General Motors’ ambitious plans for the electric vehicle industry could help boost operations at a leading utility company with a partnership announced Tuesday morning.
What happened: A collaboration between General Motors Co. (NYSE: GM) and PG&E Corp. (NYSE: PCG) was announced Tuesday morning.
The partnership will see General Motors electric vehicles used as backup power sources for PG&E customers.
“We are really excited about this innovative collaboration with GM,” said the CEO of PG&E. Patti Poppe noted. “Imagine a future where everyone drives an electric vehicle – and where that electric vehicle serves as a home backup power option and a broader grid resource.”
The two companies will work together to test the use of electric vehicles as “on-demand power sources for homes in PG&E’s service area.”
Bi-directional charging technology will be used in the test, linking an electric vehicle to a customer’s home.
“GM’s collaboration with PG&E further expands our electrification strategy, demonstrating that our electric vehicles are reliable sources of mobile power,” said GM CEO. Mary Barra noted. “Our teams are working to rapidly scale this pilot project and bring two-way charging technology to our customers.”
Testing is expected to begin on home vehicle pilots in the summer of 2022. Pilot testing will include several GM electric vehicle models. Large customer trials are expected to follow by the end of 2022 following a successful pilot program.
Related Link: Why PG&E’s New CEO Patricia Poppe Could Help Restore Trust in the Company, Stock
Why it matters: Electric vehicles could play an important role in reducing greenhouse gas emissions. According to the companies, bi-directional charging could help improve electrical resilience and reliability.
“Not only is this a huge step forward for electrical reliability and climate resilience, but it’s yet another benefit of clean electric vehicles, which are so important in our collective fight against climate change,” said poppe.
PG&E is one of the largest utility companies in the United States, serving more than 5.5 million electric customers in the State of California and 4.5 million natural gas customers. The company covers some of the most populous cities in the state, including San Francisco, San Diego and Sacramento, and a total of 70,000 square miles in the state.
PG&E has also partnered with BMW (OTC: BMWYY) for a similar vehicle-network agreement.
California is home to 320,000 electric vehicles, which represents about 20% of all electric cars in the United States.
By using vehicle-to-grid, PG&E could help strengthen its power grid and prevent potential overloads and outages from occurring in the future.
Price action from GM, PCG: General Motors shares rose 2.76% to $40.93 on Tuesday.
PG&E shares are down 0.29% at $10.48.
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