A recent study showed that 42 percent of customers say they are likely to buy a hybrid or an electric vehicle in the next two years. And, clearly, increasing numbers of electric vehicles will have a significant impact on energy demand. Just consider that the addition of one electric vehicle to a household can double home energy consumption while the vehicle is charging.
Put another way, if you add an electric vehicle to a household, it becomes the single largest consumer of electricity in the home. Now imagine everyone coming home at 6 p.m. and immediately charging their cars – it would be like a traffic jam on our electrical grid. Addressing the challenge of how we manage that demand in a smart and affordable way —from energy utilities down to consumers—is going to be critical. We believe technology will be essential to support the entire energy ecosystem.
A future with electric cars is going to transform so much of our society—and it’s coming soon. Which is why I’m delighted to announce that Ford and Microsoft are teaming up to implement Hohm for Ford’s electric vehicles. Ford is the first automaker announcing the use of Hohm, starting with the Focus Electric next year. Hohm will help owners determine when to most efficiently and affordably recharge battery electric (BEV) and plug-in hybrid (PHEV) vehicles. Our plan is to make electric vehicle ownership easier and more affordable for consumers and help utility companies manage the added demands of electric vehicles on the electric grid.
Electric vehicles will require consumers to change the way they think about personal transportation and energy use. With Hohm, Ford and Microsoft are aiming to help customers avoid unnecessary expenses by providing insight into their energy usage patterns and the ability to determine the optimal time to charge their vehicle - for example, between midnight and 6 a.m. when electricity rates are less expensive.
Today, Microsoft and Ford plan to take the first steps to bring energy- and money-saving capabilities to Ford’s future electric vehicle customers. Building on our experience and the research Ford has conducted, we expect to bring in other companies in the future to make this shared vision a reality. Together, Hohm and Ford can help utility companies determine and better manage the demands placed on the electric grid.
For Ford and Microsoft, this initiative is about creating an ecosystem of energy and allowing hundreds of millions of consumers and thousands of energy providers to be far more inter-connected than ever before. It closes the loop between electricity supply and demand.
Ford and Microsoft both believe that the electric vehicle will be the driving force behind a revolution in the energy sector. Their commercialization will take broad-based collaboration and systems solutions. We will need to work together like never before, and we’re happy to be starting today with our friends at Ford.
Stay tuned for more details on our electric vehicle efforts, and don’t forget to follow us on Facebook and Twitter.