IBM Leads Energy Technologies Institute Study Into the Impact of Electric Vehicles on UK Power Grid

By Ibm, PRNE
Wednesday, March 17, 2010

Project to assess infrastructure upgrades required and regulatory issues

LONDON, March 19, 2010 - IBM (NYSE: IBM) today announced an agreement with the Energy Technologies
Institute (ETI) to evaluate the potential impact of electric vehicles on the
UK electricity grid. The project will also assess the infrastructure required
to achieve a mass market for electric and plug-in hybrid electric vehicles in
the UK.

(Logo: www.newscom.com/cgi-bin/prnh/20090416/IBMLOGO )

IBM will lead the co-ordination of a consortium of companies, EDF Energy,
E.ON and Imperial Consultants, in conducting the study which is being
undertaken at an important time. The UK government has already committed 300
million pounds to create the infrastructure for plug-in vehicles and has
provided consumer incentives. Supporting infrastructure has already begun
rolling out in London, the North East and Milton Keynes. In addition, the
Office for Low Emission Vehicle's (OLEV) has said it will provide grants of
up to 5,000 pounds for consumers who buy ultra-low carbon cars.

The project will focus on a number of areas:

    - Analysis of how growth in electric vehicle recharging could
      impact electricity distribution networks, and what steps energy
      companies could take to overcome any barriers to supplying demand.
    - Identification of the smart infrastructure needed for mass market
      uptake of electric vehicles in the UK.
    - Design concepts for the 'intelligent architecture' of
      interconnected data and systems needed to enable local networks of
      electric vehicle charging points linked to the distribution networks.
    - Planning for design changes which maintain distribution networks'
      effective operation and management.
    - Assessment of current issues and likely future developments
      involving regulatory, legislative and commercial matters related to the
      recharging infrastructure.

Dr David Clarke, the Chief Executive Officer of the Energy Technologies
Institute, said "Achieving these major milestones sets the ETI firmly on
track to start extensive real-world testing of consumer attitudes to plug-in
vehicles and the supporting infrastructure through 2010 and into 2011.

"With the Committee on Climate Change indicating in October 2009 a
potential need for 1 billion pounds of investment in vehicle price support,
realising a self-sustaining mass market for plug-in vehicles is a huge
challenge. By developing and robustly testing these pathways, we aim to act
as a guiding light to support over 300 million pounds of UK investment
already committed to infrastructure deployment and consumer incentives for
plug-in vehicles."

The IBM led research is one of three projects totalling 4.5 million
pounds that have been launched as part of the ETI's 11 million pound
Electrification of Light Vehicles programme. The other projects will assess
the economic and carbon benefits as well as the consumer behaviour patterns
linked to the mass roll-out of plug-in vehicles. Together the projects are
intended to propose an overall system architecture for integrating plug-in
vehicles considering: electricity networks, charging points, and payment
systems and helping to ensure compatibility across the UK.

The three projects will culminate in the largest electric vehicle
analysis to date in the world with more than 3,000 vehicles owned and driven
by consumers. Over 11,000 charge points will be installed across areas in
London and the South East, the Midlands and the North East.

"Electric vehicles have enormous potential for creating a cleaner
transport system to help the UK meet its 2050 carbon reduction targets.
However, there is uncertainty over the pace of vehicle development, consumer
take up and patterns of usage and charging. It is important we anticipate the
likely requirements these developments will have for grid enhancement and the
need for an intelligent architecture," said Jon Bentley, Energy & Environment
Partner, IBM Global Business Services.

He continued, "We need to take action now to ensure lead times are put in
place for open and interoperable architectures, while allowing time to
monitor the positive impact on the electric vehicle market. Furthermore, we
need to achieve these goals alongside related programmes in smart grids and
smart metering, the shift to a renewable generation and the development of
smart homes which are already under-way and gaining momentum."

IBM has a long history of expertise in smart grids and intelligent
infrastructure, having been involved in more than 60 smart grid projects
around the world - from innovative research projects to full scale
deployments. IBM is currently partnering with the country of Malta to create
the first nation-wide smart grid and has completed a pilot project with DONG
Energy in Denmark to install remote monitoring and control devices to gain
information about the state of the grid. This project alone reduced outage
times in Denmark by 25% - 50%.

IBM is involved in e-mobility and electric vehicle projects around the
globe. IBM's expertise extends from technology and business architectures to
understanding how electric vehicles interact with the electricity network and
renewable power generation. For example, IBM has undertaken a project with
the EDISON research consortium in Denmark
(www.youtube.com/watch?v=SQDtbxeUsHI) to explore how to turn millions
of electric vehicles into a distributed storage system for the nation's
ambitious wind energy plans. IBM is also researching commercially viable
lithium air batteries that will enable electric vehicles to travel up to 500
miles on one charge.

About the ETI:

For further information, please call Richard Robinson on +44-01509-202026
or Nigel Richardson on +44-01509-202084.

The Energy Technologies Institute (ETI) is a UK based company formed from
global industries and the UK Government. The ETI brings together projects and
partnerships that create affordable, reliable, clean energy for heat, power
and transport.

About IBM: For more on e-mobility at IBM, see
www.ibm.com/ibm/ideasfromibm/us/electriccars/20090928/index.shtml?sa_campaign=message/leaf1/corp/smarterplanet/electriccar

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    Contact
    Lucy Chapman
    External Relations - IBM UK Communications
    +44 20 7021 8911
    +44 7920 823 429
    LUCYCHAPMAN@uk.ibm.com

Lucy Chapman, External Relations - IBM UK Communications, +44-20-7021-8911, +44-7920-823-429, LUCYCHAPMAN at uk.ibm.com

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