SummaryThis report examines the economic drivers, technology constraints, and market potential for plug-in hybrid electric vehicles (PHEVs) in the U.S. A PHEV is a hybrid vehicle with batteries that can be recharged by connecting to the grid and an internal combustion engine that can be activated when batteries need recharging. The PHEV offers the range of existing hybrid vehicles, while potentially offering the cost savings and energy benefits of electric vehicles.When considering whether to purchase PHEVs, consumers must weigh the benefits of reduced energy consumption against the cost premium for the PHEV technology. As the cost premium is reduced over time, the PHEV will become more attractive to consumers. There still remain technical questions surrounding the ability of the battery and automotive industries to meet the demand for PHEVs given the current reliance on internal combustion technology and uncertainty associated with the battery technology required to support PHEV development.This report attempts to address some of these questions by presenting and examining a series of PHEV market penetration scenarios. Based on input received from technical experts and industry representatives contacted for this report and data obtained through a literature review, annual market penetration rates for PHEVs were forecast from 2013 through 2045 for three scenarios. The assumptions underlying the three scenarios are highlighted in Table 1. Greene et al. (2004) with PHEV shares of the hybrid market estimated in EPRI and NRDC (2007).-PHEV technology development accelerated as a result of advancements made in hybrid technology.
R&D Goals Achieved-Delphi approach asking domain experts for their best judgment, given the following conditions: -$4,000 marginal cost of PHEV technology over existing hybrid technology -40 mile all electric range -100 miles per gallon equivalent -PHEV batteries meet industry standards regarding economic life and safety -Tax incentives, regulations and technical standards favor PHEVs.
Supply Constrained-Infusion of PHEVs in marketplace constrained by automotive and battery manufacturers' ability to meet surging demand.-Existing idle off-peak capacity of electric infrastructure able to meet the demand placed on it by 73% of light-duty vehicles in the U.S.Under the Hybrid Technology-Based Assessment scenario, market penetration is forecast to reach 9.7% by 2023 and 11.9% by 2035. Under the R&D Goals Achieved scenario, PHEV iii iv market penetration is forecast to ultimately reach 30%, with 9.9% achieved by 2023 and 27.8% reached by 2035. Finally, the Supply Constrained scenario is forecast to achieve 73% market penetration, with 26.9% reached by 2023, and 68.4% reached by 2035.Barriers to market penetration considered in this report include price, vehicle dependability, battery reliability, battery technology and supply, automotive design, re-design of the manufacturing process, supply chain management, engineering capabilities, raw material constraints, and idle off-peak capacity of electric ...