DETROIT - FORD Motor Co and Microsoft Corp have signed a deal to work together on a computerised link between houses, electric cars and utility companies to help manage energy use.
The companies said on Wednesday at the New York International Auto Show that this is the beginning of a smart system that will help utilities and customers manage energy costs and electrical generating capacity.
The system would start with the all-electric Ford Focus compact car that is scheduled to go on sale late in 2011. Called 'Microsoft Hohm,' it will allow utilities to vary electric rates based on the time of day. A computer would determine the best time to recharge the car at the lowest cost and the least burden on the utility's generating system.
Charging an electric car can double the energy used at a home, and utilities worry about the increased burden on their power generators. But charging the cars late at night, when appliances and other big electricity users aren't working, can help manage the load.
The companies have time to work out details of exactly how the system will work, figuring out electric rates and loads on generating systems, said Derrick Kuzak, Ford's global product development chief. Microsoft already has computer nodes for home thermostats and appliances to manage electricity use, he said.
'We're doing a lot to bring vehicles to market, but there has to be a lot of other work done from both a consumer and utility perspective to make this viable and affordable,' Mr Kuzak said on Wednesday in an interview. The system eventually will lead to homeowners being able to use their cars to power home appliances and cut costs at peak electricity use times, Ford CEO Alan Mulally said on Wednesday. -- AP
The companies said on Wednesday at the New York International Auto Show that this is the beginning of a smart system that will help utilities and customers manage energy costs and electrical generating capacity.
The system would start with the all-electric Ford Focus compact car that is scheduled to go on sale late in 2011. Called 'Microsoft Hohm,' it will allow utilities to vary electric rates based on the time of day. A computer would determine the best time to recharge the car at the lowest cost and the least burden on the utility's generating system.
Charging an electric car can double the energy used at a home, and utilities worry about the increased burden on their power generators. But charging the cars late at night, when appliances and other big electricity users aren't working, can help manage the load.
The companies have time to work out details of exactly how the system will work, figuring out electric rates and loads on generating systems, said Derrick Kuzak, Ford's global product development chief. Microsoft already has computer nodes for home thermostats and appliances to manage electricity use, he said.
'We're doing a lot to bring vehicles to market, but there has to be a lot of other work done from both a consumer and utility perspective to make this viable and affordable,' Mr Kuzak said on Wednesday in an interview. The system eventually will lead to homeowners being able to use their cars to power home appliances and cut costs at peak electricity use times, Ford CEO Alan Mulally said on Wednesday. -- AP
