Pricing being determined for vehicle-to-grid power supply scheme

THE Energy Regulatory Commission (ERC) said it is preparing regulations that will govern electric vehicles (EVs) whose owners would like to offer their excess energy to the grid.

Sharon O. Montañer, ERC director of the Market Operations Service, said the regulator is hoping to issue an EV framework this year which will include vehicle-to-grid (V2G) provisions.

“That’s what we’re studying now — how much will the customers be paid if they sell power from their vehicle to the grid,” Ms. Montañer said on Tuesday at the BusinessWorld Insights: Powering the Electric Shift forum.

Akin to the net metering schemes that allow power users to export excess power from their solar systems to the grid, EV owners might be able to earn credits by transferring stored energy from their vehicle batteries.

Republic Act No. 11697, or the  Electric Vehicle Industry Development Act, authorizes the ERC to issue uniform and streamlined rules for self-generating charging stations and centralized V2G facilities.

EV adoption has been boosted by the energy crisis, raising questions about the grid’s readiness for the expansion of the electric fleet.

Ms. Montañer said the current power mix may not be sufficient to deliver the electricity needed by EVs, highlighting the need for more renewable energy sources.

“For the EV industry, there is a challenge of ensuring that supply will also be coming from clean energy because what’s the purpose of shifting from gas to EV if the source of electricity is from fossil fuels,” she said.

Joseph Omar A. Castillo, president and chief executive officer of state-run National Transmission Corp., said the power grids for rural areas are insufficient to meet the electricity demand from EVs.

“But in the main urban centers, I’m pretty confident we can sustain the requirements for the electric vehicles, especially with the growth rate that we’re projecting. So that’s possible. That’s already in place,” he said.

Rhys Alexei Y. Murillo, general manager of Nissan Philippines, Inc., said the power grid can support the volumes required by early adopters, but noted that significant upgrades in infrastructure and equipment are needed.

“EVs have become beyond just being a vision of the future,” he said. “The more important question we need to ask ourselves is how fast EV adoption will be (and) how we ensure that electric mobility creates meaningful value for the people who are supposed to use it.”

Beyond infrastructure, public awareness and education will play a critical role in accelerating EV adoption and making the technology more accessible and understandable to the consumers, he said.

“What we do now is we try to educate people on the different technologies. How it can integrate into their workflow or their usage? From there, we can work with the government on how we can make it accessible to the masses,” Mr. Murillo said.

Ralph M. Menchavez, president and chief executive officer of Movem Electric, Inc., said one way to bring EVs closer to the public is by integrating them into public transportation.

“The notion was that EVs — prior to the oil crisis, prior to the entrance of global players, and cheaper electric vehicles — are just for the rich. But when you make them feel and experience the EVs upfront, get them inside the e-taxi, e-bus, or sometimes e-trike, the customers (become) more aware,” he said.

This growing exposure, he said, is now translating into stronger market interest.

“Last year, and even before that, there wasn’t much in terms of demand,” Mr. Menchavez said. “That’s why we really had to push for adoption. But now, you can already hear from dealerships, as well as different establishments, that they are starting to put up their own charging stations.”

He added that the shift is also evident at the household level, with more consumers beginning to invest in residential charging solutions.

Movem is the sustainable mobility arm of Manila Electric Co., which provides and promotes end-to-end EV and charging solutions purposely designed to align with its clients’ sustainable and operational goals.

Patrick T. Aquino, director of the Department of Energy’s Energy Utilization Management Bureau, said: “Transportation remains one of the country’s largest consumers of imported fuel. Every spike in global oil prices immediately affects millions of families through higher transport costs, higher food prices, and higher inflation,” he said in his keynote speech.

“Reducing our dependence on imported fuels is therefore not only an environmental objective; it is an economic necessity,” he added.

According to Mr. Aquino, more than 60,000 EVs were registered last year, with nearly 1,700 publicly available charging points.

“The opportunities extend far beyond transportation. Electric mobility will stimulate renewable energy investments, battery manufacturing and storage, smart grids, software and digital services, engineering, maintenance, and high-quality jobs for Filipinos,” he said. — Sheldeen Joy Talavera