Gas reaches lowest prices in over a decade

Summer travelers have reason to be happy today. The American Automobile Association (AAA) announced that gas prices are lower than they've ever been for July in the last 12 years. According to AAA, the national average gas price right now is $2.21 per gallon of regular unleaded. Not only that, but 25 percent of the country's gas stations are offering gas under $2. The lowest gas prices in the country are in South Carolina at just $1.88. California still holds the title of highest prices at $2.85, just edging out Hawaii at $2.82.

AAA credits the low prices at the pump to a large gasoline surplus in the US and relatively low prices for a barrel of oil. Currently, the US has a 13 percent larger supply of gasoline than it did last year, and that surplus is the largest it has ever been for the US in July. Oil prices are also hovering at about $45 a barrel.

This isn't the only good news for drivers this summer. AAA expects gas prices to remain low throughout the summer, barring some unforeseen event such as a hurricane, distribution, or refinery issue – or possibly overseas tensions. While the low gas prices are a boon for consumers, those concerned about fossil fuel usage and greenhouse gases may be worried about people driving more and a possible return to high truck and SUV sales.

US and Japan collaborating on smart grid project in Hawaii; EV operation and charging, including grid-balancing services

Hitachi, Ltd., Cyber Defense Institute, Inc., JFE Engineering Corporation, Sharp Corporation, Hewlett-Packard Japan, Ltd., and Mizuho Corporate Bank, Ltd. have been selected as contractors for a joint US-Japan collaboration supporting a Smart Grid project on the Hawaiian island of Maui. Hitachi will coordinate the entire project, serving as the project leader.

The project is supported by Japan’s New Energy and Industrial Technology Development Organization (NEDO), in cooperation with the State of Hawaii, Hawaiian Electric Company, Inc., the University of Hawaii, and Pacific Northwest National Laboratory, whose involvement is based on the Japan-US Clean Energy Technologies Action Plan, agreed to following the Japan-US heads of state summit held in November 2009.

Hitachi Ltd. and the other five participating companies will conduct a feasibility study expected to be completed by the middle of September 2011. Based on the results of the feasibility study, the project is expected to be implemented by the end of March 2015.

On Maui, 15% of the electricity supply is already generated by renewable energy, and there are plans to increase this percentage going forward. The project goal is to verify the use of advanced technologies in a smart grid under the use of large volumes of renewable energy already in place, to contribute to smart grid standards, and to implement a low-carbon social infrastructure system that efficiently uses renewable energy on a remote island where electricity costs are relatively high.

The six participating companies will build and test a system that applies the latest technologies that will be utilized including: power distribution control; demand side load control; control-ICT platform, electric vehicles (EVs) operation and charging control; multiple type of rapid chargers; and information and telecommunications technologies. Part of the demonstration plan includes utilization of the EVs for grid-balancing services (earlier post). These technologies will be implemented to eliminate factors causing power voltage impacts in the distribution grids and fluctuations in power frequency when large volumes of renewable energy with weather-dependent tendency are added to a power grid.

Specific details of the project and the roles of participating companies are as follows:

1. EV-based Remote Island Smart Grid Model on Maui (Hitachi, Sharp, and JFE Engineering). With the goal of eliminating the impact of output fluctuations from renewable energy on power frequencies, the participating companies will establish an EV Energy Control Center to create a smart grid on an island without alternative energy source from other grids that is based on the a close coming society with EVs large penetration.

   They will facilitate comprehensive energy management for the EVs by linking a Distribution Management System (DMS) to be established in the Kihei district of the island, and an Energy Management System (EMS), which will control the demand-supply balance in the power grid of Maui Electric Company, Ltd. The companies will demonstrate the stimulation and inducement of demand for charging EVs that use car navigation systems, PCs, smartphones, and so forth, as well as charging status monitoring, automatic adjustment of charging starting times, and absorption of surplus efficient renewable energy.

   In addition, various types of rapid chargers will be installed, including flexible power supply type, photovoltaic DC to DC power supply type and DC power supply type with battery power at EV charging stations. They will demonstrate their effectiveness at controlling EV chargers so they do not overload distribution facilities. Moreover, they will conduct simulated evaluating the impact that a large volume of EVs have on distribution networks by installing fixed storage batteries and charging and discharging them.

2. Smart Grid Model at a Substation with One Distribution Grid Level in Kihei (Hitachi). Hitachi will demonstrate power grid operational stability to address issues such as power voltage, surplus electricity and frequency fluctuations from renewable energy using and cooperative-controlling EMS, DMS and micro-DMS that control the balance of supply and demand in a power grid. The goal of this demonstration is to solve various issues, including voltage issues related to reverse power flow that stem from photovoltaic solar power generation linked with distribution system terminals and excess load on low-voltage transformers when multiple EVs are charged at the same time.

3. Smart Grid Project for Low-voltage Transformer Level Systems (Hitachi). Hitachi will demonstrate the control to reduce the possibility of the problems which arise by connecting micro-DMS, smart power conditioners and DMS demand response functions that address issues related to voltage at the low-voltage transformer level. Typically, it is possible that these problems arise due to an increase in photovoltaic solar power generation in homes and disruption of outdoor powerline to houses resulting from excess load that is caused by a large increase in power demand from EV rechargers and electric water heaters.

   The goal of this demonstration is to solve various issues, including voltage issues related to reverse power flow stemming from photovoltaic solar power generation that is linked with terminals on the distribution grids, and excess load on low-voltage transformers when multiple EVs are charged at the same time under EV large penetration.

The participating companies will analyze the results of the project.

1. Analysis and evaluation of results from smart grid demonstration (6 companies). In order to promote the establishment of an optimal smart grid model for islands without alternative energy source from other grids, the participating companies will create a US-Japan Joint Evaluation Committee, which will work together, utilizing best practices developed from the project along with other demonstration projects being conducted by US companies in the Wailea distinct of Maui. The committee will also discuss international standards.

2. Evaluation of cyber security (Hitachi, HP Japan, and Cyber Defense Institute). The three companies concerned will evaluate whether the Project meets cyber security standards in the US.

3. Evaluation of the economic viability of the system (Mizuho Corporate Bank). Mizuho Corporate Bank will use experts to evaluate the economic viability of the system that is created.

4. Creation and verification of a cutting-edge low-carbon social infrastructure system business model on a remote island (Hitachi, Mizuho Corporate Bank). In order to develop businesses in other regions, Hitachi and Mizuho Corporate Bank will create and evaluate a highly feasible and practical business model based on the results of the Project.

Cooperative companies will also support the project:

• The Okinawa Electric Power Company, Incorporated : Advisor for power grid technology on remote island
• Advanced Energy Company: Advisor for EV charger business
• Nissan Motor Co.: Adviser for EV telematics adaptation to the project and EV charging and discharging technology
• Verizon: Advisor on communications solutions and network technology and services

Source: Green Car Congress

State of Hawaii and Nissan Form EV Partnership

2011 Nissan Leaf All-Electric EV

Nissan North America and the state of Hawaii formed a partnership to promote the development of electric vehicles, and an electric-vehicle charging network, throughout the state. The partnership, which was announced at the Asia Pacific Clean Energy Summit and Expo in Honolulu, marks Nissan’s first definitive agreement in the United States, the company said. The Nissan LEAF EV will be available in Hawaii beginning in January 2011.

Hawaii is providing a $4,500 state tax credit towards the purchase of an electric vehicle and a $500 state tax credit towards the purchase and installation of a home charging station. The state tax credit, paired with an available $7,500 federal tax credit, could bring the price of a Nissan LEAF, which carries a manufacturer’s suggested retail price of $32,780, to as low as $20,780 for Hawaii consumers.

As part of the agreement, Nissan and the State of Hawaii will develop plans to promote a charging infrastructure for EVs, as well as the deployment, operation and maintenance of a charging network. The partners also will work to coordinate the establishment of policies and help streamline the deployment of an EV infrastructure. Nissan is committing to bringing a supply of Nissan LEAF electric vehicles to Hawaii and readying the dealer body to sell and lease them to consumers.

This partnership personifies Hawaii’s commitment to a future powered by clean, sustainable sources of energy. In order to change the energy consumption patterns of our population, we have to offer drivers alternatives to vehicles that rely on imported fossil fuels. More than 90 percent of the fuel and energy we consume in Hawaii is the product of imported oil. Given our unique access to clean, renewable, energy sources, Hawaii should serve as a model of what is possible when government and business collaborate to plan a path forward into an energy efficient future.

—US Senator Daniel K. Inouye

Nationwide, more than 18,600 consumers have reserved a Nissan LEAF. Nissan is continuing to take reservations through its website, www.nissanusa.com. Interested consumers are encouraged to place a reservation, which entails a $99 fully refundable fee to secure a spot on the list to place an order. Consumers who already have reserved the Nissan LEAF online will be invited to place orders through their dealer for the vehicle in advance of market roll-out timing, allowing time for consumers to select a dealer and assess home charging needs.