Summary
- V2G technology can save Europeans up to $22 billion a year in utility costs by 2040
- EVs plugged in at home or work can reduce the need for stationary battery storage by up to 92% by 2040
- Bidirectional charging could save EV drivers up to 52% on annual electricity bills, equating to reductions of up to €780 a year
- Renault 5 EV will have V2G capability, allowing the vehicle to share power with the grid
- Standards matter for the adoption of V2G technology in Europe, as different technical approaches could hinder interoperability
Article
The Fraunhofer Institute was asked by Transport and Environment to investigate the potential economic benefits of widespread V2G (vehicle-to-grid) technology in Europe. The report found that V2G technology has the potential to save Europeans up to $22 billion a year in utility costs by 2040. Initially, the savings would be modest due to small-scale adoption, but as the technology becomes more widely available, the savings would increase year by year. The electrification of the mobility sector is expected to increase electricity demand and the need for renewable energy generation, making V2G technology crucial in alleviating pressure during this transformation.
Smart charging and bidirectional charging technologies are seen as significant contributors to decreasing curtailment, electricity network expansion, and the integration of photovoltaic capacity. By implementing smart and bidirectional charging, system cost savings of more than 10 percent can be achieved. The report highlights that bidirectional charging offers additional advantages, such as reducing the need for backup capacity from gas and hydrogen power plants. The flexibility provided by electric cars, especially in integrating PV capacity effectively, is considered a key advantage of V2G technology.
The potential benefits of V2G technology include reducing the need for stationary battery storage by up to 92% in 2040, integrating more solar energy capacity into Europe’s grid, and contributing up to 9% of the EU’s annual power needs by 2040. By storing excess renewable energy, Europe’s EV fleet could become the fourth-largest electricity supplier in the EU and reduce the need for additional generation capacity. The study also suggests that bidirectional charging could save EV drivers up to 52% on annual electricity bills, leading to potential reductions of up to €780 a year.
Standards for V2G technology are essential for its successful adoption, as different technical approaches can hinder interoperability. The lack of standardization in onboard and residential chargers poses a challenge to the widespread implementation of V2G. To unlock the potential of V2G technology, lawmakers are encouraged to set EU standards for bidirectional charging. The report also highlights the varying requirements for V2G in different EU countries, with regulatory hurdles and technical differences in charging systems impacting the technology’s adoption.
Renault has announced its partnership with The Mobility House to integrate V2G capability into the new Renault 5 EV, allowing the vehicle to share power with the electrical grid. The V2G technology will enable the R5 to become a storage power plant by returning excess energy to the grid, marking a significant step towards integrating EVs into the energy system. The Mobility House’s V2G platform utilizes an EV aggregation platform to market customers’ charging flexibility on electricity markets, creating a potential revenue stream for EV owners. By adopting V2G technology, EVs can play a crucial role in supporting the transition to renewable energy on grids.
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