Vehicle-to-Grid — Unleashing the Potential of Idle EV Batteries
The global electric vehicle (EV) market has rapidly grown in the last decade. At the end of 2020, more than 10 million EVs were on the road worldwide. This momentum persisted even during the pandemic due to supportive regulatory frameworks, additional incentives by governments, and continued decreasing battery costs. The positive trend is predicted to continue, reaching a global EV fleet of 145–215 million vehicles in 2030 [1].
Consequently, the EV battery capacity will increase massively over the next decade and is predicted to exceed the stationary energy storage capacity by a wide margin. Naturally, discussion about utilizing the large capacity of idle batteries of EVs that are parked most of the time is picking up [2].
Especially, the so-called Vehicle-to-Grid (V2G) technology is seen as a promising approach by many experts. This technology enables unused electricity of the EV’s battery to be fed back into the grid. In other words, the EV operates as a vehicle when needed and turns into a storage device when connected to the grid [3].
V2G can provide a win-win situation for network operators and EV owners since balancing the grid is getting increasingly challenging as the share of renewable energy is rising. EV batteries can help to provide the needed flexibility by providing peak-shaving and valley filling in an economical and effective way. In return, EV owners can receive financial incentives for plugging in their vehicles as often as possible [4].
Currently, the V2G sector is still in a pilot and commercial trial phase and needs to overcome several barriers before a large-scale implementation can be realized. For example, there is still a lack of EVs that support bidirectional charging which is the prerequisite for V2G. Some EV owners are also hesitant to participate because they fear battery degradation from increased charging even though initial research shows that the opposite might be true and it could actually increase the longevity of batteries if managed correctly [2, 5].
One of the pioneers in the V2G sector is the California-based company Nuvve which already implemented several V2G projects around the world over the last decade. One of the projects started five years ago in cooperation with the Danish Technical University (DTU) at Frederiksberg Forsyning, a municipal water and gas utility company in Denmark. It is known as the world’s first fully commercial V2G hub.
The EVs participating in the project are connected to the grid via a 10kW bidirectional charger that is controlled via the so-called Nuvve GIVe™ Platform. The software automatically regulates the charging process of EVs. It calculates how much charge is necessary for the pre-determined driving needs of the vehicle before using the surplus electricity for grid services.
The EVs at Frederiksberg Forsyning were on average connected to the grid for 17 hours per day resulting in a contribution of around US$2,000/EV in market revenue over the two-year period from 2017 to 2018. This allows Nuvve to provide incentives such as reduced charger costs, low or even free electricity costs, fleet management tools, and yearly maintenance [6, 7].
Nuvve and other innovative companies are continuing to expand the V2G technology in an ever-increasing EV market. Car manufacturers like Volkswagen are also seeing the potential and starting to implement bidirectional charging in their new EVs [8]. Vehicle-to-Grid could play a vital role in ensuring the flexibility of the future grid and allowing a high share of wind and solar energy in the electricity mix if a large-scale implementation is realized.
References:
[1] IEA (2021), ‘Global EV Outlook 2001 — Accelerating ambitions despite the pandemic’, Online: https://iea.blob.core.windows.net/assets/ed5f4484-f556-4110-8c5c-4ede8bcba637/GlobalEVOutlook2021.pdf
[2] Hilton, G. (2021), ‘Vehicle-to-grid outlook’, Online: https://www.pv-magazine.com/2021/08/10/vehicle-to-grid-outlook/
[3] Sovacool, B. K. et al. (2020), ‘Actors, business models, and innovation activity systems for vehicle-to-grid (V2G) technology: A comprehensive review’, Renewable and Sustainable Energy Reviews, 131(January), pp. 1–21. doi: 10.1016/j.rser.2020.109963
[4] Wang, Z. and Wang, S. (2013), ‘Grid power peak shaving and valley filling using vehicle-to-grid systems’, IEEE Transactions on Power Delivery, 28(3), pp. 1822–1829. doi: 10.1109/TPWRD.2013.2264497
[5] Uddin, K., Dubarry, M. and Glick, M. B. (2018), ‘The viability of vehicle-to-grid operations from a battery technology and policy perspective’, Energy Policy, 113(August 2017), pp. 342–347. doi: 10.1016/j.enpol.2017.11.015
[6] Nuvve (2020), ‘Nuvve Corporation Announces Four Years of Consecutive V2G Operations of Electric Vehicle Fleet in Denmark’, Online: https://nuvve.com/four-years-of-consecutive-v2g-in-denmark/
[7] Nuvve (2021), ‘Nuvve and Frederiksberg Forsyning Celebrate 5 Years of Continuous V2G Operations’, Online: https://nuvve.com/nuvve-and-frederiksberg-forsyning-celebrate-5-years-of-continuous-v2g-operations/
[8] Handelsblatt (2021), ‘ „Bidirektionales Laden“: So will Volkswagen am Speichern von Strom verdienen’, Online: https://www.handelsblatt.com/mobilitaet/elektromobilitaet/elektromobilitaet-bidirektionales-laden-so-will-volkswagen-am-speichern-von-strom-verdienen/27052182.html
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Text by Christian Doedt
