By 2025 V2G could provide additional revenues and cost savings of US$2 billion to global energy suppliers and offer consumers 15% savings on household energy bill
LONDON, Sept. 18, 2018 /PRNewswire/ -- As the market for EVs begins to take traction, new opportunities are being opened for innovative technologies and approaches to radically transform how consumers use energy. One such transformative technology is Vehicle-to-Grid (V2G) technology, the bi-directional flow of energy from the grid to the vehicle and vice versa. A recent study conducted by ABI Research, a market-foresight advisory firm providing strategic guidance on the most compelling transformative technologies found that V2G could enable consumers to save as much as US$272 per year on their energy bill as well as bring significant cost-savings and additional revenues of US$2 billion to global energy suppliers in 2025.
"V2G could be a real game-changer in how energy is not only consumed but also generated," says Shiv Patel, Research Analyst at ABI Research. "V2G will be used to build on existing smart charging principals of encouraging energy use during off-peak hours. However, what's unique about V2G is that it will enable some of this energy to be distributed back to the grid via bi-directional charging, for use during peak hours."
V2G will not only enable consumers to make cost savings of up to 15% on their household energy bill but will also critically load shift demand from peak to off-peak. ABI Research forecasts that up to 21TWh of energy could be distributed to the grid via V2G in 2025, although this would just be a fraction of the actual 585 TWh of spare energy storage available on electric vehicles over the same year. This will enable energy markets to better incorporate intermitted renewable energy sources, such as wind, by creating off-peak storage, allowing these renewable energy sources to run more often during off-peak hours. V2G will also provide the grid-critical additional resources for primary and secondary frequency control as well as help grid operators better manage line constraints and forecast demand. This is vital for grid stability.
Currently, the biggest barrier to V2G is the current lack of Original Equipment Manufacturer (OEM) support. Without the wider support from OEMs, a large proportion of the EV market will be shut off from using V2G. Only Nissan, one of the forefront leaders in electric vehicle technology, has seriously committed to the technology. That said, just this month, the China Electricity Council (CEC) and the CHAdeMO association have decided to unify their charging standards which should allow V2G to become available on the most popular charging standard in the world, GB/T.
Elsewhere, large parts of the ecosystem are starting to come together to get behind V2G technology. For instance, OVO Energy, a UK energy supplier is working on launching a home-charger for V2G in partnership with Nissan later this year, making V2G more accessible. Meanwhile, aggregator, Nuvve and charging infrastructure supplier New Motion are both trialing frequency control services with grid operator TenneT, while also working to ensure that these services are optimized for the grid. The optimization of aggregation services and integration into the grid will be the key to maximizing economic benefits for all stakeholders.
"If important players like OEMs, energy suppliers, transmission system operations, and aggregators can continue to come together, then there is no reason why current market barriers can't be overcome. When they are, V2G will benefit all stakeholders - from consumers to OEMs - and have a huge impact on the way energy itself is used," Patel concluded.
ABI Research provides strategic guidance for visionaries needing market foresight on the most compelling transformative technologies, which reshape workforces, identify holes in a market, create new business models and drive new revenue streams. ABI's own research visionaries take stances early on those technologies, publishing groundbreaking studies often years ahead of other technology advisory firms. ABI analysts deliver their conclusions and recommendations in easily and quickly absorbed formats to ensure proper context. Our analysts strategically guide visionaries to take action now and inspire their business to realize a bigger picture. For more information about ABI Research's forecasting, consulting and teardown services, visionaries can contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.