your comments might lead one to believe he said, no? He is distinguishing the correct order of magnitude, not a precise relationship. He then (correctly, I believe) goes on to demonstrate that for his purposes the correct order of magnitude is all one needs to continue the analysis.

And, yes, I am familiar with what Ayres says. For those reading along, here is a brief overview:
Estimating the Economic Impacts of Peak Oil
www.inspiringgreenleadership.com/blog/aangel/estimating-economic-impacts...

-André

"this is quite a bit different than your comments might lead one to believe he said, no? "

Well, we agree Hirsch's estimate is imprecise, but that wasn't central to my point. Rathre, I'm suggesting that the medium-term relationship between GDP and oil is closer to Ayres' number of .14, which is indeed an order of magnitude smaller.

I believe that I'm disagreeing with your interpretation of Ayres. This: "Ayers and Warr calculate a perfectly intuitive 0.7 for elasticity of demand (see Figure 10) using curve fitting when they introduce energy converted to useful work, and the correlation is excellent" applies to the relationship between GDP and "work", not GDP and BTU's. Therefore, "This is in line with Hirsch's ratios" would be incorrect. This: "Apparently there has been no significant push back from economists even though their paper essentially jettisons the prevailing economic theory." I would suggest is incorrect - Ayres' work does not jettison prevailing theory, it expands it by introducing the importance of energy efficiency, or intensity, as a variable link between BTU's and GDP.

Hi, Nick.

I think it better to look at the relationship between GDP and work, not GDP and BTU's because when we look for some result, the result is a function of work first and BTUs second. If I ask someone to build a house, they base their calculations on how much work is involved, then they split it between their men/women and the machines. The contractor will move jobs between men and machines (assuming the job can be done by either) based on cost, time and quality of the end product.

I view oil as "stored work" in much the same way some people view money as stored work. Converting to BTUs is an interesting exercise but since the various energy forms are not easily converted, or aren't easily converted without significant losses, I think it makes things unnecessarily complex to reduce that far. Work is a better measure for the purpose at hand. This might be why Hirsch chose to go that route.

Regardless, I'd have to go back and look at the context of the 0.14 you cite because it is very suspicious to me. If it turns out that you're using it in the context Ayers intended (which paper and which page?), one way I could see it being valid is with the proviso that much manufacturing continue to be done by other countries. This state of affairs is coming to an end as globalization begins to unwind.

When all is said and done, I'm happy for the moment to say that a 1/10th ratio for oil to work is too small and 10:1 is too great, which leaves 1:1 as the proper order of magnitude.

-André

"I view oil as "stored work" in much the same way some people view money as stored work. "

I don't believe that's how Ayres' uses it. Ayres view oil as a convenient form of BTU's, which must be translated through a complex process into applied work. That "process" can vary enormously in effectiveness and efficiency. For instance, a Prius performs the same work as a similar vehicle with half the MPG, but uses half the BTU's (and half the oil). Strictly speaking, a Prius can perform the same work as a Hummer (transporting people), and use 20% of the BTU's (and 20% of the oil). An EV also does the same work as a Hummer, and uses about 1/3 of the BTU's as the Prius, and 1/15 of the Hummer's, but uses perhaps 1/100th as much oil.

"I think it makes things unnecessarily complex to reduce that far"

I'm not sure what you mean. If you mean what I think you mean, then that's simplifying things way too far.

"This might be why Hirsch chose to go that route."

I think Hirsch is simply trying to emphasize the importance of preparation for peak oil. In doing so, he's reaching for quantitative support, to give his arguments authority. He'd be far better off simply pointing to the historical record, and saying: "It's clear that oil shocks are very bad for the economy.". Everyone would agree with him, and no one would be extrapolating beyond the short-term data.

"I'd have to go back and look at the context of the 0.14 you cite because it is very suspicious to me. If it turns out that you're using it in the context Ayers intended (which paper and which page?"

Edit: I looked through the Ayres article you cite, and couldn't find the number - it must have been in another article. Instead, Ayres shows it qualitatively in the chart on page 11 (definitions are on the bottom of page 9). You can see that the correlation between E (simple energy BTU's) and GDP is not very good, as explained in the 2nd paragraph on page 12, and Ayres rejects simple BTU's as a "production function" (an equation which explains GDP growth).

"one way I could see it being valid is with the proviso that much manufacturing continue to be done by other countries"

That's not the explanation. In fact, there's an easy way to show it: world oil consumption has been flat for the last several years, but GDP growth has been quite strong, stronger than for the US (which itself has grown 8% in the last 3 years, with flat oil consumption).

The 1:1 relationship has been backed by other studies. Here is a paper by C. Cleveland et al. that shows they can account for almost 100% of economic growth by using Fuel Quality as a factor plus energy (and a few other minor factors also). Essentially, once you account for electricity BTUs being more productive than coal BTUs (easier to use precisely) then the "unknowns" drop out of the relationship. This works in the US and across nations.

http://www.esf.edu/efb/hall/.%5Cpdfs%5Cenergy_US_economy.pdf

Ayres uses exergy, which is very close to BTU parity. So he misses the largest secondary factor (after total fuel use itself).

"once you account for electricity BTUs being more productive than coal BTUs (easier to use precisely) then the "unknowns" drop out of the relationship"

First, I'd note that Hirsch is talking about oil: his hypothesis is that GDP will drop in a 1:1 relationship with oil, as oil declines. The summary of the paper quoted above suggests that Cleveland is talking about the relationship of GDP to all fuels, which is very different. That approach suggests that wind, solar and nuclear (or, god forbid, coal) electricity will substitute for oil quite nicely.

2nd, The paper says: "If we are to sustain current levels of economic growth and productivity as minimum long-run goals, alternative fuel technologies with EROI ratios comparable to petroleum today must be developed, or there must be unprecedented improvements in the efficiency with which we use fuel to produce economic output".

Well, we've done that. Wind, solar and nuclear combined with PHEV/EVs fits the first requirement (alternative fuel technologies with EROI ratios comparable to petroleum today), and the improvements in efficiency are being found.

3rd, this paper is from 1984 (so the data is 25-35 years old), well before it was clear that since that time US (and world) GDP would grow much more quickly than it's energy consumption (even including electricity). The best example of this is California, which has kept per capita electricity consumption flat over the last 25 years, while growing it's GDP relatively quickly.

4th, Ayres used "exergy services", which are not "very close to BTU parity". Exergy services are work performed. So, for instance, a Prius performs the same work as a similar vehicle with half the MPG, but uses half the BTU's. Strictly speaking, a Prius can perform the same work as a Hummer (transporting people), and use 20% of the BTU's. An EV also does the same work as a Hummer, and uses about 1/3 of the BTU's as the Prius, and 1/15 of the Hummer's...and so on.

Please note, this has been revised several times.

I for one would be reluctant to keep cycling my battery, thus reducing its lifespan and raising my overall cost.

Per AC Propulsion, if your batteries have a limited calendar life (such as many types of lead-acid), you will waste their capacity if you just allow them to expire without using the available cycles.

But [higher price offered by the utility] won't be high enough to compensate for the cost of battery energy because it will have been set to obtain energy from other, less expensive renewable sources.

You're confusing price with cost.  The price of the RE production can be far higher than cost if immediate demand exceeds supply.  Selling energy bought at times of low demand into the market at a time of high demand can be a good move if the price difference is greater than the cost of storage.

Hi, Engineer-Poet. For lead-acid, you may be correct, but I don't think I will want to accelerate the reduction of my lifespan any faster given the points I raise below. Hence, I don't think I am confusing anything, but I am open to discussing it if you can see something I can't.

Here are all the factors that I would consider before participating in a vehicle-to-grid program:

  • what is the total $ cost of each kWh delivered from the current battery pack?
  • how often would I have to replace my battery pack under the program vs not participating in the program?
  • will the economy provide battery pack replacements when I need them?
  • what will the cost be of the new battery packs?
  • what is the economic impact to me if my battery pack is at the end of its useful life and I can't get another one for weeks or months? what is the impact if the waiting list grows to a year or more?

Given all the above, I doubt that it will be worth making a few extra dollars and using up my battery chemistry faster. I will be using, and presumably needing, that battery pack. We are already entering the period of waiting lists and shortages for highly desired things (c.f. rice; certain equipment will be next) and in my view people aren't factoring the economy into their plans nearly enough.

Once I get hold of a battery pack, the only person using up that chemistry will be me, my wife and anyone I loan my electric car to. I suspect this will be a very common sentiment.

-André

I doubt that it will be worth making a few extra dollars and using up my battery chemistry faster.

Others have looked deeply into those issues.  Why not consider their conclusions?

The economics of vehicle-to-grid are examined. Automotive economies of scale and emission control technologies can reduce both the cost and emissions for vehicle-based distributed generation assets relative to dedicated stationary units. Furthermore, since the asset cost of the propulsion system is
primarily allocated for transportation, only the incremental cost of battery wear-out and system deterioration need be covered by the vehicle-to-grid functions. Aalysis suggests that in many cases, these incremental costs are well below the market value of vehicle-to-grid services resulting in a new value stream that will attract investment in vehicle-to-grid infrastructure and commerce systems [1].

That paper is some years old, and even if technology changes some of the assumptions (e.g. both calendar and cycle life are greatly increased) many of the conclusions are still likely to hold.  Knocking a chunk off a car payment can help finance a long-lived but expensive battery.

Once I get hold of a battery pack, the only person using up that chemistry will be me, my wife and anyone I loan my electric car to.

You forgot "the ravages of time".  In a world in which people give up quite a bit of information and other things to get freebies, I suspect that many people will take a discount on their batteries and charging in return for letting the utility use them to manage the grid better.

Hi, Engineer-Poet.

I think you hit the nail on the head when you point out that the conclusions were drawn several years ago. That means they were formed in a pre-peak world using the typical economic and monetary discount functions we've all come to understand.

What I am saying, however, is that not many people I come across have done the work of reassessing their projects in the light of a post-peak economy. For instance, I think the project will have trouble even getting financing, never mind convincing people (who won't own the cars because we're heading into a depression) that it's in their interest to lend out their batteries.

I think this is fun to think about but has exactly 0% probability of becoming a large-scale reality. If the world economy, suffering from shortages that mess up our just-in-time systems, and sky-high oil prices, is declining at something like 2% to 5% per year, vehicle to grid is, in my view, going to remain one of those good ideas that we just didn't get done in time.

-Andre'

never mind convincing people (who won't own the cars because we're heading into a depression) that it's in their interest to lend out their batteries.

I think you're contradicting yourself there.  Further, it's trivial to convince people to plug in; all you have to do is lease them the batteries at a reduced rate if they plug in, and assume the risk yourself.  You manage the risk by treating the batteries well, and sell the vehicles by guaranteeing that they'll always have good batteries.

If the world economy, suffering from shortages that mess up our just-in-time systems, and sky-high oil prices, is declining at something like 2% to 5% per year, vehicle to grid is, in my view, going to remain one of those good ideas that we just didn't get done in time.

That's exactly the situation where electric propulsion is going to see extremely high demand (even if people pay for their own batteries and don't lease them), and all renewable energy supplies are going to be expanding like crazy (they may be the only part of the economy that grows much).  V2G will be just the thing to help displace petroleum and glue the grid together.

V2G will be just the thing to help displace petroleum and glue the grid together.

Let's hope you're right :-)

-André

It occurred to me recently that we may be looking at the whole V2G problem the wrong way. Using cars' batteries to store and release large amounts of energy is problematic both in terms of battery life, and in terms of leaving the car owner with an unexpectedly "empty tank". But if there are large numbers of vehicles widely connected to a smart grid, the batteries can become a very substantial source of power (i.e. kW) without moving much in the way of net energy (i.e. kWh). There must be all kinds of short-term transients in the grid which are currently handled at the transmission end. If those transients were all smoothed out at a local level by a large number of grid connected batteries, I strongly suspect that the upstream generating assets would be greatly relieved and able to operate more efficiently.

Note that we're not talk about a sustained power emergency, or even a 15 minute spike in demand. I'm thinking more along the lines of peaks and drops measured in seconds or a few minutes. Though I'm sure there's a critical timescale there somewhere, at which point this sort of thing becomes really useful, and I don't have the background to know that that would likely be. So I may be offbase here.

Any utility types care to comment?

If those transients were all smoothed out at a local level by a large number of grid connected batteries, I strongly suspect that the upstream generating assets would be greatly relieved and able to operate more efficiently....

Any utility types care to comment?

EPRI already funded the study and it's on-line for you (see especially section 2.1.2).  It says your suspicions are correct.

One heaping buttload of other relevant reports in AC Propulsion's archive.