Beyond Rhetoric: GE and NRG Energy Bet Heavily on Electric Cars
LAS VEGAS -- Companies are starting to back up their rhetoric about electric cash with hard investments and significant cash. Two of the most committed are New Jersey-based utility NRG Energy and General Electric. NRG has put $10 million into a groundbreaking EV charging plan in Houston, and GE is buying 25,000 EVs for fleet and customer use and -- it revealed to me -- also building a 480-volt fast charger to go with the 240-volt WattStation it's already deployed for home and public use.
NRG has a large display here at the Consumer Electronics Show of a smart energy house that includes a Nissan Leaf electric car charging from an NRG-branded 240-volt AC home charger built for the company by major player AeroVironment. The charger is no static display -- according to Rich Larsen, director of business development for NRG Energy, in a program called eVgo the company is putting 200 of the public versions of the charger in strategic locations around Houston, plus another 50 DC 480-volt fast chargers (these typically cost $50,000 each) that can charge a car most of the way in 20 to 30 minutes.
NRG has commitments from Best Buy (10 locations), Walgreen's and local liquor chain Spec's to install charging stations in their parking lots. Chevron and Shell are potential partners in the talking stage, so there could be fast charging at gas stations, too.
First "privately funded" electric-car infrastructure
Larsen emphasizes that, although federal subsidies are available to install public charging, the company isn't going there. "This is the first privately funded EV infrastructure," he said. Consumers in Houston will be offered a lucrative deal: $89 a month in a three-year plan that covers all charging at home (the electricity costs are taken off the bill) and in public, including fast charging.
Customers will also get a 240-volt charger installed at no cost to them. NRG is taking names now, and will launch the program soon. It expands to Dallas/Fort Worth in March, followed by Austin/San Antonio. "This is a fantastic deal, and it's environmentally sound," Larsen said. "Our customers care about reducing our dependence on foreign oil."
Larsen pointed out that charging partners benefit, too -- the stations (two per location) will be close to the road and the power poles, giving good visibility and sending a green message.
At the smart energy house, actors playing the resident family described the Houston program and played up the ease of charging their Nissan Leaf. "It's as easy as plugging in a cell phone," one family member said. "And every time we charge, the cost goes down."
GE's commitment: cars and charging stations
Michael Mahan, GE Energy's global product manager for industrial solutions, stood next to a Chevy Volt plugged into a home-based WattStation. The sleek station was styled by designed Yves Behar, and GE is offering a limited edition of 250 signed by him.
"We feel we're uniquely positioned in the electric vehicle space," Mahan said. "We have the smart grid capability, the power generation, the software, the charging stations and also the cars through our 25,000 order." He said that GE will roll out its 480-volt fast charger, also branded as a WattStation, later in 2011.
"Fast charging will make sense for long-distance travel in the transportation corridors, but people will be using 240-volt home charging for most of their needs," Mahan said. "It's estimated that people will need one and a half chargers each, including one at home and access to one at work and other places, for charging to be successful. In parking lots, it makes sense for three percent of new spaces to have EV charging."
Still working out what it will cost
GE hasn't yet worked out what it will charge for electricity at its stations, but Mahan estimated that over the next three years the EV business in all its forms will be worth $500 million to GE. "It's a lot more than just the charger," he said. "There are the upstream services, fleet leasing, smart grid applications, many different aspects."
The first 12,000 cars GE is buying are Chevy Volts, but it is also looking at many other models. And the plans for the WattStation are ongoing: GE is talking to potential of charging partners, paralleling NRG in Houston. These include restaurant and movie chains, parking garage companies, gas station owners, and others. "Gas stations are a good target for fast charging," Mahan said, pointing to a deal announced last October to install fast chargers at 45 BP and Arco stations. That program is federally supported, through The EV Project.
Like many EV advocates, Mahan points out that most Americans drive less than they think they do, so range anxiety shouldn't concern them as much as it apparently does in polls. "Ninety percent of consumers drive less than 100 miles a day," he said.
Mahan also noted that electric cars are an increasingly big player in the field of consumer electronics. "The smart phone apps for charging EVs are getting consumers excited," he said. "And I think it says something that Ford is choosing to debut its electric Focus here at the Consumer Electronics Show, rather than at the Detroit Auto Show next week."
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Photo: Jim Motavalli