Southern California Edison and Ford Team Up to Reward Electric Vehicle Customers for Supporting the Grid

Rhea-AI Summary

Southern California Edison (SCE) and Ford Motor Company have partnered to offer electric vehicle (EV) owners compensation for supporting the grid during peak energy demand periods. Ford becomes the first major U.S. automaker to participate in SCE's Emergency Load Reduction Program (ELRP), enhancing grid resilience and advancing vehicle grid integration (VGI).

Through Ford's California Power Response program, EV drivers can earn $1 per kWh of energy reduced during peak grid events. This initiative demonstrates the growing importance of collaboration between automakers and utility companies to support grid resiliency as more EVs enter the market. The program utilizes Ford's managed charging solution and is expected to provide valuable load reduction during peak demand periods.

Positive

• Ford becomes the first major U.S. automaker to participate in SCE's Emergency Load Reduction Program
• EV owners can earn $1 per kWh of energy reduced during peak grid events
• The program is expected to provide valuable load reduction during peak demand periods
• Collaboration between automakers and utility companies enhances grid resiliency

Negative

• None.

Insights

Market Research Analyst

Ford's collaboration with Southern California Edison (SCE) in the Emergency Load Reduction Program (ELRP) marks a significant milestone in vehicle-grid integration (VGI). This partnership could potentially reshape the EV market and utility sector dynamics. By offering $1 per kWh compensation to EV owners during peak demand, Ford is creating a compelling value proposition that could accelerate EV adoption.

The program's success could lead to increased demand for Ford's EVs, potentially boosting their market share in California, a key EV market. Moreover, this initiative might pressure other automakers to develop similar programs, intensifying competition in the VGI space. For investors, this move signals Ford's commitment to innovation and could positively impact the company's long-term growth prospects in the evolving automotive landscape.

Tech Expert

Ford's participation in SCE's ELRP demonstrates a significant technological leap in vehicle-to-grid (V2G) integration. This program leverages Ford's managed charging solution, showcasing the company's advanced EV technology capabilities. The ability to bidirectionally transfer power between EVs and the grid is a game-changer for energy management.

This initiative could accelerate the development of more sophisticated V2G technologies, potentially leading to new revenue streams for Ford through licensing or partnerships. It also positions Ford as a leader in smart grid solutions, which could attract tech-savvy consumers and investors. However, the success of this program will largely depend on the reliability and scalability of the underlying technology, which will be important for widespread adoption and long-term viability.

Financial Analyst

While the immediate financial impact of this program may be , it represents a strategic move with long-term financial implications for Ford. By incentivizing EV ownership through grid participation, Ford could see increased sales and customer loyalty in the competitive California market. The $1 per kWh compensation offered to customers creates an additional value stream that differentiates Ford's EVs from competitors.

This initiative also aligns with the growing ESG focus among investors, potentially enhancing Ford's attractiveness to sustainability-minded shareholders. However, the program's profitability and scalability remain to be seen. Investors should monitor the adoption rate and any impact on Ford's operating costs. If successful, this model could be replicated in other markets, potentially creating new revenue opportunities and strengthening Ford's position in the EV market.

Ford becomes first major automaker in the U.S. to participate in Emergency Load Reduction Program that compensates car owners for assisting the grid during peak periods of energy demand

ROSEMEAD, Calif.--(BUSINESS WIRE)-- Ford Motor Company electric vehicle owners and lessees in Southern California Edison’s (SCE) service area now have the option to be compensated for assisting the electric grid during peak periods of energy demand. Ford is the first major U.S. automaker to facilitate customer participation in SCE’s Emergency Load Reduction Program (ELRP), one of the utility’s ongoing efforts to enhance grid resilience that also advances vehicle grid integration (VGI).

Ford’s support of the ELRP (through Olivine, Inc., which administers distributed energy resources) demonstrates the growing importance of coordinated actions by the automotive industry and utility companies to support grid resiliency as millions of electric vehicles enter the U.S. market. Ford is offering electric vehicle customers participation in ELRP through its California Power Response program.

California Power Response will take advantage of Ford’s managed charging solution and is expected to provide a valuable source of load reduction in times of peak demand, which benefits the grid — and customers — while paving the way for future innovations in energy management and grid interaction. Electric vehicle drivers in Ford’s California Power Response program will earn $1 per kWh of energy reduced during peak grid events, creating financial incentives never before possible with gas-powered vehicles.

“The future of the two-way grid is now. The electric industry has been preparing infrastructure and systems to take advantage of vehicle-to-grid integration, and a lot of hard work on all sides is now making that a reality,” said Steve Powell, president and CEO of SCE. “Ford’s support of the ELRP will show how EVs can make the grid more resilient. The ELRP incentivizes EV drivers to send power from their car battery to the grid when it is needed most.”

“Becoming the first U.S. automaker to participate in the ELRP program through Ford’s California Power Response program is another example of Ford maximizing every benefit possible for our electric vehicle customers,” said Bill Crider, senior director, global charging and energy services, Ford Motor Company. “Electric vehicles can deliver cost savings through incentives provided by leading utilities such as Southern California Edison, and current vehicle-to-home and near-future vehicle-to-grid services open even more benefits to customers, the electric grid and communities at large.”

Ford and SCE are working with Olivine as the formal participant in the VGI component of the ELRP. Olivine’s role is pivotal to managing the seamless integration of EV charging into the ELRP, allowing for real-time adjustments and optimized charging strategies that align with grid needs.

“Olivine is proud of our long history of empowering consumers to align with grid needs. Our partnership with Ford is an exciting illustration of what can be accomplished when we work toward the future together,” said Beth Reid, CEO of Olivine.

As VGI technologies mature, SCE will continue prioritizing customer needs through ongoing collaboration with vehicle manufacturers, charging station providers and VGI aggregators. For more information on SCE’s Emergency Load Reduction Program and how businesses and residents can participate, please visit elrp.sce.com.

Eligible Ford EV drivers can apply for the California Power Response program here: www.ford.com/grid/capr.

About Southern California Edison

An Edison International (NYSE: EIX) company, Southern California Edison is one of the nation’s largest electric utilities, serving a population of approximately 15 million via 5 million customer accounts in a 50,000-square-mile service area within Central, Coastal and Southern California.

About Ford Motor Company

Ford Motor Company (NYSE: F) is a global company based in Dearborn, Michigan, committed to helping build a better world, where every person is free to move and pursue their dreams. The company’s Ford+ plan for growth and value creation combines existing strengths, new capabilities and always-on relationships with customers to enrich experiences for customers and deepen their loyalty. Ford develops and delivers innovative, must-have Ford trucks, sport utility vehicles, commercial vans and cars and Lincoln luxury vehicles, along with connected services. The company does that through three customer-centered business segments: Ford Blue, engineering iconic gas-powered and hybrid vehicles; Ford Model e, inventing breakthrough electric vehicles along with embedded software that defines exceptional digital experiences for all customers; and Ford Pro, helping commercial customers transform and expand their businesses with vehicles and services tailored to their needs. Additionally, Ford provides financial services through Ford Motor Credit Company. Ford employs about 175,000 people worldwide. More information about the company and its products and services is available at corporate.ford.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240909872257/en/

SCE Media Relations: (626) 302-2255

News@sce.com



Ford Media Relations: Emma Bergg, ebergg@ford.com

Source: Southern California Edison

FAQ

How much can Ford EV owners earn through SCE's Emergency Load Reduction Program (ELRP)?

Ford EV owners participating in the California Power Response program can earn $1 per kWh of energy reduced during peak grid events through SCE's Emergency Load Reduction Program (ELRP).

What is the significance of Ford's participation in SCE's ELRP for EIX stock?

Ford's participation in SCE's ELRP demonstrates the growing importance of vehicle grid integration, which could potentially benefit EIX by enhancing grid resilience and providing valuable load reduction during peak demand periods.

How does Ford's California Power Response program work with SCE's ELRP?

Ford's California Power Response program utilizes the company's managed charging solution to participate in SCE's ELRP, allowing EV owners to receive compensation for supporting the grid during peak energy demand periods.

What role does Olivine play in the partnership between Ford and SCE for the ELRP?

Olivine acts as the formal participant in the vehicle grid integration component of the ELRP, managing the seamless integration of EV charging into the program and allowing for real-time adjustments and optimized charging strategies that align with grid needs.