V2G value propositions: Fermata Energy is building financially viable solutions for vehicle-to-grid
“I founded Fermata Energy for two specific reasons,” Slutzky told Charged. “I wanted to accelerate the adoption trajectory for electric vehicles, and to accelerate the transition to renewables on the grid. I quickly figured out that those two are intertwined in a beautiful way.”
“The real obstacle to adoption of EVs at this point is that they’re more expensive,” says Slutzky. “But cars are parked most of the time. If they could earn money while they’re parked such that the total cost of ownership of an EV were to become less than that of an ICE vehicle, that [would get] interesting really fast. So how could EVs make money while they’re parked?”
In an interesting bit of serendipity, the answer to this question could also answer another question: What’s the biggest obstacle to the adoption of renewables on the grid? “It’s not the cost of generating the electron,” says Slutzky. “Creating an electron with wind and solar is clearly cheaper than nuclear, and certainly cheaper than coal at this point. It’s the absence of energy storage on the grid that prevents scaling of renewables.”
Some years ago, Slutzky read an article that said that if you electrified a quarter of the vehicles on the roads of America, you would have energy storage roughly equal to the entire output of the US power grid in those batteries. That’s when the light went on, so to speak. He saw that vehicle-to-grid technology could be a focal point that enabled EVs and renewable energy to complement each other. “I founded Fermata Energy specifically to enable electric vehicles to earn money while they’re parked by providing energy storage to the grid.”...
Fermata has figured out how to do behind-the-meter demand charge management effectively, but Slutzky says, “It’s ultimately the utilities that are going to be where the value is. The real value of vehicle-to-grid is going to be providing a number of services to utilities and the grid.”
Read the full article in Charged, Electric Vehicles Magazine here.