Battery Second Life Financing Opportunities
In the realm of electric vehicles, exploring the potential for a mature secondary market involving used PEV batteries to improve resale value, meet storage mandates, and facilitate long-term grid services contracts. Discover how utilities can play a role in financing and the risks and unknowns associated with uncertain grid performance and future battery costs. Consider possible next steps to further pilot projects, engage stakeholders, and target fleet vehicles for adoption.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Financing Opportunities: Battery Second Life Adam Langton CPUC Energy Division
Challenge for PEV Adoption PEVs face a ~10K Price Premium and face twice the depreciation rate of ICE cars. Year 1 Year 3
A Mature Secondary Market for Used PEV Batteries could . Improve re-sale value of vehicles for existing owners Avoid landfilling vehicle batteries, here or elsewhere Help meet State s storage mandate
Utilities Can Facilitate Battery Second Life Financing Long-term grid services contract (lease or buy) Upfront payment (lease or buy) Transaction /Finance Entity Customer Utility Used vehicle battery (lease or buy) Grid Values from Used Vehicle Batteries Variations on the basic financing model involve changing one of three key variables: Vehicle acquisition form (purchase or lease) Level of battery modularity (cells or battery packs) Entity that facilitates the transactions (utility, third party, or exclusive licensee)
Risks and Unknowns Uncertain grid performance of half-used vehicle batteries Specific to each battery type Can be measured and assigned by financing entity Future Battery Costs Expected to decrease Utilities face similar risks for any investment Is grid storage the best application Re-use in other vehicle applications might be higher value
Possible Next Steps Continue Pilots, similar to the PG&E pilot, to engage stakeholders and explore contracting methodologies Partner with private entities with storage needs (data centers, hospitals, etc.) to aggregate demand Target fleet vehicles to minimize performance risks and encourage fleet adoption Evaluate the full supply chain benefits to capture additional positive externalities
