Leveraging Vehicle-to-Grid Technology with Electric Vehicles as Energy Storages
How e-mobility can contribute to future energy supply
What is Vehicle-To-Grid (V2G) and what are the benefits?
The energy crises and the shift away from fossil fuels have sparked an unprecedented boom in renewable energy in Europe. However, the volatility of wind and solar power also presents new challenges for our fragile power grid. To ensure a stable energy supply and achieve climate targets, an intelligent “smart” power grid is needed. This requires a significant amount of flexible energy storage capacities which will continue to rise. This is where Vehicle-to-Grid (V2G) technology with bidirectional charging emerges as a practical solution to ease the strain on our grids.
V2G technology enables EVs to both charge and feed surplus energy into the grid. Electric car batteries are thereby used as mobile power plants and energy storage units. Based on this, bidirectional power flow can support grid stability. For V2G, many different key players from the energy and automotive market need to be involved. At the same time, technology is opening new opportunities for both companies and end-users. With Vehicle-to-Building (V2B), several electric vehicles support the energy supply of large buildings covering peak loads. Vehicle-to-Home (V2H) uses the EV for local energy storage – mainly for temporarily storing electricity that has been produced at home.
How can the power grid benefit from Vehicle-to-Grid (V2G)?
With the concept of Vehicle-to-Grid (V2G) Balancing power the electric vehicle batteries function as a virtual mega power station absorbing energy bottlenecks to stabilize the grid and mitigate potential power outages. Every single vehicle can contribute to ensure grid stability. Even if only 10-20% of every electric vehicle battery capacity is used for V2G, the storage capacity grows with the number of electric vehicles integrated into the grid swarm. Less stationary energy storage is needed for a successful transition to renewable energy.
Next to V2G Balancing power, Unidirectional Smart Charging (V1G) can have additional impact to ensure grid stability. Here, stabilization is achieved without any bidirectional charging technology by halting battery charging when negative control power occurs.
How can companies benefit from Vehicle-to-Everything (V2X)?
Companies require a stable energy supply. Especially for production environments, an uninterrupted power supply is essential.
On top, companies can use bidirectional charging technology based on the Vehicle-to-Building (V2B) Demand charge management: Electric vehicles can be used as decentralized energy storage systems for supplying energy to buildings. Leveraging EV batteries to handle spikes in energy demand within buildings, such as factories, leads to optimized operations, thereby increasing productivity and minimizing instances of unexpected downtime. In particular, companies with larger fleets have a great potential to integrate electric vehicles into an intelligent energy management system.
Beneficial use cases for end customers
End consumers can also reap the benefits of the Vehicle-to-Grid (V2G) ecosystem. By agreeing to provide a portion of their electric vehicle's battery capacity to ensure grid stability through V2G Balancing Power, they become eligible for financial compensation. This means that they will be rewarded for their contribution, making it a win-win situation for both the consumers and the grid.
With the majority of vehicles being parked for extended periods, end customers have an additional opportunity to benefit from V2G Arbitrage. This concept allows batteries to be charged at the most cost-effective electricity rates. When energy is required, these batteries can serve as a power source by providing a portion of their stored capacity. This dynamic is made possible by the increasing availability of flexible electricity tariffs, which are being introduced more frequently. As a result, end customers can take advantage of these emerging options to optimize their energy consumption and save on costs.
In addition to V2G, end customers can also take advantage of vehicle-to-home (V2H) technology to optimize their own energy consumption. With a local photovoltaic system, solar energy can be stored directly in the vehicle's battery and utilized as needed. This eliminates the need for a separate local energy storage system, simplifying the setup for customers.
Overcoming barriers when implementing Vehicle-To-Grid (V2G) technology
Unlocking the full potential of Vehicle-to-Grid (V2G) technology requires careful consideration of various factors. While it offers numerous advantages, there are also several challenges that need to be addressed to successfully implement it:
- Regulations: Varying grid codes and regulations across regions are challenges for a smooth implementation of V2G use cases.
- Technology: Frequent additional cyclings of the EV battery for V2G use cases can accelerate battery degradation. This seems to be rather a minor factor, but proper communication with customers is necessary to reduce concerns.
- Relevance for customers: The attractiveness of use cases is a major challenge for the success of V2G. Customers need to be aware of the potential of these new opportunities and a clear benefit for customers is needed for each use case.
Key factors for success in Vehicle-To-Grid (V2G)
Business Model
V2G offers several possible use cases. Deciding on the most relevant use cases and a solid business model is the key to success.
Business Case
Based on the defined business model, monetization options need to be evaluated and a business case needs to be defined.
Go-to-market strategy
The formulation of a go-to-market strategy is important to successfully launch V2G use cases.
Partner network
V2G offers great potential. On the other hand, the complexity of the topic requires a strong network of partners (e.g. energy providers).
Technical setup & regulations
The European energy market is highly regulated. V2G technology needs to be developed considering all relevant regulations on the European and national levels.
Embracing the future for Vehicle-To-Grid (V2G) technology
Vehicle-to-Grid (V2G) technology is quickly gaining traction in the automotive and energy sectors, offering a promising solution for energy transmission and grid stability. While several framework conditions need to be addressed to fully unlock its potential, now is the time to leverage V2G in less complex use cases. Major OEMs have already started pilot projects, and we anticipate increasing market dynamics in the coming months. The future of V2G looks bright, with significant benefits for OEMs, suppliers, and end customers, playing a crucial role in shaping the future of energy and automotive industries.